Clearfield Reports First Quarter Fiscal 2026 Results
Rhea-AI Summary
Clearfield (NASDAQ: CLFD) reported fiscal Q1 2026 results for the quarter ended December 31, 2025: net sales from continuing operations $34.3M (+16% YoY) and gross margin 33.2% (up 4.0 percentage points). Management introduced the NOVA platform, reiterated FY26 guidance of $160M–$170M in net sales and EPS of $0.48–$0.62, reported ~$157M in cash and investments, completed $5.2M of share repurchases, and had $23.1M remaining buyback capacity.
Q2 FY26 outlook: sales $32M–$35M, slightly higher operating expenses, and net loss per diluted share $0.02–$0.10. Order backlog was $22.8M as of Dec 31, 2025.
Positive
- Net sales from continuing operations +16% YoY to $34.3M
- Gross margin improved by 4.0 percentage points to 33.2%
- Gross profit increased 31% YoY to $11.4M
- Approximately $157M in cash, short-term and long-term investments
- Share repurchases of $5.2M with $23.1M remaining authorization
Negative
- Operating expenses increased 23% to $13.2M, 38.5% of sales
- Order backlog declined 8% QoQ to $22.8M
- Consolidated net loss per diluted share $(0.04) despite sales growth
Market Reaction
Following this news, CLFD has gained 5.25%, reflecting a notable positive market reaction. Our momentum scanner has triggered 2 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $32.08. This price movement has added approximately $22M to the company's valuation.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Silver for real-time data.
Key Figures
Market Reality Check
Peers on Argus
CLFD slipped 0.46% while peers were mixed: GILT up 2.5%, FEIM up 3.69%, AVNW down 1.58%, ADTN flat, NTGR up 0.19%. Moves do not show a unified sector direction.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 21 | Earnings call notice | Neutral | +4.9% | Scheduled release and discussion of fiscal Q1 2026 results and call details. |
| Jan 15 | Product launch | Positive | -0.3% | Launch of NOVA high-density fiber platform for data centers and broadband sites. |
| Jan 05 | Conference appearance | Positive | +5.6% | Needham Growth Conference fireside chat with CEO and CFO in New York. |
| Dec 09 | ESG commitment | Positive | +1.8% | Signing ESGR Statement of Support and recognition for military-employee support. |
| Dec 04 | Workforce initiative | Positive | +2.0% | Tribal Broadband Training Initiative offering FOA-accredited fiber technician training. |
Recent corporate and strategic announcements have more often been followed by positive price reactions, with only the NOVA platform launch showing a mild divergence.
Over the past few months, CLFD has issued several corporate updates. An earnings call announcement on Jan 21, 2026 coincided with a 4.86% gain. The NOVA platform launch on Jan 15, 2026 saw a small -0.34% move despite product expansion news. A Needham conference appearance on Jan 5, 2026 led to a 5.63% rise. ESG and workforce initiatives in December 2025 also aligned with modest positive reactions. Today’s earnings results extend this sequence of operational updates.
Market Pulse Summary
The stock is up +5.3% following this news. A strong positive reaction aligns with CLFD’s pattern of constructive responses to corporate updates, where most recent news events saw gains. Investors had new data on Q1 net sales of $34.3M, 16% growth and above guidance, expanding gross margin to 33.2%, and a solid $157M cash position with no debt. However, ongoing net losses and a declining backlog of $22.8M could temper enthusiasm if growth moderates.
Key Terms
discontinued operations financial
order backlog financial
AI-generated analysis. Not financial advice.
- Net sales from continuing operations grew
16% year over year to$34.3 million ; Gross margin from continuing operations improved by 4 percentage points to33.2% - Clearfield Introduces NOVA™ Platform, Optimizing Scalability and Installation Simplicity for High-Density Fiber Connectivity
- Reiterates full year fiscal 2026 guidance of net sales from continuing operations in the range of
$160 million to$170 million and EPS of$0.48 t o$0.62 - Share buybacks totaled
$5.2 million with$23.1 million remaining available for repurchases
MINNEAPOLIS, Feb. 04, 2026 (GLOBE NEWSWIRE) -- Clearfield, Inc. (NASDAQ: CLFD), a leader in fiber connectivity, reported results for the fiscal first quarter of 2026 ending December 31, 2025. Additional commentary is provided in a letter to shareholders available in the Investor Relations section of the Company’s website.
| Fiscal Q1 2026 Financial Summary | |||||||||||
| (in millions except per share data and percentages) | Q1 2026 | vs. Q1 2025 | Change | Change (%) | |||||||
| Net Sales from Continuing Operations | $ | 34.3 | $ | 29.7 | $ | 4.6 | |||||
| Gross Profit ($) from Continuing Operations | $ | 11.4 | $ | 8.7 | $ | 2.7 | |||||
| Gross Profit (%) from Continuing Operations | |||||||||||
| Loss from Operations from Continuing Operations | $ | (1.8) | $ | (2.0) | $ | 0.2 | |||||
| Income Tax (Benefit) Expense from Continuing Operations | $ | (0.0) | $ | 0.1 | $ | (0.1) | |||||
| Net Loss from Continuing Operations | $ | (0.3) | $ | (0.4) | $ | 0.1 | |||||
| Net Loss per Diluted Share from Continuing Operations | $ | (0.02) | $ | (0.02) | $ | - | |||||
| Net Loss from Discontinued Operations, net of tax | $ | (0.3) | $ | (1.6) | $ | 1.2 | |||||
| Net Loss per Diluted Share from Discontinued Operations | $ | (0.02) | $ | (0.11) | $ | 0.09 | |||||
| Consolidated Net Loss Per Diluted Share | $ | (0.04) | $ | (0.13) | $ | 0.09 | |||||
Management Commentary:
“During the quarter, we saw signs of stabilization and an early rebound in Community Broadband demand, reinforcing confidence in our long-term outlook for fiscal 2026.” said Company President and Chief Executive Officer, Cheri Beranek. “To capitalize on this momentum, we introduced our NOVA™ product line, which represents a strategic extension of our platform into adjacent markets. The NOVA product line positions Clearfield to leverage the demand for higher fiber density driven by data center deployments, low latency applications, and AI. As the leading provider of fiber management solutions for the Community Broadband market, we are guided by a disciplined strategy anchored in our Three-Pillar framework. That framework remains focused on protecting and strengthening our core business, expanding market share, and strategically extending our technology into adjacent markets.”
“We delivered fiscal first quarter net sales from continuing operations of
Financial Results for the Three Months Ended December 31, 2025
As previously announced, in November 2025 Clearfield completed the sale of its Nestor Cables business. As a result, all financial results are presented for the Clearfield segment continuing operations only, with Nestor results reported under discontinued operations in our Statement of Earnings and Statement of Cash Flows and reported as assets and liabilities held for sale on our Balance Sheet.
Clearfield net sales from continuing operations for the first quarter of fiscal 2026 were
As of December 31, 2025, order backlog (defined as purchase orders received but not yet fulfilled) was
Clearfield gross margin from continuing operations improved from
Operating expenses from continuing operations for the first quarter of fiscal 2026 increased
Income tax benefit from continuing operations was
Net loss from continuing operations for the first quarter of fiscal 2026 totaled
Net loss from discontinued operations for the first quarter of fiscal 2026, was
Outlook
For the second quarter of fiscal 2026, we anticipate net sales from continuing operations in the range of
We are reiterating our outlook for fiscal 2026 with net sales from continuing operations expected to be in the range of
The net income (loss) per share ranges are based on the number of shares outstanding at the end of the first quarter of fiscal 2026 and do not reflect potential additional share repurchases completed in fiscal 2026. Our guidance reflects our current understanding of the impact of the evolving tariff situation, which could contribute to uncertainty in our business and in the macroeconomic environment. As we currently understand the tariff environment, we do not believe that the tariffs currently in place will materially affect our operating results.
Conference Call
Management will hold a conference call today, February 4, 2026, at 5:00 p.m. Eastern time (4:00 p.m. Central time) to discuss these results and provide an update on business conditions.
Clearfield’s President and Chief Executive Officer, Cheri Beranek, and Chief Financial Officer, Dan Herzog, will host the presentation, followed by a question-and-answer period.
U.S. dial-in: 1-844-826-3033
International dial-in: 1-412-317-5185
Conference ID: 10205826
The live webcast of the call can be accessed at the Clearfield Investor Relations website along with the company's earnings press release and presentation.
A replay of the call will be available after 8:00 p.m. Eastern Time on the same day through February 18, 2026, while an archived version of the webcast will be available on the Investor Relations website for 90 days.
U.S. replay dial-in: 1-844-512-2921
International replay dial-in: 1-412-317-6671
Replay ID: 10205826
About Clearfield, Inc.
Clearfield, Inc. (NASDAQ: CLFD) designs, manufactures, and distributes fiber optic management, protection, and delivery solutions that play a critical role in enabling broadband operators to close the digital divide. Our labor lite, craft-friendly platform is leveraged by community broadband, MSOs, incumbent service providers, ISPs, data centers, military, municipalities, and coops - from homes passed to homes connected faster and more efficiently. Headquartered in Minneapolis, MN, Clearfield deploys more than a million fiber ports each year. For more information, visit www.SeeClearfield.com.
Cautionary Statement Regarding Forward-Looking Information
Forward-looking statements contained herein and in any related presentation or in the related Earnings Presentation are made pursuant to the safe harbor provisions of the Private Litigation Reform Act of 1995. Words such as “may,” “plan,” “expect,” “aim,” “believe,” “project,” “target,” “anticipate,” “intend,” “estimate,” “will,” “should,” “could,” “outlook,” or “continue” or comparable terminology are intended to identify forward-looking statements. Such forward looking statements include, for example, statements about the Company’s future revenue and operating performance, the development and marketing of new products, the impact of recent trade policy changes, including new and increased tariffs, retaliatory tariffs, trade disputes, and market and economic reactions to such changes, expected customer ordering patterns and future supply agreements with customers, expectations regarding the impact on our business of M&A activity among our customers, anticipated shipping on backlog and future lead times, future availability of components and materials from the Company’s supply chain, compliance with Build America Buy America (BABA) Act requirements, the impact of the Broadband Equity, Access, and Deployment (BEAD) Program, Rural Digital Opportunity Fund (RDOF) or other government programs on the demand for the Company’s products or timing of customer orders, the Company’s ability to match capacity to meet demand, expansion into new markets and trends in and growth of the FTTx markets, market segments or customer purchases, and other statements that are not historical facts. These statements are based upon the Company's current expectations and judgments about future developments in the Company's business. Certain important factors could have a material impact on the Company's performance, including, without limitation: we depend on the availability of sufficient supply of certain materials and global disruptions in the supply chain for these materials could prevent us from meeting customer demand for our products; we rely on single-source suppliers, which could cause delays, increase costs or prevent us from completing customer orders; changes in trade policy in the U.S. and other countries may adversely affect our business and results of operations; inflationary price pressures and uncertain availability of components, raw materials, labor and logistics used by us and our suppliers could negatively impact our profitability; a significant percentage of our sales in the last three fiscal years have been made to a small number of customers, and the loss of these major customers could adversely affect us; further consolidation among our customers may result in the loss of some customers and may reduce sales during the pendency of business combinations and related integration activities; our business is dependent on interdependent management information systems; we may be subject to risks associated with acquisitions, and the risks could adversely affect future operating results; adverse global economic conditions and geopolitical issues could have a negative effect on our business, and results of operations and financial condition; product defects or the failure of our products to meet specifications could cause us to lose customers and sales or to incur unexpected expenses; we are dependent on key personnel; cyber-security incidents, including ransomware, data breaches or computer viruses, could disrupt our business operations, damage our reputation, result in increased expense, and potentially lead to legal proceedings; natural disasters, extreme weather conditions or other catastrophic events could negatively affect our business, financial condition, and operating results; to compete effectively, we must continually improve existing products and introduce new products that achieve market acceptance; our business is dependent upon capital spending by broadband service providers, and any delay, reduction or cancellation in capital spending by broadband service providers could adversely affect our business; if the telecommunications market does not continue to expand, our business may not grow as fast as we expect, which could adversely impact our business, financial condition and operating results; changes in U.S. government funding programs may cause our customers and prospective customers to delay, reduce, or accelerate purchases, leading to unpredictable and irregular purchase cycles; intense competition in our industry may result in price reductions, lower gross profits and loss of market share; our success depends upon adequate protection of our patent and intellectual property rights; we face risks associated with expanding our sales outside of the United States; our operating results may fluctuate significantly from quarter to quarter, which may make budgeting for expenses difficult and may negatively affect the market price of our common stock; our stock price has been volatile historically and may continue to be volatile - the price of our common stock may fluctuate significantly; anti-takeover provisions in our organizational documents, Minnesota law and other agreements could prevent or delay a change in control of our Company; and other factors set forth in Part I, Item IA. Risk Factors of Clearfield's Annual Report on Form 10-K for the year ended September 30, 2025 as well as other filings with the Securities and Exchange Commission. The Company undertakes no obligation to update these statements to reflect actual events unless required by law.
Investor Relations Contact:
Greg McNiff
The Blueshirt Group
773-485-7191
clearfield@blueshirtgroup.com
| CLEARFIELD, INC. | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| (IN THOUSANDS, EXCEPT PER SHARE DATA) | |||||||
| December 31, 2025 (Unaudited) | September 30, 2025 | ||||||
| Assets | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 13,879 | $ | 21,493 | |||
| Short-term investments | 82,556 | 84,484 | |||||
| Accounts receivables, net | 14,971 | 17,991 | |||||
| Inventories, net | 40,201 | 42,031 | |||||
| Prepaid and other current assets | 14,132 | 11,152 | |||||
| Current assets held for sale | - | 21,337 | |||||
| Total current assets | 165,739 | 198,488 | |||||
| Property, plant and equipment, net | 9,479 | 9,682 | |||||
| Long-term investments | 60,291 | 59,822 | |||||
| Goodwill | 4,709 | 4,709 | |||||
| Intangible assets, net | 8,929 | 9,353 | |||||
| Right-of-use lease assets | 7,759 | 8,420 | |||||
| Deferred tax asset | 10,610 | 10,263 | |||||
| Other non-current assets | 534 | 608 | |||||
| Non-current assets held for sale | - | 4,828 | |||||
| Total assets | $ | 268,050 | $ | 306,173 | |||
| Liabilities and Shareholders’ Equity | |||||||
| Current liabilities | |||||||
| Current portion of lease liability | $ | 2,890 | $ | 2,823 | |||
| Accounts payable | 3,852 | 7,028 | |||||
| Accrued compensation | 4,197 | 6,598 | |||||
| Accrued expenses | 2,270 | 2,197 | |||||
| Current liabilities held for sale | - | 17,957 | |||||
| Total current liabilities | 13,209 | 36,603 | |||||
| Other liabilities | |||||||
| Long-term portion of lease liability | 5,189 | 5,934 | |||||
| Non-current liabilities held for sale | - | 7,473 | |||||
| Total liabilities | 18,398 | 50,010 | |||||
| Shareholders’ equity | |||||||
| Preferred stock, | - | - | |||||
| Common stock, authorized 50,000,000, | 138 | 138 | |||||
| Additional paid-in capital | 143,053 | 147,382 | |||||
| Accumulated other comprehensive income | 163 | 1,731 | |||||
| Retained earnings | 106,298 | 106,912 | |||||
| Total shareholders’ equity | 249,652 | 256,163 | |||||
| Total Liabilities and Shareholders’ Equity | $ | 268,050 | $ | 306,173 | |||
| CLEARFIELD, INC. | |||||||
| CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS | |||||||
| (UNAUDITED) | |||||||
| (IN THOUSANDS, EXCEPT PER SHARE DATA) | |||||||
| Three Months Ended | Three Months Ended | ||||||
| December 31, | December 31, | ||||||
| 2025 | 2024 | ||||||
| Net sales | $ | 34,341 | $ | 29,698 | |||
| Cost of sales | 22,953 | 21,023 | |||||
| Gross profit | 11,388 | 8,675 | |||||
| Operating expenses | |||||||
| Selling, general and administrative | 13,212 | 10,721 | |||||
| Loss from continuing operations | (1,824) | (2,046) | |||||
| Net investment income | 1,546 | 1,744 | |||||
| Loss from continuing operations before income taxes | (278) | (302) | |||||
| Income tax (benefit) expense | (1) | 53 | |||||
| Loss from continuing operations, net of tax | (277) | (355) | |||||
| Loss from discontinued operations, net of tax | (337) | (1,551) | |||||
| Net loss | $ | (614) | $ | (1,906) | |||
| Loss per share | |||||||
| Basic | |||||||
| Continuing operations | $ | (0.02) | $ | (0.02) | |||
| Discontinued operations | (0.02) | (0.11) | |||||
| Basic loss per share | $ | (0.04) | $ | (0.13) | |||
| Diluted | |||||||
| Continuing operations | $ | (0.02) | $ | (0.02) | |||
| Discontinued operations | (0.02) | (0.11) | |||||
| Diluted loss per share | $ | (0.04) | $ | (0.13) | |||
| Weighted average shares outstanding: | |||||||
| Basic | 13,869,510 | 14,213,025 | |||||
| Diluted | 13,869,510 | 14,213,025 | |||||
| CLEARFIELD, INC. | |||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| (UNAUDITED) | |||||||
| (IN THOUSANDS) | |||||||
| Three Months Ended | Three Months Ended | ||||||
| December 31, | December 31, | ||||||
| 2025 | 2024 | ||||||
| Cash flows from operating activities (continuing) | |||||||
| Net loss | $ | (614) | $ | (1,906) | |||
| Loss from discontinued operations, net of tax | 337 | 1,551 | |||||
| Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||||||
| Depreciation and amortization | 1,615 | 1,513 | |||||
| Amortization of premium and discount on investments, net | (117) | (766) | |||||
| Deferred taxes | (375) | (135) | |||||
| Stock-based compensation | 1,271 | 1,050 | |||||
| Changes in operating assets and liabilities, net of acquired amounts: | |||||||
| Accounts receivable | 3,020 | 3,577 | |||||
| Inventories, net | 1,830 | 6,279 | |||||
| Other assets | (2,905) | (903) | |||||
| Accounts payable and accrued expenses | (5,502) | (2,221) | |||||
| Net cash (used in) provided by operating activities (continuing) | (1,440) | 8,039 | |||||
| Cash flows from investing activities (continuing) | |||||||
| Purchases of property, plant and equipment and intangible assets | (988) | (1,751) | |||||
| Purchases of investments | (19,953) | (39,015) | |||||
| Proceeds from maturities of investments | 21,660 | 54,476 | |||||
| Cash paid on disposal of business | (1,012) | - | |||||
| Net cash (used in) provided by investing activities (continuing) | (293) | 13,710 | |||||
| Cash flows from financing activities (continuing) | |||||||
| Proceeds from issuance of common stock under employee stock purchase plan | 239 | 301 | |||||
| Repurchase of shares for payment of withholding taxes for vested restricted stock grants | (997) | (491) | |||||
| Withholding related to exercise of stock options | (57) | - | |||||
| Repurchase of common stock | (5,279) | (6,275) | |||||
| Net cash used in financing activities (continuing) | (6,094) | (6,465) | |||||
| Cash flows from discontinued operations | |||||||
| Net cash provided by (used in) operating activities | 1,380 | (889) | |||||
| Net cash used in investing activities | - | (318) | |||||
| Net cash (used in) provided by financing activities | (1,196) | 77 | |||||
| Net cash provided by (used in) discontinued operations | 184 | (1,130) | |||||
| Effect of exchange rates on cash and cash equivalents | (13) | 132 | |||||
| Net (decrease) increase in cash and cash equivalents | (7,656) | 14,286 | |||||
| Change in cash held for sale | 42 | 1,065 | |||||
| Cash and cash equivalents, beginning of period | 21,493 | 14,148 | |||||
| Cash and cash equivalents, end of period | $ | 13,879 | $ | 29,499 | |||
| Supplemental disclosures for cash flow information | |||||||
| Cash paid for income taxes, net | $ | (12) | $ | 405 | |||
| Non-cash financing activities | |||||||
| Cashless exercise of stock options | $ | 419 | $ | 9 | |||
FAQ
What were Clearfield (CLFD) fiscal Q1 2026 net sales and how did they compare year-over-year?
How did Clearfield's (CLFD) profitability metrics change in Q1 FY26?
What guidance did Clearfield (CLFD) provide for full-year fiscal 2026 on February 4, 2026?
How much cash and repurchase capacity did Clearfield (CLFD) report at the end of Q1 FY26?
What is Clearfield's (CLFD) near-term outlook for Q2 fiscal 2026 announced on February 4, 2026?
