Clearfield (NASDAQ:CLFD) reported fiscal first-quarter 2026 results that topped its sales guidance, as management pointed to early signs of stabilization and a rebound in community broadband demand. The company also discussed its newly introduced Nova Platform and provided updates on expected timing for BEAD-related activity, while reiterating full-year revenue guidance.
Quarterly results exceed sales guidance
For the fiscal first quarter, Clearfield posted net sales from continuing operations of $34.3 million, above its guidance range of $30 million to $33 million and up 16% from $29.7 million in the year-ago quarter. President and CEO Cheri Beranek said the outperformance reflected a favorable seasonal product mix and solid demand across key customer segments.
Clearfield reported a net loss per share from continuing operations of $0.02, unchanged from the prior-year period. Herzog noted the company recorded an income tax benefit of $1,000 versus income tax expense of $53,000 in the year-ago quarter, with the quarter’s lower effective rate driven by discrete items and a lower level of pre-tax book loss.
Portfolio shift following Nestor divestiture
Management emphasized that the company’s results are now presented on a continuing-operations basis following the sale of its Nestor Cables business, which was announced on Nov. 12, 2025. Investor Relations reminded listeners that Clearfield is now reporting only on the Clearfield segment, with Nestor classified as discontinued operations for the first fiscal quarter of 2026 and all prior periods in its financials.
For the quarter, net loss from discontinued operations was $340,000, or $0.02 per share, compared with a net loss from discontinued operations of $1.6 million, or $0.11 per share, in the first quarter of fiscal 2025.
NOVA Platform targets higher-density environments
After quarter-end, Clearfield introduced its Nova Platform, which Beranek described as a modular, high-density fiber system intended to simplify building and expanding modern networks. She said the platform extends the company’s cassette-based modular design approach into new environments, including AI, data center, and edge compute networks, where Clearfield expects its broadband service provider customers to play a role in future build-outs.
Beranek said near-term revenue contribution from Nova is expected to be modest, with an emphasis on early customer adoption and validation. Over time, she said the company expects the platform to support new applications and customer opportunities as demand for higher-density fiber solutions expands across regional data centers, edge facilities, and enterprise environments.
In response to a question on target customers, Beranek said initial adoption is expected to come from existing community broadband customers that are opening data centers, citing examples such as SDN Communications and Cologix. She also said the product is designed to optimize each rack unit for different connector or service offerings, including single-mode and multi-mode. Beranek added that Clearfield is not initially targeting “big super scale hyperscale markets,” which would require additional innovation and product offerings that she suggested could come “probably in about a year.”
On the longer-term revenue outlook, Beranek said Nova is not expected to contribute significantly in fiscal 2026, but she expects that over the next two to three years it could become “the dominant product offering of the company,” with elements of the platform also brought back into community broadband so the company can have “a single cassette and a single platform” to address density requirements across its customer base.
BEAD preparation continues, but near-term contribution expected to be modest
Management said the BEAD program remains a major focus across the industry. Beranek said Clearfield is encouraged by progress at the NTIA and by the amount of planning and network design activity it is seeing from current and prospective customers. However, the company reiterated that BEAD-related revenue contribution in fiscal 2026 is expected to remain modest, as customers continue working through planning, network design, and vendor decisions.
Beranek said Clearfield is taking a structured approach with expected BEAD recipients, aligning resources based on where customers are in their planning process. She also said the company believes community broadband providers are likely to move more quickly than Tier One operators once funding approvals occur, which she said aligns with Clearfield’s customer mix. During Q&A, she described smaller community providers as more nimble, while larger providers already have established build plans and may be less likely to shift them quickly.
At the same time, Beranek cited potential constraints tied to U.S.-made optical fiber requirements under the Build America, Buy America Act (BABA). She said lead times for BABA-compliant “bare extruded fiber” are currently over a year, which she argued is inconsistent with an aggressive BEAD rollout. Beranek said the uncertainty around fiber supply is one reason the company is not providing specific fiscal 2026 guidance tied to BEAD revenue.
Balance sheet, buybacks, and updated outlook
Clearfield ended the quarter with approximately $157 million in cash, short-term and long-term investments, and no debt. During the quarter, the company repurchased 179,000 shares for $5.2 million. Herzog said the board increased the share repurchase authorization to $85 million in November 2025, leaving $23.1 million available as of Dec. 31, 2025.
For the fiscal second quarter of 2026, Clearfield guided for net sales from continuing operations of $32 million to $35 million, with operating expenses up slightly relative to the first quarter. The company forecast a net loss per diluted share in the range of $0.02 to $0.10, based on the share count at the end of the first quarter and excluding potential additional repurchases.
For the full fiscal year 2026, Clearfield reiterated guidance for net sales from continuing operations of $160 million to $170 million. Management said it expects growth to be driven by steady demand for fiber connectivity across community broadband, large regional, and MSO customers, with BEAD-related revenue remaining modest during fiscal 2026. The company also reiterated expectations that operating expenses as a percentage of revenue will remain consistent with fiscal 2025 and projected earnings per share from continuing operations of $0.48 to $0.62.
About Clearfield (NASDAQ:CLFD)
Clearfield, Inc (NASDAQ: CLFD) is a Minneapolis-based company specializing in fiber management products for broadband network deployments. The company’s core offerings include fiber distribution hubs, enclosures, splice trays, patching panels and connectivity accessories designed to simplify installation and maintenance of fiber-optic networks. Clearfield’s modular FieldSmart™ platform provides a scalable approach for service providers, utilities and enterprise organizations looking to expand or upgrade their fiber infrastructure.
Clearfield serves a diverse customer base that includes cable and internet service providers, telecommunications operators, wireless carriers, utilities and municipalities.
