Financial Performance - Net sales for the three months ended December 31, 2025, were $34,341,000, an increase of approximately 16%, or $4,643,000 from $29,698,000 for the same period in 2024[98] - Gross profit increased by $2,713,000, or 31%, to $11,388,000 for the three months ended December 31, 2025, with a gross profit margin of 33.2% compared to 29.2% in 2024[101] - Net loss from continuing operations for the three months ended December 31, 2025, was $1,824,000, a decrease of approximately 11% from a loss of $2,046,000 in 2024[103] Sales and Revenue - Sales to Broadband Service Providers increased to $16,408,000 in Q1 2025 from $13,213,000 in Q1 2024, with international sales rising to $1,936,000 from $366,000[98] - The order backlog as of December 31, 2025, was $22,763,000, a decrease of 8% from $24,651,000 as of September 30, 2025[100] Expenses - Selling, general and administrative expenses rose by $2,491,000, or 23%, to $13,212,000 for the three months ended December 31, 2025[102] Cash Flow and Investments - Cash and investments totaled $156,726,000 as of December 31, 2025, down from $165,799,000 as of September 30, 2025[108] - The company utilized $5,279,000 for stock repurchases during the three months ended December 31, 2025, compared to $6,275,000 in the same period of 2024[117] - Net cash used in operating activities totaled $1,440,000 for the three months ended December 31, 2025, compared to net cash provided of $8,039,000 in 2024[110] - The Company invests excess cash in bank CDs, Treasuries, and money market funds, with fair value fluctuating based on market interest rates[125] Tax and Accounting - The company recorded an income tax benefit of $1,000 for the three months ended December 31, 2025, with an income tax rate increase to 0.4% from (17.6%) in 2024[105] - Management made no changes to the Company's critical accounting estimates during the three months ended December 31, 2025[121] - Changes in accounting estimates did not have a significant impact on earnings for the three months ended December 31, 2025[122] Market Risks - Rising costs, including wages, logistics, components, and commodity prices, are negatively impacting profitability[127] - The Company does not hedge against foreign currency fluctuations, using the U.S. dollar as its reporting currency[126] - Inflation impacts profitability, including cost of sales and operating expenses, and may materially affect the Company's financial statements[127] - The Company is exposed to market risk from adverse changes in interest rates, foreign currency exchange rates, and commodity prices[124] - A significant percentage of sales in the last three fiscal years have been made to a small number of customers, posing a risk to revenue stability[123] - The Company does not hedge commodity prices, which may lead to increased costs and reduced profitability[127] - Forward-looking statements indicate potential impacts from trade policy changes, supply chain disruptions, and customer ordering patterns[123]

Clearfield (NasdaqGM:CLFD) Q1 2026 Earnings call February 04, 2026 05:00 PM ET Company ParticipantsCheri Beranek - President and CEODan Herzog - CFOGregory McNiff - Managing Director of Investor RelationsConference Call ParticipantsMatt Cavanagh - Managing Director and Senior Equity Research AnalystTim Savageaux - Managing Director and Senior Research AnalystOperatorGood afternoon, everyone, and welcome to the Clearfield Fiscal First Quarter 2026 conference call. All participants will be in a listen-only mo ...

Clearfield (NasdaqGM:CLFD) Q1 2026 Earnings call February 04, 2026 05:00 PM ET Company ParticipantsCheri Beranek - President and CEODan Herzog - CFOGregory McNiff - Managing Director of Investor RelationsConference Call ParticipantsMatt Cavanagh - Equity Research AnalystTim Savageaux - Managing Director and Senior Research AnalystOperatorGood afternoon, everyone, and welcome to the Clearfield Fiscal First Quarter 2026 Conference Call. All participants will be in a listen-only mode. A brief question and answ ...

Clearfield (NasdaqGM:CLFD) Q1 2026 Earnings call February 04, 2026 05:00 PM ET Speaker4Good afternoon, everyone, and welcome to the Clearfield Fiscal First Quarter 2026 conference call. All participants will be in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please also note, today's event is being recorded. At this time, I'd like to turn the fl ...

EXHIBIT 99.1 Clearfield Reports First Quarter Fiscal 2026 Results 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 | | Cha ...

Net sales from continuing operations grew 16% year over year to $34.3 million; Gross margin from continuing operations improved by 4 percentage points to 33.2%Clearfield Introduces NOVA™ Platform, Optimizing Scalability and Installation Simplicity for High-Density Fiber ConnectivityReiterates 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 to $0.62Share buybacks totaled $5.2 million with $23.1 million remaining available fo ...

Core Viewpoint - Clearfield, Inc. will release its financial results for the first quarter of fiscal 2026 on February 4, 2026, and will host a conference call to discuss these results with the investment community [1]. Financial Results Announcement - The financial results will be available on the Investor Relations section of the company's website along with a shareholder letter [2]. - The conference call is scheduled for February 4, 2026, at 5:00 p.m. Eastern time (4:00 p.m. Central time) [2]. - U.S. and international dial-in numbers for the conference call are provided, along with information about the live webcast and replay availability [2][3]. Company Overview - Clearfield, Inc. specializes in designing, manufacturing, and distributing fiber optic management, protection, and delivery solutions, which are essential for broadband operators [3]. - The company aims to help close the digital divide and serves various sectors including community broadband, MSOs, ISPs, and municipalities [3]. - Clearfield is headquartered in Minneapolis, MN, and deploys over one million fiber ports annually [3].

Clearfield Conference Call Summary Company Overview - **Company**: Clearfield - **Industry**: Fiber connectivity and broadband services - **Key Executives**: CEO Cheri Beranek, CFO Dan Herzog Key Points Industry Dynamics - Clearfield operates in the fiber connectivity sector, providing essential equipment for broadband service providers to connect homes and businesses across the U.S. [3][5] - The company has seen growth in both community broadband and larger regional companies, indicating a shift in focus from smaller to larger service providers [3][5] - Competitors like Corning and CommScope are primarily focused on data centers and AI, leaving opportunities for Clearfield in underserved markets [3][5] Financial Performance - Clearfield achieved significant growth during COVID-19, scaling to $250 million in revenue, with a 50% increase in 2021 and 90% in 2022 [13][14] - The company reported a gross margin improvement from 20% to 33% due to better inventory utilization and increased sales volume [32][82] - Community broadband revenue was flat year-over-year, attributed to delays in the BEAD program, which is a $42 billion initiative for broadband deployment [15][16] BEAD Program Impact - The BEAD program has caused uncertainty in community broadband, leading to a cautious approach from customers awaiting funding [15][16] - Clearfield does not currently include BEAD funding in its 2026 forecast but anticipates potential business flow starting in 2026 [21][22] - The company is optimistic about future BEAD funding and is seeing increased quoting activity from customers [17][18] Competitive Landscape - Clearfield's competitors, particularly CommScope, have faced challenges due to unsustainable business practices, which may provide Clearfield with a competitive edge [62][65] - The divestiture of Nestor, a previous supplier, allows Clearfield to focus on its core business and improve profitability by eliminating low-margin operations [71][72] Strategic Initiatives - Clearfield is investing in R&D to expand into adjacent markets, including edge computing and IoT, as part of its growth strategy [73] - The company emphasizes a high-touch sales model, which has fostered long-term customer relationships and loyalty [12][14] - Clearfield is also initiating programs to train individuals from tribal communities to address labor shortages in broadband deployment [80] Future Outlook - Clearfield aims to leverage its strong balance sheet, with no debt and approximately $160 million in cash, for strategic growth opportunities [76][77] - The company is preparing for new product launches that will cater to the growing demand for edge computing and AI applications [49][56] - Clearfield's focus on underserved markets positions it well for future growth as demand for fiber connectivity increases [76] Additional Considerations - The company maintains a diverse customer base, with no single customer accounting for more than 10% of its business, reducing risk [37] - Clearfield's product offerings are designed to be flexible, allowing for scalability and adaptability to customer needs [45][46] This summary encapsulates the key insights from Clearfield's conference call, highlighting the company's strategic positioning, financial performance, and future growth opportunities in the fiber connectivity industry.

Industry Overview - The Zacks Wireless Equipment industry is positioned to benefit from strong demand trends due to the rapid deployment of 5G and the transition to cloud and fiber networks [1][4] - The industry includes companies providing networking solutions, wireless telecom products, and related services for voice and data communications [3] Growth Drivers - The deployment of 5G is expected to enhance scalability, security, and mobility, driving the proliferation of IoT [4] - Expansion of fiber optic networks to support 4G LTE and 5G standards is anticipated to act as a tailwind for the industry [4] - Network convergence is being pursued, combining voice, video, and data communications into a single network, which is expected to reduce service delivery costs and expand coverage [5] Profitability Challenges - Short-term profitability is compromised due to high infrastructure investments and costs associated with first-generation 5G products [6] - Geopolitical tensions, supply chain disruptions, and high customer inventory levels are additional factors affecting profitability [6] Integrated Services - Industry participants offer mission-critical communication infrastructure and services that enhance operational efficiency and safety for mobile workforces [7] Market Performance - The Zacks Wireless Equipment industry has outperformed the S&P 500, with a growth of 26.4% over the past year compared to the S&P 500's 21.1% [10] - The industry is currently trading at an EV/EBITDA of 31.46X, higher than the S&P 500's 18.87X and the sector's 19.76X [13] Key Companies - **Motorola Solutions, Inc. (MSI)**: A leading communications equipment manufacturer with a strong market position, experiencing robust demand for video security products [16] - **Ubiquiti Inc. (UI)**: Offers a comprehensive portfolio of networking products, benefiting from growth opportunities in both emerging and developed economies [19] - **Clearfield, Inc. (CLFD)**: A leading provider of fiber optic products, witnessing strong demand for its home deployment kits, which enhance deployment efficiency [22]

Core Viewpoint - Clearfield (CLFD) has shown a recent price increase of 3.4% and analysts suggest a significant upside potential with a mean price target of $43.5, indicating a 47.8% increase from the current price of $29.43 [1] Group 1: Price Targets and Analyst Estimates - The mean estimate for CLFD comprises four short-term price targets with a standard deviation of $1.91, where the lowest estimate is $41.00 (39.3% increase) and the highest is $45.00 (52.9% increase) [2] - A low standard deviation among price targets indicates a high degree of agreement among analysts regarding the stock's price movement [9] Group 2: Earnings Estimates and Market Sentiment - Analysts have shown increasing optimism about CLFD's earnings prospects, as evidenced by a strong consensus in revising EPS estimates higher, which correlates with potential stock price increases [11] - Over the last 30 days, the Zacks Consensus Estimate for the current year has risen by 5.9%, with one estimate moving higher and no negative revisions [12] - CLFD holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, indicating strong potential for upside [13] Group 3: Caution on Price Targets - While price targets are often sought after by investors, they can mislead and should not be the sole basis for investment decisions [3][10] - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [8]