Earnings release
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EXHIBIT 99.1 Clearfield Reports First Quarter Fiscal 2026 Results Net sales from continuing operations grew 16% year over year to $34.3 million; Gross margin from continuing operations improved by 4 percentage points to 33.2% Clearfield Introduces NOVA™ Platform, Optimizing Scalability and Installation Simplicity for High-Density Fiber Connectivity Reiterates full year fiscal 2026 guidance of net sales from continuing operations in the range of $160 million to $170 million and EPS of $0.48 to $0.62 Share buybacks totaled $5.2 million with $23.1 million remaining available for repurchases MINNEAPOLIS, Feb. 04, 2026 (GLOBE NEWSWIRE) -- Clearfield, Inc. (NASDAQ: CLFD), a leader in fiber connectivity, reported results for the fiscal first quarter of 2026 ending December 31, 2025. Additional commentary is provided in a letter to shareholders available in the Investor Relations section of the Company’s website. Fiscal Q1 2026 Financial Summary (in millions except per share data and percentages) Q1 2026 vs. Q1 2025 Change Change (%) Net Sales from Continuing Operations $ 34.3 $ 29.7 $ 4.6 16% Gross Profit ($) from Continuing Operations$ 11.4 $ 8.7 $ 2.7 31% Gross Profit (%) from Continuing Operations 33.2% 29.2% 4.0% 14% Loss from Operations from Continuing Operations$ (1.8) $ (2.0) $ 0.2 11% Income Tax (Benefit) Expense from Continuing Operations $ (0.0) $ 0.1 $ (0.1) 119% Net Loss from Continuing Operations $ (0.3) $ (0.4) $ 0.1 22% Net Loss per Diluted Share from Continuing Operations $ (0.02) $ (0.02) $ - 0% Net Loss from Discontinued Operations, net of tax$ (0.3) $ (1.6) $ 1.2 78% Net Loss per Diluted Share from Discontinued Operations $ (0.02) $ (0.11) $ 0.09 82% Consolidated Net Loss Per Diluted Share $ (0.04) $ (0.13) $ 0.09 69% Management Commentary: “During the quarter, we saw signs of stabilization and an early rebound in Community Broadband demand, reinforcing confidence in our long-term outlook for fiscal 2026.” said Company President and Chief Executive Officer, Cheri Beranek. “To capitalize on this momentum, we introduced our NOVA™ product line, which represents a strategic extension of our platform into adjacent markets. The NOVA product line positions Clearfield to leverage the demand for higher fiber density driven by data center deployments, low latency applications, and AI. As the leading provider of fiber management solutions for the Community Broadband market, we are guided by a disciplined strategy anchored in our Three-Pillar framework. That framework remains focused on protecting and strengthening our core business, expanding market share, and strategically extending our technology into adjacent markets.” “We delivered fiscal first quarter net sales from continuing operations of $34.3 million, exceeding our guidance range of $30 to $33 million and up 16% from $29.7 million in the prior year period,” said Chief Financial Officer, Dan Herzog. “Gross margin for the first fiscal quarter improved 4 percentage points to 33.2%, driven primarily by improved overhead absorption and better inventory utilization. We ended the first fiscal quarter with approximately $157 million in cash, short-term and long-term investments and no debt. In November 2025, our Board of Directors increased our share repurchase authorization from $65 million to $85 million, leaving $23.1 million available for additional repurchases as of December 31, 2025.”
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Financial Results for the Three Months Ended December 31, 2025 As previously announced, in November 2025 Clearfield completed the sale of its Nestor Cables business. As a result, all financial results are presented for the Clearfield segment continuing operations only, with Nestor results reported under discontinued operations in our Statement of Earnings and Statement of Cash Flows and reported as assets and liabilities held for sale on our Balance Sheet. Clearfield net sales from continuing operations for the first quarter of fiscal 2026 were $34.3 million, up 16% from $29.7 million in the prior year period. The increase in net sales was 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. As of December 31, 2025, order backlog (defined as purchase orders received but not yet fulfilled) was $22.8 million, a decrease of $1.9 million, or 8%, compared to $24.7 million as of September 30, 2025, and a decrease of $1.0 million, or 4%, from December 31, 2024. Clearfield gross margin from continuing operations improved from 29.2% to 33.2% in the first quarter of fiscal 2026 from the prior year quarter driven primarily by improved overhead absorption as well as higher inventory utilization. Operating expenses from continuing operations for the first quarter of fiscal 2026 increased 23% to $13.2 million, or 38.5% of sales, from $10.7 million, or 36.1% of sales, in the same year-ago quarter, driven by increased investment in personnel and related expenses. Income tax benefit from continuing operations was $1 thousand for the first quarter of fiscal 2026, compared to income tax expense from continuing operations of $53 thousand for the year-ago quarter. The income tax rate for the first quarter of fiscal 2026 was lower than the statutory rate due to the impact of discrete items and a lower level of pre-tax book loss. Net loss from continuing operations for the first quarter of fiscal 2026 totaled $0.28 million, or $0.02 per diluted share, compared to net loss from continuing operations of $0.35 million or $0.02 per diluted share, in the same year-ago quarter. In the first quarter of fiscal 2026, the Company repurchased approximately $5.2 million in shares under its share repurchase program. Net loss from discontinued operations for the first quarter of fiscal 2026, was $0.34 million, or $0.02 per basic and diluted share compared to net loss from discontinued operations for the first quarter of fiscal 2025, of $1.6 million, or $0.11 per basic and diluted share. Outlook For the second quarter of fiscal 2026, we anticipate net sales from continuing operations in the range of $32 million to $35 million, operating expenses to be up slightly relative to the first quarter, and net loss per diluted share in the range of $0.02 to $0.10. We are reiterating our outlook for fiscal 2026 with net sales from continuing operations expected to be in the range of $160 million to $170 million, operating expenses as a percentage of revenue expected to remain consistent with fiscal 2025, and net income per share expected to be in the range of $0.48 to $0.62. The net income (loss) per share ranges are based on the number of shares outstanding at the end of the first quarter of fiscal 2026 and do not reflect potential additional share repurchases completed in fiscal 2026. Our guidance reflects our current understanding of the impact of the evolving tariff situation, which could contribute to uncertainty in our business and in the macroeconomic environment. As we currently understand the tariff environment, we do not believe that the tariffs currently in place will materially affect our operating results. Conference Call Management will hold a conference call today, February 4, 2026, at 5:00 p.m. Eastern time (4:00 p.m. Central time) to discuss these results and provide an update on business conditions. Clearfield’s President and Chief Executive Officer, Cheri Beranek, and Chief Financial Officer, Dan Herzog, will host the presentation, followed by a question-and-answer period.
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U.S. dial-in: 1-844-826-3033 International dial-in: 1-412-317-5185 Conference ID: 10205826 The live webcast of the call can be accessed at the Clearfield Investor Relations website along with the company's earnings press release and presentation. A replay of the call will be available after 8:00 p.m. Eastern Time on the same day through February 18, 2026, while an archived version of the webcast will be available on the Investor Relations website for 90 days. U.S. replay dial-in: 1-844-512-2921 International replay dial-in: 1-412-317-6671 Replay ID: 10205826 About Clearfield, Inc. Clearfield, Inc. (NASDAQ: CLFD) designs, manufactures, and distributes fiber optic management, protection, and delivery solutions that play a critical role in enabling broadband operators to close the digital divide. Our labor lite, craft-friendly platform is leveraged by community broadband, MSOs, incumbent service providers, ISPs, data centers, military, municipalities, and coops - from homes passed to homes connected faster and more efficiently. Headquartered in Minneapolis, MN, Clearfield deploys more than a million fiber ports each year. For more information, visit www.SeeClearfield.com. Cautionary Statement Regarding Forward-Looking Information Forward-looking statements contained herein and in any related presentation or in the related Earnings Presentation are made pursuant to the safe harbor provisions of the Private Litigation Reform Act of 1995. Words such as “may,” “plan,” “expect,” “aim,” “believe,” “project,” “target,” “anticipate,” “intend,” “estimate,” “will,” “should,” “could,” “outlook,” or “continue” or comparable terminology are intended to identify forward- looking statements. Such forward looking statements include, for example, statements about the Company’s future revenue and operating performance, the development and marketing of new products, the impact of recent trade policy changes, including new and increased tariffs, retaliatory tariffs, trade disputes, and market and economic reactions to such changes, expected customer ordering patterns and future supply agreements with customers, expectations regarding the impact on our business of M&A activity among our customers, anticipated shipping on backlog and future lead times, future availability of components and materials from the Company’s supply chain, compliance with Build America Buy America (BABA) Act requirements, the impact of the Broadband Equity, Access, and Deployment (BEAD) Program, Rural Digital Opportunity Fund (RDOF) or other government programs on the demand for the Company’s products or timing of customer orders, the Company’s ability to match capacity to meet demand, expansion into new markets and trends in and growth of the FTTx markets, market segments or customer purchases, and other statements that are not historical facts. These statements are based upon the Company's current expectations and judgments about future developments in the Company's business. Certain important factors could have a material impact on the Company's performance, including, without limitation: we depend on the availability of sufficient supply of certain materials and global disruptions in the supply chain for these materials could prevent us from meeting customer demand for our products; we rely on single-source suppliers, which could cause delays, increase costs or prevent us from completing customer orders; changes in trade policy in the U.S. and other countries may adversely affect our business and results of operations; inflationary price pressures and uncertain availability of components, raw materials, labor and logistics used by us and our suppliers could negatively impact our profitability; a significant percentage of our sales in the last three fiscal years have been made to a small number of customers, and the loss of these major customers could adversely affect us; further consolidation among our customers may result in the loss of some customers and may reduce sales during the pendency of business combinations and related integration activities; our business is dependent on interdependent management information systems; we may be subject to risks associated with acquisitions, and the risks could adversely affect future operating results; adverse global economic conditions and geopolitical issues could have a negative effect on our business, and results of operations and financial condition; product defects or the failure of our products to meet specifications could cause us to lose customers and sales or to incur unexpected expenses; we are dependent on key personnel; cyber-security incidents, including ransomware, data breaches or computer viruses, could disrupt our business operations, damage our reputation, result in increased expense, and
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potentially lead to legal proceedings; natural disasters, extreme weather conditions or other catastrophic events could negatively affect our business, financial condition, and operating results; to compete effectively, we must continually improve existing products and introduce new products that achieve market acceptance; our business is dependent upon capital spending by broadband service providers, and any delay, reduction or cancellation in capital spending by broadband service providers could adversely affect our business; if the telecommunications market does not continue to expand, our business may not grow as fast as we expect, which could adversely impact our business, financial condition and operating results; changes in U.S. government funding programs may cause our customers and prospective customers to delay, reduce, or accelerate purchases, leading to unpredictable and irregular purchase cycles; intense competition in our industry may result in price reductions, lower gross profits and loss of market share; our success depends upon adequate protection of our patent and intellectual property rights; we face risks associated with expanding our sales outside of the United States; our operating results may fluctuate significantly from quarter to quarter, which may make budgeting for expenses difficult and may negatively affect the market price of our common stock; our stock price has been volatile historically and may continue to be volatile - the price of our common stock may fluctuate significantly; anti-takeover provisions in our organizational documents, Minnesota law and other agreements could prevent or delay a change in control of our Company; and other factors set forth in Part I, Item IA. Risk Factors of Clearfield's Annual Report on Form 10-K for the year ended September 30, 2025 as well as other filings with the Securities and Exchange Commission. The Company undertakes no obligation to update these statements to reflect actual events unless required by law. Investor Relations Contact: Greg McNiff The Blueshirt Group 773-485-7191 clearfield@blueshirtgroup.com CLEARFIELD, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT PER SHARE DATA) December 31, 2025 (Unaudited) September 30, 2025 Assets Current assets Cash and cash equivalents $ 13,879 $ 21,493 Short-term investments 82,556 84,484 Accounts receivables, net 14,971 17,991 Inventories, net 40,201 42,031 Prepaid and other current assets 14,132 11,152 Current assets held for sale - 21,337 Total current assets 165,739 198,488 Property, plant and equipment, net 9,479 9,682 Long-term investments 60,291 59,822 Goodwill 4,709 4,709 Intangible assets, net 8,929 9,353 Right-of-use lease assets 7,759 8,420 Deferred tax asset 10,610 10,263 Other non-current assets 534 608 Non-current assets held for sale - 4,828 Total assets $ 268,050 $ 306,173 Liabilities and Shareholders’ Equity Current liabilities Current portion of lease liability $ 2,890 $ 2,823 Accounts payable 3,852 7,028
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Accrued compensation 4,197 6,598 Accrued expenses 2,270 2,197 Current liabilities held for sale - 17,957 Total current liabilities 13,209 36,603 Other liabilities Long-term portion of lease liability 5,189 5,934 Non-current liabilities held for sale - 7,473 Total liabilities 18,398 50,010 Shareholders’ equity Preferred stock, $0.01 par value; 500,000 shares; no shares issued or outstanding - - Common stock, authorized 50,000,000, $0.01 par value; 13,838,883 and 13,839,675 shares issued and outstanding as of December 31, 2025 and September 30, 2025, respectively 138 138 Additional paid-in capital 143,053 147,382 Accumulated other comprehensive income 163 1,731 Retained earnings 106,298 106,912 Total shareholders’ equity 249,652 256,163 Total Liabilities and Shareholders’ Equity $ 268,050 $ 306,173 CLEARFIELD, INC. CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) (IN THOUSANDS, EXCEPT PER SHARE DATA) Three Months Ended Three Months Ended December 31, December 31, 2025 2024 Net sales $ 34,341 $ 29,698 Cost of sales 22,953 21,023 Gross profit 11,388 8,675 Operating expenses Selling, general and administrative 13,212 10,721 Loss from continuing operations (1,824) (2,046) Net investment income 1,546 1,744 Loss from continuing operations before income taxes (278) (302) Income tax (benefit) expense (1) 53 Loss from continuing operations, net of tax (277) (355) Loss from discontinued operations, net of tax (337) (1,551) Net loss $ (614) $ (1,906)
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Loss per share Basic Continuing operations $ (0.02) $ (0.02) Discontinued operations (0.02) (0.11) Basic loss per share $ (0.04) $ (0.13) Diluted Continuing operations $ (0.02) $ (0.02) Discontinued operations (0.02) (0.11) Diluted loss per share $ (0.04) $ (0.13) Weighted average shares outstanding: Basic 13,869,510 14,213,025 Diluted 13,869,510 14,213,025 CLEARFIELD, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (IN THOUSANDS) Three Months Ended Three Months Ended December 31, December 31, 2025 2024 Cash flows from operating activities (continuing) Net loss $ (614) $ (1,906) Loss from discontinued operations, net of tax 337 1,551 Adjustments to reconcile net loss to net cash (used in) provided by operating activities: Depreciation and amortization 1,615 1,513 Amortization of premium and discount on investments, net (117) (766) Deferred taxes (375) (135) Stock-based compensation 1,271 1,050 Changes in operating assets and liabilities, net of acquired amounts: Accounts receivable 3,020 3,577 Inventories, net 1,830 6,279 Other assets (2,905) (903) Accounts payable and accrued expenses (5,502) (2,221) Net cash (used in) provided by operating activities (continuing) (1,440) 8,039 Cash flows from investing activities (continuing) Purchases of property, plant and equipment and intangible assets (988) (1,751) Purchases of investments (19,953) (39,015) Proceeds from maturities of investments 21,660 54,476 Cash paid on disposal of business (1,012) - Net cash (used in) provided by investing activities (continuing) (293) 13,710 Cash flows from financing activities (continuing) Proceeds from issuance of common stock under employee stock purchase plan 239 301 Repurchase of shares for payment of withholding taxes for vested restricted stock grants (997) (491)
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Withholding related to exercise of stock options (57) - Repurchase of common stock (5,279) (6,275) Net cash used in financing activities (continuing) (6,094) (6,465) Cash flows from discontinued operations Net cash provided by (used in) operating activities 1,380 (889) Net cash used in investing activities - (318) Net cash (used in) provided by financing activities (1,196) 77 Net cash provided by (used in) discontinued operations 184 (1,130) Effect of exchange rates on cash and cash equivalents (13) 132 Net (decrease) increase in cash and cash equivalents (7,656) 14,286 Change in cash held for sale 42 1,065 Cash and cash equivalents, beginning of period 21,493 14,148 Cash and cash equivalents, end of period $ 13,879 $ 29,499 Supplemental disclosures for cash flow information Cash paid for income taxes, net $ (12) $ 405 Non-cash financing activities Cashless exercise of stock options $ 419 $ 9