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Sep 30, 2025
Clearfield Q4 2025 Earnings Report
Clearfield reported its financial results for the fourth quarter and full fiscal year 2025, highlighting increased net sales and significant gross margin improvement.
Key Takeaways
Clearfield delivered a strong fourth quarter in fiscal 2025, with net sales from continuing operations increasing by 13% year-over-year to $41.1 million and gross profit margin improving by eight percentage points to 34.6%. The company also reported a net income of $1.8 million, or $0.13 per diluted share, a significant turnaround from a net loss in the prior year period. This performance was primarily driven by increased penetration in the MSO and Large Regional Service Provider markets and improved production efficiency.
Q4 2025 net sales from continuing operations increased 13% year-over-year to $41.1 million.
Gross profit margin from continuing operations improved significantly to 34.6% in Q4 2025, up from 26.6% in the prior year.
The company achieved a net income of $1.8 million, or $0.13 per diluted share, in Q4 2025, compared to a net loss in Q4 2024.
Clearfield divested its European Nestor Cables business to focus on higher-return opportunities in North American markets.
Revenue by Segment
Forward Guidance
For fiscal 2026, Clearfield expects net sales from continuing operations to be in the range of $160 million to $170 million and net income per share to be between $0.48 and $0.62. Operating expenses as a percentage of revenue are expected to remain consistent with fiscal 2025.
Positive Outlook
- Expected net sales growth for fiscal 2026, ranging from $160 million to $170 million.
- Anticipated increase in net income per share for fiscal 2026, ranging from $0.48 to $0.62.
- Operating expenses as a percentage of revenue are expected to remain consistent with fiscal 2025, indicating continued operational efficiency.
- Continued commitment to disciplined growth and prudent capital allocation.
- Investment in sales development and expansion of distribution channels, along with new product introductions, are expected to contribute to sales growth in fiscal 2026.
Challenges Ahead
- The late start to the BEAD program is expected to pressure investments early in fiscal 2026.
- The recent government shutdown is also expected to pressure investments from both private funding and government programs in the Community Broadband market early in the year.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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