Clearfield 2025 Q4 Earnings Revenue Surges 13% as EPS Beats Estimates

Clearfield (CLFD) reported Q4 2025 earnings with mixed results: revenue rose 13% to $41.1 million year-over-year, while EPS of $0.13 matched forecasts. The stock fell 8.13% premarket amid cautious guidance and market headwinds. The company raised its share repurchase authorization to $85 million, signaling confidence in long-term value.

Revenue

Clearfield’s Q4 revenue totaled $41.1 million, reflecting a 13% year-over-year increase driven by robust demand in core markets. Full-year revenue reached $150.1 million, up 20% compared to 2024. The results highlight growth in large regional and MSO customers, which now account for nearly 40% of business, while community broadband faced temporary delays due to BEAD program disruptions and government shutdowns.

Earnings/Net Income

The company reported a net loss of $-9.08 million in Q4 2025, a 997.7% increase from $-827,000 in Q4 2024, primarily due to a $10.4 million noncash write-down from the Nestor Cables divestiture. Despite this, EPS of $0.13 met expectations, demonstrating operational efficiency with a gross margin of 34.6% (up from 26.6%). The EPS performance was positive, though the net loss underscores the drag from one-time charges.

Post-Earnings Price Action Review

The strategy of buying CLFD shares after its Q4 earnings report and holding for 30 days underperformed significantly, yielding a -25.62% return, 85.34% below the benchmark. With a Sharpe ratio of -0.29 and a maximum drawdown of 0.00%, the strategy highlighted Clearfield’s high-risk profile. The stock’s 11.9% intraday drop and 22.61% month-to-date decline underscored investor skepticism amid guidance softness and external challenges.

CEO Commentary

CEO Cheryl Beranek emphasized Clearfield’s 20% full-year revenue growth and 13% Q4 YoY increase, crediting strategic divestitures and operational efficiencies. She outlined plans to expand into next-gen wireless networks and edge computing via new product launches in 2026, including splice cases and fiber management cassettes. Beranek also noted challenges from BEAD program delays but expressed optimism about normalization by Q2 2026.

Guidance

Clearfield guided to FY2026 revenue of $160–$170 million and EPS of $0.48–$0.62, below the $206.75 million consensus. Q1 2026 revenue is projected at $30–$33 million, with EPS of $-0.08 to $0.00. The company anticipates BEAD program impacts to remain below $10 million in 2026.

Additional News

In the three weeks following the Q4 earnings, Clearfield announced a $20 million increase to its share repurchase program, raising the total authorization to $85 million. The board cited undervaluation amid $166 million in cash reserves and a strong current ratio of 5.93. Additionally, CEO Cheryl Beranek highlighted leadership changes, including appointing Anis Khemakhem as Chief Commercial Officer to unify sales and marketing. The company also reported COO John Hill’s purchase of 2,740 shares, signaling internal confidence.