Core Insights - Unifi, Inc. has released its FY2025 Sustainability Snapshot, showcasing its advancements in the REPREVE platform and commitment to circular materials [1] - The company achieved a significant milestone by transforming 1 billion T-shirts' worth of textile and yarn waste through the REPREVE platform [1] Company Progress - The Snapshot emphasizes the growth of the REPREVE platform, which is a key focus for Unifi, Inc. in promoting sustainability [1] - Unifi, Inc. is recognized as one of the leading innovators in recycled and synthetic yarns, highlighting its role in the industry [1]

Group 1 - The company has not announced any significant upcoming events such as earnings release dates or investor meetings as of February 13, 2026 [1] - The stock experienced notable volatility in early January 2026, with a rapid increase of 6.28% on January 6, followed by a decline of 5.48% on January 10 [2] - The latest financial report indicates that the company is still in a loss position, with revenue of $136 million and a net loss of $11.36 million [3]

Financial Performance - UNIFI reported net sales of $121,368,000 for the three months ended December 28, 2025, a decrease of 12.6% compared to $138,880,000 for the same period in 2024[96]. - Consolidated net sales decreased by $17,512, or 12.6%, with sales volumes down 9.8% due to reduced customer inventories and lower demand in the Americas and Asia segments[102]. - Consolidated net sales for the six months ended December 28, 2025, decreased by $29,210, or 10.2%, compared to the prior period, primarily due to lower sales volumes in the Asia Segment and a lower-priced sales mix in the Americas Segment[134]. - The Americas Segment reported net sales of $77,233, a decrease of 7.1% from the prior period, with a gross loss of $399 compared to a gross loss of $6,540 previously[119]. - The Brazil Segment's net sales fell by 15.1% to $23,328, with a significant decrease in gross profit of 72.1% to $1,056[122]. - The Asia Segment experienced a 26.5% decline in net sales to $20,807, with gross profit decreasing by 10.2% to $2,954[124]. - The Americas Segment reported net sales of $162,429, a decrease of 4.1% from $169,378 in the prior period, with a gross loss of $2,111 compared to a gross loss of $7,918 previously[153]. - Brazil Segment net sales decreased by 15.7% to $52,089 from $61,792, primarily due to lower selling prices and sales volumes[155][157]. - Asia Segment net sales decreased by 22.8% to $42,524 from $55,082, mainly due to a decline in sales volumes and competitive pricing pressures[159]. Profitability - The cost of sales for the current period was $117,757,000, representing 97.0% of net sales, down from 99.6% in the prior period[96]. - Gross profit increased to $3,611,000, with a gross margin of 3.0%, compared to a gross margin of 0.4% in the prior period[96]. - Gross profit for the current six-month period decreased to $6,998 from $9,992 in the prior period, a decline of 30.0%, driven by lower sales volumes and production volatility[136]. - Operating loss increased to $16,909, representing 6.6% of net sales, compared to a loss of $10,780, or 3.8% of net sales, in the prior period, marking a 56.9% increase in operating loss[128]. - Net loss for the current period was $21,063, an increase of 10.7% from the prior period's net loss of $19,024, attributed to decreased gross profit and restructuring costs[128]. - UNIFI's net loss for the current period was $9,706,000, a 14.8% improvement from a net loss of $11,392,000 in the prior period[96]. - Adjusted EBITDA for the three months ended December 28, 2025, was $(749,000), significantly improved from $(5,839,000) in the prior period[97]. - Adjusted EBITDA for the six months ended December 28, 2025, was $(3,293), compared to $(2,540) in the prior period, reflecting a decrease due to lower gross profit[129]. - Segment Profit for the Americas Segment increased to $7,711 from $2,826, driven by cost-saving initiatives and increased sales volumes[154]. Cost Management - The company recorded employee separation costs of $1,093,000 as part of its Fiscal 2026 Profit Improvement Plan[89]. - SG&A expenses decreased due to actions taken as part of the Fiscal 2026 Profit Improvement Plan[105]. - SG&A expenses decreased by 12.5% to $21,661, down from $24,763 in the prior period, primarily due to actions from the Fiscal 2026 Profit Improvement Plan[128]. - Restructuring costs of $1,093 were incurred related to the Fiscal 2026 Profit Improvement Plan, alongside a gain of $308 from asset disposals[107]. - Restructuring costs incurred in the current period totaled $1,068, related to the consolidation of manufacturing operations, with no restructuring costs reported in the prior period[141]. Liquidity and Debt - Cash provided by operations for the current six-month period was $16,362, with total debt obligations at $105,405[163][164]. - As of December 28, 2025, UNIFI's Net Debt decreased to $75,213 from $85,344, reflecting improved operating cash flows[172]. - Adjusted Working Capital decreased by $17,830 from June 29, 2025, totaling $133,337 as of December 28, 2025[173]. - UNIFI entered into a $25,000 revolving credit facility with Wells Fargo, maturing by October 28, 2027, to enhance liquidity[162]. - Available liquidity as of December 28, 2025, was $48,604, with $34,912 in potential borrowings available under financing arrangements[165]. - Adjusted Working Capital decreased due to lower inventories, receivables, and other current assets, partially offset by reductions in accounts payable and other current liabilities[174]. Foreign Currency and Geopolitical Risks - The weighted average exchange rate for the Brazilian Real to USD was 5.39 for the current period, compared to 5.80 in the prior period[83]. - 32.3% of total consolidated assets were held by subsidiaries outside the U.S. with functional currencies not in USD, indicating exposure to foreign currency exchange rate risk[189]. - Total cash and cash equivalents held outside the U.S. amounted to $26,907, with 89.1% of this total denominated in foreign currencies[189]. - The company is exposed to geopolitical risks, including changes in international trade laws and regulations[191]. Strategic Focus - UNIFI is focusing on expanding its presence in non-apparel markets and advancing the development of innovative and sustainable solutions[84]. - The company has expanded its asset-light model beyond China with the addition of Unifi Textiles India in October 2024[86]. - REPREVE® Fiber products accounted for 28% of consolidated net sales, down from 31% in the prior period[103]. - REPREVE® Fiber products accounted for 29% of consolidated net sales, totaling $73,536, down from 31% or $88,014 in the prior period[135]. - No share repurchases were completed in fiscal 2026, indicating a focus on maintaining liquidity[182]. - UNIFI is not involved in any off-balance sheet arrangements that could materially affect its financial condition[185].

Financial Data and Key Metrics Changes - Net sales for the quarter decreased by 12.5% year-over-year, primarily due to lower demand in the Asia segment and pricing pressure in Brazil [8] - Consolidated gross profit was $3.6 million with a gross margin of 3%, compared to a gross profit of $500,000 and a gross margin of 0.4% in the same quarter last year [8] - SG&A expenses improved by 25% year-over-year, totaling $9.7 million, while adjusted EBITDA loss improved by $5.1 million compared to the previous year [8][9] - Year-to-date free cash flow reached $13.3 million, a significant increase from the previous year's first-half results [12] Business Line Data and Key Metrics Changes - In the Americas, net sales decreased by 7.1% due to a lower portion of fiber sales and tariff uncertainty, but gross profit increased by $6.1 million due to cost-saving initiatives [9] - The Brazil segment experienced declines in net sales and gross profit due to pricing pressures, but demand and growth opportunities remain strong [10] - Asia segment net sales and gross profit declined by 27% and 10%, respectively, but gross margin improved by 260 basis points year-over-year [10][11] Market Data and Key Metrics Changes - Demand in Central America has picked up, presenting a near-shoring opportunity for retailers and brands in North America [5] - Holiday sales for apparel were solid, with a 4% increase, indicating a positive trend in customer orders [4] - The recent reciprocal tariff agreements with El Salvador and Guatemala are expected to positively impact orders from these regions [28] Company Strategy and Development Direction - The company is focused on returning to long-term growth and profitability through improved operating models, investment in brands, innovation, and converting operational progress into financial momentum [17][18] - Strategic initiatives over the past two years have included cost structure realignment, manufacturing footprint consolidation, and a focus on innovation [21][22] - The company aims to leverage its improved operating platform to drive long-term results and is optimistic about future revenue growth [6][29] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about improved order trends and customer engagement, particularly in the U.S. and Central America [4][7] - The company anticipates realizing the full benefits of cost reduction initiatives and improved working capital efficiency in the upcoming quarters [14][28] - There is an expectation for greater clarity on the global trade environment, which should support revenue improvement moving forward [28] Other Important Information - The company has reduced its headcount by 25% in North America, leading to improved plant efficiencies [3] - Capital expenditures during the first half were $3.1 million, a 60% decline compared to the prior period, reflecting prioritized spending [12][13] Q&A Session Summary Question: Demand pickup across segments - Management noted that demand is improving across all segments, with Brazil showing positive momentum post-holiday and Central America benefiting from tariff agreements [34][35] Question: Update on Beyond Apparel initiatives - Beyond Apparel initiatives are performing well, particularly in packaging and carpet sectors, with expectations for growth in military and tactical areas [36][37] Question: Pricing dynamics in segments - Pricing pressures in Brazil are easing, while slight price increases are observed in Asia due to supply chain dynamics [41][42] Question: Revenue mix for break-even - The company indicated that achieving break-even would require mid- to high-300s gross margins in the Americas, with other segments contributing to the overall margin improvement [46]

Financial Data and Key Metrics Changes - Net sales for the quarter decreased by 12.5% year-over-year, primarily due to lower demand in the Asia segment and pricing pressure in Brazil [9] - Consolidated gross profit was $3.6 million with a gross margin of 3%, compared to a gross profit of $500,000 and a gross margin of 0.4% in the same quarter last year [9] - SG&A expenses were $9.7 million, reflecting a 25% improvement from the prior year [9] - Adjusted EBITDA loss improved by $5.1 million compared to the previous year, now at a loss of $0.7 million [9] Business Line Data and Key Metrics Changes - In the Americas, net sales decreased by 7.1% due to a lower portion of fiber sales and tariff uncertainty, but gross profit increased by $6.1 million due to cost-saving initiatives [10] - Brazil segment saw declines in net sales and gross profit due to pricing pressures, but demand and growth opportunities remain strong [11] - Asia segment experienced a 27% decline in net sales and a 10% decline in gross profit, although gross margin improved by 260 basis points year-over-year [12] Market Data and Key Metrics Changes - Demand in Central America has picked up, presenting a near-shoring opportunity for retailers and brands in North America [5] - Holiday sales for apparel were solid, with a 4% increase, indicating a positive trend in customer orders [4] - Tariff complexities have created uncertainty, but recent agreements in Central America may improve conditions for future sales [29] Company Strategy and Development Direction - The company is focused on returning to long-term growth and profitability through cost structure realignment and operational improvements [17][18] - Key areas of focus include improving the operating model, investing in brand strength, fostering innovation, and converting operational progress into financial momentum [18][19] - The company has executed strategic initiatives to streamline operations and reduce costs, including the sale of the Madison facility and headcount reductions [20][21] Management's Comments on Operating Environment and Future Outlook - Management is cautiously optimistic about improved order trends and customer engagement, particularly in the U.S. and Central America [4][8] - The company anticipates realizing full benefits from cost reduction initiatives and improved working capital efficiency in the upcoming quarters [14][28] - There is an expectation for revenue improvement as clarity on the global trade environment increases [28] Other Important Information - Year-to-date free cash flow reached $13.3 million, a significant increase compared to the previous year [13] - Net debt was reduced to $75 million, reflecting improvements in the balance sheet and capital structure [14] - The company is prioritizing disciplined inventory builds to support higher sales activity in the future [15] Q&A Session Summary Question: Demand pickup across segments - Management noted that demand is improving across all segments, with Brazil showing positive momentum post-holiday and Central America benefiting from tariff agreements [36][37] Question: Update on Beyond Apparel initiatives - Beyond Apparel initiatives are performing well, particularly in packaging and carpet sectors, with expectations for growth in military and tactical areas [38][39] Question: Pricing dynamics in segments - Pricing pressures in Brazil are easing, while slight price increases are observed in Asia due to supply chain dynamics [44][45] Question: Break-even revenue mix - The break-even revenue point is estimated at $575 million, with expectations for mid- to high-300s gross margins in the Americas and contributions from other segments [48]

Financial Data and Key Metrics Changes - Net sales for the quarter decreased by 12.5% year-over-year, primarily due to lower demand in the Asia segment and pricing pressure in Brazil [9] - Consolidated gross profit was $3.6 million with a gross margin of 3%, compared to a gross profit of $500,000 and a gross margin of 0.4% in the same quarter last year [9] - SG&A expenses were $9.7 million, reflecting a 25% improvement from the prior year [9] - Adjusted EBITDA showed a loss of $0.7 million, an improvement of $5.1 million compared to the previous year [9] Business Line Data and Key Metrics Changes - In the Americas, net sales decreased by 7.1% due to a lower portion of fiber sales and tariff uncertainty, but gross profit increased by $6.1 million due to cost-saving initiatives [10] - The Brazil segment experienced declines in net sales and gross profit due to pricing pressures, but demand and growth opportunities remain strong [11] - Asia segment net sales and gross profit declined by 27% and 10% respectively, but gross margin improved by 260 basis points year-over-year [11] Market Data and Key Metrics Changes - Demand in Central America has picked up, presenting a near-shoring opportunity for retailers and brands in North America [5] - Holiday sales for apparel were solid, with a 4% increase, indicating a positive trend in customer orders [4] - The recent reciprocal tariff agreements with El Salvador and Guatemala are expected to positively impact the company's operations [25] Company Strategy and Development Direction - The company is focused on returning to long-term growth and profitability through four key areas: improving the operating model, investing in brand strength, fostering innovation, and converting operational progress into financial momentum [16] - Strategic initiatives over the past two years have included cost structure realignment, manufacturing footprint consolidation, and a sales transformation plan [18] - The company aims to leverage improved operational platforms to drive long-term results and is optimistic about future revenue growth [6][19] Management's Comments on Operating Environment and Future Outlook - Management noted initial signs of an improved operating environment driven by increased customer engagement and post-holiday restocking [7] - The company expects to realize full benefits from cost reduction initiatives and improved working capital efficiency in the third quarter [24] - There is cautious optimism regarding revenue improvement as clarity on the global trade environment is anticipated [24] Other Important Information - Year-to-date free cash flow reached $13.3 million, a significant increase compared to the previous year's first-half results [12] - Net debt was reduced to $75 million, reflecting improvements in the balance sheet and capital structure [13] - The company is prioritizing disciplined inventory builds to accommodate higher sales activity in the near future [13] Q&A Session Summary Question: Demand pickup across segments - Management indicated that demand is improving across all segments, with Brazil showing positive momentum due to government stimulation and restocking in the U.S. and Central America [30][31] Question: Update on Beyond Apparel initiatives - Beyond Apparel initiatives are focused on sectors like carpet and packaging, with strong performance noted in packaging and slight growth in carpet [32][33] Question: Pricing dynamics in segments - Pricing pressures in Brazil are easing, while slight price increases are observed in Asia. The U.S. and Central America have benefited from targeted price increases and restructuring efforts [37][38] Question: Revenue mix needed for break-even - The company expects mid- to high-300s gross margins in the Americas, with other segments contributing to reach a high single-digit gross margin for break-even [40][41]

UNIFI, Inc. Second Quarter Fiscal 2026 Earnings Conference Call February 4, 2026 (Unaudited results) (Amounts and dollars in millions, unless otherwise noted) Exhibit 99.2 Cautionary Statements Forward-Looking Statements Certain statements included herein contain "forward-looking statements" within the meaning of federal securities laws about the financial condition and results of operations of the Company that are based on management's beliefs, assumptions, and expectations about our future economic perfor ...

Financial Performance - Net sales for Q2 Fiscal 2026 were $121.4 million, a decrease of 12.6% from $138.9 million in Q2 Fiscal 2025, primarily due to trade and tariff-related uncertainty [3]. - Gross profit increased to $3.6 million with a gross margin of 3.0%, compared to $0.5 million and 0.4% in Q2 Fiscal 2025 [3]. - Net loss for Q2 Fiscal 2026 was $9.7 million, or $0.53 per diluted share, compared to a net loss of $11.4 million, or $0.62 per share, in Q2 Fiscal 2025 [3]. - Adjusted Net Loss for Q2 Fiscal 2026 was $8.9 million, significantly improved from $15.7 million in the prior year period [3]. - Consolidated net sales for the three months ended December 28, 2025, were $121.368 million, a decrease of 12.6% from $138.880 million for the same period in 2024 [20]. - Consolidated gross profit for the three months ended December 28, 2025, was $(399) thousand, compared to $(6,540) thousand for the same period in 2024 [20]. - Net loss for the three months ended December 28, 2025, was $(9,706) thousand, an improvement from $(11,392) thousand for the same period in 2024 [23]. - Adjusted EBITDA for the three months ended December 28, 2025, was $(749) thousand, compared to $(5,839) thousand for the same period in 2024 [23]. Cash Flow and Debt Management - Cash provided by operating activities was $25.3 million in Q2 Fiscal 2026, up from $16.4 million for the six months ended December 28, 2025 [3]. - Debt principal decreased to $105.4 million and Net Debt was $75.2 million as of December 28, 2025, down from $108.0 million and $85.3 million, respectively, at June 29, 2025 [3]. - Net Debt as of December 28, 2025, was $75.213 million, down from $85.344 million as of June 29, 2025 [31]. Cost Management - SG&A expenses decreased by 25% to $9.7 million from $12.9 million in Q2 Fiscal 2025, driven by cost alignment efforts [3]. - The company implemented additional cost savings initiatives in October 2025, focusing on reducing variable manufacturing costs and optimizing commercial execution [7]. - UNIFI recorded employee separation costs of $1,093 thousand in connection with the Fiscal 2026 Profit Improvement Plan [24]. - The company incurred transition costs totaling $1,068 thousand related to the consolidation of its yarn manufacturing operations [30]. Future Outlook - Management expects to generate positive operating cash flow in the upcoming quarters as market conditions normalize and customer engagements improve [8]. - The company anticipates modest increases in working capital levels in support of increased sales as customers rebuild inventory in calendar 2026 [8]. Risks and Uncertainties - Forward-looking statements include guidance pertaining to financial outlook and involve risks and uncertainties that may cause actual results to differ materially [44]. - Factors affecting performance include global competition, changes in trade regulations, and consumer spending trends [45]. - The company acknowledges the unpredictability of new factors that may emerge and impact actual results [46]. - UNIFI does not undertake any obligation to update forward-looking statements except as required by federal securities laws [46]. - Risks and uncertainties are detailed in UNIFI's most recent Annual Report on Form 10-K and other reports filed with the SEC [46].

Core Viewpoint - Unifi, Inc. will host a conference call to discuss its second quarter fiscal 2026 financial results on February 4, 2026 [1] Company Information - Unifi, Inc. is a leading innovator in recycled and synthetic yarns and is known for its REPREVE® brand [1] - The financial results and supporting materials will be available after market trading on the preceding day [1]

Group 1 - Unifi, Inc. (UFI) is positioned for recovery after a significant downturn in the textile industry, with easing pressures from the pandemic and tariff uncertainties expected to drive demand normalization and restocking [2][3] - The company generates approximately 60% of its revenue in the U.S. and has potential for growth in recycled polyester products, with management projecting at least 10% revenue growth by 2026 due to cost-cutting and asset optimization [3] - UFI's trailing revenues are $571 million, compared to a normalized $700 million, leading to a low price-to-sales ratio of 0.14x, suggesting a potential share price increase to between $22 and $35, indicating a fivefold upside from current levels [4] Group 2 - Insider confidence is bolstered by significant stakes from notable figures like Home Depot co-founder Ken Langone, indicating trust in management's ability to navigate through the downturn [5] - The sale of the Madison, North Carolina facility has reduced UFI's debt by over $40 million and is expected to save $20 million annually, aiding in reaching breakeven even in weak market conditions [3] - UFI is not among the 30 most popular stocks among hedge funds, with a decrease in hedge fund portfolios holding UFI from 11 to 9, although it is still recognized for its investment potential [8]