Core Viewpoint - Unifi (UFI) reported a quarterly loss of $0.76 per share, which was better than the Zacks Consensus Estimate of a loss of $0.83, but worse than the loss of $0.57 per share from the previous year, indicating a mixed performance in earnings [1] Financial Performance - The company posted revenues of $146.56 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1%, but down from $149 million in the same quarter last year [2] - Over the last four quarters, Unifi has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - Unifi shares have declined approximately 17.1% since the beginning of the year, while the S&P 500 has decreased by 5.5% [3] - The current Zacks Rank for Unifi is 4 (Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.56 on revenues of $149.56 million, and for the current fiscal year, it is -$2.67 on revenues of $580.92 million [7] - The trend for estimate revisions ahead of the earnings release has been unfavorable, which may impact future stock performance [6] Industry Context - The Textile - Products industry, to which Unifi belongs, is currently ranked in the bottom 5% of over 250 Zacks industries, suggesting a challenging environment for the company [8]

Financial Performance - Q3 Fiscal 2025 - Consolidated revenue was $146.6 million, a decrease of 1.6% compared to Q3 Fiscal 2024[15] - Adjusted EPS was ($0.76), a decrease of 33.5% compared to Q3 Fiscal 2024[15] - Adjusted EBITDA was ($4.9) million, a decrease of 533% compared to Q3 Fiscal 2024[15] - REPREVE Fiber accounted for 31% of sales, consistent with Q3 Fiscal 2024[15] - Gross loss was ($0.4) million, a decrease of 109.3% compared to Q3 Fiscal 2024[34] Segment Performance - Americas net sales increased by 2.6% to $93.5 million, but experienced a gross loss of ($7.0) million[38] - Brazil net sales decreased by 4.9% to $28.1 million, with a gross profit of $3.0 million[41] - Asia net sales decreased by 12.0% to $24.9 million, with a gross profit of $3.5 million[44] Capital Structure and Outlook - The company anticipates reducing debt by $50 million through a pending asset sale[48] - The asset sale is expected to drive future annual savings of $3 million in interest and $20 million in manufacturing costs[48] - The company expects net sales and Adjusted EBITDA to improve sequentially from Q3 2025, driven by recovery in the Americas segment[52]

Third Quarter Fiscal 2025 Results [Financial and Operational Highlights](index=1&type=section&id=Financial%20and%20Operational%20Highlights) Unifi reported a 1.6% decrease in Q3 FY2025 net sales to $146.6 million and a wider net loss of $16.8 million, influenced by sales mix and Asia volumes, with a key facility sale agreement for debt reduction Q3 Fiscal 2025 Key Financial Metrics (vs. Q3 Fiscal 2024) | Metric | Q3 FY2025 | Q3 FY2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $146.6M | $149.0M | -1.6% | | REPREVE® Fiber Sales | $44.7M | $46.7M | -4.3% | | Gross (Loss) Profit | $(0.4)M | $4.8M | -108.3% | | Gross Margin | (0.3)% | 3.2% | -3.5 p.p. | | Net Loss | $(16.8)M | $(10.3)M | +63.1% | | Diluted EPS | $(0.92) | $(0.57) | +61.4% | | Adjusted EBITDA* | $(4.9)M | $(0.8)M | -512.5% | - Subsequent to the quarter's end, the company entered into an agreement to sell its Madison, North Carolina manufacturing facility for **$53.2 million**. The proceeds are designated for repaying outstanding debt[4](index=4&type=chunk) - The CEO noted that results were in line with expectations, driven by improved performance and positive traction in the Americas segment, particularly in Central America. The company is also making progress on optimizing the cost structure of its U.S. operations[3](index=3&type=chunk) [Detailed Financial Performance Analysis](index=2&type=section&id=Detailed%20Financial%20Performance%20Analysis) Net sales declined due to weaker sales mix and lower volumes in Asia and Brazil, partially offset by Americas growth, leading to a significant gross profit decrease and a widened operating loss of $13.9 million - Net sales decreased to **$146.6 million** from **$149.0 million**, mainly due to weaker performance in the Asia and Brazil segments, which was partly offset by higher sales volumes in the Americas Segment[5](index=5&type=chunk) - Gross profit declined by **$5.2 million** year-over-year. The Americas segment's gross profit fell by **$3.4 million** due to inflation and transition costs, Asia's by **$0.9 million** from lower volumes and unfavorable mix, and Brazil's by **$0.8 million** from currency effects[6](index=6&type=chunk) - Operating loss increased to **$13.9 million** from **$6.9 million** in the prior-year quarter, primarily due to the significant decrease in gross profit[7](index=7&type=chunk) [Segment Performance](index=8&type=section&id=Segment%20Performance) In Q3 FY2025, Americas net sales modestly increased to $93.5 million but gross loss widened to $7.0 million, while Brazil and Asia segments experienced declines in both net sales and gross profit Segment Net Sales (in thousands) | Segment | Q3 FY2025 | Q3 FY2024 | | :--- | :--- | :--- | | Americas | $93,544 | $91,130 | | Brazil | $28,124 | $29,573 | | Asia | $24,889 | $28,293 | Segment Gross (Loss) Profit (in thousands) | Segment | Q3 FY2025 | Q3 FY2024 | | :--- | :--- | :--- | | Americas | $(6,957) | $(3,514) | | Brazil | $2,988 | $3,837 | | Asia | $3,524 | $4,441 | [Strategic Initiatives and Outlook](index=2&type=section&id=Strategic%20Initiatives%20and%20Outlook) Unifi is executing a manufacturing transition for $20.0 million in annual cost savings, anticipating sequential Q4 FY2025 net sales and Adjusted EBITDA improvement, despite $6.0 to $8.0 million in restructuring expenses [Update on Manufacturing Transition](index=2&type=section&id=Update%20on%20Manufacturing%20Transition) The company is closing and transitioning domestic manufacturing operations, with a real estate sale expected by May 15, 2025, projecting **$20.0 million** in annual cost savings from headcount reduction and operational synergies - The manufacturing transition and restructuring charges will continue through Q1 of fiscal 2026 as machinery is relocated to other facilities in North and Central America[8](index=8&type=chunk) - The company expects to achieve annual cost savings of approximately **$20.0 million**, primarily from lower headcount and operational synergies, following the manufacturing footprint reduction[8](index=8&type=chunk) [Fiscal 2025 Outlook](index=3&type=section&id=Fiscal%202025%20Outlook) Unifi projects sequential Q4 FY2025 improvement in net sales and Adjusted EBITDA, driven by Americas recovery, while anticipating **$6.0 million** to **$8.0 million** in continued restructuring and transition expenses - Expects Q4 FY2025 net sales and Adjusted EBITDA to improve sequentially from Q3 FY2025[13](index=13&type=chunk) - Anticipates continued restructuring and transition expenses, primarily for equipment relocation and abandonment, between **$6.0 million** and **$8.0 million**[13](index=13&type=chunk) - The CEO stated that despite global macroeconomic uncertainty, the company has taken steps to improve the business and is positioned for future growth[10](index=10&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) This section presents Unifi's unaudited condensed consolidated financial statements as of March 30, 2025, including Statements of Operations, Balance Sheets, and Cash Flows, detailing the company's financial position and performance [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q3 FY2025, Unifi reported net sales of **$146.6 million**, a gross loss of **$0.4 million**, and a net loss of **$16.8 million** or **$0.92** per share, compared to prior year's **$149.0 million** sales and **$10.3 million** net loss Statement of Operations Highlights (in thousands, except per share amounts) | Metric | For the Three Months Ended Mar 30, 2025 | For the Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Net sales | $146,557 | $148,996 | | Gross (loss) profit | $(445) | $4,764 | | Operating loss | $(13,860) | $(6,926) | | Net loss | $(16,794) | $(10,295) | | Diluted net loss per share | $(0.92) | $(0.57) | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 30, 2025, Unifi's total assets decreased to **$446.5 million**, total liabilities increased to **$218.2 million**, and cash and cash equivalents significantly decreased to **$16.3 million** Balance Sheet Highlights (in thousands) | Metric | March 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $16,255 | $26,805 | | Total current assets | $245,530 | $248,933 | | Total assets | $446,540 | $469,244 | | Long-term debt | $127,894 | $117,793 | | Total liabilities | $218,154 | $205,859 | | Total shareholders' equity | $228,386 | $263,385 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended March 30, 2025, net cash used by operating activities was **$20.0 million**, contrasting with **$1.2 million** provided in the prior year, resulting in a **$10.6 million** net decrease in cash and cash equivalents Cash Flow Highlights (in thousands) | Metric | For the Nine Months Ended Mar 30, 2025 | For the Nine Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Net cash (used) provided by operating activities | $(19,994) | $1,160 | | Net cash provided (used) by investing activities | $179 | $(8,076) | | Net cash provided (used) by financing activities | $9,275 | $(12,236) | | Net decrease in cash and cash equivalents | $(10,550) | $(19,298) | [Reconciliation of GAAP to Non-GAAP Measures](index=8&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) This section details adjustments from GAAP to non-GAAP metrics, including **$2.9 million** in Q3 FY2025 transition costs, reconciling net loss to Adjusted EBITDA, Adjusted Net Loss, Adjusted EPS, and Net Debt [EBITDA and Adjusted EBITDA Reconciliation](index=8&type=section&id=EBITDA%20and%20Adjusted%20EBITDA%20Reconciliation) For Q3 FY2025, Unifi's net loss of **$16.8 million** reconciled to an EBITDA of **$(7.8) million**, with Adjusted EBITDA at **$(4.9) million** after **$2.9 million** in transition costs, a significant decline from prior year Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Metric | Q3 FY2025 | Q3 FY2024 | | :--- | :--- | :--- | | Net loss | $(16,794) | $(10,295) | | EBITDA | $(7,817) | $(777) | | Transition costs | $2,900 | $— | | **Adjusted EBITDA** | **$(4,917)** | **$(777)** | - The **$2.9 million** in transition costs for Q3 FY2025 consisted of facility closure/relocation costs (**$1.1M**), inventory write-downs (**$1.0M**), excess manufacturing costs (**$0.6M**), and employee separation/retention costs (**$0.2M**)[28](index=28&type=chunk) [Adjusted Net Loss and Adjusted EPS Reconciliation](index=9&type=section&id=Adjusted%20Net%20Loss%20and%20Adjusted%20EPS%20Reconciliation) In Q3 FY2025, GAAP net loss of **$16.8 million** or **$(0.92)** per share was adjusted for **$2.9 million** in transition costs, resulting in an Adjusted Net Loss of **$13.9 million** or **$(0.76)** per share Reconciliation of GAAP to Adjusted Net Loss and EPS | Metric | Q3 FY2025 | Q3 FY2024 | | :--- | :--- | :--- | | GAAP Net Loss | $(16,794)K | $(10,295)K | | GAAP Diluted EPS | $(0.92) | $(0.57) | | Transition costs | $2,900K | $— | | **Adjusted Net Loss** | **$(13,894)K** | **$(10,295)K** | | **Adjusted Diluted EPS** | **$(0.76)** | **$(0.57)** | [Net Debt Reconciliation](index=9&type=section&id=Net%20Debt%20Reconciliation) Net debt, calculated as total debt principal less cash, increased to **$123.7 million** as of March 30, 2025, up from **$103.5 million** on June 30, 2024, reflecting higher debt and lower cash Net Debt Calculation (in thousands) | Metric | March 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Debt principal | $140,002 | $130,299 | | Less: cash and cash equivalents | $16,255 | $26,805 | | **Net Debt** | **$123,747** | **$103,494** | - As of March 30, 2025, and June 30, 2024, nearly all of the company's consolidated cash and cash equivalents were held by its foreign operations[34](index=34&type=chunk) Supplementary Information [About UNIFI and REPREVE®](index=3&type=section&id=About%20UNIFI%20and%20REPREVE%C2%AE) UNIFI, Inc. is a global, vertically-integrated manufacturer specializing in fiber science and sustainable synthetic textiles, with its flagship REPREVE® brand transforming over **40 billion** plastic bottles into recycled fiber - UNIFI is a global leader in fiber science and sustainable synthetic textiles with direct operations in the United States, Colombia, El Salvador, and Brazil[12](index=12&type=chunk)[14](index=14&type=chunk) - REPREVE®, its leading brand of traceable recycled fiber, has transformed more than **40 billion** plastic bottles into recycled fiber for use in apparel, home, automotive, and other industries[15](index=15&type=chunk) [Non-GAAP Financial Measures Explanation](index=10&type=section&id=Non-GAAP%20Financial%20Measures%20Explanation) The company explains its use of non-GAAP financial measures like EBITDA and Net Debt, which management believes reflect underlying operations, while cautioning that these measures have limitations and are not substitutes for GAAP results - Management uses non-GAAP measures to assist in comparing operating performance on a consistent basis, for planning purposes, and as a valuation measure[40](index=40&type=chunk)[41](index=41&type=chunk) - A reconciliation of forward-looking non-GAAP guidance is not provided because predicting the timing and likelihood of future events like restructurings or M&A activity cannot be done without unreasonable effort[39](index=39&type=chunk) - The company acknowledges limitations of non-GAAP measures, stating they should not be considered in isolation and that investors should rely primarily on GAAP results[43](index=43&type=chunk)[44](index=44&type=chunk) [Cautionary Statement on Forward-Looking Statements](index=11&type=section&id=Cautionary%20Statement%20on%20Forward-Looking%20Statements) This statement warns that the report includes forward-looking statements, which are not guarantees of future performance and are subject to numerous risks and uncertainties, including industry competition, trade policies, and economic conditions - Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from expectations[46](index=46&type=chunk) - Key risk factors include the competitive nature of the textile industry, changes in trade regulations, raw material pricing, economic conditions, consumer spending shifts, and the financial condition of customers[47](index=47&type=chunk) - The company does not undertake any obligation to update forward-looking statements to reflect future events or circumstances[48](index=48&type=chunk)

Unifi (UFI) - Unifi shares increased by 14.7% to close at $5.30, driven by notable trading volume, contrasting with a 7.2% loss over the past four weeks [1] - The consensus EPS estimate for Unifi has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without earnings estimate revisions [4] - Unifi is categorized under the Zacks Textile - Products industry, where another company, Albany International, experienced a 0.9% decline in its stock price [4] Albany International (AIN) - Albany International's consensus EPS estimate for the upcoming report is $0.59, reflecting a significant year-over-year decrease of 34.4% [5] - Albany International currently holds a Zacks Rank of 4 (Sell), indicating a less favorable outlook compared to Unifi [5]

Core Viewpoint - The article discusses the performance of Unifi (NYSE: UFI), a manufacturer of polyester and nylon yarns, suggesting that the company may have experienced the worst of a significant downcycle due to apparel companies managing their inventories more carefully [1]. Company Summary - Unifi is involved in the production of polyester and nylon yarns, which are essential materials in the apparel industry [1]. - The company has faced challenges due to a downcycle in the market, primarily driven by apparel companies' inventory management strategies [1]. Industry Summary - The apparel industry is currently undergoing a period of careful inventory management, impacting suppliers like Unifi [1]. - The downcycle in the industry has been described as brutal, indicating significant pressures on manufacturers [1].

(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 performance, considering the information currently available to management. An example of such forward-look ...

Financial Data and Key Metrics Changes - Consolidated net sales for Q2 2025 were $138.9 million, a slight increase of 1.4% year over year, primarily driven by improvements in the Americas and Brazil, offset by lower sales in Asia [28][16][18] - The Americas segment saw a 3% increase in net sales compared to the prior year, despite adverse weather impacts [29][17] - The Asia segment experienced a decline in net sales of approximately 7% year over year due to challenging market conditions, particularly in China [30][18] Business Line Data and Key Metrics Changes - The Brazil segment continued to perform well, benefiting from increased demand for textured polyester and favorable pricing dynamics [18][16] - REPREVE sales represented 31.31% of total sales, a slight decrease from the previous year, largely due to macroeconomic pressures in China [19][20] - Beyond apparel initiatives, including military and carpet sales, are beginning to gain traction, with expectations for revenue growth in the second half of fiscal 2025 [8][25] Market Data and Key Metrics Changes - The Americas market showed signs of recovery with increased customer optimism and improved inventory levels post-holiday season [5][11] - The Asia market continues to face headwinds due to unfavorable economic conditions and pricing pressures, particularly in China [18][30] - Central America has been a key growth area, with brands supporting the region amid tariff concerns [46][60] Company Strategy and Development Direction - The company is consolidating its manufacturing operations by closing the Madison, North Carolina facility to improve cost structure and operational performance [12][6] - Focus on innovation and investment in REPREVE fiber and beyond apparel products to enhance product mix and customer base [37][38] - The company aims to optimize its business through proactive measures that enhance operating efficiency and lower fixed costs [37][36] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the second half of fiscal 2025, expecting improved performance driven by beyond apparel initiatives and customer demand [11][35] - The impact of recent tariff announcements remains uncertain, but management is monitoring the situation closely [15][56] - The company anticipates that the transition costs from the Madison facility closure will be offset by long-term savings and improved operational efficiency [33][66] Other Important Information - The company received the 2024 Just Style Excellence Award for Product Launches in the area of circularity, recognizing its innovative ThermoLube product [24] - The Madison facility is expected to be operational for several months while a buyer is sought, with proceeds prioritized against existing debt [32][68] Q&A Session Summary Question: Sales volume drivers in the Americas and Brazil segments - Management indicated that sales growth in Brazil is primarily from existing clients, with strong demand across all segments, particularly in the denim sector [44][45] Question: Potential from carpet and military markets - Management expects growth in these segments in calendar 2025, with additional capacity being installed to meet anticipated demand [50][51] Question: Future performance of the Asia segment - Management anticipates meaningful improvements in revenues from Asia in Q4, with growth expected throughout calendar 2025 [55][56] Question: Impact of tariffs on the company - Management noted that the impact of tariffs is uncertain, but there is potential for positive outcomes depending on how negotiations evolve [58][60] Question: Annual cost savings from Madison facility closure - Management did not disclose specific savings figures but indicated that significant savings are expected from reduced operations [66][68] Question: Future optimization of facilities - Management is focused on the current consolidation efforts but remains open to exploring additional opportunities for optimization [70][72]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (336) 294-4410 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: For the quarterly period ended December 29, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to _____ Commission File Nu ...

Unifi (UFI) came out with a quarterly loss of $0.86 per share versus the Zacks Consensus Estimate of a loss of $0.55. This compares to loss of $0.81 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -56.36%. A quarter ago, it was expected that this polyester and nylon yarn maker would post a loss of $0.25 per share when it actually produced a loss of $0.42, delivering a surprise of -68%.Over the last four quarters, the company h ...

Exhibit 99.1 • Net sales were $138.9 million, an increase of 1.4% from the second quarter of fiscal 2024, primarily driven by higher sales volumes. • Revenues from REPREVE Fiber products were $43.3 million and represented 31% of net sales, compared to $45.7 million or 33% of net sales for the second quarter of fiscal 2024. • Gross profit was $0.5 million and gross margin was 0.4%, compared to gross profit of $1.6 million and 1.2% for the second quarter of fiscal 2024. • Net loss was $11.4 million, or $0.62 ...