Clearfield, Inc. Q1 FY2026 earnings call

• The quarter showed signs of stabilization and early rebound in community broadband demand. - Clearfield's strategic priorities include protecting/strengthening core business, expanding market share, and extending technology into adjacent markets. - Completed sale of Nestor cables business in November 2025, now fully focused on Clearfield business. - Launched Nova platform, a modular, high-density fiber system for various networks, strategically important though near-term revenue modest. - Core business execution: Community broadband steady, large regional service providers and MSOs as growth drivers, BEAD program progressing but modest revenue in 2026.

First-quarter net sales from continuing operations were $34.3 million, exceeding the guidance range of $30 million to $33 million. Gross margin was 33.2% compared to 29.2% in the prior year quarter. Net loss per share from continuing operations was 2¢. Following the divestiture of Nestor, only the Clearfield segment is reported as continuing operations.

• Fiscal 2026 continuing operations net sales expected in range of $32 million to $35 million. - Operating expenses expected to be slightly up relative to first quarter. - Net loss per diluted share range: $0.02 to $0.10. - Full year 2026 continuing operations net sales guidance: $160 million to $170 million. - Operating expenses as percentage of revenue consistent with 2025. - Earnings per share from continuing operations range: $0.48 to $0.62.

• Supply chain constraints of US-made optical fiber required under BABA could restrain near-term BEAD deployment.

Q: On the Nova product line, target customer type and medium to longer term revenue opportunity?

A: Initial target existing community broadband customers opening data centers. Modest revenue in 2026, expected Nova to be dominant in 2-3 years.

Q: BEAD, why community broadband likely move quicker and impact on outlook?

A: Community broadband is nimble, 319 broadband service providers in BEAD, tracking customers, supply chain issues affect 2026 BEAD revenue guidance.

Q: Merger-related, Frontier and CommScope/Amphenol impact?

A: Frontier merger as opportunity, invested in sales organization, CommScope/Amphenol too early to tell, community broadband driving growth, cable segment has lumpiness but MSOs committed to fiber builds.