Clearfield (CLFD) investor relations material

Executive summary

• Q2 2026 net sales were $34.4 million, down 15% year-over-year, with a net loss per share of $0.04, both near the top end of guidance.

• Order backlog increased 39% sequentially to $31.6 million, reflecting strong future demand and normal seasonality.

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

• Strategic focus remains on expanding beyond traditional broadband, with early traction in data center and edge AI infrastructure markets.

• Management is focused on execution and investing in growth, particularly in adjacent markets.

Financial highlights

• Gross profit margin for Q2 2026 was 32.5%, down from 34.4% a year ago; gross profit was $11.2 million.

• Operating expenses rose to $13.2 million, representing 38.5% of net sales.

• Net loss from continuing operations was $0.5 million, or $0.04 per diluted share, compared to net income of $2.5 million ($0.18 per share) last year.

• Year-to-date net sales from continuing operations were $68.7 million, down 2% year-over-year.

• Ended the quarter with $147 million in cash, short- and long-term investments, and no debt.

Outlook and guidance

• Q3 2026 net sales expected between $42 million and $46 million; net income per share forecasted at $0.17–$0.21.

• Full-year fiscal 2026 net sales guidance reiterated at $160 million–$170 million, implying ~10% growth at midpoint.

• Full-year EPS guidance maintained at $0.48–$0.62; operating expenses as a percentage of revenue to remain consistent with fiscal 2025.

• Meaningful BEAD-related revenue expected to materialize in fiscal 2027 as funding is deployed.

• Guidance reflects potential supply chain constraints and evolving tariff situation.