Company Overview - Clearfield, Inc. (CLFD) is a U.S. company that specializes in manufacturing equipment for building and operating fiber-optic networks, which are essential for delivering high-speed Internet [1]. Investment Focus - The company primarily focuses on small- to mid-cap companies, which are often overlooked by many investors, while occasionally analyzing large-cap companies to provide a broader perspective on equity markets [1].

Company Overview - Clearfield, Inc. (CLFD) is a U.S. company specializing in equipment for building and operating fiber-optic networks, which are essential for delivering high-speed Internet [1] Investment Focus - The company primarily focuses on small- to mid-cap companies, which are often overlooked by many investors, while occasionally analyzing large-cap companies to provide a broader market perspective [1]

Core Viewpoint - Clearfield, Inc. is positioned for growth in the fiber management and connectivity solutions sector, with a positive price target set by Roth Capital indicating confidence in its future performance [2][6]. Company Overview - Clearfield, Inc. specializes in fiber management and connectivity solutions within the telecommunications industry, focusing on products that manage and protect fiber optic networks [1]. - The company competes with other firms in the fiber optics sector, aiming to deliver innovative solutions to its clients [1]. Financial Performance - Roth Capital has set a price target of $43 for Clearfield, suggesting a potential increase of approximately 53.41% from its current stock price of $28.03 [2][6]. - During the Q4 2025 earnings call, Clearfield's leadership discussed financial performance and strategic plans, attracting interest from analysts [3]. Stock Market Activity - On the day of the price target announcement, Clearfield's stock price decreased by 4.59%, or $1.35, despite the optimistic outlook [4][6]. - The stock fluctuated between $24.61 and $31.11, indicating market volatility, with a yearly high of $46.76 and a low of $23.78 [4]. Market Capitalization and Trading Volume - Clearfield's market capitalization is approximately $387 million, with a trading volume of 424,430 shares on the NASDAQ exchange, reflecting the company's size and investor interest [5][6].

Fiber Management Solutions - The company focuses on fiber management, fiber protection, and fiber delivery solutions, enabling rapid and cost-effective fiber-fed deployment primarily across North America[17]. - The company's products allow customers to connect twice as many homes in their Fiber to the Home (FTTH) builds, significantly reducing labor and material costs[23]. - Clearfield's products enable customers to connect twice as many homes in their Fiber to the Home (FTTH) builds using fewer resources[23]. - The Company focuses on innovative product design to accelerate fiber-based deployment, addressing the increasing demand for fiber services[18]. - Clearfield's FieldShield platform aims to reduce broadband deployment costs, utilizing ruggedized microducts for various installation methods[35]. Sales and Market Presence - The company’s products are sold across various markets, including National Carriers, Community Broadband, and International markets, with a focus on the U.S., Canada, and Central/Latin America[38]. - Sales outside the United States are primarily to customers in Canada and countries in the Caribbean, Central/South America, and Mexico[54]. - The Company focuses on the U.S. market for its Fiber to the Premise (FTTP) and Fiber to the Business (FTTB) solutions, with additional efforts in Canada and Central/Latin America[41][42]. - For the fiscal year ended September 30, 2025, Customer A and Customer B accounted for approximately 18% and 13% of net sales, respectively[52]. Manufacturing and Operations - The company’s manufacturing facilities in Brooklyn Park, Minnesota, and Tijuana, Mexico, support both quick-turn and scheduled delivery of products[24]. - Clearfield's manufacturing operations are supported by a network of domestic and global manufacturing partners, with final assembly completed in Brooklyn Park, Minnesota, and Tijuana, Mexico[24]. - The Company has invested in significant management resources to attract and retain qualified technical personnel through rigorous training programs[59]. - Clearfield's supply chain management team integrates sourcing, manufacturing, and logistics to ensure timely product delivery[50]. - The Company has taken steps to improve supply chain operations and enhance resiliency over the past several years[51]. Financial and Operational Metrics - The Company's target for First Pass Yield (FPY) ranges from 92-99%, and the On-Time Delivery (OTD) target is a minimum of 95%[61]. - The Company targets a First Pass Yield (FPY) of 92-99% and an On-Time Delivery (OTD) target of a minimum of 95%[61]. - Clearfield had approximately 243 full-time employees as of September 30, 2025, all based in the United States[57]. - The Company has approximately 243 full-time employees as of September 30, 2025, with a significant majority based in the U.S.[57]. Intellectual Property - As of September 30, 2025, the Company had 63 patents granted, with some beginning to expire in 2028[55]. - As of September 30, 2025, Clearfield had 63 patents granted and multiple patent applications pending, with patents beginning to expire in 2028[55]. Competitive Landscape - The market for fiber management products is highly competitive, with competitors including Corning, Nokia, and CommScope[45][46]. - The company believes its competitive advantage lies in cost savings provided by the Clearview Cassette and the ability to offer quick-turn, high-performance customized products[46]. Business Changes - The company completed the sale of its Nestor Cables business on November 11, 2025, resulting in its continuing operations comprising one operating segment[20]. - The Company completed the sale of its Nestor Cables business on November 11, 2025, resulting in one operating segment[20]. - The company operates under a Maquiladora arrangement in Mexico, allowing for duty-free import of certain items from the U.S. for processing[49]. - Clearfield's Mexico facility operates under a Maquiladora arrangement, allowing duty-free import of certain items from the U.S.[49]. Research and Development - The company’s research and development efforts are reflected in Selling, General, & Administrative expenses, indicating a commitment to innovation[29].

分组1 - Clearfield (CLFD) reported quarterly earnings of $0.13 per share, exceeding the Zacks Consensus Estimate of $0.09 per share, compared to a loss of $0.06 per share a year ago, representing an earnings surprise of +44.44% [1] - The company posted revenues of $41.1 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 16.89%, and down from $46.77 million year-over-year [2] - Clearfield has surpassed consensus EPS estimates four times over the last four quarters and topped consensus revenue estimates two times during the same period [2] 分组2 - The stock has underperformed the market, losing about 5.2% since the beginning of the year, while the S&P 500 has gained 14% [3] - The current consensus EPS estimate for the coming quarter is breakeven on $44.35 million in revenues, and $0.67 on $208 million in revenues for the current fiscal year [7] - The Zacks Industry Rank indicates that the Wireless Equipment sector is in the top 35% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

Financial Data and Key Metrics Changes - Fourth quarter net sales from continuing operations were $41.1 million, up 13% year-over-year from $36.2 million [4][12] - For the full year, net sales from continuing operations grew 20% to $150.1 million, compared to $125.6 million in fiscal year 2024 [4][13] - Gross margin improved from 26.6% to 34.6% in the fourth quarter, driven by better manufacturing efficiencies [12] - Net income per share from continuing operations was $0.13 in the fourth quarter, compared to a loss of $0.01 per share in the same period last year [12] Business Line Data and Key Metrics Changes - The divestiture of the Nestor segment allows the company to focus on core North American operations and higher return opportunities [5][10] - Community broadband was flat year-over-year in the fourth quarter, indicating a soft performance impacted by the government shutdown and delays in the BEAD program [21][22] Market Data and Key Metrics Changes - The company reported that 18 of the 52 submitted proposals for the BEAD program were approved, indicating a positive outlook for fiber deployment [9] - The company anticipates that the government shutdown and delays in BEAD will pressure investments in the community broadband market early in the year [15][22] Company Strategy and Development Direction - The company is focused on its "Better Broadband and Beyond" strategy, which includes protecting its core community broadband business and expanding into new applications [6][10] - New product launches, including a complete line of splice cases and a next-generation fiber management cassette, are expected to enhance market reach and customer engagement [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to normal operations by the second quarter of fiscal 2026 following the government shutdown [20] - The company expects net sales from continuing operations in fiscal 2026 to be in the range of $160-$170 million, driven by steady demand for fiber connectivity [14][15] Other Important Information - The company ended the quarter with approximately $166 million in cash and investments, reflecting a strong balance sheet [14] - The board of directors increased the share buyback authorization from $65 million to $85 million, providing additional funds for repurchases [14] Q&A Session Summary Question: Impact of government shutdown on revenue and bookings - Management noted that the government shutdown affected bookings across various programs, particularly ACAM, leading to a soft outlook for the first quarter [18][21] Question: Timeline for normalization post-shutdown - Management expects operations to normalize by the second quarter, with no long-term impact on the total year [20] Question: Outlook for gross margins - Management indicated that gross margins are expected to improve modestly with higher revenues, although the first quarter may be lighter [23] Question: Concerns about fiber supply - Management acknowledged ongoing concerns regarding fiber supply due to high demand from data centers, affecting allocations from suppliers like Corning [24] Question: Nestor's revenue in the previous quarter - Nestor's revenue for the fourth quarter was reported at $9.4 million, with Clearfield's revenue at $41.1 million [29] Question: Community broadband outlook - Management indicated that community broadband is under pressure due to BEAD delays and government shutdowns, but large regional customers are performing well [30] Question: Revenue expectations from new products - Management does not expect significant revenue from new product introductions in the near term, projecting more substantial contributions in 2027 [34] Question: Addressable market for BEAD - Management confirmed that 4-5% of BEAD deployment costs are addressable by the company, with a potential market opportunity of around $500 million [44][45]

Financial Data and Key Metrics Changes - Fourth quarter net sales from continuing operations were $41.1 million, up 13% year over year from $36.2 million [4][12] - Full year net sales from continuing operations grew 20% to $150 million from $125.6 million in fiscal year 2024 [4][13] - Gross margin improved from 26.6% to 34.6% in the fourth quarter, driven by better manufacturing efficiencies [12] - For the full fiscal year, gross margin expanded from 20.6% to 33.7% due to improved overhead absorption and production efficiency [13] - Net income per share from continuing operations was $0.13 in the fourth quarter, compared to a loss of $0.01 per share in the prior year [12] Business Line Data and Key Metrics Changes - The divestiture of the Nestor Cables business allows the company to focus on core North American operations and higher return opportunities [5][10] - Community broadband was flat year over year in the fourth quarter, indicating softness partly due to the government shutdown and delays in the BEAD program [21][22] Market Data and Key Metrics Changes - The company reported that 18 of the 52 submitted proposals for the BEAD program were approved, indicating a positive outlook for fiber deployment [9] - The company anticipates that the government shutdown will pressure investments in community broadband early in the fiscal year [15] Company Strategy and Development Direction - The company is focused on its "Better Broadband and Beyond" strategy, which includes protecting its core community broadband business and expanding into new applications [6][10] - New product launches, including a complete line of splice cases and a next-generation fiber management cassette, are expected to enhance market reach [7][8] - The leadership team has been enhanced to support growth, integrating sales and marketing to align with product innovation [8] Management's Comments on Operating Environment and Future Outlook - Management expects normalization in bookings by the second quarter of fiscal 2026 following the government shutdown [20] - The company anticipates net sales from continuing operations in fiscal 2026 to be in the range of $160-$170 million, driven by steady demand for fiber connectivity [14][15] - Management expressed confidence in the long-term strategy and the potential for growth despite current challenges in the fiber supply chain [24][30] Other Important Information - The company ended the quarter with approximately $166 million in cash and investments, reflecting a strong balance sheet [14] - A $10.4 million non-cash write-down was recorded in the fourth quarter due to the divestiture of the Nestor business [5] Q&A Session Summary Question: Impact of government shutdown on revenue and bookings - Management noted that the government shutdown affected bookings across various programs, particularly ACAM, leading to a soft outlook for the first quarter [18][21] Question: Timeline for normalization post-shutdown - Management expects to return to normal by the second quarter, with the government shutdown impacting bookings but not the total year [20] Question: Outlook for gross margins - Management indicated that gross margins are expected to improve with higher revenues, although the first quarter may be lighter [23] Question: Concerns about fiber supply - Management acknowledged ongoing concerns regarding fiber supply affecting broadband deployments and is actively sourcing alternative fibers [24] Question: Community broadband outlook - Management confirmed that community broadband is under pressure due to BEAD delays and government shutdowns, but larger regional customers are performing well [29][30] Question: BEAD program orders and revenue expectations - Management expects initial orders related to the BEAD program to materialize in the summer construction season, with significant revenue anticipated in the third and fourth quarters [42][43] Question: Addressable market for new products - Management stated that new product introductions are expected to enhance the addressable market, particularly in non-hyperscale data centers [36][37]

Financial Data and Key Metrics Changes - In Q4 2025, net sales from continuing operations were $41.1 million, up 13% year over year from $36.2 million [4][12] - For the full fiscal year, net sales from continuing operations grew 20% to $150 million from $125.6 million in fiscal 2024 [4][14] - Gross margin improved from 26.6% to 34.6% in Q4 2025, driven by better manufacturing efficiencies [12] - Net income per share from continuing operations was $0.13 in Q4 2025, compared to a loss of $0.01 per share in the same period last year [12] Business Line Data and Key Metrics Changes - The divestiture of the Nestor Cables business allows the company to focus on core North American operations and higher return opportunities [5][11] - The community broadband segment showed flat performance year over year, impacted by the government shutdown and delays in the BEAD program [22][23] Market Data and Key Metrics Changes - The company reported that 18 of the 52 submitted proposals for the BEAD program were approved, indicating a positive outlook for fiber deployment [10] - The company anticipates that the late start to the BEAD program and the recent government shutdown will pressure investments in the community broadband market early in the year [16] Company Strategy and Development Direction - The company is focused on its "Better Broadband and Beyond" strategy, which includes protecting its core community broadband business and expanding into new applications [7][11] - New product lines, including splice cases and next-generation fiber management cassettes, are set to launch in early 2026, aimed at enhancing customer engagement and market reach [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to normal operations by Q2 2026 following the government shutdown's impact on bookings [20][21] - The company expects net sales from continuing operations in fiscal 2026 to range between $160 million and $170 million, driven by steady demand for fiber connectivity [15][16] Other Important Information - The company ended the quarter with approximately $166 million in cash and investments, reflecting a strong balance sheet [15] - The board of directors increased the share buyback authorization from $65 million to $85 million, allowing for additional repurchases [15] Q&A Session Summary Question: Impact of government shutdown on revenue and bookings - Management noted that the government shutdown affected bookings across various programs, particularly ACAM, leading to a soft outlook for Q1 [18][19] Question: Timeline for normalization post-shutdown - Management expects operations to normalize by Q2 2026, despite the initial impact on bookings [20][21] Question: Community broadband performance in Q4 - Community broadband was flat year over year, primarily affected by the government shutdown and delays in the BEAD program [22] Question: Gross margin outlook - Management indicated that gross margin improvements are expected to be volume-dependent, with modest improvements anticipated as revenue increases [24] Question: Industry fiber supply concerns - Management acknowledged ongoing concerns regarding fiber supply due to high demand from data centers, affecting allocations from suppliers like Corning [25] Question: Nestor's revenue contribution - Nestor's revenue for the fourth quarter was $9.4 million, with Clearfield's revenue at $41.1 million, totaling approximately $50.4 million [30] Question: Annual outlook and BEAD program impact - Management indicated that the annual forecast includes limited revenue from new product introductions, with expectations for BEAD-related revenue to be less than $10 million [35][37] Question: Addressable market expansion with new products - The next-generation cassette line is expected to attract new customers and transform existing customer relationships, particularly in non-hyperscale data centers [39]

Financial Performance - Clearfield's Q4 fiscal year 2025 net sales were $41.1 million, a 13% increase from $36.2 million in the prior year's fourth quarter[77] - Fiscal year 2025 sales grew to $150.1 million, up 20% from $125.6 million in fiscal year 2024; Gross profit margin increased to 33.7% from 20.6%[77] - The company's balance sheet remains strong with $166 million of cash, short-term and long-term investments[76] - Clearfield recorded positive cash flow from continuing operations of approximately $10 million in the fourth quarter and $26.5 million for the full fiscal year 2025, including a reduction of inventory of $13.6 million[76] - The company invested $16.5 million to repurchase 551000 shares during the 12-month period ended September 30, 2025[76] Market Position and Growth Strategy - Clearfield will use its position as a leading provider of fiber distribution and management equipment in the Tier 2 and Tier 3 U S Broadband Service Provider Market for continued growth[24] - Estimated Rural TAM of $6 Billion Over Ten Years[31] - U S Backhaul market by 2030 is projected to be $16 billion, driven by 5G densification which drives fiber transport demand[42] - North America Data Center Capacity is expected to have a CAGR of approximately 16%[53] Future Outlook - The company forecasts annual net sales of $160 million to $170 million and annual net income per share of $0.48 to $0.62[80]

Core Viewpoint - Clearfield, Inc. has increased its share repurchase program from $65 million to $85 million, reflecting the Board's belief that the current share price does not fully represent the company's long-term potential [2]. Group 1: Share Repurchase Program - The Board of Directors has authorized an increase in the share buyback program, allowing for an additional $20 million in repurchases, bringing the total available for repurchase to approximately $28.4 million when combined with the remaining $8.4 million as of September 30, 2025 [2]. - The repurchase program will be executed through various methods, including open-market transactions and block trades, in accordance with relevant securities regulations [2][3]. - The program does not obligate Clearfield to repurchase a specific amount of stock during any period and will be funded by cash on hand [3]. Group 2: Company Overview - Clearfield, Inc. specializes in designing, manufacturing, and distributing fiber optic management, protection, and delivery products for communications networks [4]. - The company serves a diverse range of markets, including traditional and alternative carriers, cable TV companies, utilities, enterprises, data centers, and military sectors [4]. - Clearfield is headquartered in Minneapolis, MN, and deploys over one million fiber ports annually [4].