Clearfield (CLFD)·Q1 2026 Earnings Summary

Clearfield Beats Q1 Guidance as Community Broadband Demand Stabilizes

February 4, 2026 · by Fintool AI Agent

Clearfield (NASDAQ: CLFD) reported fiscal Q1 2026 results that exceeded guidance on both the top and bottom line, with revenue of $34.3 million beating the high end of guidance by 4% and gross margin expanding 400 basis points year-over-year to 33.2%. Management cited early signs of stabilization in Community Broadband demand and introduced the NOVA product platform targeting data center and AI applications.

Did Clearfield Beat Earnings?

Yes — Clearfield beat both revenue and EPS guidance for Q1 FY2026.

Revenue grew 16% year-over-year from $29.7 million in Q1 FY2025, driven by increased sales in Community Broadband which is "emerging from the negative overhang that has resulted from years-long delays in the BEAD program."

Gross margin improvement was driven by better overhead absorption and higher inventory utilization.

What Did Management Guide?

Clearfield provided Q2 FY2026 guidance and reiterated full-year FY2026 outlook:

Q2 FY2026 Guidance

Full-Year FY2026 Guidance (Reiterated)

Management noted their guidance "reflects our current understanding of the impact of the evolving tariff situation" but they "do not believe that the tariffs currently in place will materially affect our operating results."

What Changed From Last Quarter?

Demand Environment Improving

The most significant shift is Community Broadband demand stabilization. After years of BEAD program delays that pressured orders, CEO Cheri Beranek noted "signs of stabilization and an early rebound in Community Broadband demand, reinforcing confidence in our long-term outlook for fiscal 2026."

This marks a turning point from Q4 FY2025 when management cited the government shutdown and BEAD delays as headwinds.

New Product Launch: NOVA Platform

Clearfield introduced the NOVA product line, a modular, high-density fiber system designed for modern networks including AI, data center, and edge compute applications. CEO Beranek noted:

"The NOVA Platform takes the cassette-based modular design approach that has long defined our success in broadband, and it extends it into new environments, including AI, data center, and edge compute networks."

Initial customers include existing community broadband providers opening data centers. While near-term revenue contribution will be modest, management sees NOVA becoming the "dominant product offering" within 2-3 years.

Order Backlog Declined

Order backlog decreased to $22.8 million as of December 31, 2025 — down 8% sequentially from $24.7 million and down 4% year-over-year. This reflects Clearfield's short lead times rather than demand weakness.

How Did the Stock React?

CLFD shares closed at $30.47, up 1.1% on the day of the earnings release. The stock traded in a range of $29.60 to $30.82 during the session.

The muted reaction likely reflects that earnings were released after market close with the conference call scheduled for 5:00 PM ET.

Key Financial Metrics

Operating expenses increased 23% to $13.2 million (38.5% of sales) from $10.7 million (36.1%) in the year-ago quarter, "driven by increased investment in personnel and related expenses."

Balance Sheet & Capital Allocation

Clearfield maintains a fortress balance sheet with $157 million in cash, short-term and long-term investments and no debt.

Share Repurchases: The company repurchased $5.2 million in shares during Q1. In November 2025, the Board increased share repurchase authorization from $65 million to $85 million, leaving $23.1 million available for additional repurchases.

Q&A Highlights

NOVA Platform: Target Customers & Revenue Outlook

CEO Cheri Beranek provided clarity on the NOVA platform's target market during Q&A:

"The initial target customer I think we'll see is existing community broadband customers who are opening data centers... Additionally, as we move into adjacent markets, the products are designed in a different way, with the concept of modularity."

Key NOVA details revealed:

• Initial customers: Existing community broadband providers like SDN Communications and Cologix opening data centers
• Design philosophy: Modular cassette-based approach optimized for different connector types (single-mode, multi-mode, ultra-small form factor)
• Not targeting hyperscale: Additional product innovation needed for hyperscale markets, expected "in about a year"
• Revenue trajectory: "We don't see a significant revenue contribution in 2026, but we do see the Nova platform becoming over the next 2-3 years really the dominant product offering of the company"

BEAD Program: Community Broadband Will Move First

Management expects smaller providers to deploy faster than Tier 1 carriers:

"Community broadband, just by definition of being smaller, are more nimble players... The larger providers, you know, absolutely are going to deliver their BEAD initiatives, but they already have their build plans for the year."

Clearfield is tracking 319 different broadband service providers slated for BEAD awards, systematically engaging based on sales cycle stage and customer penetration.

Fiber Supply Shortage: A Real Constraint

The BABA (Build America, Buy America) compliant fiber supply remains tight:

"The current suppliers of BABA compliant fiber... are on lead times of over a year. And that is not consistent with being able to have a good, aggressive BEAD program, and I'm sure it is not what the NTIA intended when they said there was enough fiber to go around under the BABA program."

This supply constraint is a key reason FY2026 guidance excludes BEAD-related revenue. The industry is exploring waivers or alternative means to accelerate deployments.

Verizon-Frontier Merger: Opportunity for Clearfield

Clearfield views the merger as a growth catalyst:

"We're looking at the Verizon-Frontier merger as a significant opportunity for Clearfield. We have been a key supplier to Frontier... Frontier is full speed ahead on their program for fiscal year 2026 and not looking to make any changes that are gonna interfere with the build season."

To capture this opportunity, Clearfield has invested in:

• National sales team calling on corporate accounts
• "National turf team" calling on field offices of national accounts
• This explains the $3M YoY increase in SG&A

CommScope-Amphenol Merger: Too Early, But Potential Upside

Management sees CommScope focusing on hyperscale under the Amphenol umbrella, which "could provide an opportunity for Clearfield" in the carrier and rural carrier markets.

Segment Color: Community Broadband Leading

• Community Broadband: "Significantly up" and the primary growth driver — refreshing after being most severely affected by BEAD delays
• Cable/MSO: Down from Q4 but consistent with Q1 prior year; larger orders create quarter-to-quarter bumpiness
• Regional MSOs (Midco, Blue Ridge) remain committed to fiber builds as telcos like Verizon and AT&T continue aggressive deployments

Strategic Highlights

Three-Pillar Framework

Management reiterated their strategic approach:

1. Protect & Strengthen Core: Community Broadband market leadership
2. Expand Market Share: Large regional service providers and MSOs
3. Extend into Adjacent Markets: Data centers, AI infrastructure via NOVA platform

BEAD Program Context

CEO Beranek is "encouraged by the progress that the NTIA has made in advancing the BEAD program" and pleased with planning and network design activity from customers. While FY2026 contribution will be modest, "service providers are actively preparing for deployment" and Clearfield is staying closely engaged.

Beyond FY2026, BEAD is expected to become a positive contributor, with timing dependent on federal funding releases and supply chain constraints.

Nestor Divestiture Complete

Clearfield completed the sale of its Nestor Cables business in November 2025. All results are now presented for Clearfield segment continuing operations only. This sharpens focus on North American operations.

Risks & Concerns

1. Fiber Supply Shortage Critical: BABA-compliant fiber suppliers are on lead times of over a year — a significant bottleneck for BEAD deployments. Management noted this "is not consistent with being able to have a good, aggressive BEAD program."

2. BEAD Program Timing: While 319 providers are slated for BEAD awards, actual construction and fiber deployments depend on federal funding releases and supply chain resolution

3. Tariff Uncertainty: Management acknowledged the evolving tariff situation but does not believe tariffs currently in place will materially affect operating results

4. Seasonal Revenue Pattern: Q1 (Dec quarter) is historically the weakest quarter; management expects stronger Q2 and second-half performance

Forward Catalysts

• Q2 FY2026 Earnings (expected May 2026)
• NOVA Platform Adoption: Early customer validation underway; expected to become "dominant product offering" in 2-3 years
• Verizon-Frontier Integration: Clearfield is a key Frontier supplier with opportunity to expand under Verizon umbrella
• BEAD Program Deployments: Community broadband providers expected to move first once funding released; 319 providers being tracked
• Hyperscale Product Launch: Additional NOVA innovation targeting hyperscale markets expected "in about a year"

---

View CLFD Company Profile | Q4 FY2025 Earnings | Latest Transcript