What changed in this filing

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Item 1. Financial Statements

2025-11-05 compared with 2025-05-07 · 137 added, 191 removed, 327 unchanged (50% of the section changed)

2 unchanged sentences

(In thousands, except share and per share amounts)

March 30, 2025

September 28, 2025

June 29, 2025

23 unchanged sentences

18,360,663 and 18,360,663

shares issued and outstanding as of March 30, 2025 and June 30, 2024, respectively)

shares issued and outstanding as of September 28, 2025 and June 29, 2025, respectively)

Capital in excess of par value

7 unchanged sentences

For the Three Months Ended

For the Nine Months Ended

March 30, 2025

March 31, 2024

March 30, 2025

March 31, 2024

September 28, 2025

September 29, 2024

Cost of sales

Gross (loss) profit

Selling, general and administrative expenses

(Benefit) provision for bad debts

Gain on sale of assets

Restructuring costs

3 unchanged sentences

Interest expense

Equity in loss of unconsolidated affiliates

Equity in earnings of unconsolidated affiliate

Loss before income taxes

3 unchanged sentences

For the Three Months Ended

For the Nine Months Ended

March 30, 2025

March 31, 2024

March 30, 2025

March 31, 2024

Other comprehensive income (loss):

September 28, 2025

September 29, 2024

Other comprehensive income:

Foreign currency translation adjustments

Other comprehensive income (loss), net

Other comprehensive income

Comprehensive loss

6 unchanged sentences

Total Shareholders’ Equity

Balance at December 29, 2024

Options exercised

Conversion of equity units

Balance at June 29, 2025

Stock-based compensation

Common stock withheld in satisfaction of tax withholding obligations under net share settle transactions

Other comprehensive income, net of tax

Balance at March 30, 2025

Balance at September 28, 2025

Capital in Excess of Par Value

4 unchanged sentences

Options exercised

Conversion of equity units

Stock-based compensation

Common stock withheld in satisfaction of tax withholding obligations under net share settle transactions

Other comprehensive loss, net of tax

Balance at March 30, 2025

Capital in Excess of Par Value

Retained Earnings

Accumulated Other Comprehensive Loss

Total Shareholders’ Equity

Balance at December 31, 2023

Options exercised

Conversion of equity units

Stock-based compensation

Common stock withheld in satisfaction of tax withholding obligations under net share settle transactions

Other comprehensive loss, net of tax

Balance at March 31, 2024

Capital in Excess of Par Value

Retained Earnings

Accumulated Other Comprehensive Loss

Total Shareholders’ Equity

Balance at July 2, 2023

Options exercised

Conversion of equity units

Stock-based compensation

Common stock withheld in satisfaction of tax withholding obligations under net share settle transactions

Other comprehensive loss, net of tax

Balance at March 31, 2024

Other comprehensive income, net of tax

Balance at September 29, 2024

See accompanying notes to condensed consolidated financial statements.

1 unchanged sentence

(In thousands)

For the Nine Months Ended

March 30, 2025

March 31, 2024

For the Three Months Ended

September 28, 2025

September 29, 2024

Cash and cash equivalents at beginning of period

Operating activities:

Adjustments to reconcile net loss to net cash (used) provided by operating activities:

Equity in loss of unconsolidated affiliates

Distribution received from unconsolidated affiliate

Adjustments to reconcile net loss to net cash used by operating activities:

Equity in earnings of unconsolidated affiliate

Depreciation and amortization expense

Non-cash compensation expense

Gain on sale of assets

Deferred income taxes

3 unchanged sentences

Accounts payable and other current liabilities

Net cash (used) provided by operating activities

Net cash used by operating activities

Investing activities:

1 unchanged sentence

Proceeds from the sale of assets

Net cash provided (used) by investing activities

Net cash used by investing activities

Financing activities:

3 unchanged sentences

Payments on finance lease obligations

Net cash provided (used) by financing activities

Net cash provided by financing activities

Effect of exchange rate changes on cash and cash equivalents

21 unchanged sentences

All amounts, except per share amounts, are presented in thousands (000s), except as otherwise noted.

The fiscal quarter for each of Unifi, Inc., its primary domestic operating subsidiaries and its subsidiary in El Salvador ended on March 30, 2025.

Unifi, Inc.’s remaining material operating subsidiaries’ fiscal quarters ended on March 31, 2025.

The fiscal quarter for each of Unifi, Inc., its primary domestic operating subsidiaries and its subsidiary in El Salvador ended on September 28, 2025.

Unifi, Inc.’s remaining material operating subsidiaries’ fiscal quarters ended on September 30, 2025.

There were no significant transactions or events that occurred between Unifi, Inc.’s fiscal quarter end and such wholly owned subsidiaries’ fiscal quarters end.

The three-month periods ended March 30, 2025 and March 31, 2024 both consisted of 13 weeks.

The nine-month periods ended March 30, 2025 and March 31, 2024 both consisted of 39 weeks.

The three-month periods ended September 28, 2025 and September 29, 2024 both consisted of 13 weeks.

Recent Accounting Pronouncements

Issued and Pending Adoption

In November 2023, the FASB issued ASU No.

2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures .

2023-07 expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses.

The ASU is effective this fiscal year for annual reporting and in the first quarter of fiscal 2026 for interim reporting, with early adoption permitted.

UNIFI has not adopted this standard.

UNIFI is currently evaluating the impact on the Company’s disclosure but does not expect this standard will have a material impact on its consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses .

2024-03 does not change or remove existing expense disclosure requirements but requires disaggregated disclosures about certain expense categories and captions, including but not limited to, purchases of inventory, employee compensation, depreciation, amortization and selling expenses.

This ASU will become effective for UNIFI's fiscal 2028 and in the first quarter of fiscal 2029 for interim reporting, with retrospective application permitted.

UNIFI is currently evaluating the impact on the Company's disclosures on its consolidated financial statements.

In December 2023, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No.

5 unchanged sentences

UNIFI is currently evaluating the impact on the Company’s disclosures but does not expect this standard will have a material impact on its consolidated financial position, results of operations, or cash flows.

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses .

2024-03 does not change or remove existing expense disclosure requirement but requires disaggregated disclosures about certain expense categories and captions, including but not limited to, purchases of inventory, employee compensation, depreciation, amortization and selling expenses.

This ASU will become effective for UNIFI's fiscal 2028 and in the first quarter of fiscal 2029 for interim reporting, with retrospective application permitted.

UNIFI is currently evaluating the impact on the Company's disclosures on its consolidated financial statements.

Based on UNIFI’s review of ASUs issued since the filing of the 2025 Form 10-K, there have been no other newly issued or newly applicable accounting pronouncements that have had, or are expected to have, a material impact on UNIFI’s consolidated financial statements.

3 unchanged sentences

For the Three Months Ended

For the Nine Months Ended

March 30, 2025

March 31, 2024

March 30, 2025

March 31, 2024

September 28, 2025

September 29, 2024

Third-party manufacturer

For the Three Months Ended

For the Nine Months Ended

March 30, 2025

March 31, 2024

March 30, 2025

March 31, 2024

September 28, 2025

September 29, 2024

REPREVE ® Fiber

8 unchanged sentences

REPREVE ® Fiber represents UNIFI's collection of fiber products on our recycled platform, with or without added technologies.

Variable Consideration

For all variable consideration, where appropriate, UNIFI estimates the amount using the expected value method, which takes into consideration historical experience, current contractual requirements, specific known market events, and forecasted customer buying and payment patterns.

Overall, these reserves reflect UNIFI’s best estimates of the amount of consideration to which the customer is entitled based on the terms of the contracts.

Variable consideration has been immaterial to UNIFI’s financial statements for all periods presented.

Long-Term Debt

6 unchanged sentences

Maturity Date

March 30, 2025

September 28, 2025

June 29, 2025

2 unchanged sentences

Finance lease obligations

Current ABL Term Loan

Current portion of ABL Term Loan

Current portion of finance lease obligations

1 unchanged sentence

Total long-term debt

(1) Scheduled maturity dates for finance lease obligations range from June 2025 to September 2028 .

(1) Scheduled maturity dates for finance lease obligations range from November 2026 to October 2032 .

Notes to Condensed Consolidated Financial Statements (Continued)

20 unchanged sentences

For the Three Months Ended

For the Nine Months Ended

March 30, 2025

March 31, 2024

March 30, 2025

March 31, 2024

September 28, 2025

September 29, 2024

Provision for income taxes

1 unchanged sentence

Income Tax Expense

UNIFI’s provision for income taxes for the nine months ended March 30, 2025 and March 31, 2024 was calculated by applying the estimated annual effective tax rate to year-to-date pre-tax book income and adjusting for discrete items that occurred during the period.

The effective tax rate for the three and nine months ended March 30, 2025 and March 31, 2024 varied from the U.S.

UNIFI’s provision for income taxes for the three months ended September 28, 2025 and September 29, 2024 was calculated by applying the estimated annual effective tax rate to year-to-date pre-tax book income and adjusting for discrete items that occurred during the period.

The effective tax rate for the three months ended September 28, 2025 and September 29, 2024 varied from the U.S.

federal statutory rate primarily due to the U.S.

generated losses for which UNIFI does not expect to realize a future tax benefit.

During the nine months ended March 31, 2024, the Internal Revenue Service (the “IRS”) audit of fiscal years 2014 through 2019 was concluded with a net refund of $ 1,275 , which has been received along with $ 457 of interest on overpayments.

The impact from the audit adjustments to the prior periods was insignificant.

On July 4, 2025, the U.S.

government enacted The One Big Beautiful Bill Act of 2025 (“Act”), making significant changes to the U.S.

corporate income tax system.

Based on current analysis of the Act, UNIFI does not expect these tax law changes to have a material impact on its financial statements given the current valuation allowance;

however, UNIFI will continue to evaluate their impact as further information becomes available.

UNIFI has reflected the impact of the enacted provisions in the three months ended September 28, 2025.

Unrecognized Tax Benefits

1 unchanged sentence

Certain returns that remain open to examination have utilized carryforward tax attributes generated in prior tax years, including net operating losses, which could potentially be revised upon examination.

Following the conclusion of the IRS audit during the period ended March 31, 2024, UNIFI adjusted the uncertain tax positions for fiscal years 2014 through 2019 that were effectively settled.

The impact from releasing the netted uncertain tax position liabilities was insignificant.

During the nine months ended March 31, 2024, UNIFI released $ 853 accrued for interest and penalties after receiving the final assessment from the IRS.

Shareholders’ Equity

4 unchanged sentences

Stock-Based Compensation

On October 31, 2023 , UNIFI’s shareholders approved a First Amendment (the "First Amendment") to the Unifi, Inc.

On October 28, 2025 , UNIFI's shareholders approved a Second Amendment (the “Second Amendment” ) to the Unifi, Inc.

Second Amended and Restated 2013 Incentive Compensation Plan (the “2020 Plan”).

The 2020 Plan set the initial number of shares available for future issuance (“share reserve”) pursuant to awards granted under the 2020 Plan to 850 .

The First Amendment increased the remaining share reserve by 1,100 .

In October 2023, the 2020 Plan was amended to increase the reserve by 1,100 shares and the Second Amendment added an additional 1,240 shares to the share reserve.

No additional awards can be granted under prior plans;

however, awards outstanding under a respective prior plan remain subject to that plan’s provisions.

The following table provides information as of March 30, 2025 with respect to the number of securities remaining available for future issuance under the 2020 Plan, as amended:

Authorized under the 2020 Plan

Share reserve increase from the First Amendment

Awards expired, forfeited, or otherwise terminated unexercised

Awards granted to employees

Awards granted to non-employee directors

Available for issuance under the 2020 Plan

Earnings Per Share

1 unchanged sentence

For the Three Months Ended

For the Nine Months Ended

March 30, 2025

March 31, 2024

March 30, 2025

March 31, 2024

September 28, 2025

September 29, 2024

Basic weighted average shares

12 unchanged sentences

Related party balances and transactions are not material to the condensed consolidated financial statements and, accordingly, are not presented separately from other financial statement captions.

There were no related party receivables as of March 30, 2025 and June 30, 2024.

There were no related party receivables as of September 28, 2025 and June 29, 2025.

Related party payables for Salem Leasing Corporation consisted of the following:

March 30, 2025

September 28, 2025

June 29, 2025

5 unchanged sentences

For the Three Months Ended

For the Nine Months Ended

Affiliated Entity

Transaction Type

March 30, 2025

March 31, 2024

March 30, 2025

March 31, 2024

September 28, 2025

September 29, 2024

Salem Leasing Corporation

Payments for transportation equipment costs and finance lease debt service

Notes to Condensed Consolidated Financial Statements (Continued)

As discussed in Note 5, “Long-Term Debt” , UNIFI entered into the 2024 Facility in October 2024 which was collateralized by personal assets of a board member.

During the three-month period ended March 30, 2025, UNIFI borrowed $ 22,000 on the 2024 Facility and used the proceeds to reduce the outstanding ABL Revolver balance .

During the three-month period ended September 29, 2024, UNIFI borrowed $ 22,000 on the 2024 Facility and used the proceeds to reduce the outstanding ABL Revolver balance .

Notes to Condensed Consolidated Financial Statements (Continued)

Business Segment Information

15 unchanged sentences

Selected financial information is presented below:

For the Three Months Ended March 30, 2025

Cost of sales

Gross (loss) profit

Segment depreciation expense

Segment (Loss) Profit

For the Three Months Ended March 31, 2024

For the Three Months Ended September 28, 2025

Cost of sales

2 unchanged sentences

Segment Profit

For the Nine Months Ended March 30, 2025

For the Three Months Ended September 29, 2024

Cost of sales

2 unchanged sentences

Segment Profit

For the Nine Months Ended March 31, 2024

Cost of sales

Gross (loss) profit

Segment depreciation expense

Segment (Loss) Profit

Notes to Condensed Consolidated Financial Statements (Continued)

1 unchanged sentence

For the Three Months Ended

For the Nine Months Ended

March 30, 2025

March 31, 2024

March 30, 2025

March 31, 2024

Segment gross (loss) profit

September 28, 2025

September 29, 2024

Segment gross profit

Selling, general and administrative expenses

(Benefit) provision for bad debts

Gain on sale of assets

Restructuring costs

3 unchanged sentences

Interest expense

Equity in loss of unconsolidated affiliates

Equity in earnings of unconsolidated affiliate

Loss before income taxes

There have been no material changes in segment assets during fiscal 2025.

The reconciliations of segment depreciation and amortization expense to consolidated depreciation and amortization expense are as follows:

For the Three Months Ended

September 28, 2025

September 29, 2024

Segment depreciation expense

Other depreciation and amortization expense

Depreciation and amortization expense

The reconciliations of segment capital expenditures to consolidated capital expenditures are as follows:

For the Three Months Ended

September 28, 2025

September 29, 2024

Segment capital expenditures

Other capital expenditures

Capital expenditures

The reconciliations of segment total assets to consolidated total assets are as follows:

September 28, 2025

June 29, 2025

Segment total assets

Other current assets

Other operating lease assets

Other non-current assets

Investment in unconsolidated affiliate

Notes to Condensed Consolidated Financial Statements (Continued)

Geographic Data

For the Three Months Ended

September 28, 2025

September 29, 2024

Remaining Foreign Countries

Export sales from UNIFI’s U.S.

operations to external customers

The net sales amounts are based on the operating locations from where the items were produced or distributed.

Long-Lived Assets

September 28, 2025

June 29, 2025

Remaining Foreign Countries

Long-lived assets are comprised of PP&E, net;

operating lease assets;

intangible assets, net;

investments in unconsolidated affiliates;

Included within Other non-current assets are UNIFI’s investments in unconsolidated affiliates:

Industries, Ltd.

(“UNF”) and UNF America LLC (“UNFA”).

In December 2023, UNIFI dissolved its interest in UNF under an agreement whereby UNIFI agreed to pay the former joint venture partner $ 2,750 and recorded it as an associated contract termination cost within Restructuring costs on the Condensed Consolidated Statements of Operations and Comprehensive Loss.

UNIFI made a payment to the former joint venture partner of $ 1,200 in the second quarter of fiscal 2024 and the remaining $ 1,550 was paid in the third quarter of fiscal 2024.

and other non-current assets.

Investment in Unconsolidated Affiliate

Included within Other non-current assets is UNIFI’s investment in unconsolidated affiliate:

UNF America LLC (“UNFA”).

UNIFI’s raw material purchases under its supply agreement with UNFA consisted of the following:

For the Three Months Ended

For the Nine Months Ended

March 30, 2025

March 31, 2024

March 30, 2025

March 31, 2024

As of March 30, 2025, UNIFI’s open purchase orders related to this supply agreement, all with UNFA, w ere $ 922 .

As of March 30, 2025 and June 30, 2024, UNIFI had accounts payable due t o UNFA of $ 2,380 and $ 2,197 , respectively.

September 28, 2025

September 29, 2024

As of September 28, 2025, UNIFI’s open purchase orders related to this supply agreement w ere $ 2,115 .

As of September 28, 2025 and June 29, 2025, UNIFI had accounts payable due t o UNFA of $ 2,035 and $ 1,368 , respectively.

Other than the supply agreement discussed above, UNIFI does not provide any other commitments or guarantees related to UNFA.

As of March 30, 2025 and June 30, 2024, UNIFI’s investment in UNFA was $ 1,161 and $ 1,603 , respectively.

As of September 28, 2025 and June 29, 2025, UNIFI’s investment in UNFA was $ 1,267 and $ 1,151 , respectively.

There have been no significant changes in the condensed balance sheet and income statement information for UNFA as previously disclosed in the 2025 Form 10-K.

1 unchanged sentence

Cash payments for interest and taxes consist of the following:

For the Nine Months Ended

March 30, 2025

March 31, 2024

For the Three Months Ended

September 28, 2025

September 29, 2024

Interest, net of capitalized interest of $ 4 and $ 38 , respectively

3 unchanged sentences

Non-Cash Investing and Financing Activities

As of March 30, 2025 and June 30, 2024, $ 524 and $ 879 , respectively, were included in accounts payable for unpaid capital expenditures.

As of March 31, 2024 and July 2, 2023, $ 201 and $ 1,137 , respectively, were included in accounts payable for unpaid capital expenditures.

During the nine-months ended March 30, 2025 and March 31, 2024, UNIFI recorded non-cash activity relating to finance lease s of $ 0 a nd $ 1,633 , respectively.

As of September 28, 2025 and June 29, 2025, $ 417 and $ 676 , respectively, were included in accounts payable for unpaid capital expenditures.

As of September 29, 2024 and June 30, 2024, $ 772 and $ 879 , respectively, were included in accounts payable for unpaid capital expenditures.

During the three-months ended September 28, 2025 and September 29, 2024, UNIFI recorded non-cash activity relating to finance lease s of $ 3,705 a nd $ 0 , respectively.

Notes to Condensed Consolidated Financial Statements (Continued)

Restructuring Costs

On February 3, 2025, UNIFI announced the pending closure of a facility in Madison, North Carolina, and a plan to transition the associated manufacturing operations to other production facilities in North and Central America, and began immediately marketing the property for sale.

UNIFI expects to incur restructuring charges for equipment relocation or disposal costs, employee retention or separation costs, and other closure-related costs including asset impairment.

UNIFI expects that the restructuring charges, other than any asset impairment, will consist of cash payments, which are anticipated to continue through the end of this calendar year.

In fiscal 2024, UNIFI initiated the Profitability Improvement Plan intended to lower operating expenses for both production and administrative activities.

On February 3, 2025, UNIFI announced the pending closure of a manufacturing facility in Madison, North Carolina, and a plan to transition the associated manufacturing operations to other production facilities in North and Central America.

In the fourth quarter of fiscal 2025, UNIFI sold the Madison, North Carolina facility, as well as certain machinery and equipment located thereon, for a cash purchase price of $ 45,000 ("Madison Sale").

The net proceeds of the Madison Sale were used to repay a portion of the principal balance of the term loan and revolving credit facility outstanding under the 2022 Credit Agreement.

As part of the Madison Sale, there is an amendment to the purchase agreement for the potential payment of deferred compensation to UNIFI in the amount of (i) $ 8,000 , if certain energy supply conditions are met within two years of closing, (ii) $ 5,000 , if the same conditions are not met within two years of closing but are met within three years of closing, and (iii) up to $ 5,000 , if certain additional energy conditions beyond those referred to in (i) and (ii) are met within four years of closing.

The maximum potential future payment to UNIFI is $ 13,000 .

No amounts related to the future occurrence of these events have been recorded in the Consolidated Financial Statements as of September 28, 2025.

During the three-months ended September 28, 2025, UNIFI incurred transition costs related to the consolidation of Americas yarn manufacturing operations discussed above for facility closure and equipment relocation costs including asset impairments and disposals and employee separation costs that were recorded within Restructuring costs in the Consolidated Statements of Operations.

UNIFI expects that these restructuring charges, other than any asset impairment or losses from disposal, will consist of cash payments, which are anticipated to continue through the end of calendar year 2025.

The restructuring expenses incurred in all periods primarily impacted the Americas Segment.

1 unchanged sentence

For the Three Months Ended

For the Nine Months Ended

March 30, 2025

March 31, 2024

March 30, 2025

March 31, 2024

September 28, 2025

Facility closure and equipment relocation costs

Employee separation or retention costs

Dissolution of joint venture

Employee separation costs

Restructuring costs

Liability as of June 29, 2025

Restructuring costs

Cash payments

Non-cash charges

Ending Liability

UNIFI estimates it will incur between $ 6,000 and $ 8,000 of additional restructuring costs over the next 3 to 6 months related to the closure of the Madison facility.

Subsequent to quarter-end, on April 10, 2025, UNIFI entered into a Real Estate Purchase and Sale Agreement ("the Purchase Agreement") related to the sale of the Madison, North Carolina facility, as well as certain machinery and equipment located thereon, f or a cash purchase price of $ 53,200 .

The closing of the transaction is expected to occur on May 15, 2025, unless accelerated by Buyer pursuant to the terms of the Purchase Agreement.

The net proceeds of the transaction will be used to repay a portion of the principal balance of term loans and revolving loans outstanding under the 2022 Credit Agreement.

Loss on disposals of assets

Liability as of September 28, 2025

UNIFI has implemented additional cost savings initiatives that include reducing variable manufacturing costs across labor, spend, and support functions, while also eliminating a meaningful percentage of salaried positions in the U.S.

("Fiscal 2026 Profit Improvement Plan").

Subsequent to the quarter ended September 28, 2025, UNIFI incurred severance costs of approximately $ 600 related to the Fiscal 2026 Profit Improvement Plan.

Notes to Condensed Consolidated Financial Statements (Continued)

1 unchanged sentence

Select balance sheet information is presented in the following table.

March 30, 2025

September 28, 2025

June 29, 2025

14 unchanged sentences

Other current assets:

Vendor deposits

Value-added taxes receivable

Prepaid expenses and other

Value-added taxes receivable

Vendor deposits

Contract assets

Assets held for sale (1)

Total other current assets

13 unchanged sentences

Grantor trust

Investments in unconsolidated affiliates

Investment in unconsolidated affiliate

Intangible assets, net

Recovery of taxes

Total other non-current assets

9 unchanged sentences

Total other long-term liabilities

(1) On October 30, 2024, the property previously classified as held for sale was sold for $ 8,100 resulting in a net gain of $ 4,296 .

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements