Unifi (UFI) AI Stock Analysis

• Market Cap: $71.54M
• Dividend Yield: N/A
• Average Volume (3M): 58.11K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.56
• Revenue Growth: -5.26%
• EPS Growth: 42.84%
• Country: US
• Employees: 2,700
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): -0.48
• Shares Outstanding: 18,581,050
• 10 Day Avg. Volume: 67,822
• 30 Day Avg. Volume: 58,109
• PEG Ratio: 0.08
• Price to Book (P/B): 0.38
• Price to Sales (P/S): 0.17
• P/FCF Ratio: -3.01
• Enterprise Value/Market Cap: 2.17
• Enterprise Value/Revenue: 0.27
• Enterprise Value/Gross Profit: 15.85
• Enterprise Value/Ebitda: -6.97
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -1.13
• Revenue Forecast (FY): $573.57M

• Rating: 51 Neutral
• Price Target: $4.00 ▲(4.44% Upside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 02/04/26

The score is held back primarily by weak financial performance (ongoing losses and very thin free cash flow) and loss-based valuation (negative P/E). Offsetting these are improving technical momentum and a more constructive earnings-call outlook driven by cost reductions, better margins, and balance-sheet/cash-flow progress, though revenue declines and tariff-related uncertainty remain key risks.

Positive Factors

Lowered revenue breakeven from restructuring

Reducing the annual revenue breakeven by ~$125M materially lowers the sales threshold needed for sustained profitability. This structural cost rebalancing increases resilience to demand volatility and shortens the runway to durable positive operating cash flow as volumes recover.

Improving margins and operational efficiency

A multi-point gross margin recovery, coupled with reported inventory-turn and plant efficiency gains, signals lasting improvements in cost structure and production productivity. Better unit economics support margin sustainability as sales normalize, reducing sensitivity to volume swings.

Balance-sheet and cash-flow progress

Material YTD FCF improvement, sharply lower CapEx, and reduced net debt provide durable liquidity and flexibility. Stronger cash generation and working-capital management allow continued reinvestment, debt repayment or strategic spending without immediate reliance on external funding.

Negative Factors

Sustained revenue decline

A persistent top-line decline erodes scale, weakens pricing leverage and magnifies fixed-cost pressure. Until revenue growth reasserts, the company may struggle to convert margin improvements into consistent profits and free cash flow, keeping recovery fragile.

Ongoing losses and EBITDA not yet positive

While improved, negative adjusted EBITDA and continued net losses indicate the company has not fully converted operational gains into profitability. Continued deficits constrain reinvestment, increase equity erosion risk, and limit the margin of safety during industry downturns.

Trade/tariff uncertainty and regional weakness

Prolonged tariff and trade uncertainty causes durable order delays, pricing pressure and supply-chain shifts. Geographic revenue swings (notably Asia weakness) and policy risk can persist for months, undermining demand visibility and complicating long-term commercial planning.

Unifi Business Overview & Revenue Model

Company Description

Unifi, Inc., together with its subsidiaries, engages in the manufacture and sale of recycled and synthetic products in the United States, Brazil, China, and internationally. It operates in four segments: Polyester, Nylon, Brazil, and Asia. The Polyester segment offers partially oriented, textured, solution and package dyed, twisted, beamed, and draw wound yarns; and pre-consumer and post-consumer waste products, including plastic bottle flakes, polyester polymer, and staple fiber beads to other yarn manufacturers, and knitters and weavers that produce yarn and/or fabric for the apparel, hosiery, home furnishings, automotive, industrial, and other end-use markets. The Nylon segment provides virgin or recycled textured, solution dyed, and spandex covered yarns to knitters and weavers that produce fabric primarily for the apparel, hosiery, medical markets. The Brazil segment manufactures and sells polyester-based products to knitters and weavers that produce fabric for the apparel, home furnishings, automotive, industrial, and other end-use markets. The Asia segment primarily sells polyester-based products to knitters and weavers that produce fabric for the apparel, home furnishings, automotive, industrial, and other end-use markets. The company sells its products through sales force and independent sales agents under the REPREVE and PROFIBER brands. Unifi, Inc. was incorporated in 1969 and is headquartered in Greensboro, North Carolina.

How the Company Makes Money

Unifi generates revenue through multiple streams, primarily by offering subscription-based services for its telecommunications offerings, which include broadband internet and digital television. The company also earns money from the sale of hardware products, such as routers and modems, and from licensing its software solutions to other service providers. Additionally, Unifi has formed strategic partnerships with various technology firms and content providers to expand its service offerings and enhance customer engagement, contributing further to its revenue growth. Advertising revenue from its digital platforms also plays a role in the overall earnings of the company.

Unifi Financial Statement Overview

Summary

Profitability remains weak with sizable TTM operating and net losses and declining revenues, despite a manageable leverage profile and some improvement versus FY2024. Cash generation is thin (TTM FCF only slightly positive), indicating limited financial cushion until margins sustainably recover.

Income Statement

TTM (Trailing-Twelve-Months) results show weak profitability: revenue of ~$550M with extremely thin gross profit and sizable operating and net losses (net margin around -10%). The business has also been shrinking, with revenue down versus the prior period and a multi-year step-down from earlier peaks. A positive is that losses were smaller in FY2025 versus FY2024, but overall margins remain under heavy pressure and earnings quality is poor.

Balance Sheet

Leverage looks manageable with debt at roughly half of equity in TTM (debt-to-equity ~0.53), providing some balance sheet flexibility for a cyclical manufacturer. However, persistent losses translate into a negative return on equity in TTM, and continued earnings deficits could erode equity over time. Overall: not over-levered, but profitability is the key balance-sheet risk.

Cash Flow

Cash generation is mixed. TTM operating cash flow is positive (~$9.2M), but free cash flow is only slightly positive (~$0.2M) and has deteriorated sharply versus the prior year, signaling limited capacity for reinvestment or rapid de-levering. The company is also reporting net losses while producing positive free cash flow, which helps near-term liquidity, but the weak and volatile free-cash profile remains a concern.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	571.89M	571.34M	582.21M	623.53M	815.76M	815.76M
Gross Profit	9.80M	8.42M	16.62M	14.24M	80.48M	80.48M
EBITDA	-22.27M	16.18M	-8.01M	-10.85M	56.12M	56.12M
Net Income	-54.24M	-20.35M	-47.40M	-46.34M	15.17M	15.17M
Balance Sheet
Total Assets	382.91M	426.87M	426.87M	469.24M	538.82M	588.72M
Cash, Cash Equivalents and Short-Term Investments	30.19M	22.66M	22.66M	26.80M	46.96M	53.29M
Total Debt	112.98M	115.87M	115.87M	138.44M	148.57M	122.96M
Total Liabilities	152.91M	177.40M	177.40M	205.86M	215.21M	227.27M
Stockholders Equity	230.00M	249.47M	249.47M	263.38M	323.61M	361.45M
Cash Flow
Free Cash Flow	221.00K	-31.80M	-9.10M	-31.69M	-39.25M	11.90M
Operating Cash Flow	9.20M	-21.31M	2.09M	4.74M	380.00K	36.68M
Investing Cash Flow	-386.00K	41.06M	-10.67M	-36.23M	-41.73M	-24.62M
Financing Cash Flow	1.50M	-24.42M	-10.61M	25.94M	17.96M	-12.88M

Unifi Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.83
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UFI, the sentiment is Negative. The current price of 3.83 is below the 20-day moving average (MA) of 4.02, above the 50-day MA of 3.81, and below the 200-day MA of 4.29, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 45.23 is Neutral, neither overbought nor oversold. The STOCH value of 29.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UFI.

Unifi Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
JL	60 Neutral	$17.72M	53.10	17.80%	―	30.48%	30.06%
UFI	51 Neutral	$71.54M	-3.10	-9.61%	―	-5.26%	42.84%
JRSH	50 Neutral	$40.77M	23.75	0.99%	6.75%	12.25%	―
VNCE	46 Neutral	$39.75M	―	-33.24%	―	2.58%	-502.04%
LAKE	45 Neutral	$87.57M	-2.00	-28.97%	1.35%	27.42%	-5275.12%
CULP	41 Neutral	$40.01M	-3.71	-18.32%	―	-7.76%	49.20%

Unifi Corporate Events

Unifi Narrows Losses as Cost Cuts Bolster Profitability

On February 3, 2026, Unifi reported results for its fiscal second quarter ended December 28, 2025, showing that while net sales fell 12.6% year-on-year to $121.4 million amid trade and tariff uncertainty and demand volatility, profitability metrics and cash generation improved due to multi-year cost and footprint reductions. Gross profit rose to $3.6 million from $0.5 million and SG&A expenses dropped 25% to $9.7 million, narrowing the net loss to $9.7 million, improving adjusted net loss to $8.9 million, and lifting adjusted EBITDA to near breakeven at negative $0.7 million, while operating cash flow reached $25.3 million for the quarter and net debt declined to $75.2 million. Revenues from REPREVE fiber products decreased to $34.3 million and 28% of sales, reflecting softer demand, but management emphasized that recent restructuring and an October 2025 profit improvement plan—focused on additional cost savings, commercial execution, margin-accretive activities and tighter working capital—have lowered the company’s revenue breakeven point and strengthened its balance sheet. Executives signaled early signs of a more normalized operating environment and improving customer engagement as calendar 2026 begins, positioning Unifi to convert its leaner operating model and ongoing innovation, including its beyond-apparel portfolio, into stronger profitability and free cash flow over the second half of fiscal 2026, with the aim of delivering sustained financial momentum for shareholders despite continued market and tariff-related headwinds.

The most recent analyst rating on (UFI) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Unifi stock, see the UFI Stock Forecast page.