Unifi Inc reported QQ3 2025 net sales of $146.6 million with a negative gross margin, signaling ongoing margin compression amid a significant strategic transition. The quarter reflected the early impact of the North American manufacturing footprint optimization and the ongoing asset-light strategy in Asia, balanced by softer demand in Asia and FX headwinds in Brazil. Management outlined a comprehensive plan to complete the Madison facility transition, realize roughly $20 million in cost-of-sales savings in calendar 2026, and streamline debt exposure via the Madison sale (expected to close mid-May 2025) which would yield approximately $3 million annual interest savings and enable debt reduction. In parallel, REPREVE remains a meaningful growth pillar, representing about 31% of revenue in Q3, with Takeback and Thermaloop poised to improve profitability in fiscal 2026 and beyond. The company projects sequential improvement in Q4 2025 with EBITDA returning to profitability by late calendar year 2025, supported by higher North American utilization, ongoing restructuring benefits, and strength in Beyond Apparel opportunities, notably in carpet, military, and packaging. Tariff and macroeconomic uncertainty remains a key overhang, particularly for Asia, but management argues the asset-like model and nearshoring trends provide a path to offset margin pressure over time.