Clearfield (CLFD) investor relations material

Executive summary

• Net sales from continuing operations increased 16% year-over-year to $34.3 million in Q1 FY26, driven by strong community broadband demand and favorable product mix.

• Gross margin improved to 33.2% from 29.2% year-over-year, reflecting better overhead absorption and inventory utilization.

• Net loss per share from continuing operations was $0.02, unchanged from the prior year period.

• The Nova Platform, a modular high-density fiber system, was launched to target new markets including data centers and edge compute.

• The sale of the Nestor Cables business was completed, with financials now reflecting only continuing operations.

Financial highlights

• Gross profit from continuing operations rose 31% to $11.4 million year-over-year.

• Operating expenses increased to $13.2 million from $10.7 million, mainly due to higher personnel and related costs.

• Ended the quarter with $157 million in cash, short- and long-term investments, and no debt.

• Repurchased $5.2 million in shares during Q1; share repurchase authorization increased to $85 million, with $23.1 million remaining.

• Consolidated net loss per diluted share improved to $0.04 from $0.13 year-over-year.

Outlook and guidance

• Second quarter net sales expected between $32 million and $35 million; net loss per diluted share projected between $0.02 and $0.10.

• Full-year fiscal 2026 net sales guidance reiterated at $160 million to $170 million; EPS from continuing operations expected between $0.48 and $0.62.

• BEAD-related revenue contribution anticipated to remain modest in fiscal 2026 due to supply chain constraints and timing of federal funding.

• Operating expenses as a percentage of revenue expected to remain consistent with FY25.

• Guidance incorporates current tariff environment, not expected to materially impact results.