Unifi Inc. (NYSE: UFI) posted fourth-quarter revenue above analyst expectations but missed earnings per share estimates, with shares rising in after-hours trading on Wednesday.
The synthetic yarn manufacturer reported net loss of 6 cents per share, missing the consensus estimate of 5 cents per share. Revenue totaled $144.2 million, exceeding the $139.8 million forecast and rising 4.1% from $138.5 million in the prior-year period. Adjusted EBITDA improved to $8.2 million from a loss of $4.1 million in the same quarter a year earlier. Gross profit reached $14.3 million, compared with a gross loss of $1.1 million in the prior-year quarter, lifting gross margin to 9.9% from -0.8%.
Cash provided by operating activities for the quarter was $2.1 million, while full-year fiscal 2026 cash flow from operations totaled $26.5 million, an improvement from a negative $21.3 million in fiscal 2025. Total debt principal declined to $92.4 million from $108.0 million a year earlier.
Revenue growth was driven primarily by higher sales in the Brazil segment, though growth was tempered by cautious ordering in the Americas and Asia segments amid geopolitical and tariff-related uncertainty. The company also announced an agreement to sell non-strategic real estate assets for gross proceeds of $60.0 million, proceeds intended to support debt reduction and strengthen the balance sheet.
Unifi expects fiscal 2027 sales and profitability to improve relative to fiscal 2026, citing full-year benefits from portfolio management actions and cost containment initiatives. CEO Eddie Ingle stated that the company closed fiscal 2026 with momentum, highlighting improved profitability and cash generation through disciplined execution of cost reduction and operational optimization efforts.
