Key Takeaways CLFD's Clearfield Operating Segment saw 47% sales and 151% net income growth in Q2. With fiber demand rising, CLFD ramps up innovation to streamline the fiber deployment process. CLFD aligns portfolio with BABA rules to tap BEAD broadband buildout funding in the coming years.Clearfield Inc. (CLFD) is witnessing solid market traction in the Clearfield Operating Segment. The uptick is driven by growing demand for fiber optic management, protection, and delivery solutions in multiple end market ...

Core Insights - Clearfield, Inc. (CLFD) has outperformed the Wireless Equipment industry, gaining 35.5% over the past three months compared to the industry's growth of 2.2% [1] - The company has also surpassed competitors like CommScope Holdings Inc. (9.9% gain) and Corning Incorporated (10.7% gain) during the same period [2] Product Innovation - Clearfield is experiencing strong traction in community broadband and large regional service provider verticals, driven by its focus on innovation [3] - The introduction of the TetherSmart Multi-Fiber Terminal, designed for various applications including Fiber-to-the-Home and 5G backhaul, is a key product innovation [3] - The FieldSmart FiberFlex 600, compliant with Build America Buy America standards, enhances fiber deployment flexibility and is gaining market traction [4] Strategic Initiatives - Clearfield's compliance with the Build America, Buy America Act is expected to unlock BEAD funding, serving as a long-term growth catalyst [5] - The company is diversifying its supply chain by shifting production to multiple global manufacturing sites, enhancing resilience against geopolitical volatility [10] Financial Position - Clearfield's current ratio is 6.76, significantly higher than the industry average of 1.26, indicating strong liquidity [9] - The debt-to-cap ratio stands at 1.3%, well below the industry average of 20.2%, reflecting a robust balance sheet [9] Earnings Estimates - Earnings estimates for 2025 have improved to 19 cents from a loss of 29 cents over the past 60 days, while estimates for 2026 remain at 67 cents [11] Valuation Metrics - Clearfield is trading at a price/book ratio of 2.06, lower than the industry average of 5.06 but above its historical mean of 1.88 [13] Market Trends - Strong demand trends in multiple end markets and declining inventory levels are positively impacting the company's top line [15] - Management's supply chain diversification efforts are expected to mitigate trade-related uncertainties and improve operational productivity [15]

Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. Is Clearfield (CLFD) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.Clearfield is one of 607 companies in the Computer and Technology group. The Computer and Technology group currently sits at #6 within the Zacks Sector Rank. The Zacks Sec ...

Clearfield (CLFD) closed the last trading session at $36.36, gaining 37.2% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $46 indicates a 26.5% upside potential.The average comprises four short-term price targets ranging from a low of $44 to a high of $50, with a standard deviation of $2.71. While the lowest estimate indicates an increase of 21% from the current price level, the m ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________________ to ___________________ Commission File Number 0-16106 CLEARFIELD, INC. (Exact name of registrant as specified in its charter) Minnesota 41-1347235 (State ...

Clearfield (CLFD) came out with quarterly earnings of $0.09 per share, beating the Zacks Consensus Estimate of a loss of $0.19 per share. This compares to loss of $0.40 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 147.37%. A quarter ago, it was expected that this maker of fiber optic management products would post a loss of $0.31 per share when it actually produced a loss of $0.13, delivering a surprise of 58.06%.Over the l ...

Financial Data and Key Metrics Changes - The company reported net sales of $47.2 million for the second quarter of fiscal 2025, representing a 28% increase compared to $36.9 million in the same period last year, and exceeding the guidance range of $37 million to $40 million [5][12] - Net income per share was $0.09, which was above the guidance range and showed significant improvement from the previous year [6][12] - The Clearfield segment net sales increased by 47% year over year to $40.6 million, while the NESTER segment net sales decreased by 30% year over year to $6.6 million [12] Business Line Data and Key Metrics Changes - The Clearfield segment experienced strong customer demand across all end markets, leading to faster conversion of quoting activity into revenue [12] - The NESTER segment is focusing on improving its cost structure and prioritizing higher gross margin solutions, particularly with the production of Microduct at the new facility in Estonia [12][13] Market Data and Key Metrics Changes - The company anticipates that the BEAD program will contribute materially to revenue in fiscal 2026, despite current administrative delays and regulatory uncertainties [9] - The Enhanced Alternative Connect America Cost Model (eACAM) is expected to contribute meaningfully in the upcoming build season, allowing providers to leverage both BEAD and eACAM funding across different areas of their networks [9] Company Strategy and Development Direction - The company is focused on diversifying its supply chain to maintain stable product availability amid fluctuating trade policies, with a proactive approach to sourcing and manufacturing [7][8] - The company aims to capitalize on current opportunities and is focused on identifying the next catalyst for growth, particularly in the connected home market [10][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning to benefit from government funding programs and a return to a more normal ordering pattern in the industry [9][10] - The management highlighted a U-shaped recovery in the market, particularly within the Clearfield segment, with strong demand anticipated for connected home products [25] Other Important Information - The FieldSmart FiberFlex 600 active cabinet received recognition as one of the best in the industry, validating the company's approach to providing flexible and scalable solutions [10] - The company reiterated its fiscal 2025 outlook for net sales in the range of $170 million to $185 million, with expectations for annual revenue growth in the Clearfield segment to align with or exceed industry forecasts [13] Q&A Session Summary Question: Can you comment on the product mix and subscriber adds? - Management noted strong continuation in products for connecting homes and a resurgence in sales of cabinets, with expectations for increased home connections using Clearfield equipment [16] Question: How is traction coming along on new connected home products? - Management expressed excitement about the hybrid home deployment kits, which streamline the installation process and reduce labor requirements [17] Question: How is diversification within the regional customer category? - Management indicated that a large regional customer contributed approximately $3 million in business this quarter, with one large regional customer becoming a 10% customer [18] Question: Can you elaborate on the gross margin and E&O reserve? - Management clarified that there was a reduction in the excess and obsolete inventory reserve compared to the previous year, contributing to improved gross margins [19] Question: What are the cost reduction approaches for the NESTER segment? - Management discussed the focus on expanding the product mix and producing higher gross margin solutions primarily from the Estonia facility [20]

Financial Data and Key Metrics Changes - The company reported net sales of $47.2 million for the second quarter of fiscal 2025, representing a 28% increase compared to $36.9 million in the same period last year, and exceeding the guidance range of $37 million to $40 million [4][12] - Net income per share was $0.09, which was above the guidance range and showed significant improvement from the previous year [5][12] - The Clearfield segment net sales increased by 47% year over year to $40.6 million, while the NESTER segment net sales decreased by 30% year over year to $6.6 million [12] Business Line Data and Key Metrics Changes - The Clearfield segment experienced strong customer demand across all end markets, leading to a faster conversion of quoting activity into revenue [12] - The NESTER segment is focusing on improving its cost structure and prioritizing higher gross margin solutions, particularly with the production of Microduct at the new facility in Estonia [12][13] Market Data and Key Metrics Changes - The company anticipates that the BEAD program will contribute materially to revenue in fiscal 2026, despite current administrative delays and regulatory uncertainties [9] - The Enhanced Alternative Connect America Cost Model (eACAM) program is expected to contribute meaningfully in the upcoming build season, allowing providers to leverage both BEAD and eACAM funding across different areas of their networks [9] Company Strategy and Development Direction - The company is focused on diversifying its supply chain to maintain stable product availability amid fluctuating trade policies, with a proactive approach to sourcing and manufacturing [6][7] - The company aims to capitalize on current opportunities and is focused on identifying the next catalyst for growth, particularly in the connected home market [10][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the market recovery, particularly within the Clearfield segment, and highlighted the demand for connected home products [26] - The evolving tariff situation is not expected to materially affect operating results, and the company is implementing tactics to address potential cost increases [7][13] Other Important Information - The FieldSmart FiberFlex 600 active cabinet received recognition as one of the best in the industry, validating the company's approach to providing flexible and scalable solutions [10] - The company reiterated its fiscal 2025 outlook of net sales in the range of $170 million to $185 million, with expectations for annual revenue growth in the Clearfield segment to align with or exceed industry forecasts [13] Q&A Session Summary Question: Can you comment on the product mix and subscriber adds? - Management noted strong sales of products for connecting homes and a resumption of cabinet sales, with expectations for increased home connections during the summer [16] Question: How is traction coming along on new connected home products? - Management expressed excitement about the hybrid home deployment kits, which streamline the installation process and reduce labor requirements [17] Question: How is diversification within the regional customer category? - Management indicated that a large regional customer contributed approximately $3 million in business this quarter, with one large regional customer becoming a 10% customer [18] Question: Can you clarify the gross margin improvements related to excess inventory reserves? - Management explained that there was a reduction in the excess inventory reserve compared to the previous year, contributing to improved gross margins [19] Question: What are the cost reduction approaches for the NESTER segment? - Management discussed expanding the product mix and focusing on higher gross margin solutions produced in Estonia, optimizing for flexibility and quicker shipping to the European market [21]

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) Clearfield achieved a significant turnaround in Q2 2025, with net sales up 28% to $47.2 million and a return to profitability Fiscal Q2 2025 Financial Summary (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $47.2M | $36.9M | $10.3M | 28% | | Gross Profit ($) | $14.2M | $2.8M | $11.4M | 401% | | Gross Profit (%) | 30.1% | 7.7% | 22.4% | 292% | | Net Income (Loss) | $1.3M | $(5.9)M | $7.2M | 122% | | Net Income (Loss) per Diluted Share | $0.09 | $(0.40) | $0.49 | 123% | Fiscal YTD 2025 Financial Summary (vs. YTD 2024) | Metric | YTD 2025 | YTD 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $82.6M | $71.1M | $11.5M | 16% | | Gross Profit ($) | $22.4M | $7.5M | $14.8M | 197% | | Gross Profit (%) | 27.1% | 10.6% | 16.5% | 156% | | Net Loss | $(0.6)M | $(11.2)M | $10.6M | -95% | | Net Loss per Diluted Share | $(0.04) | $(0.75) | $0.71 | -95% | - The company successfully returned to profitability in Q2 2025, generating a net income per diluted share of **$0.09**[6](index=6&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management attributes strong Q2 performance to robust demand and execution, confident in market share gains and minimal tariff impact - CEO Cheri Beranek stated that the net sales outperformance was driven by strong customer demand and solid execution, with faster and higher conversion of quoting activity into revenue[5](index=5&type=chunk) - CFO Dan Herzog credited the strong bottom-line performance and gross margin improvements to lower excess inventory reserve costs and increased production volumes[7](index=7&type=chunk) - Despite macroeconomic uncertainty, management remains confident in its ability to gain market share as demand and ordering patterns normalize[7](index=7&type=chunk) - The company does not believe the tariffs in their present form will materially affect its operating results[7](index=7&type=chunk) [Detailed Financial Analysis](index=2&type=section&id=Detailed%20Financial%20Analysis) This section details quarterly operational results, drivers of gross margin expansion, return to profitability, and financial outlook [Q2 Fiscal 2025 Performance](index=2&type=section&id=Q2%20Fiscal%202025%20Performance) Q2 fiscal 2025 saw net sales grow 28% to $47.2 million, gross margin surge to 30.1%, and a net income of $1.3 million Sales and Backlog Performance (as of March 31, 2025) | Metric | Q2 2025 | Change vs. Q2 2024 | Change vs. Q1 2025 | | :--- | :--- | :--- | :--- | | Net Sales | $47.2M | +28% | N/A | | Order Backlog | $34.1M | -28% | +31% | - The increase in gross margin to **30.1%** was driven by higher volumes in the Clearfield segment, leading to better manufacturing overhead utilization, and a **$4.5 million** reduction in excess inventory charges compared to the prior year[9](index=9&type=chunk) - The company repurchased approximately **$4.7 million** in shares during the quarter, with about **$14 million** remaining for future repurchases as of March 31, 2025[11](index=11&type=chunk) [Fiscal 2025 Outlook](index=2&type=section&id=Fiscal%202025%20Outlook) Clearfield reiterates fiscal 2025 annual revenue guidance of $170M-$185M and projects Q3 net sales of $45M-$50M Fiscal 2025 Guidance | Period | Metric | Guidance Range | | :--- | :--- | :--- | | **Full Year 2025** | Net Sales | $170M - $185M | | **Q3 2025** | Net Sales | $45M - $50M | | **Q3 2025** | Net Income per Share | $0.01 - $0.08 | - The provided guidance incorporates the company's current understanding of the tariff situation, which is not expected to have a material effect on operating results[12](index=12&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) This section presents Clearfield's unaudited condensed consolidated financial statements for periods ended March 31, 2025 [Condensed Consolidated Statements of Earnings](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings) Clearfield reported Q2 2025 net sales of $47.2 million and a net income of $1.3 million, a significant improvement year-over-year Condensed Consolidated Statements of Earnings (in thousands) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Six Months Ended March 31, 2025 | Six Months Ended March 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net sales | $47,168 | $36,910 | $82,644 | $71,140 | | Gross profit | $14,192 | $2,832 | $22,374 | $7,529 | | Income (Loss) from operations | $262 | $(9,741) | $(3,713) | $(17,903) | | Net income (loss) | $1,327 | $(5,911) | $(579) | $(11,179) | | Net income (loss) per share Diluted | $0.09 | $(0.40) | $(0.04) | $(0.75) | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, Clearfield's balance sheet shows total assets of $310.9 million, with increased cash and decreased inventories Selected Balance Sheet Items (in thousands) | | March 31, 2025 | September 30, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $28,848 | $16,167 | | Inventories, net | $56,084 | $66,766 | | Total current assets | $206,268 | $229,595 | | Total Assets | $310,857 | $315,275 | | Total liabilities | $44,958 | $39,512 | | Total shareholders' equity | $265,899 | $275,763 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended March 31, 2025, Clearfield generated $10.2 million in operating cash flow, with cash increasing by $12.7 million Summary of Cash Flows (Six Months Ended March 31, in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $10,198 | $5,094 | | Net cash provided by investing activities | $11,220 | $1,156 | | Net cash used in financing activities | $(8,755) | $(28,310) | | **Increase (decrease) in cash** | **$12,681** | **$(22,009)** | - The primary use of cash in financing activities was the repurchase of common stock, amounting to **$11.0 million** for the six-month period[24](index=24&type=chunk) [Other Information](index=2&type=section&id=Other%20Information) This section provides supplementary company details, including conference call logistics, corporate overview, and forward-looking statement cautions [Conference Call Information](index=2&type=section&id=Conference%20Call%20Information) Clearfield management will host a conference call on May 8, 2025, at 4:30 p.m. ET to discuss quarterly results, with replay available - A conference call hosted by CEO Cheri Beranek and CFO Dan Herzog is scheduled for May 8, 2025, at 4:30 p.m. Eastern Time[13](index=13&type=chunk) - Replay information is available for those unable to attend the live call, accessible through May 22, 2025[14](index=14&type=chunk) [About Clearfield, Inc.](index=3&type=section&id=About%20Clearfield%2C%20Inc.) Clearfield, Inc. designs, manufactures, and distributes fiber optic products for various communication network markets - Clearfield designs, manufactures, and distributes fiber optic products for communications networks[15](index=15&type=chunk) - The company's key markets include incumbent and competitive local exchange carriers, MSO/cable TV companies, utilities, enterprises, and data centers[15](index=15&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section cautions on forward-looking statements, outlining key risks including supply chain, customer concentration, competition, and macroeconomic conditions - The document contains forward-looking statements regarding future performance, market trends, and the impact of trade policies, which are subject to risks and uncertainties[16](index=16&type=chunk) - Key risk factors include reliance on single-source suppliers, customer concentration, intense competition, potential impact of government programs (BEAD, RDOF), and global economic conditions[16](index=16&type=chunk)

Core Viewpoint - Clearfield, Inc. reported significant financial improvements in fiscal Q2 2025, including a return to profitability and strong revenue growth driven by customer demand across all segments [4][5][10]. Financial Performance - Net sales for Q2 2025 reached $47.2 million, a 28% increase from $36.9 million in Q2 2024 [2][7]. - Gross profit surged to $14.2 million, up 401% from $2.8 million year-over-year, resulting in a gross margin of 30.1%, compared to 7.7% in Q2 2024 [2][8]. - The company achieved net income of $1.3 million, or $0.09 per diluted share, compared to a net loss of $5.9 million, or ($0.40) per diluted share, in the same quarter last year [2][10]. Year-to-Date Performance - For the first half of fiscal 2025, net sales totaled $82.6 million, a 16% increase from $71.1 million in the same period of 2024 [3]. - Year-to-date gross profit was $22.4 million, reflecting a 197% increase from $7.5 million in 2024 [3]. - The company reported a reduced net loss of $0.6 million for the year-to-date period, significantly improved from a loss of $11.2 million in the prior year [3]. Operational Insights - The increase in gross margin was attributed to higher production volumes and reduced excess inventory reserve costs [6][8]. - The order backlog as of March 31, 2025, was $34.1 million, a 31% increase from $26.0 million at the end of 2024 [7]. Management Commentary - Management expressed confidence in capturing market share despite macroeconomic uncertainties, citing strong customer demand and effective execution [4][5]. - The company plans to maintain its fiscal 2025 net sales guidance in the range of $170 million to $185 million, anticipating Q3 net sales between $45 million and $50 million [5][11]. Shareholder Actions - Clearfield repurchased approximately $4.7 million in shares under its share repurchase program, with about $14 million remaining for future repurchases [10].