Unifi narrows Q2 loss to $0.48, delivers $25.3M operating cash flow
Unifi narrowed its Q2 fiscal 2026 loss to $0.48 per share, beating the Zacks estimate of a $0.57 loss and improving from a $0.86 loss a year ago. It generated $25.3 million in operating cash flow, with completed cost and footprint cuts supporting improved profitability at lower revenue levels.
1. Q2 Earnings Loss Narrows and Tops Estimates
Unifi, Inc. reported a second-quarter fiscal 2026 loss of $0.48 per share, narrower than the Zacks Consensus Estimate of a $0.57 loss and a significant improvement from the $0.86 per-share loss recorded in the year-ago quarter. Revenue performance also exceeded analyst forecasts, driven by resilient end-market demand for recycled and synthetic yarn products. The results reflect Unifi’s pricing initiatives and mix optimization across its global manufacturing footprint.
2. Operational Efficiency Drives Cash Generation
During the quarter, Unifi completed a series of cost and footprint reductions designed to enhance profitability at lower revenue thresholds. These initiatives contributed to $25.3 million in cash provided by operating activities, marking a substantial increase over the prior year period. Management highlighted that ongoing integration of these efficiencies should support margin expansion and free cash flow growth in the second half of fiscal 2026.