Clearfield Reports Third Quarter Fiscal 2026 Results
Rhea-AI Summary
Clearfield (NASDAQ: CLFD) reported fiscal Q3 2026 net sales from continuing operations of $43.9 million, up 13% from $38.8 million a year ago, with gross margin of 31.8% and net income from continuing operations of $3.0 million, or $0.22 per diluted share (up from $0.16).
Income from operations from continuing operations rose to $2.6 million versus $1.5 million, as operating expenses fell 6% year over year. Backlog was $21.0 million, down 34% sequentially and 32% year over year, including removal of a $4.6 million order that is no longer expected to be fulfilled. Q3 gross margin included a $2.6 million inventory charge, partially offset by $1.4 million of inventory recoveries and $655,000 of non-recurring tariff recoveries.
Year-to-date 2026, net sales from continuing operations were $112.6 million (up 3%), with net income from continuing operations of $2.2 million and EPS of $0.16, down from $0.32. Clearfield repurchased about 31,000 shares for $0.9 million in Q3, with $15.0 million remaining under its authorization, and received a $22 million hyperscale data center order after quarter-end.
Positive
- Q3 2026 net sales from continuing operations $43.9M, up 13% YoY
- Q3 2026 net income from continuing operations $3.0M; EPS $0.22 vs. $0.16
- Q3 income from operations $2.6M, up 68% from $1.5M
- Operating expenses down 6% YoY and 14% QoQ to $11.4M
- First significant $22M order for hyperscale data center project post-quarter
- Q3 share repurchases $0.9M; $15.0M remains authorized for buybacks
Negative
- Q3 gross margin fell to 31.8% from 35.3% YoY
- $2.6M inventory charge tied to an order no longer expected to be fulfilled
- Backlog declined to $21.0M, down 34% QoQ and 32% YoY
- Removed $4.6M order from backlog that company no longer expects to fulfill
- FY 2026 outlook reduced; sales now $151–$155M, EPS $0.14–$0.21
- YTD 2026 net income from continuing operations $2.2M, down 51% vs. 2025
News Explained
The new material change is a reduced fiscal 2026 outlook: Clearfield now expects continuing-operations sales of
Market reaction after Q3 2026 earnings report: CLFD -15.90%
Following this news, CLFD has declined 15.90%, reflecting a significant negative market reaction. Our momentum scanner has triggered 7 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $28.40.
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Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jul 28 | Product portfolio expansion | Positive | -2.7% | Expanded fiber sensing portfolio for infrastructure monitoring applications |
| Jul 22 | Earnings call scheduling | Neutral | -0.5% | Scheduled fiscal third-quarter results and conference call for August 5 |
| Jul 21 | Product portfolio launch | Positive | +6.2% | Introduced fault-managed power products for remote network equipment |
| May 19 | Partnership agreement | Positive | -3.6% | Joined VoltServer program targeting Digital Electricity adoption |
| May 06 | Q2 earnings report | Positive | +23.8% | Reported quarterly results and reiterated fiscal-year guidance |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent announcements produced mixed outcomes, with positive developments sometimes aligning with gains and sometimes diverging into declines.
Key Terms
order backlog financial
hyperscale data center technical
continuing operations financial
discontinued operations financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
- Net sales from continuing operations of
$43.9 million and net income per share from continuing operations of$0.22 - Received first significant order for
$22 million to support a hyperscale data center project after the close of the quarter; expect to begin shipments in early fiscal 2027 - Share buybacks totaled
$0.9 million with$15.0 million remaining available for repurchase
MINNEAPOLIS, Aug. 05, 2026 (GLOBE NEWSWIRE) -- Clearfield, Inc. (NASDAQ: CLFD), a leader in fiber connectivity, reported results for the fiscal third quarter of 2026. Additional commentary is provided in a letter to shareholders available in the Investor Relations section of the Company’s website.
| Fiscal Q3 2026 Financial Summary | ||||||||||
| (in millions except per share data and percentages) | Q3 2026 | vs. Q3 2025 | Change | Change (%) | ||||||
| Net Sales from Continuing Operations | $ | 43.9 | $ | 38.8 | $ | 5.1 | ||||
| Gross Profit ($) from Continuing Operations | $ | 13.9 | $ | 13.7 | $ | 0.3 | ||||
| Gross Profit (%) from Continuing Operations | 31.8% | - | - | |||||||
| Income from Operations from Continuing Operations | $ | 2.6 | $ | 1.5 | $ | 1.0 | ||||
| Income Tax Expense from Continuing Operations | $ | 0.9 | $ | 0.8 | $ | 0.1 | ||||
| Net Income from Continuing Operations | $ | 3.0 | $ | 2.3 | $ | 0.7 | ||||
| Net Income per Diluted Share from Continuing Operations | $ | 0.22 | $ | 0.16 | $ | 0.06 | ||||
| Net Loss from Discontinued Operations, net of tax | $ | - | $ | (0.7 | ) | $ | 0.7 | |||
| Net Loss per Diluted Share from Discontinued Operations | $ | - | $ | (0.05 | ) | $ | 0.05 | |||
| Consolidated Net Income Per Diluted Share | $ | 0.22 | $ | 0.11 | $ | 0.11 | ||||
| Fiscal Q3 YTD 2026 Financial Summary | |||||||||||
| (in millions except per share data and percentages) | 2026 YTD | vs. 2025 YTD | Change | Change (%) | |||||||
| Net Sales from Continuing Operations | $ | 112.6 | $ | 109.1 | $ | 3.5 | |||||
| Gross Profit ($) from Continuing Operations | $ | 36.5 | $ | 36.3 | $ | 0.2 | |||||
| Gross Profit (%) from Continuing Operations | 32.4% | - | - | ||||||||
| (Loss) Income from Operations from Continuing Operations | $ | (1.3 | ) | $ | 1.2 | $ | (2.5 | ) | - | ||
| Income Tax Expense from Continuing Operations | $ | 0.8 | $ | 1.6 | $ | (0.8 | ) | - | |||
| Net Income from Continuing Operations | $ | 2.2 | $ | 4.5 | $ | (2.3 | ) | - | |||
| Net Income per Diluted Share from Continuing Operations | $ | 0.16 | $ | 0.32 | $ | (0.16 | ) | - | |||
| Net Loss from Discontinued Operations, net of tax | $ | (0.3 | ) | $ | (3.5 | ) | $ | 3.2 | |||
| Net Loss per Diluted Share from Discontinued Operations | $ | (0.02 | ) | $ | (0.25 | ) | $ | 0.23 | |||
| Consolidated Net Income Per Diluted Share | $ | 0.14 | $ | 0.07 | $ | 0.07 | |||||
Management Commentary
“As we continue to execute on our core business, we are increasingly focused on positioning the Company for its next phase of growth. That progress was highlighted shortly after the close of the third quarter, when we received our first significant order for
“Our balance sheet and strong cash generation continue to provide the flexibility to invest in meaningful long-term growth opportunities,” said Chief Financial Officer, Dan Herzog. “As customer demand evolves, we believe Clearfield is well positioned to capitalize on opportunities across both broadband and data center connectivity.”
Financial Results for the Three Months Ended June 30, 2026
Net sales from continuing operations for the second quarter of fiscal 2026 increased
As of June 30, 2026, order backlog (defined as purchase orders received but not yet fulfilled) was
Gross margin from continuing operations for the third quarter of fiscal 2026 was
Operating expenses from continuing operations for the third quarter of fiscal 2026 decreased
Net income from continuing operations for the third quarter of fiscal 2026 totaled
Outlook
As a result of industry demand constraints discussed in our Shareholder Letter, we are reducing our outlook for fiscal 2026. We expect net sales from continuing operations to be in the range of
Conference Call
Management will hold a conference call today, August 5, 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: 10209753
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 August 19, 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: 10209753
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 SHARE AND PER SHARE DATA) | ||||||
| June 30, 2026 (Unaudited) | September 30, 2025 | |||||
| Assets | ||||||
| Current assets | ||||||
| Cash and cash equivalents | $ | 20,449 | $ | 21,493 | ||
| Short-term investments | 80,774 | 84,484 | ||||
| Accounts receivables, net | 22,055 | 17,991 | ||||
| Inventories, net | 33,391 | 42,031 | ||||
| Prepaid and other current assets | 14,221 | 11,152 | ||||
| Current assets held for sale | - | 21,337 | ||||
| Total current assets | 170,890 | 198,488 | ||||
| Property, plant and equipment, net | 9,265 | 9,682 | ||||
| Long-term investments | 53,896 | 59,822 | ||||
| Goodwill | 4,709 | 4,709 | ||||
| Intangible assets, net | 7,942 | 9,353 | ||||
| Right-of-use lease assets | 9,968 | 8,420 | ||||
| Deferred tax asset | 9,970 | 10,263 | ||||
| Other non-current assets | 451 | 608 | ||||
| Non-current assets held for sale | - | 4,828 | ||||
| Total assets | $ | 267,091 | $ | 306,173 | ||
| Liabilities and Shareholders’ Equity | ||||||
| Current liabilities | ||||||
| Current portion of lease liability | $ | 2,740 | $ | 2,823 | ||
| Accounts payable | 5,117 | 7,028 | ||||
| Accrued compensation | 4,571 | 6,598 | ||||
| Accrued expenses | 1,207 | 2,197 | ||||
| Current liabilities held for sale | - | 17,957 | ||||
| Total current liabilities | 13,635 | 36,603 | ||||
| Other liabilities | ||||||
| Long-term portion of lease liability | 7,536 | 5,934 | ||||
| Non-current liabilities held for sale | - | 7,473 | ||||
| Total liabilities | 21,171 | 50,010 | ||||
| Shareholders’ equity | ||||||
| Preferred stock, | ||||||
| issued or outstanding | - | - | ||||
| Common stock, authorized 50,000,000, | ||||||
| 13,597,691 and 13,839,675 shares issued and outstanding | ||||||
| as of June 30, 2026 and September 30, 2025, respectively | 136 | 138 | ||||
| Additional paid-in capital | 137,353 | 147,382 | ||||
| Accumulated other comprehensive (loss) income | (339 | ) | 1,731 | |||
| Retained earnings | 108,770 | 106,912 | ||||
| Total shareholders’ equity | 245,920 | 256,163 | ||||
| Total Liabilities and Shareholders’ Equity | $ | 267,091 | $ | 306,173 | ||
| CLEARFIELD, INC. | |||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS | |||||||||||||||
| (UNAUDITED) | |||||||||||||||
| (IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Net sales | $ | 43,864 | $ | 38,755 | $ | 112,596 | $ | 109,074 | |||||||
| Cost of sales | 29,920 | 25,079 | 76,103 | 72,762 | |||||||||||
| Gross profit | 13,944 | 13,676 | 36,493 | 36,312 | |||||||||||
| Operating expenses | |||||||||||||||
| Selling, general and administrative | 11,373 | 12,149 | 37,815 | 35,148 | |||||||||||
| Income (loss) from continuing operations | 2,571 | 1,527 | (1,322 | ) | 1,164 | ||||||||||
| Net investment income | 1,363 | 1,588 | 4,274 | 4,920 | |||||||||||
| Income from continuing operations before income taxes | 3,934 | 3,115 | 2,952 | 6,084 | |||||||||||
| Income tax expense | 934 | 787 | 757 | 1,562 | |||||||||||
| Income from continuing operations, net of tax | 3,000 | 2,328 | 2,195 | 4,522 | |||||||||||
| Loss from discontinued operations, net of tax | - | (722 | ) | (337 | ) | (3,494 | ) | ||||||||
| Net income | $ | 3,000 | $ | 1,606 | $ | 1,858 | $ | 1,028 | |||||||
| Income (loss) per share | |||||||||||||||
| Basic | |||||||||||||||
| Continuing operations | $ | 0.22 | $ | 0.16 | $ | 0.16 | $ | 0.32 | |||||||
| Discontinued operations | - | (0.05 | ) | (0.02 | ) | (0.25 | ) | ||||||||
| Basic income per share | $ | 0.22 | $ | 0.11 | $ | 0.14 | $ | 0.07 | |||||||
| Diluted | |||||||||||||||
| Continuing operations | $ | 0.22 | $ | 0.16 | $ | 0.16 | $ | 0.32 | |||||||
| Discontinued operations | - | (0.05 | ) | (0.02 | ) | (0.25 | ) | ||||||||
| Diluted income per share | $ | 0.22 | $ | 0.11 | $ | 0.14 | $ | 0.07 | |||||||
| Weighted average shares outstanding: | |||||||||||||||
| Basic | 13,592,072 | 13,833,748 | 13,711,413 | 14,047,802 | |||||||||||
| Diluted | 13,592,072 | 13,833,748 | 13,711,413 | 14,047,802 | |||||||||||
| CLEARFIELD, INC. | |||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| (UNAUDITED) | |||||||
| (IN THOUSANDS) | |||||||
| Nine Months Ended | Nine Months Ended | ||||||
| June 30, | June 30, | ||||||
| 2026 | 2025 | ||||||
| Cash flows from operating activities (continuing) | |||||||
| Net income | $ | 1,858 | $ | 1,028 | |||
| Loss from discontinued operations, net of tax | 337 | 3,494 | |||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
| Depreciation and amortization | 4,743 | 4,763 | |||||
| Amortization of premium and discount on investments, net | (334 | ) | (1,556 | ) | |||
| Deferred taxes | 398 | - | |||||
| Stock-based compensation | 3,616 | 3,417 | |||||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable | (4,064 | ) | (2,501 | ) | |||
| Inventories, net | 8,640 | 15,070 | |||||
| Other assets | (2,910 | ) | (3,785 | ) | |||
| Accounts payable and accrued expenses | (4,939 | ) | 2,493 | ||||
| Net cash provided by operating activities (continuing) | 7,345 | 22,423 | |||||
| Cash flows from investing activities (continuing) | |||||||
| Purchases of property, plant and equipment and intangible assets | (2,917 | ) | (3,529 | ) | |||
| Purchases of investments | (70,241 | ) | (78,697 | ) | |||
| Proceeds from maturities of investments | 79,710 | 95,976 | |||||
| Cash paid on disposal of business | (1,012 | ) | - | ||||
| Net cash provided by investing activities (continuing) | 5,540 | 13,750 | |||||
| Cash flows from financing activities (continuing) | |||||||
| Proceeds from issuance of common stock under employee stock purchase plan | 513 | 595 | |||||
| Repurchase of shares for payment of withholding taxes for vested restricted stock grants | (1,019 | ) | (494 | ) | |||
| Withholding related to exercise of stock options | (142 | ) | (133 | ) | |||
| Repurchase of common stock | (13,494 | ) | (16,665 | ) | |||
| Net cash used in financing activities (continuing) | (14,142 | ) | (16,697 | ) | |||
| Cash flows from discontinued operations | |||||||
| Net cash provided by (used in) operating activities | 1,380 | (4,307 | ) | ||||
| Net cash used in investing activities | - | (1,692 | ) | ||||
| Net cash (used in) provided by financing activities | (1,196 | ) | 4,337 | ||||
| Net cash provided by (used in) discontinued operations | 184 | (1,662 | ) | ||||
| Effect of exchange rates on cash and cash equivalents | (13 | ) | (110 | ) | |||
| Net (decrease) increase in cash and cash equivalents | (1,086 | ) | 17,704 | ||||
| Change in cash held for sale | 42 | 942 | |||||
| Cash and cash equivalents, beginning of period | 21,493 | 14,148 | |||||
| Cash and cash equivalents, end of period | $ | 20,449 | $ | 32,794 | |||
| Supplemental disclosures for cash flow information | |||||||
| Cash (refunded) paid for income taxes, net | $ | (13 | ) | $ | 1,237 | ||
| Right of use assets obtained through lease liabilities | $ | 3,553 | $ | - | |||
| Non-cash financing activities | |||||||
| Cashless exercise of stock options | $ | 2,666 | $ | 462 | |||
