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Fourth Quarter Net Sales: $41.1 million, up 13% year-over-year.

Full Year Net Sales: $150.1 million, up 20% from the previous year.

Fourth Quarter Gross Margin: Improved from 26.6% to 34.6%.

Full Year Gross Margin: Expanded from 20.6% to 33.7%.

Fourth Quarter Net Income Per Share: $0.13 from continuing operations, compared to a loss of $0.01 per share in the prior year.

Full Year Net Income Per Share: $0.45 from continuing operations, compared to a net loss per share of $0.58 in the previous year.

Cash and Investments: Approximately $166 million, up from $153 million in the prior year.

Share Repurchase: $16.5 million invested in repurchasing 551,000 shares during the fiscal year.

Share Buyback Authorization: Increased from $65 million to $85 million, with $28.4 million available for additional repurchases.

Fiscal 2026 Net Sales Guidance: Expected in the range of $160 million to $170 million.

Fiscal 2026 Earnings Per Share Guidance: Expected in the range of $0.48 to $0.62 from continuing operations.

First Fiscal Quarter 2026 Net Sales Guidance: Expected in the range of $30 million to $33 million.

First Fiscal Quarter 2026 Net Loss Per Share Guidance: Expected in the range of $0.08 to breakeven.

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Release Date: November 25, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Clearfield Inc (NASDAQ:CLFD) reported a 13% year-over-year increase in fourth-quarter net sales from continuing operations, reaching $41.1 million.

For the full fiscal year, net sales from continuing operations grew by 20% to $150 million, indicating strong market share gains.

Gross margin improved significantly from 26.6% to 34.6% in the fourth quarter, driven by better manufacturing efficiencies and higher volume.

The company ended the quarter with a strong balance sheet, holding approximately $166 million in cash and investments.

Clearfield Inc (NASDAQ:CLFD) has introduced new product lines, including splice cases and a next-generation Fiber Management Cassette, which are expected to drive future growth.

The divestiture of the Nestor Cables business resulted in a $10.4 million noncash write-down in the fourth quarter.

The government shutdown and delays in the BEAD program have pressured investments and affected bookings, leading to a soft outlook for the first fiscal quarter of 2026.

Community Broadband sales were flat or slightly down compared to the previous year, impacted by delays in government funding and private investment.

The company anticipates a net loss per share in the range of $0.08 to breakeven for the first fiscal quarter of 2026.

Fiber supply constraints are affecting broadband deployments, posing a challenge for Clearfield Inc (NASDAQ:CLFD) and its customers.

Q: How did the government shutdown impact Clearfield's revenue and bookings? A: Cheryl Beranek, President and CEO, explained that the shutdown affected bookings, particularly in the ACAM program, impacting both the fourth quarter and the forecast for the first quarter of fiscal 2026. However, she expects operations to normalize by the second quarter.

Q: What is the outlook for Clearfield's gross margins? A: Daniel Herzog, CFO, stated that gross margins are expected to improve with higher revenues, as they are volume-dependent. The first quarter might be lighter, but margins should scale with revenue increases thereafter.

Q: How is the fiber supply issue affecting Clearfield? A: Cheryl Beranek noted that fiber supply constraints are a concern across the industry, affecting broadband deployments. Clearfield is actively sourcing alternative fibers to mitigate this issue.

Q: What is the expected impact of the BEAD program on Clearfield's revenue? A: Cheryl Beranek mentioned that while BEAD-related revenue is expected to be less than $10 million in fiscal 2026, the program will significantly impact private investment and future growth, particularly in the fourth quarter and beyond.

Q: How do new product introductions fit into Clearfield's growth strategy? A: Cheryl Beranek highlighted that new products like the next-generation splice cases and Fiber Management Cassettes are expected to drive significant revenue in fiscal 2027. These products aim to expand Clearfield's market reach and strengthen its position in non-hyperscale data centers.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.