Clearfield, Inc. Reports 28% Revenue Growth and Net Income Turnaround in Q2 Fiscal 2025

Clearfield, Inc. reported a significant increase in financial performance for the second quarter of fiscal 2025, with net sales reaching $47.2 million, a 28% increase from $36.9 million in the same period last year. The company attributed this growth primarily to increased demand from Broadband Service Providers, which accounted for $44.4 million of sales, up from $34.4 million in the prior year. Gross profit also saw a substantial rise, climbing to $14.2 million, or 30.1% of net sales, compared to just $2.8 million, or 7.7%, a year earlier. This improvement in gross margin was driven by enhanced manufacturing efficiency and reduced excess inventory charges.

In terms of profitability, Clearfield reported a net income of $1.3 million, or $0.09 per share, for the three months ended March 31, 2025, a notable turnaround from a net loss of $5.9 million, or $0.40 per share, in the same quarter of 2024. The company’s operating income also improved significantly, moving from a loss of $9.7 million to a modest gain of $262,000. The increase in operating income was attributed to higher sales volumes and improved gross profit margins, despite a rise in selling, general, and administrative expenses, which increased by 11% to $13.9 million.

Operationally, Clearfield's order backlog as of March 31, 2025, was $34.1 million, reflecting a 31% increase from the previous quarter, although it was down 27.7% from the same time last year. The company noted that the decrease in backlog compared to the prior year was due to higher fulfillment rates during the pandemic. Additionally, Clearfield's international sales decreased to $7.3 million from $9.9 million year-over-year, primarily due to lower demand in the European market, particularly from its Nestor Cables segment.

The company continues to focus on strategic growth, with cash and cash equivalents totaling $28.8 million as of March 31, 2025, up from $16.2 million at the end of the previous fiscal year. Clearfield also maintains a $40 million revolving line of credit, which had no outstanding balance as of the reporting date. Looking ahead, Clearfield anticipates that ongoing demand for its fiber management and delivery solutions will support continued revenue growth, although it remains cautious about potential impacts from tariffs and macroeconomic conditions on future performance. The company is actively monitoring these factors as it plans for the upcoming fiscal periods.