Clearfield, Inc. Reports 16% Net Sales Increase and Improved Gross Profit for December 2025

Clearfield, Inc. reported a net sales increase of 16% for the three months ended December 31, 2025, reaching $34.3 million compared to $29.7 million in the same period of the previous year. This growth was primarily driven by increased sales to Community Broadband customers, which rose by 24%, and a significant 429% increase in international sales, totaling $1.9 million. The company's gross profit also improved, rising to $11.4 million, or 33.2% of net sales, up from $8.7 million, or 29.2%, in the prior year. Despite these gains, Clearfield reported a net loss of $614,000, a reduction from a loss of $1.9 million in the same quarter last year.

The company's financial position showed a decrease in total assets, which fell to $268.1 million from $306.2 million as of September 30, 2025. Current assets decreased significantly, primarily due to a drop in cash and cash equivalents, which fell to $13.9 million from $21.5 million. The reduction in current liabilities was notable as well, decreasing to $13.2 million from $36.6 million, reflecting improved cash management and operational efficiency. The company’s shareholders' equity also decreased to $249.7 million from $256.2 million, largely due to the net loss and stock repurchase activities.

Strategically, Clearfield completed the sale of its Nestor Cables business on November 11, 2025, which has been classified as discontinued operations. This divestiture allows the company to focus on its core operations in fiber optic management and delivery products. The company continues to expand its product offerings and enhance its market presence, particularly in the broadband service provider sector, which remains its primary customer base. The company’s order backlog as of December 31, 2025, was $22.8 million, reflecting a seasonal decrease from the previous quarter.

Operationally, Clearfield's employee headcount remained stable, and the company reported a slight increase in selling, general, and administrative expenses, which rose to $13.2 million from $10.7 million, attributed to higher wages and professional services. The company’s cash flow from operating activities was negative at $1.4 million, contrasting with a positive cash flow of $8.0 million in the prior year, indicating a shift in operational cash generation. The company’s liquidity position remains strong, with total cash, cash equivalents, and investments amounting to $156.7 million as of December 31, 2025.

Looking ahead, Clearfield anticipates continued growth driven by demand for its fiber management products, particularly as broadband service providers expand their networks. The company is focused on leveraging its existing cash reserves and credit facilities to support organic growth and potential strategic transactions. Management remains optimistic about the future, citing ongoing investments in product development and market expansion as key drivers for the upcoming fiscal periods.