Clearfield(CLFD) - 2025 Q4 - Annual Results

Financial Performance - Clearfield's net sales from continuing operations for Q4 2025 were $41.1 million, a 13% increase from $36.2 million in Q4 2024[3] - Gross profit for Q4 2025 was $14.2 million, representing a 48% increase compared to $9.6 million in the same quarter last year[3] - The gross margin improved to 34.6% in Q4 2025, up from 26.6% in Q4 2024, reflecting an 8 percentage point increase[3] - For the full fiscal year 2025, net sales from continuing operations reached $150.1 million, a 20% increase from $125.6 million in fiscal 2024[4] - Net sales for the year ended September 30, 2025, were $150,134,000, representing a 19.6% increase from $125,568,000 in 2024[21] - Gross profit for the year ended September 30, 2025, was $50,537,000, compared to $25,847,000 in 2024, indicating a significant improvement in profitability[21] - The company reported a net loss of $8,050,000 for the year ended September 30, 2025, compared to a net loss of $12,453,000 in 2024[21] - Income from continuing operations before income taxes for 2025 was $8,667,000, a recovery from a loss of $11,762,000 in 2024[21] Operating Expenses - Operating expenses for fiscal 2025 increased 7% to $48.4 million, but as a percentage of sales, they decreased to 32.3% from 35.9% in fiscal 2024[13] - Operating expenses for the year ended September 30, 2025, were $48,419,000, up from $45,081,000 in 2024, indicating increased operational costs[21] Cash and Liquidity - Cash and cash equivalents increased to $21,493,000 in 2025 from $14,148,000 in 2024, reflecting improved liquidity[24] - Cash and cash equivalents at the end of the period increased to $21,493,000 from $14,148,000, representing a growth of 51.5%[28] - Net cash provided by operating activities was $2,897,000, compared to $4,453,000 in the previous period, indicating a decrease of 34.8%[28] - The net increase in cash and cash equivalents was $6,268,000, contrasting with a decrease of $21,660,000 in the previous period[28] Shareholder Actions - Clearfield's Board of Directors increased the share repurchase program authorization from $65 million to $85 million, reflecting confidence in the company's market opportunity[4] - The company repurchased common stock amounting to $16,653,000, a significant reduction from $33,374,000 in the prior period[28] Inventory and Assets - The company experienced a significant increase in inventories, which rose to $42,031,000 in 2025 from $56,096,000 in 2024[24] - Total current assets decreased to $198,488,000 as of September 30, 2025, down from $229,595,000 in 2024[24] - The company’s total assets decreased to $306,173,000 in 2025 from $315,275,000 in 2024[24] Future Outlook - Clearfield expects fiscal 2026 revenue from continuing operations to be between $160 million and $170 million, with EPS projected between $0.48 and $0.62[4] Divestitures - The company divested its European Nestor Cables business to focus on higher-return opportunities in North America[6] Other Financial Metrics - The weighted average shares outstanding for basic earnings per share were 13,989,489 in 2025, compared to 14,582,450 in 2024, indicating a reduction in share count[22] - Cash paid for income taxes was $1,670,000, up from $160,000, reflecting a substantial increase[28] - The company reported a net cash used in investing activities of $1,796,000, slightly higher than $1,627,000 in the prior period[28] - Cashless exercise of stock options amounted to $2,533,000, compared to $19,000 previously[28] - The effect of exchange rates on cash and cash equivalents resulted in a decrease of $97,000[28] - The net cash provided by discontinued operations was $4,101,000, compared to a cash outflow of $791,000 in the previous period[28] - Right of use assets obtained through lease liabilities were recorded at $4,364,000[28]