5. Revenue Recognition

The following tables present net sales disaggregated by (i) classification of customer type and (ii) REPREVE Fiber sales:

 

 

Fiscal 2025

 

 

Fiscal 2024

 

 

Fiscal 2023

 

Third-party manufacturer

 

$

567,158

 

 

$

577,636

 

 

$

618,391

 

Service

 

 

4,186

 

 

 

4,573

 

 

 

5,136

 

Net sales

 

$

571,344

 

 

$

582,209

 

 

$

623,527

 

 

 

 

Fiscal 2025

 

 

Fiscal 2024

 

 

Fiscal 2023

 

REPREVE® Fiber

 

$

174,855

 

 

$

188,517

 

 

$

186,161

 

All other products and services

 

 

396,489

 

 

 

393,692

 

 

 

437,366

 

Net sales

 

$

571,344

 

 

$

582,209

 

 

$

623,527

 

Third-Party Manufacturer Revenue

Third-party manufacturer revenue is primarily generated through sales to direct customers. Such sales represent satisfaction of UNIFI’s performance obligations required by the associated revenue contracts. Each of UNIFI’s reportable segments derives revenue from sales to third-party manufacturers.

Service Revenue

Service revenue is primarily generated, as services are rendered, through fulfillment of toll manufacturing of textile products or transportation services governed by written agreements. Such toll manufacturing and transportation services represent satisfaction of UNIFI’s performance obligations required by the associated revenue contracts.

REPREVE Fiber

REPREVE Fiber represents our 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 was immaterial to UNIFI’s financial statements for all years presented.

Product Claims

UNIFI generally offers customers claims support or remuneration for defective products. UNIFI estimates the amount of its product sales that may be claimed as defective by its customers and records this estimate as a reduction of revenue in the period the related product revenue is recognized.

Historical Timeline

Fiscal YearFiled
2025Aug 26, 2025Showing above
2024Aug 23, 2024
2023Aug 25, 2023
2022Aug 31, 2022
2021Aug 25, 2021
2020Aug 26, 2020
2019Aug 29, 2019
2018Aug 22, 2018
2017Sep 1, 2017

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.