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what it is
Unifi turns polyester and nylon into yarns, including recycled fibers, that other companies turn into clothes, car interiors, and home products.
how it gets paid
Last year Unifi made $571M in revenue.
why it's growing
FY2025 net sales ~$571.3M, down ~1.9% vs. FY2024 (~$582.2M)—not triple-digit growth.
what just happened
Q2 FY2026 (ended Dec 28, 2025): net sales ~$121.4M (−~12.6% YoY); gross margin ~3.0%; diluted net loss ~$(0.53)/sh (adj. ~$(0.48)).
At a glance
C+ balance sheet — struggling to keep the lights on
10/100 earnings predictability — expect surprises
3.6% return on capital — nothing to write home about
-$2.53 fy2025 eps est
$571M fy2025 rev est
xvary composite: 37/100 — weak
What they do
Unifi turns polyester and nylon into yarns, including recycled fibers, that other companies turn into clothes, car interiors, and home products.
Unifi's edge is REPREVE and scale in recycled yarns. That is branding power in a commodity business, which is rare. You are still betting on a weak moat, though: return on capital was just 3.6%, according to the provided company data, so the business is not turning that reputation into much cash.
How they make money
~$571M
FY2025 net sales · ~−1.9% vs. FY2024
total revenue
~$571M
~−1.9%
The products that matter
recycled performance fibers
REPREVE®
flagship sustainability brand
This is the part of the story investors want to believe in. If Unifi ever earns a sustainably better margin than ~3%, REPREVE is the most obvious place for that to show up.
brand matters
base synthetic yarn
Partially Oriented Yarn (POY)
commodity production base
This is less glamorous and more important. In a business with $113M of long-term debt, steady plant utilization matters because idle capacity does not make the balance sheet easier.
utilization driver
Key numbers
$113M
long-term debt
Debt is larger than the company's roughly $67 million market cap, so your equity sits under a heavier claim.
~3.0%
Q2 FY2026 gross margin
Q2 FY2026 release: gross margin ~3.0% vs. 0.4% prior-year quarter—still razor thin on ~$121.4M net sales.
$571M
annual revenue
This is a real business size, but scale alone does not help much when profitability is this weak.
3.6%
return on capital
Return on capital → profit earned on the money tied up in the business → so what: management is not getting much out of the asset base.
Financial health
C+
strength
- balance sheet grade C+ — weak — may struggle to fund operations
- risk rank 3 — safer than 50% of stocks
- price stability 20 / 100
- long-term debt $113M (63% of capital)
C+ — balance sheet grade and long-term debt are flagged. this stock carries more risk than average.
Total return vs. market
Return history isn't available for UFI right now.
source: institutional data · return history unavailable
What just happened
still loss-making
Q2 FY2026: net sales ~$121.4M (−~12.6% YoY) · gross margin ~3.0% · diluted EPS ~$(0.53)
Company materials (Jan 28, 2026) show improved gross profit dollars vs. the weak prior-year quarter, but the business remains net-loss-making. FY2025 net sales ~$571M (−~1.9% YoY).
~$121.4M
Q2 FY2026 sales
~$(0.53)
diluted GAAP EPS
~3.0%
gross margin
gross margin
~3% gross margin still leaves almost no room for error—scale without pricing power does not fix a stressed balance sheet.
source: UNIFI Q2 FY2026 release (investor.unifi.com / BusinessWire, Jan 28, 2026) · FY2025 trade press recap (~$571.3M sales)
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What could go wrong
the core risk is simple: Unifi sells into a hard business with ~3% gross margin in the latest reported quarter and carries $113M of long-term debt while still losing money. If margin repair stalls, the equity story gets thin fast.
high
Razor-thin gross margin
Gross margin is still low single digits in recent quarters. On ~$571M FY2025 sales, full-year gross profit is far from comfortable once overhead and interest hit.
little room for error
high
Debt outweighs the equity cushion
Long-term debt is $113M versus a market cap of roughly $67M. The business has a real financing constraint, and equity holders sit behind it.
equity gets squeezed first
med
Sales declines make repair harder
Revenue is estimated at $571M, down -1.9% last year. If volume slips while costs stay sticky, better factory execution may still not be enough.
cost cuts can only do so much
med
REPREVE may be a story customers like but do not pay up for
The strategic pitch is recycled fiber. The financial reality is still low single-digit gross margin in recent quarters. If customers want the sustainability label without paying a better price, the thesis stays cosmetic.
brand value may not reach shareholders
At today's economics, roughly $15M of gross profit is supporting a business with $113M in long-term debt and negative EPS. That's the combined risk picture.
source: institutional data · regulatory filings · risk analysis
Pay attention to
margin
gross margin moving off the floor
~3% gross margin (Q2 FY2026) is the whole story right now. If that number does not improve, the turnaround case stays theoretical.
calendar
Q3 FY2026 earnings
Expected may 2026. You want to see whether the recent talk about better margins and free cash flow repeats instead of disappearing after one quarter.
balance sheet
debt direction
With $113M in long-term debt, flat is not enough. The cleaner version of the thesis includes debt coming down, not just losses narrowing.
demand mix
polyester volume versus nylon mix
Polyester is about 70% of sales and Nylon about 30%. Mix shifts matter only if they finally show up in the gross margin line.
Analyst rankings
earnings predictability
10 / 100
a 10 / 100 score means the earnings record is noisy. in human-speak, analysts do not have a clean read on this business because the business itself is not producing clean results.
risk rank
3
that puts UFI around the middle on safety metrics. not a collapse signal, not a comfort signal either.
source: institutional data
Institutional activity
institutional ownership data for UFI is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$3
current price
n/a
target midpoint · n/a from current
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