Unifi Inc reported QQ1 2025 net sales of $147.4 million, up 6% year over year but down 6% versus the prior quarter, with gross margin of 6.4% and an operating loss of $3.22 million. Net income was negative $7.63 million, driven by the early-stage ramp in Underlying costs and a challenging margin mix as the company accelerates an operational turnaround. EBITDA totaled $3.60 million, reflecting selective cost containment and volume-driven improvements in SG&A, yet the quarter ended with a negative free cash flow of $14.85 million and a cash balance of $13.7 million. The Brazil segment was the standout performer, delivering a 23% gross margin in Q1, while Asia faced ongoing headwinds from Chinese macro softness and pricing pressure. Management emphasized four growth pillars: 1) REPREVE fiber innovations (Takeback and ThermaLoop), 2) Beyond Apparel expansion (home/carpet, military, packaging, resin offerings), 3) Brazil capacity expansion ( EvoCooler-related capacity gains), and 4) North America cost reductions to lift profitability in H2 FY2025. Management also highlighted a hedge in liquidity via a new $25 million facility (terms through 2027) to support reinvestment in growth initiatives. The company maintains a FY2025 top-line growth target of ~10% and expects a meaningful improvement in gross profit and EBITDA, albeit with near-term quarterly volatility.