The Dixie Group, Inc. filed its Form 10-Q for the quarterly period ended September 26, 2026, reporting a swing to net income from a year-earlier net loss in both the third quarter and the first nine months of fiscal 2026.

Key Highlights

  • Q3 net income of $577 thousand compared with a net loss of $4,077 thousand in the third quarter of 2025, according to the filing.
  • Nine-month net income of $2,816 thousand versus a net loss of $4,614 thousand for the same period of 2025, as reported.
  • Q3 net sales of $65,225 thousand, up from $62,379 thousand in the prior-year quarter, the company disclosed.
  • Nine-month operating income of $8,742 thousand, compared with operating income of $1,175 thousand in the first nine months of 2025.
  • Total assets of $183,043 thousand as of September 26, 2026, up from $175,158 thousand at December 27, 2025.
  • Accumulated deficit narrowed to $194,499 thousand from $197,315 thousand at the prior fiscal year-end, per the balance sheet.
  • 14,108,153 shares of Common Stock outstanding as of November 1, 2026, with 1,303,600 shares of Class B Common Stock also outstanding.

Dixie Group Reports Nine-Month Return to Profitability in Fiscal 2026

The Dixie Group, Inc. (OTCQB:DXYN), a Tennessee-incorporated flooring company headquartered in Dalton, Georgia, disclosed its unaudited financial results for the three and nine months ended September 26, 2026. According to the filing, the company reported Q3 2026 net sales of $65,225 thousand, up from $62,379 thousand in the third quarter of 2025. Gross profit for Q3 2026 was $17,357 thousand, compared with $15,479 thousand a year earlier. Selling and administrative expenses declined to $14,642 thousand from $16,365 thousand in the prior-year quarter.

The filing reported Q3 2026 operating income of $2,384 thousand, reversing an operating loss of $2,025 thousand in Q3 2025. Interest expense for the quarter was $1,890 thousand, down slightly from $2,012 thousand. Income from continuing operations was $712 thousand in Q3 2026, compared with a loss from continuing operations of $3,998 thousand in Q3 2025. A loss from discontinued operations of $135 thousand was also recorded in the quarter, the company disclosed. Basic and diluted earnings per share for Q3 2026 were each $0.04, against a loss per share of $0.29 in Q3 2025.

For the nine months ended September 26, 2026, the filing showed net sales of $193,220 thousand versus $193,942 thousand in the prior-year period, with nine-month income from continuing operations of $3,196 thousand against a loss of $4,325 thousand in 2025. On the balance sheet as of September 26, 2026, total current liabilities were $111,024 thousand, including a current portion of long-term debt of $58,894 thousand. Total stockholders' equity stood at $11,713 thousand, up from $8,798 thousand at December 27, 2025. The company is classified as a smaller reporting company and indicated it is not a shell company.

What Was Disclosed

The Dixie Group filed its quarterly report covering the period ended September 26, 2026, disclosing a return to profitability in both Q3 and the nine-month period, improved gross profit, and a higher total asset base compared with the prior fiscal year-end.