GREENSBORO, N.C.— October 29, 2026 — Unifi, Inc., the makers of REPREVE® and one of the world’s leading innovators in recycled and synthetic yarns, today released operating results for the first fiscal quarter ended September 27, 2026.
Highlights
- Net sales were $127.9 million, a decrease of 5.7% from the first quarter of fiscal 2026.
- Revenues from REPREVE Fiber products were $36.4 million and represented 29% of net sales, compared to $39.3 million or 29% of net sales for the first quarter of fiscal 2026.
- Gross profit was $12.5 million and gross margin was 9.8%, compared to gross profit of $3.4 million and gross margin of 2.5% for the first quarter of fiscal 2026.
- SG&A expenses were $11.5 million, a decrease of 4.1% from the first quarter of fiscal 2026, primarily driven by cost reduction efforts.
- Net loss was $2.0 million, or $0.11 per share, compared to a net loss of $11.4 million, or $0.62 per share, for the first quarter of fiscal 2026.
- Adjusted EBITDA* was $6.1 million, compared to a loss of $(2.5) million for the first quarter of fiscal 2026.
- Cash provided by operating activities was $3.7 million during the first quarter of fiscal 2027, marking the fourth consecutive quarter of positive cash generation.
- Debt principal was $90.9 million and Net Debt* was $64.8 million at September 27, 2026.
- Continued efforts across innovation and traceability through the introductions of CofiraTM, a versatile dual function yarn, Resist2OTM Pro, an advanced water-resistant yarn, and YarnProofTM, supporting compliance with yarn-forward requirements in North and Central America.
- On October 28, 2026, a previously announced sale of non-strategic real estate assets was completed with gross proceeds of $60.0 million, allowing for the full payoff of an existing term loan balance of $55.5 million.
Eddie Ingle, Chief Executive Officer of Unifi, Inc., stated, “Our results for the first quarter demonstrate the continued benefits of the actions that have been implemented to improve operational efficiency and enhance both our cash generation and profitability performance. This is evident by the significant increase in gross profit year-over-year, which highlights the improved earnings potential of our business and our progress towards building a more profitable operating platform. Additionally, the recent closing on the sale of two non-strategic assets represents another important milestone in our plan to reduce debt and strengthen the balance sheet, helping create greater financial flexibility as we continue to execute our strategic priorities.”
First Quarter Fiscal 2027 Compared to First Quarter Fiscal 2026
Net sales decreased to $127.9 million from $135.7 million, primarily due to tepid customer ordering patterns in the Americas and Asia Segments stemming from geopolitical, trade, and tariff-related uncertainty, partially offset by higher sales from the Brazil Segment.
Gross profit increased to $12.5 million from $3.4 million. Americas Segment gross profit increased by $6.4 million, primarily as a result of multi-year cost reduction efforts. Brazil Segment gross profit increased by $2.5 million, primarily due to favorable pricing dynamics and sales mix. Accordingly, operating loss, net loss, and Adjusted EBITDA all improved significantly.
Cash provided by operating activities was $3.7 million compared to cash used of $8.9 million, reflecting stronger earnings performance and continued working capital discipline.
Net Debt* was $64.8 million as of September 27, 2026 compared to $67.4 million as of June 28, 2026.
Outlook
During fiscal 2027, the Company continues:
- To focus on leveraging the improved cost footprint while investing in innovation.
- Managing the balance sheet to ensure that the Company remains better positioned to capitalize on improved business conditions and grow over time.
- To expect sales and profitability to improve from fiscal 2026 as the Company realizes full-year benefits from portfolio management actions, cost containment initiatives, and improved operating execution.
During the second quarter of fiscal 2027, the Company expects the following year-over-year factors:
- Cost savings and stable demand aid in the Americas Segment.
- Brazil Segment sales and profitability should be consistent, while raw material inflation pressures will negatively impact working capital.
- The Asia Segment will remain pressured due to regional softness and geopolitical volatility, but profitability should remain stable given the asset light business model in the region.
Ingle concluded, “Looking ahead, we remain focused on sustaining the operational improvements that we have made over the last few years. At the same time, we continue to invest in our platform of sustainable solutions, centered on our many REPREVE offerings, and to advance the adoption of innovative solutions that will help drive future growth. While near-term market and geopolitical headwinds persist, we remain confident that we are on the right path to returning Unifi to sustainable growth and enhanced profitability.”
| * Adjusted Net Loss, Adjusted EBITDA, and Net Debt are non-GAAP financial measures. The schedules included in this press release reconcile each non-GAAP financial measure to its most directly comparable GAAP financial measure. |
Posted: November 3, 2026
Source: Unifi, Inc.
