Income Taxes (Tables)

12 Months Ended

Jun. 29, 2025

Income Tax Disclosure [Abstract]

Components of Loss before Income Taxes

The components of loss before income taxes consist of the following:

	Fiscal 2025			Fiscal 2024			Fiscal 2023
U.S.	$	(27,131	)	$	(63,602	)	$	(63,773	)
Foreign		8,502			18,065			18,330
Loss before income taxes	$	(18,629	)	$	(45,537	)	$	(45,443	)

Schedule of Provision for Income Taxes

Provision for income taxes consists of the following:

	Fiscal 2025			Fiscal 2024			Fiscal 2023
Current:
Federal	$	—		$	(2,860	)	$	309
State		3			203			(7	)
Foreign		2,391			8,053			3,385
Total current tax expense		2,394			5,396			3,687
Deferred:
Federal		(112	)		(123	)		41
State		(50	)		(162	)		71
Foreign		(513	)		(3,253	)		(2,898	)
Total deferred tax expense		(675	)		(3,538	)		(2,786	)
Provision for income taxes	$	1,719		$	1,858		$	901

Reconciliation from Federal Statutory Tax Rate to Effective Tax Rate

Reconciliation from the federal statutory tax rate to the effective tax rate is as follows:

	Fiscal 2025			Fiscal 2024			Fiscal 2023
Federal statutory tax rate		21.0	%		21.0	%		21.0	%
Change in valuation allowance		(27.3	)		(24.6	)		(30.8	)
Foreign income taxed at different rates		(11.0	)		(3.3	)		(1.9	)
Repatriation of foreign earnings and withholding taxes		(10.4	)		(7.6	)		(7.4	)
Change in uncertain tax positions		(3.4	)		(1.5	)		(4.1	)
Nondeductible expenses and other		(2.6	)		(0.4	)		(0.4	)
Nondeductible compensation		(1.8	)		(1.0	)		(0.8	)
Revaluation of deferred balances due to tax law changes		(1.6	)		(0.1	)		(0.1	)
U.S. tax on GILTI		(1.5	)		(2.4	)		(1.5	)
Nontaxable income		7.6			1.2			2.5
Foreign tax credits		6.5			3.0			2.3
Research and other business tax credits		5.1			2.7			3.6
Recovery of income taxes in Brazil		4.8			—			9.2
Tax on unremitted foreign earnings		3.2			3.4			3.0
Interest on income taxes		1.8			1.8			—
State income taxes, net of federal tax benefit		0.4			3.5			3.4
IRS RAR adjustment		—			0.2			—
Effective tax rate		(9.2	)%		(4.1	)%		(2.0	)%

Deferred Tax Assets and Liabilities

The significant components of UNIFI’s deferred tax assets and liabilities consist of the following:

	June 29, 2025			June 30, 2024
Deferred tax assets:
Capital loss carryforwards	$	3,628		$	16,442
NOL carryforwards		29,159			22,351
Tax credits		11,584			11,002
Research and development costs		12,191			11,845
Accrued compensation		2,174			1,575
Disallowed interest deduction carryforwards		5,895			3,939
Other items		4,531			4,564
Total gross deferred tax assets		69,162			71,718
Valuation allowance		(55,208	)		(55,250	)
Total deferred tax assets		13,954			16,468
Deferred tax liabilities:
PP&E		(7,792	)		(10,624	)
Unremitted earnings		(1,691	)		(2,300	)
Other		(160	)		(21	)
Total deferred tax liabilities		(9,643	)		(12,945	)
Net deferred tax assets	$	4,311		$	3,523

Schedule of Components of Deferred Tax Valuation Allowance

Components of UNIFI’s deferred tax valuation allowance are as follows:

	Fiscal 2025			Fiscal 2024			Fiscal 2023
Capital loss carryforwards	$	(3,628	)	$	(16,442	)	$	(16,390	)
NOL carryforwards and reversing temporary differences		(36,049	)		(27,231	)		(16,235	)
Disallowed interest deduction carryforwards		(3,838	)		(1,860	)		—
Tax credits		(10,549	)		(9,717	)		(10,800	)
Other deferred tax assets		(1,144	)		—			(485	)
Total deferred tax valuation allowance	$	(55,208	)	$	(55,250	)	$	(43,910	)

Reconciliation of Beginning and Ending Gross Amounts of Unrecognized Tax Benefits

A reconciliation of beginning and ending gross amounts of unrecognized tax benefits is as follows:

	Fiscal 2025			Fiscal 2024			Fiscal 2023
Balance at beginning of year	$	3,230		$	4,353		$	2,909
Gross increases related to tax positions in prior periods		266			1,145			1,481
Gross decreases related to tax positions in prior periods		(2	)		(1,015	)		(45	)
Gross increases related to current period tax positions		300			300			8
Gross decreases related to settlements with tax authorities		—			(1,553	)		—
Gross decreases related to lapse of applicable statute of limitations		(46	)		—			—
Balance at end of year	$	3,748		$	3,230		$	4,353