Unifi Inc. reported Q4 FY2026 net sales of $144.2 million, a 4.1% increase from $138.5 million in the same period a year earlier, as the company’s 18-month restructuring program gained traction. Gross profit rose to $14.3 million from a $1.1 million loss in Q4 FY2025, lifting the gross margin to 9.9% from negative 0.8%, a 1,070-basis-point improvement.
Adjusted EBITDA turned positive at $8.2 million, compared with a loss of $4.1 million in the prior-year quarter. The company posted a net loss of $1.2 million and an adjusted net loss of $1.1 million, narrower than the $10.6 million adjusted net loss in Q4 FY2025 before excluding a gain from the Madison facility sale.
Free cash flow for the quarter reached $1.0 million, reversing a negative $3.9 million in the same period last year. For the full fiscal year, free cash flow totaled $21.5 million, a $53.3 million improvement from the negative $31.8 million recorded in FY2025. Capital expenditures declined to $1.1 million in Q4 from $2.6 million a year earlier, while full-year capex fell to $5.0 million from $10.5 million.
Net debt decreased by $17.9 million to $67.4 million, and working capital improved to $148 million from $165 million. Management highlighted a pending $60 million real estate sale expected to close within months.
Segment performance showed broad-based improvement. The Americas segment reported flat revenue at $84.4 million but swung to a gross profit of $3.3 million from a $5.3 million loss, expanding the gross margin to 3.9% from negative 6.3%. Brazil revenue rose 17.8% to $33.9 million, with gross profit surging 483% to $7.7 million and gross margin expanding to 22.6% from 4.6%. Asia revenue grew 4.5% to $25.8 million, with gross profit up 16.3% to $3.4 million and gross margin improving to 13.0% from 11.7%.
Looking ahead, Unifi projects FY2027 capex of $7 million to $9 million. The company reiterated its 2030 target for REPREVE recycled fibers to account for 50% of fiber sales. Strategic partnerships with Dolce Vita and Dagne Dover continue to incorporate REPREVE materials in product lines.
Shares traded at $7.84, within a 52-week range of $2.96 to $8.47. Analysts forecast an 8% revenue decline for FY2027 and maintain a $12 price target.
