Clearfield Reports Second Quarter Fiscal 2026 Results
Rhea-AI Summary
Clearfield (NASDAQ: CLFD) reported fiscal Q2 2026 net sales from continuing operations of $34.4 million and a net loss per diluted share from continuing operations of $0.04, both near the top end of guidance ranges. Order backlog increased 39% sequentially to $31.6 million. The company reiterated full‑year fiscal 2026 guidance of $160M–$170M in net sales and EPS of $0.48–$0.62. Share repurchases totaled $7.3 million with $15.9 million remaining available. Management cited early traction in adjacent datacenter markets and noted supply‑chain and tariff uncertainties in guidance.
Positive
- Net sales of $34.4M in Q2 2026
- Order backlog up 39% sequentially to $31.6M
- Reiterated fiscal 2026 guidance: $160M–$170M
- Share repurchases of $7.3M in Q2; $15.9M remaining
Negative
- Revenue down 15% YoY in Q2
- Gross profit down 20% YoY to $11.2M
- Operating expenses rose 8% to $13.2M, pressuring profitability
- Guidance includes risk from optical fiber supply constraints and tariffs
Key Figures
Market Reality Check
Peers on Argus
CLFD gained 1.5% while peers were mixed: AVNW +6.04%, GILT +3.05%, NTGR +3.52%, FEIM +2.54%, and ADTN -3.56%, indicating stock-specific response to earnings and guidance.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| May 04 | Product launch | Positive | -0.2% | Introduced new CraftSmart FiberFirst pedestals expanding pedestal platform range. |
| Apr 29 | Conference appearance | Neutral | +0.1% | Announced presentation at Needham Technology, Media, & Consumer Conference. |
| Apr 22 | Earnings call scheduled | Neutral | -1.4% | Set date and time for fiscal Q2 2026 earnings release and call. |
| Feb 04 | Earnings results | Positive | -4.6% | Reported Q1 FY26 growth, strong gross margin, guidance and buybacks. |
| Jan 21 | Earnings call scheduled | Neutral | +4.9% | Announced timing and access details for Q1 FY26 earnings call. |
Recent fundamental updates (Q1 and Q2 results) saw muted or slightly negative next-day moves, suggesting measured market responses to guidance and product news.
Over the last few months, Clearfield has focused on earnings communication, new products, and investor outreach. Q1 FY26 results showed higher net sales and a 33.2% gross margin, alongside FY26 guidance of $160M–$170M and EPS of $0.48–$0.62. The company has also scheduled regular earnings calls and conference appearances, plus launched new CraftSmart® FiberFirst™ pedestals. Today’s Q2 FY26 release reiterates that guidance and updates backlog and buyback activity, extending this trajectory.
Market Pulse Summary
This announcement reports Q2 FY26 net sales from continuing operations of $34.4M, a net loss of $0.04 per share, and a backlog of $31.6M, up 39% from December 31, 2025. Management reiterated full-year guidance of $160M–$170M in sales and EPS of $0.48–$0.62, and executed $7.3M of buybacks. Investors may watch backlog trends, margin performance, Q3 guidance of $42M–$46M in sales, and progress in adjacent markets like datacenter deployments.
Key Terms
order backlog financial
discontinued operations financial
gross margin financial
operating expenses financial
AI-generated analysis. Not financial advice.
- Net sales from continuing operations of
$34.4 million and net loss per share from continuing operations of$0.04 , both toward top end of guidance range - Order backlog increased
39% from December 31, 2025, to$31.6 million - Reiterates full year fiscal 2026 guidance of net sales from continuing operations in the range of
$160 million to$170 million , which represents approximately10% topline growth at the midpoint, and EPS of$0.48 t o$0.62 - Share buybacks totaled
$7.3 million with$15.9 million remaining available for repurchase
MINNEAPOLIS, May 06, 2026 (GLOBE NEWSWIRE) -- Clearfield, Inc. (NASDAQ: CLFD), a leader in fiber connectivity, reported results for the fiscal second quarter of 2026. Additional commentary is provided in a letter to shareholders available in the Investor Relations section of the Company’s website.
| Fiscal Q2 2026 Financial Summary | |||||||||||
| (in millions except per share data and percentages) | Q2 2026 | vs. Q2 2025 | Change | Change (%) | |||||||
| Net Sales from Continuing Operations | $ | 34.4 | $ | 40.6 | $ | (6.2 | ) | -15 | % | ||
| Gross Profit ($) from Continuing Operations | $ | 11.2 | $ | 14.0 | $ | (2.8 | ) | -20 | % | ||
| Gross Profit (%) from Continuing Operations | 32.5 | % | 34.4 | % | -1.9 | % | -6 | % | |||
| (Loss) Income from Operations from Continuing Operations | $ | (2.1 | ) | $ | 1.7 | $ | (3.8 | ) | -223 | % | |
| Income Tax (Benefit) Expense from Continuing Operations | $ | (0.2 | ) | $ | 0.7 | $ | (0.9 | ) | -124 | % | |
| Net (Loss) Income from Continuing Operations | $ | (0.5 | ) | $ | 2.5 | $ | (3.1 | ) | -121 | % | |
| Net (Loss) Income per Diluted Share from Continuing Operations | $ | (0.04 | ) | $ | 0.18 | $ | (0.22 | ) | -122 | % | |
| Net Loss from Discontinued Operations, net of tax | $ | - | $ | (1.2 | ) | $ | 1.2 | 100 | % | ||
| Net Loss per Diluted Share from Discontinued Operations | $ | - | $ | (0.09 | ) | $ | 0.09 | 100 | % | ||
| Consolidated Net (Loss) Income Per Diluted Share | $ | (0.04 | ) | $ | 0.09 | $ | (0.13 | ) | -144 | % | |
| Fiscal Q2 YTD 2026 Financial Summary | |||||||||||
| (in millions except per share data and percentages) | 2026 YTD | vs. 2025 YTD | Change | Change (%) | |||||||
| Net Sales from Continuing Operations | $ | 68.7 | $ | 70.3 | $ | (1.6 | ) | -2 | % | ||
| Gross Profit ($) from Continuing Operations | $ | 22.5 | $ | 22.6 | $ | (0.1 | ) | -0 | % | ||
| Gross Profit (%) from Continuing Operations | 32.8 | % | 32.2 | % | 0.6 | % | 2 | % | |||
| Loss from Operations from Continuing Operations | $ | (3.9 | ) | $ | (0.4 | ) | $ | (3.5 | ) | 971 | % |
| Income Tax (Benefit) Expense from Continuing Operations | $ | (0.2 | ) | $ | 0.8 | $ | (1.0 | ) | -123 | % | |
| Net (Loss) Income from Continuing Operations | $ | (0.8 | ) | $ | 2.2 | $ | (3.0 | ) | -137 | % | |
| Net (Loss) Income per Diluted Share from Continuing Operations | $ | (0.06 | ) | $ | 0.16 | $ | (0.22 | ) | -138 | % | |
| Net Loss from Discontinued Operations, net of tax | $ | (0.3 | ) | $ | (2.8 | ) | $ | 2.4 | 88 | % | |
| Net Loss per Diluted Share from Discontinued Operations | $ | (0.02 | ) | $ | (0.20 | ) | $ | 0.18 | 90 | % | |
| Consolidated Net Loss Per Diluted Share | $ | (0.08 | ) | $ | (0.04 | ) | $ | (0.04 | ) | -100 | % |
Management Commentary
“We are focused on consistent execution while investing in Clearfield’s next phase of growth. We continue to see an early engagement in adjacent markets, with a particularly strong reception for bringing our proven outside plant techniques and strategies to datacenter environments,” said Company President and Chief Executive Officer, Cheri Beranek. “While these opportunities have yet to contribute meaningful revenue, they represent a compelling avenue for future expansion and early indications are encouraging.”
“We are pleased to report revenue and earnings in-line with our guidance. While lumpy on a quarter-over-quarter basis, performance has been driven by a year-to-date revenue increase of
Financial Results for the Three Months Ended March 31, 2026
Net sales from continuing operations for the second quarter of fiscal 2026 decreased
As of March 31, 2026, order backlog (defined as purchase orders received but not yet fulfilled) was
Gross margin from continuing operations for the second quarter of fiscal 2026 was
Operating expenses from continuing operations for the second quarter of fiscal 2026 increased
Net loss from continuing operations for the second quarter of fiscal 2026 totaled
Outlook
The Company reiterates its annual revenue guidance for fiscal 2026 in the range of
Conference Call
Management will hold a conference call today, May 6, 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: 10207981
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 May 20, 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: 10207981
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 STATEMENTS OF EARNINGS | ||||||||||||||||
| (UNAUDITED) | ||||||||||||||||
| (IN THOUSANDS, EXCEPT PER SHARE DATA) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| March 31, | March 31, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Net sales | $ | 34,391 | $ | 40,621 | $ | 68,732 | $ | 70,319 | ||||||||
| Cost of sales | 23,230 | 26,660 | 46,183 | 47,683 | ||||||||||||
| Gross profit | 11,161 | 13,961 | 22,549 | 22,636 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Selling, general and administrative | 13,230 | 12,279 | 26,442 | 23,000 | ||||||||||||
| (Loss) income from continuing operations | (2,069 | ) | 1,682 | (3,893 | ) | (364 | ) | |||||||||
| Net investment income | 1,365 | 1,588 | 2,911 | 3,332 | ||||||||||||
| (Loss) income from continuing operations before income taxes | (704 | ) | 3,270 | (982 | ) | 2,968 | ||||||||||
| Income tax (benefit) expense | (176 | ) | 722 | (177 | ) | 775 | ||||||||||
| (Loss) income from continuing operations, net of tax | (528 | ) | 2,548 | (805 | ) | 2,193 | ||||||||||
| Loss from discontinued operations, net of tax | - | (1,221 | ) | (337 | ) | (2,772 | ) | |||||||||
| Net (loss) income | $ | (528 | ) | $ | 1,327 | $ | (1,142 | ) | $ | (579 | ) | |||||
| (Loss) income per share | ||||||||||||||||
| Basic | ||||||||||||||||
| Continuing operations | $ | (0.04 | ) | $ | 0.18 | $ | (0.06 | ) | $ | 0.16 | ||||||
| Discontinued operations | - | (0.09 | ) | (0.02 | ) | (0.20 | ) | |||||||||
| Basic (loss) income per share | $ | (0.04 | ) | $ | 0.09 | $ | (0.08 | ) | $ | (0.04 | ) | |||||
| Diluted | ||||||||||||||||
| Continuing operations | $ | (0.04 | ) | $ | 0.18 | $ | (0.06 | ) | $ | 0.16 | ||||||
| Discontinued operations | - | (0.09 | ) | (0.02 | ) | (0.20 | ) | |||||||||
| Diluted (loss) income per share | $ | (0.04 | ) | $ | 0.09 | $ | (0.08 | ) | $ | (0.04 | ) | |||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 13,670,470 | 14,095,341 | 13,771,086 | 14,154,830 | ||||||||||||
| Diluted | 13,670,470 | 14,095,341 | 13,771,086 | 14,154,830 | ||||||||||||
| CLEARFIELD, INC. | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| (IN THOUSANDS, EXCEPT PER SHARE DATA) | |||||||
| March 31, 2026 (Unaudited) | September 30, 2025 | ||||||
| Assets | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 9,404 | $ | 21,493 | |||
| Short-term investments | 81,665 | 84,484 | |||||
| Accounts receivables, net | 20,865 | 17,991 | |||||
| Inventories, net | 36,920 | 42,031 | |||||
| Prepaid and other current assets | 14,148 | 11,152 | |||||
| Current assets held for sale | - | 21,337 | |||||
| Total current assets | 163,002 | 198,488 | |||||
| Property, plant and equipment, net | 9,453 | 9,682 | |||||
| Long-term investments | 56,004 | 59,822 | |||||
| Goodwill | 4,709 | 4,709 | |||||
| Intangible assets, net | 8,398 | 9,353 | |||||
| Right-of-use lease assets | 10,640 | 8,420 | |||||
| Deferred tax asset | 10,852 | 10,263 | |||||
| Other non-current assets | 489 | 608 | |||||
| Non-current assets held for sale | - | 4,828 | |||||
| Total assets | $ | 263,547 | $ | 306,173 | |||
| Liabilities and Shareholders’ Equity | |||||||
| Current liabilities | |||||||
| Current portion of lease liability | $ | 2,892 | $ | 2,823 | |||
| Accounts payable | 3,678 | 7,028 | |||||
| Accrued compensation | 5,015 | 6,598 | |||||
| Accrued expenses | 1,108 | 2,197 | |||||
| Current liabilities held for sale | - | 17,957 | |||||
| Total current liabilities | 12,693 | 36,603 | |||||
| Other liabilities | |||||||
| Long-term portion of lease liability | 8,047 | 5,934 | |||||
| Non-current liabilities held for sale | - | 7,473 | |||||
| Total liabilities | 20,740 | 50,010 | |||||
| Shareholders’ equity | |||||||
| Preferred stock, | - | - | |||||
| Common stock, authorized 50,000,000, | 136 | 138 | |||||
| Additional paid-in capital | 137,045 | 147,382 | |||||
| Accumulated other comprehensive (loss) income | (144 | ) | 1,731 | ||||
| Retained earnings | 105,770 | 106,912 | |||||
| Total shareholders’ equity | 242,807 | 256,163 | |||||
| Total Liabilities and Shareholders’ Equity | $ | 263,547 | $ | 306,173 | |||
| CLEARFIELD, INC. | |||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| (UNAUDITED) | |||||||
| (IN THOUSANDS) | |||||||
| Six Months Ended | Six Months Ended | ||||||
| March 31, | March 31, | ||||||
| 2026 | 2025 | ||||||
| Cash flows from operating activities (continuing) | |||||||
| Net loss | $ | (1,142 | ) | $ | (579 | ) | |
| Loss from discontinued operations, net of tax | 337 | 2,772 | |||||
| Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||||||
| Depreciation and amortization | 3,190 | 3,061 | |||||
| Amortization of premium and discount on investments, net | (270 | ) | (1,202 | ) | |||
| Deferred taxes | (536 | ) | (188 | ) | |||
| Stock-based compensation | 2,589 | 2,221 | |||||
| Changes in operating assets and liabilities, net of acquired amounts: | |||||||
| Accounts receivable | (2,874 | ) | (4,543 | ) | |||
| Inventories, net | 5,111 | 11,980 | |||||
| Other assets | (2,876 | ) | (3,240 | ) | |||
| Accounts payable and accrued expenses | (6,041 | ) | 2,168 | ||||
| Net cash (used in) provided by operating activities (continuing) | (2,512 | ) | 12,450 | ||||
| Cash flows from investing activities (continuing) | |||||||
| Purchases of property, plant and equipment and intangible assets | (2,007 | ) | (3,074 | ) | |||
| Purchases of investments | (52,009 | ) | (59,234 | ) | |||
| Proceeds from maturities of investments | 58,660 | 75,176 | |||||
| Cash paid on disposal of business | (1,012 | ) | - | ||||
| Net cash provided by investing activities (continuing) | 3,632 | 12,868 | |||||
| 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 | (1,001 | ) | (494 | ) | |||
| Withholding related to exercise of stock options | (63 | ) | (12 | ) | |||
| Repurchase of common stock | (12,597 | ) | (11,015 | ) | |||
| Net cash used in financing activities (continuing) | (13,422 | ) | (11,220 | ) | |||
| Cash flows from discontinued operations | |||||||
| Net cash provided by (used in) operating activities | 1,380 | (2,252 | ) | ||||
| Net cash used in investing activities | - | (1,648 | ) | ||||
| Net cash (used in) provided by financing activities | (1,196 | ) | 2,465 | ||||
| Net cash provided by (used in) discontinued operations | 184 | (1,435 | ) | ||||
| Effect of exchange rates on cash and cash equivalents | (13 | ) | 18 | ||||
| Net (decrease) increase in cash and cash equivalents | (12,131 | ) | 12,681 | ||||
| Change in cash held for sale | 42 | 806 | |||||
| Cash and cash equivalents, beginning of period | 21,493 | 14,148 | |||||
| Cash and cash equivalents, end of period | $ | 9,404 | $ | 27,635 | |||
| Supplemental disclosures for cash flow information | |||||||
| Cash (refunded) paid for income taxes, net | $ | (21 | ) | $ | 403 | ||
| Right of use assets obtained through lease liabilities | $ | 3,553 | $ | - | |||
| Non-cash financing activities | |||||||
| Cashless exercise of stock options | $ | 2,388 | $ | 97 | |||
