Clearfield Announces Increase to Share Repurchase Program

Rhea-AI Summary

Clearfield (NASDAQ: CLFD) announced on November 25, 2025 that its Board increased the company’s common stock repurchase authorization from $65 million to $85 million.

The company said this raises available repurchase capacity to approximately $28.4 million when combined with the $8.4 million repurchase amount remaining as of September 30, 2025. Repurchases may occur via open-market purchases, privately negotiated transactions, block trades, or under Rule 10b5-1 trading plans, and will be funded by cash on hand. The program may be modified, suspended, or terminated by the Board and does not obligate any minimum repurchases.

Positive

• Buyback authorization increased by $20 million to $85 million
• Available capacity of approximately $28.4 million reported
• Funding source specified as cash on hand
• Flexible execution via open market, negotiated trades, and 10b5-1 plans

Negative

• Cash reduction risk from repurchases funded by cash on hand
• No minimum repurchase obligation, future buys are uncertain

Insights

Corporate Finance Strategist

Board ups buyback authorization to $85 million, signaling capital allocation preference for share repurchases funded from cash.

Clearfield increased its common stock repurchase program from $65 million to $85 million on November 25, 2025. The company states repurchases may occur via open-market, privately negotiated transactions, block trades, or Rule 10b5-1 plans, and will follow Rule 10b-18 execution limits. Management expects funding from cash on hand and notes the program continues until the dollar cap is reached or the Board modifies it.

The business mechanism is straightforward: the Board allocated an additional $20 million to buy back shares, which reduces outstanding share count if executed and returns capital to shareholders. Key dependencies include available cash, market liquidity, and adherence to Rule 10b-18 execution windows; the program explicitly carries no obligation to repurchase a specific amount. Risks include opportunity cost of using cash for buybacks instead of investing in operations or M&A, and limited near-term impact if repurchases occur slowly or at suboptimal prices.

Watch the pace and size of actual repurchases and quarterly cash balances for the next few quarters to gauge intent and execution; a clear uptick in buyback activity within Q1 2026–Q4 2026 would show meaningful capital return, while muted activity would signal a strategic authorization without immediate deployment.

MINNEAPOLIS, Nov. 25, 2025 (GLOBE NEWSWIRE) -- Clearfield, Inc (NASDAQ: CLFD), a leader in Community Broadband fiber connectivity, today announced that its Board of Directors has authorized an increase to the Company’s common stock share repurchase program from $65 million to $85 million.

Cheri Beranek, President and Chief Executive Officer, said, “We are announcing that our Board of Directors has increased our share buyback authorization from $65 million to $85 million, leaving approximately $28.4 million available for additional repurchases when added to the $8.4 million repurchase amount remaining on September 30, 2025. This strategic decision reflects the Board’s continued view that the current share price does not fully capture our long-term opportunity. This increase in buyback authorization underscores our proactive commitment and confidence in the Company’s long-term outlook.”

Under the program, Clearfield may purchase shares of the Company’s common stock from time to time through open-market and privately negotiated transactions, through block trades, and pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934. Repurchases of common stock will be made in accordance with Rule 10b-18 of the Securities Exchange Act of 1934 at prices depending on prevailing market conditions.

The program does not obligate Clearfield to repurchase any particular amount of common stock during any period. The repurchase will be funded by cash on hand. The repurchase program is expected to continue indefinitely until the maximum dollar amount of shares has been repurchased or until the repurchase program is earlier modified, suspended or terminated by the Board of Directors.

About Clearfield, Inc.

Clearfield, Inc. (NASDAQ: CLFD) designs, manufactures, and distributes fiber optic management, protection, and delivery products for communications networks. Our “fiber to anywhere” platform serves the unique requirements of leading incumbent local exchange carriers (traditional carriers), competitive local exchange carriers (alternative carriers), and MSO/cable TV companies, while also catering to the broadband needs of the utility/municipality, enterprise, data center, and military markets. Headquartered in Minneapolis, MN, Clearfield deploys more than a million fiber ports each year. For more information, visit www.SeeClearfield.com.

Investor Relations Contact:
Greg McNiff
The Blueshirt Group
773-485-7191
clearfield@blueshirtgroup.com

FAQ

What change did Clearfield (CLFD) announce to its share repurchase program on November 25, 2025?

Clearfield increased its repurchase authorization from $65 million to $85 million.

How much repurchase capacity does Clearfield (CLFD) have available after the November 25, 2025 increase?

The company said there is approximately $28.4 million available when combined with the $8.4 million remaining on September 30, 2025.

How will Clearfield (CLFD) execute its share repurchases under the increased program?

Repurchases may occur via open-market purchases, privately negotiated transactions, block trades, and Rule 10b5-1 trading plans.

Will Clearfield (CLFD) be required to repurchase a set amount of shares under the program?

No. The program does not obligate Clearfield to repurchase any particular amount of common stock.

What will fund Clearfield's (CLFD) share repurchases under the updated program?

The company said repurchases will be funded by cash on hand.