Unifi (UFI) investor relations material

Executive summary

• Achieved significant profitability improvement and positive cash flow, with $8.0 million provided by operating activities in Q3 and $24.4 million for the nine months ended March 29, 2026.

• Net sales for Q3 FY26 were $130.0 million, down 11.3% year-over-year, but up 7.1% sequentially; net loss narrowed to $2.3 million from $16.8 million year-over-year.

• Gross profit improved to $9.1 million from a loss of $0.4 million in the prior year quarter, driven by cost-saving initiatives and operational optimization.

• Adjusted EBITDA turned positive at $4.0 million, compared to negative $4.9 million in the prior year quarter.

• Strategic repositioning, cost reductions, and innovation platforms, including new product launches, supported momentum and margin expansion.

Financial highlights

• Net sales for Q3 FY26 were $130.0 million, down 11.3% year-over-year; gross profit reached $9.1 million (7% margin), reversing a prior year gross loss.

• Adjusted EBITDA was $4.0 million, up from a loss of $4.9 million in Q3 FY25.

• SG&A expenses fell 9% year-over-year to $11.2 million.

• Free cash flow for Q3 FY26 was $7.2 million, with $24.4 million provided by operations for the nine months.

• Net debt decreased to $68.4 million from $85.3 million at June 29, 2025.

Outlook and guidance

• Q4 focus on positive free cash flow, balance sheet strength, and leveraging improved cost structure for growth.

• Expect improved sales and profitability in Brazil, continued innovation adoption in Asia, and ongoing margin growth in Americas.

• Most raw material cost increases expected to be passed through via pricing actions by end of Q4.

• Working capital expected to increase by $4–$7 million in Q4 due to higher sales and input costs.

• Liquidity remains sufficient for ongoing operations, with $55.9 million available as of March 29, 2026.