CLFD

This article first appeared on GuruFocus. Net Sales: $43.9 million, a 13% increase from $38.8 million in Q3 fiscal 2025 and a 28% sequential increase. Gross Margin: 31.8%, compared to 35.3% in Q3 fiscal 2025 and 32.5% in Q2 fiscal 2026; impacted by onetime items that reduced margin by approximately 1.8 percentage points. Operating Expenses: $11.4 million, or 25.9% of net sales, a 6% decrease from $12.1 million in Q3 fiscal 2025. Net Income: $3 million, or $0.22 per diluted share, compared to $2.3 million, or $0.16 per diluted share, in Q3 fiscal 2025. Cash and Investments: Approximately $155 million in cash, short-term and long-term investments, with no debt. Share Repurchases: Approximately 31,000 shares repurchased for $897,000 during the quarter. Q4 Fiscal 2026 Guidance: Net sales expected between $38 million and $42 million; net income per diluted share expected in the range of breakeven to $0.07. Full-Year Fiscal 2026 Guidance: Net sales expected between $151 million and $155 million; net income per share expected in the range of $0.14 to $0.21. Warning! GuruFocus has detected 5 Warning Signs with CLFD. Is CLFD fairly valued? Test your thesis with our free DCF calculator. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Clearfield Inc (NASDAQ:CLFD) received a significant $22 million purchase order for a hyperscale data center project, marking a strategic expansion into the data center connectivity market. The company's collaborative design approach with the data center customer led to the development of a new NOVA platform panel, which will be standardized and introduced to the broader market. Third quarter net sales increased 13% year-over-year to $43.9 million, driven by higher revenue across most customer markets. Operating expenses decreased 6% year-over-year and 14% sequentially, reflecting improved cost management. The company ended the quarter with a strong balance sheet, holding approximately $155 million in cash and investments with no debt. Clearfield Inc (NASDAQ:CLFD) reduced its full-year fiscal 2026 guidance due to slower broadband deployment, with net sales now expected between $151 million and $155 million. The slow pace of the BEAD program and delays in federal approvals are negatively impacting customer planning and project timelines in the broadband market. A major Community Broadband customer canceled a significant portion of its backlog due to a management change, leading to a $2.6 million inventory write-off. Gross margin declined to 31.8% from 35.3% in the prior year, partly due to onetime items that reduced margin by approximately 1.8 percentage points. The company faces ongoing challenges from limited fiber availability in the U.S., which is delaying projects and reducing order sizes for smaller broadband customers. Q: Can you provide more details on the significant data center order announced after the quarter's close? Is it in backlog, and what does it mean for Clearfield's strategy? A: Cheri Beranek (President and CEO) confirmed this is a firm $22 million purchase order in hand, not speculation. It represents the first stage of the first building on a hyperscale data center campus. The company became involved early in the design process, which led to the expansion of its NOVA platform with a new panel developed for the customer. This validates the company's strategy to pivot into the data center connectivity market and is seen as a potential entry point for ongoing participation in the customer's future build-outs. Q: Can you expand on the trends you are seeing in the Community Broadband segment and why the expected seasonal uptick did not materialize? A: Cheri Beranek (President and CEO) attributed the slowdown to two primary factors: the uncertainty surrounding the BEAD program, which is causing customers to hold back capital, and a significant lack of domestically manufactured fiber. The fiber that is available is being allocated to national carriers and data center projects, leaving smaller broadband providers with reduced allocations and forcing them to delay or shrink project scopes. Q: You mentioned a cancellation or decommit from a customer in your backlog. Can you provide more details on this? A: Cheri Beranek (President and CEO) stated this was from their largest customer in the Community Broadband segment, a long-standing relationship of 15 years. A management change at the customer led to a strategic shift away from network build-outs toward increasing subscribers on their existing network. This resulted in a significant change in product demand and a reversal of backlog, leading to a $2.6 million inventory write-off for customer-unique product. She emphasized this is a customer-specific issue, not a broader demand trend. Q: What is the use case for the new data center order? Is it for outside plant or inside the data center? A: Cheri Beranek (President and CEO) clarified that the order is for inside the data center environment. She highlighted that the company's 15 years of experience in the telecom central office market was a key factor in winning this business. The collaboration involved a large group visiting Clearfield's headquarters, and many individuals had prior experience with Clearfield's products, recognizing the scalability, labor savings, and reliability of the solutions. Q: Are the trends for Tier 2 MSOs similar to what you are seeing in Community Broadband? A: Cheri Beranek (President and CEO) confirmed that the situation is exactly the same. These customers are not strategic accounts for large fiber providers like Corning, so they are receiving smaller allocations of fiber. As a result, their projects are being delayed or significantly reduced in size and scope, mirroring the challenges faced by the Community Broadband market. Q: What is the company's financial outlook for the fourth quarter and full fiscal year 2026? A: Dan Herzog (CFO) provided guidance for Q4 fiscal 2026, expecting net sales from continuing operations in the range of $38 million to $42 million, with net income per diluted share between breakeven and $0.07. Due to industry demand constraints, the company reduced its full-year guidance to net sales of $151 million to $155 million and net income per share of $0.14 to $0.21. Q: Can you elaborate on the gross margin performance for the quarter? A: Dan Herzog (CFO) reported a gross margin of 31.8% for Q3 fiscal 2026, down from 35.3% in the year-ago quarter. He noted that several onetime items, on a net basis, reduced gross margin by approximately 1.8 percentage points during the quarter. Q: How did the company's operating expenses perform in the third quarter? A: Dan Herzog (CFO) stated that operating expenses from continuing operations decreased 6% year-over-year to $11.4 million, or 25.9% of net sales. Sequentially, operating expenses decreased 14% or $1.8 million from the second quarter of fiscal 2026. Q: What is the company's cash position and capital allocation activity? A: Dan Herzog (CFO) confirmed the company ended the quarter with approximately $155 million in cash, short-term and long-term investments, and no debt. During the quarter, the company repurchased approximately 31,000 shares for $897,000 as part of its share buyback program. Q: Beyond the data center win, what other new technology offerings is Clearfield investing in? A: Cheri Beranek (President and CEO) highlighted the recently announced fault managed power portfolio. This offering enables customers to deliver both fiber connectivity and power to difficult-to-reach locations through a single coordinated solution, reducing deployment complexity and creating a more flexible foundation for future network growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Clearfield, Inc.? Here are five stocks we like better. Third-quarter sales rose 13% year over year to $43.9 million, while net income increased to $3 million, or $0.22 per diluted share. Clearfield ended the quarter with approximately $155 million in cash and investments and no debt. Clearfield secured its first major hyperscale data-center order, valued at approximately $22 million, with shipments expected to begin in early fiscal 2027. The company is expanding its NOVA platform and pursuing data-center connectivity as a new growth market. Continued BEAD funding delays, constrained fiber supply and customer project deferrals led Clearfield to cut its fiscal 2026 outlook to $151 million–$155 million in sales and $0.14–$0.21 in diluted EPS; fourth-quarter sales are expected at $38 million–$42 million. Clearfield (NASDAQ:CLFD) reported fiscal third-quarter 2026 net sales of $43.9 million, up 13% from $38.8 million a year earlier and 28% sequentially, as the company advanced its push into data center connectivity while confronting continued delays in broadband-network deployment. Net income from continuing operations totaled $3 million, or $0.22 per diluted share, compared with $2.3 million, or $0.16 per share, in the prior-year quarter. The company said it ended the quarter with approximately $155 million in cash, short-term and long-term investments and no debt. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control President and CEO Cheri Beranek said the company is increasingly positioning itself as a digital infrastructure connectivity provider for the data center market. Shortly after the fiscal third quarter closed, Clearfield received its first significant hyperscale data center order, valued at approximately $22 million. The company expects to begin shipping against the order in early fiscal 2027. Beranek said Clearfield became involved early in the project’s design process and worked with the end customer on a tailored connectivity solution. The collaboration resulted in an expansion of Clearfield’s NOVA platform, including a new panel developed with the customer that the company plans to standardize and introduce more broadly to the data center market later this calendar year. → 3 Drone Stocks That Should Soar After the Summer Slump “This initial engagement demonstrates that our strategy is resonating with customers and broadening our addressable market,” Beranek said, while cautioning that it remains too early to project the size or timing of future data center opportunities. During the question-and-answer session, Beranek said the $22 million commitment is an order in hand and represents the first stage of the first building on a hyperscale campus. She said the products will be used inside the data center rather than in an outside-plant campus application. → The Bitcoin Comeback May Already Be Underway—2 ETFs for Exposure Beranek said the opportunity also reflects Clearfield’s experience serving telecom central offices and its reputation for scalable products, labor savings, quality and customer responsiveness. She said personnel with broadband-market experience are increasingly being drawn into the data center market. Clearfield lowered its full-year outlook, citing industry demand constraints. Beranek said the slow pace of the federal Broadband Equity, Access and Deployment, or BEAD, program continues to affect customer planning, including both BEAD-supported and other commercial projects. According to Beranek, customers are delaying capital decisions as they await greater clarity around BEAD funding, creating what she described as a “double-edged sword” in which funds that could support commercial projects are being held back in anticipation of BEAD-related opportunities. She also pointed to limited availability of fiber in the U.S. market. While fiber activity is occurring, Beranek said national carriers and data centers have been receiving much of the available supply, leaving smaller community broadband providers and tier-two multiple-system operators with reduced allocations. She said some projects are being pushed into next year or reduced in size and scope. Despite the near-term conditions, management maintained that the long-term case for fiber deployment remains intact. Beranek highlighted the company’s recently announced Fault Managed Power portfolio, designed to provide fiber connectivity and power through a coordinated solution for hard-to-reach locations. Third-quarter gross margin was 31.8%, compared with 35.3% in the same period a year earlier and 32.5% in the fiscal second quarter. Chief Financial Officer Dan Herzog said several one-time items reduced gross margin by approximately 1.8 percentage points on a net basis. Operating expenses from continuing operations fell 6% year over year to $11.4 million, or 25.9% of net sales, from $12.1 million, or 31.3% of sales. Expenses were also down 14%, or $1.8 million, from the second quarter. Clearfield repurchased approximately 31,000 shares for $897,000 during the quarter under its share repurchase program. In discussing a backlog adjustment, Beranek said a longtime Community Broadband customer had changed its business focus from network expansion toward growing subscribers on its existing network. The customer told Clearfield it would not need certain cabinets for several quarters or potentially years, she said. The customer-specific product change resulted in an approximately $2.6 million inventory write-off for custom or unique inventory, according to Beranek. She said Clearfield continues to sell other products to the customer and does not view the development as a broader demand trend. For the fiscal fourth quarter, Clearfield expects continuing-operations net sales of $38 million to $42 million, operating expenses relatively consistent with its fiscal second-quarter level, and diluted earnings per share ranging from break-even to $0.07. The company reduced its full-year fiscal 2026 outlook to: Net sales from continuing operations of $151 million to $155 million. Net income per diluted share of $0.14 to $0.21. Clearfield sold its Nestor Cables business in November, and management said financial results for fiscal 2025 and prior periods have been presented with the Clearfield segment as continuing operations and Nestor as discontinued operations. Beranek said Clearfield remains confident it is maintaining its share of business in the broadband market, even as it acknowledges that it will not meet its previous annual guidance. She said management is encouraged by the early response to its data center initiative and plans to provide an update on progress in November. Clearfield, Inc (NASDAQ: CLFD) is a Minneapolis-based company specializing in fiber management products for broadband network deployments. The company's core offerings include fiber distribution hubs, enclosures, splice trays, patching panels and connectivity accessories designed to simplify installation and maintenance of fiber-optic networks. Clearfield's modular FieldSmart™ platform provides a scalable approach for service providers, utilities and enterprise organizations looking to expand or upgrade their fiber infrastructure. Clearfield serves a diverse customer base that includes cable and internet service providers, telecommunications operators, wireless carriers, utilities and municipalities. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Clearfield Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Clearfield (CLFD) came out with quarterly earnings of $0.22 per share, beating the Zacks Consensus Estimate of $0.2 per share. This compares to earnings of $0.11 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +10.00%. A quarter ago, it was expected that this maker of fiber optic management products would post a loss of $0.04 per share when it actually produced a loss of $0.04, delivering no surprise. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Clearfield, which belongs to the Zacks Wireless Equipment industry, posted revenues of $43.86 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.31%. This compares to year-ago revenues of $49.9 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Clearfield shares have added about 15.8% since the beginning of the year versus the S&P 500's gain of 13%. While Clearfield has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Clearfield was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.37 on $51.5 million in revenues for the coming quarter and $0.52 on $164.25 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Wireless Equipment is currently in the top 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, AST SpaceMobile, Inc. (ASTS), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 10. This company is expected to post quarterly loss of $0.28 per share in its upcoming report, which represents a year-over-year change of +31.7%. The consensus EPS estimate for the quarter has been revised 2.6% higher over the last 30 days to the current level. AST SpaceMobile, Inc.'s revenues are expected to be $34.13 million, up 2842.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Clearfield, Inc. (CLFD) : Free Stock Analysis Report AST SpaceMobile, Inc. (ASTS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Net sales from continuing operations of $43.9 million and net income per share from continuing operations of $0.22 Received first significant order for $22 million to support a hyperscale data center project after the close of the quarter; expect to begin shipments in early fiscal 2027 Share buybacks totaled $0.9 million with $15.0 million remaining available for repurchase MINNEAPOLIS, Aug. 05, 2026 (GLOBE NEWSWIRE) -- Clearfield, Inc. (NASDAQ: CLFD), a leader in fiber connectivity, reported results for the fiscal third quarter of 2026. Additional commentary is provided in a letter to shareholders available in the Investor Relations section of the Company’s website. Management Commentary“As we continue to execute on our core business, we are increasingly focused on positioning the Company for its next phase of growth. That progress was highlighted shortly after the close of the third quarter, when we received our first significant order for $22 million to support a hyperscale data center project,” said Company President and Chief Executive Officer, Cheri Beranek. “We remain focused on executing our strategy of promoting the expertise Clearfield has built in fiber connectivity, fiber management and labor-saving network design well beyond our traditional broadband markets. At the same time, we remain committed to the customers and communities that have always defined Clearfield.” “Our balance sheet and strong cash generation continue to provide the flexibility to invest in meaningful long-term growth opportunities,” said Chief Financial Officer, Dan Herzog. “As customer demand evolves, we believe Clearfield is well positioned to capitalize on opportunities across both broadband and data center connectivity.” Financial Results for the Three Months Ended June 30, 2026Net sales from continuing operations for the second quarter of fiscal 2026 increased 13% to $43.9 million from $38.8 million in the same year-ago quarter. As of June 30, 2026, order backlog (defined as purchase orders received but not yet fulfilled) was $21.0 million, a decrease of $10.6 million, or 34%, compared to $31.6 million as of March 31, 2026, and a decrease of $9.7 million, or 32%, from June 30, 2025. The June 30, 2026 order backlog balance reflects the removal of a previously booked order of $4.6 million the Company no longer expects to fulfill. Gross margin from continuing operations for the third quarter of fiscal 2026 was 31.8%, down from 35.3% in the prior year’s third quarter and down slightly from 32.5% in the second quarter of fiscal 2026. Gross margin for the quarter included a $2.6 million inventory charge, or approximately 5.9 percentage points, related to inventory associated with the order the Company no longer expects to fulfill. Gross margin for the quarter also benefited from $1.4 million of inventory recoveries, offset by $282,000 of inventory provision, which together increased gross margin by $1.1 million, or approximately 2.6 percentage points. Additionally, the Company recognized tariff recoveries of $655,000 during the quarter, which increased gross margin by approximately 1.5 percentage points. The Company does not expect tariff recoveries to recur in future periods, as they relate to previously paid tariffs that have been refunded following a change in tariff regulations. On a net basis, these items reduced gross margin by approximately 1.8 percentage points in the quarter. Operating expenses from continuing operations for the third quarter of fiscal 2026 decreased 6.0% to $11.4 million, or 25.9% of net sales, from $12.1 million, or 31.3% of net sales, in the same year-ago quarter, and decreased 14.0%, or $1.8 million, from $13.2 million the prior quarter ended March 31, 2026. The decrease from the prior quarter and year was due in part to a $1.7 million reduction in performance-based compensation accruals during the quarter, reflecting lower projected expense under the Company's incentive compensation programs. Net income from continuing operations for the third quarter of fiscal 2026 totaled $3.0 million, or $0.22 per diluted share, compared to net income of $2.3 million, or $0.16 per diluted share, in the same year-ago quarter. The Company repurchased approximately 31,000 shares for $0.9 million during the 3-month period ended June 30, 2026. There is approximately $15.0 million remaining for future repurchases as of June 30, 2026. OutlookAs a result of industry demand constraints discussed in our Shareholder Letter, we are reducing our outlook for fiscal 2026. We expect net sales from continuing operations to be in the range of $151 million to $155 million, and net income per share to a range of $0.14 to $0.21. For the fourth quarter of fiscal 2026, Clearfield expects net sales to be in the range of $38 million to $42 million and net income per share to be in the range of $0.00 to $0.07. The net income per share ranges are based on the number of shares outstanding at the end of the third quarter of fiscal 2026 and do not reflect the impact of any potential additional share repurchases completed in fiscal 2026. Our guidance also reflects our current expectations regarding the potential supply chain constraints of optical fiber mentioned in our first and second quarter letters to shareholders, as well as our current understanding of the impact of the evolving tariff situation, both which could contribute to uncertainty in our business and in the macroeconomic environment. Conference CallManagement will hold a conference call today, August 5, 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. U.S. dial-in: 1-844-826-3033International dial-in: 1-412-317-5185Conference ID: 10209753 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 August 19, 2026, while an archived version of the webcast will be available on the Investor Relations website for 90 days. U.S. replay dial-in: 1-844-512-2921International replay dial-in: 1-412-317-6671Replay ID: 10209753 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 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 [email protected]

InterDigital (IDCC) came out with quarterly earnings of $4.62 per share, beating the Zacks Consensus Estimate of $1.6 per share. This compares to earnings of $6.52 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +188.75%. A quarter ago, it was expected that this wireless research and development company would post earnings of $2.54 per share when it actually produced earnings of $2.57, delivering a surprise of +1.18%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. InterDigital, which belongs to the Zacks Wireless Equipment industry, posted revenues of $260.17 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 80.65%. This compares to year-ago revenues of $300.6 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. InterDigital shares have lost about 18% since the beginning of the year versus the S&P 500's gain of 6.9%. While InterDigital has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for InterDigital was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.13 on $157.39 million in revenues for the coming quarter and $8.77 on $679.75 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Wireless Equipment is currently in the top 23% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Clearfield (CLFD), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This maker of fiber optic management products is expected to post quarterly earnings of $0.20 per share in its upcoming report, which represents a year-over-year change of +81.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Clearfield's revenues are expected to be $44 million, down 11.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report InterDigital, Inc. (IDCC) : Free Stock Analysis Report Clearfield, Inc. (CLFD) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Clearfield posted Q2 net sales of $34.4 million (near the high end of guidance) and guided to a sequential step-up in Q3 of $42–46 million, while reiterating full‑year FY26 sales guidance of $160–170 million and EPS of $0.48–0.62. The company’s backlog grew 39% sequentially, producing a book‑to‑bill of 1.3, and management is expanding beyond community broadband—highlighting the NOVA platform and edge‑AI/edge compute opportunities as longer‑term growth drivers. Clearfield said delays in federal BEAD funding are the primary constraint on orders, and it expects meaningful BEAD‑related revenue to materialize in fiscal 2027 despite ongoing planning and quoting activity today. Interested in Clearfield, Inc.? Here are five stocks we like better. Clearfield (NASDAQ:CLFD) reported fiscal second-quarter 2026 net sales of $34.4 million, landing near the high end of its guidance range of $32 million to $35 million, as the company pointed to continued strength in its community broadband market and a rising backlog heading into the second half of the year. President and CEO Cheri Beranek said year-to-date revenues were up 5% versus the same period last year, driven by community broadband demand. The company posted a net loss per diluted share of $0.04 for the quarter, which management said was within its guidance range. → The Real SpaceX Play: 5 Chip Stocks Powering the IPO Before It Launches Beranek said Clearfield’s backlog increased 39% sequentially from the first fiscal quarter, producing a book-to-bill ratio of 1.3. She characterized the results as “consistent with typical summer seasonality” and supportive of the company’s outlook for the second half of the fiscal year. Management also emphasized a strategic push to expand beyond its traditional broadband customer base. Beranek said Clearfield is “building a significant pipeline of opportunities beyond our traditional broadband customer base,” though she noted those adjacent markets have not yet produced meaningful revenue due to longer sales cycles. She highlighted early engagement tied to data center environments, where capacity expansion is driving more consistent infrastructure planning needs, and said the company expects these opportunities to “contribute meaningfully to revenue” over time. → Tyson Foods' Total Returns: Tasty Treats for Income Investors? Beranek said the pace of the BEAD funding process continues to be “the primary constraint” on Clearfield’s core business. While the company is seeing early-stage planning and design activity across its customer base, she said “the timing of funding disbursements remain uncertain,” delaying order activity. On the call’s Q&A, Beranek reiterated that BEAD-related activity is moving slower than expected across the industry, and she continued to frame it as primarily a fiscal 2027 revenue opportunity for Clearfield. She said the company is engaged with customers on planning cycles and network designs, including quoting activity, but cited obstacles around aligning project financing and material availability—particularly optical fiber sourcing and timing, including domestic supply considerations. → Berkshire Hathaway’s Record Cash Hoard: Why and What's Next? “We continue to expect meaningful BEAD-related revenue to materialize in fiscal 2027 as the program is deployed across the states,” Beranek said during prepared remarks. Clearfield highlighted recent outreach and product demonstrations as part of its longer-term growth positioning. Beranek said the company hosted a “Fiber to the Future” event at its headquarters, featuring demonstrations of its “BABA-ready cable extrusion capabilities and optical fiber termination solutions,” along with presentations from industry participants including service providers, distributors, media, and association leaders. Looking ahead, Beranek said Clearfield is increasingly focused on longer-term opportunities tied to distributed compute and edge infrastructure. She described an industry shift toward computing closer to end users to support low-latency AI applications, which she said could drive build-outs of smaller distributed edge locations that require high-density fiber connectivity—particularly in markets served by community broadband providers. Beranek referenced the company’s NOVA platform, announced last quarter, as a product initiative designed to support “the next generation of Edge AI infrastructure.” She said the platform has been well received and that the company anticipates shipping in the second half of the fiscal year. She also said investors should expect additional product launches aimed at bringing outside-plant techniques into these emerging areas. CFO Dan Herzog said second-quarter net sales of $34.4 million decreased 15% from $40.6 million in the prior-year quarter. He attributed part of the decline to a pull-in by a large regional customer into last year’s second quarter from Clearfield’s fiscal 2025 third quarter. Herzog said revenue was flat sequentially, “primarily due to expected seasonality in the winter months.” Gross margin was 32.5%, down from 34.4% a year earlier and down from 33.2% in fiscal first-quarter 2026, which Herzog said was mainly due to lower sales volume. Operating expenses increased to $13.2 million from $12.3 million in the prior-year quarter, primarily reflecting investments to support planned future growth, including adjacent markets. Clearfield posted a net loss of $500,000, or $0.04 per diluted share, compared with net income of $1.3 million, or $0.18 per diluted share, in the prior-year second quarter. Herzog also highlighted the company’s balance sheet and buyback activity: Ended the quarter with approximately $147 million in cash, short-term and long-term investments, and no debt. Repurchased 237,000 shares for $7.3 million during the quarter as part of its share buyback program. Herzog reminded investors that in November the company completed the sale of its Nestor Cables business, and that prior-period results are presented as continuing operations for the Clearfield segment, with Nestor reported under discontinued operations. For the fiscal third quarter of 2026, Clearfield expects net sales from continuing operations of $42 million to $46 million. Herzog said operating expenses are expected to remain relatively consistent with the second quarter, and he guided to net income per diluted share of $0.17 to $0.21. He noted the EPS range is based on shares outstanding at the end of the second quarter and does not reflect potential additional repurchases. For the full fiscal year 2026, Clearfield reiterated guidance for net sales from continuing operations of $160 million to $170 million, which Herzog said represents about 10% top-line growth at the midpoint. The company also reaffirmed expectations that operating expenses as a percentage of revenue will remain consistent with fiscal 2025 and guided to net income per share of $0.48 to $0.62. In closing remarks, Beranek reiterated that while BEAD delays are “unfortunate and disappointing,” Clearfield is staying engaged with customers through the planning process. She also emphasized “the strength of private financing” supporting ongoing fiber-to-the-home expansion and said the company remains focused on a “fiber to anywhere opportunity,” including investments over the past roughly 18 months in adjacent market opportunities. Clearfield, Inc (NASDAQ: CLFD) is a Minneapolis-based company specializing in fiber management products for broadband network deployments. The company's core offerings include fiber distribution hubs, enclosures, splice trays, patching panels and connectivity accessories designed to simplify installation and maintenance of fiber-optic networks. Clearfield's modular FieldSmart™ platform provides a scalable approach for service providers, utilities and enterprise organizations looking to expand or upgrade their fiber infrastructure. Clearfield serves a diverse customer base that includes cable and internet service providers, telecommunications operators, wireless carriers, utilities and municipalities. The article "Clearfield Q2 Earnings Call Highlights" was originally published by MarketBeat.

Net sales from continuing operations of $34.4 million and net loss per share from continuing operations of $0.04, both toward top end of guidance range Order backlog increased 39% from December 31, 2025, to $31.6 million Reiterates full year fiscal 2026 guidance of net sales from continuing operations in the range of $160 million to $170 million, which represents approximately 10% topline growth at the midpoint, and EPS of $0.48 to $0.62 Share buybacks totaled $7.3 million with $15.9 million remaining available for repurchase MINNEAPOLIS, May 06, 2026 (GLOBE NEWSWIRE) -- Clearfield, Inc. (NASDAQ: CLFD), a leader in fiber connectivity, reported results for the fiscal second quarter of 2026. Additional commentary is provided in a letter to shareholders available in the Investor Relations section of the Company’s website. Management Commentary “We are focused on consistent execution while investing in Clearfield’s next phase of growth. We continue to see an early engagement in adjacent markets, with a particularly strong reception for bringing our proven outside plant techniques and strategies to datacenter environments,” said Company President and Chief Executive Officer, Cheri Beranek. “While these opportunities have yet to contribute meaningful revenue, they represent a compelling avenue for future expansion and early indications are encouraging.” “We are pleased to report revenue and earnings in-line with our guidance. While lumpy on a quarter-over-quarter basis, performance has been driven by a year-to-date revenue increase of 5% in our Community Broadband segment,” said Chief Financial Officer, Dan Herzog. “With backlog up 39% from last quarter, the Company is positioned to achieve our annual guidance of 7% to 14% revenue growth and a return to profitability. We remain committed to our long-term strategy demonstrated by the continued execution of our stock buy-back program this past quarter.” Financial Results for the Three Months Ended March 31, 2026 Net sales from continuing operations for the second quarter of fiscal 2026 decreased 15% to $34.4 million from $40.6 million in the same year-ago quarter partially due to a pull-in by a large customer into last year’s second quarter from our fiscal year 2025 third quarter. As of March 31, 2026, order backlog (defined as purchase orders received but not yet fulfilled) was $31.6 million, an increase of $8.9 million, or 39%, compared to $22.8 million as of December 31, 2025, and an increase of $3.5 million, or 12%, from March 31, 2025. Gross margin from continuing operations for the second quarter of fiscal 2026 was 32.5%, down from 34.4% in the prior year’s second quarter and down slightly from 33.2% in the first quarter of fiscal 2026. Operating expenses from continuing operations for the second quarter of fiscal 2026 increased 8% to $13.2 million, or 38.5% of net sales, from $12.3 million, or 30.2% of net sales, in the same year-ago quarter. Net loss from continuing operations for the second quarter of fiscal 2026 totaled $0.5 million, or a net loss of $0.04 per diluted share, compared to net income of $2.5 million, or $0.18 per diluted share, in the same year-ago quarter. The Company repurchased 237,000 shares for $7.3 million during the 3-month period ended March 31, 2026. There is approximately $15.9 million remaining for future repurchases as of March 31, 2026. Outlook The Company reiterates its annual revenue guidance for fiscal 2026 in the range of $160 million to $170 million. For the third quarter of fiscal 2026, Clearfield expects net sales to be in the range of $42 million to $46 million and net income per share to be in the range of $0.17 to $0.21. The net income per share ranges are based on the number of shares outstanding at the end of the second quarter of fiscal 2026 and do not reflect potential additional share repurchases completed in fiscal 2026. Our guidance reflects the potential supply chain constraints of optical fiber mentioned in last quarter’s letter to shareholders, as well as our current understanding of the impact of the evolving tariff situation, which could contribute to uncertainty in our business and in the macroeconomic environment. Conference Call Management will hold a conference call today, May 6, 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. U.S. dial-in: 1-844-826-3033 International dial-in: 1-412-317-5185 Conference ID: 10207981 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 May 20, 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: 10207981 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 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 [email protected]

Image source: The Motley Fool. Wednesday, May 6, 2026 at 5 p.m. ET President and Chief Executive Officer — Cheryl Beranek Chief Financial Officer — Daniel Herzog Cheryl Beranek: Good afternoon, everyone. Thank you for joining us to discuss Clearfield's results for the second quarter of fiscal 2026. I'll begin with an overview of the quarter and our strategic priorities. And then I'll turn the call over to Dan to review the financial details and outlook. Second quarter net sales were $34.4 million, which came in towards the high end of our guidance range of $32 million to $35 million. Our performance was driven by continued strength in our Community Broadband market with year-to-date revenues up 5% over the same period of last year. Our net loss per share of $0.04 was within our guidance range. Our backlog rose 39% sequentially from the first fiscal quarter, resulting in a book-to-bill ratio of 1.3 for the quarter, consistent with typical summer seasonality and supportive of our outlook for the second half of the year. We are focused on consistent execution while investing in Clearfield's next phase of growth. To that end, we are building a significant pipeline of opportunities beyond our traditional broadband customer base. While these adjacent markets have yet to contribute meaningful revenue, reflecting their longer sales cycles, they do represent a compelling avenue for future expansion and early indications are encouraging. In particular, we are seeing increasing engagement linked to data center environments where capacity expansion is driving more consistent infrastructure planning needs. As these opportunities develop, we expect them to contribute meaningfully to revenue, driving a gradual broadening of our revenue base. Recently, Clearfield hosted Fiber to the Future at our headquarters, a program that brought together key thought leaders from across our industry. The event featured demonstrations of our BABA-ready cable extrusion capabilities and optical fiber termination solutions alongside insights from these leaders. Participants included executives from service providers, our top distributors, industry media, and association leaders gained a Clearview of how Clearfield's innovation and operational excellence position us to meet the growing data infrastructure demands driven by fiber-enabled Artificial Intelligence. As Edge AI takes shape, Clearfield demonstrated throughout the day its innovation and thought leadership. From an industry perspective, the pace of the BEAD funding process continues to be the primary constraint on our core business. While we are seeing early-stage planning and design activity across our customer base, the timing of funding disbursements remain uncertain, which is delaying order activity. We continue to expect meaningful BEAD-related revenue to materialize in fiscal 2027 as the program is deployed across the states. In response to the current environment, we have maintained a proactive approach to ensure that we are well positioned as demand materializes. We are deepening engagement with customers as projects progress towards execution and aligning our resources to support anticipated build activity, including the compliance with BABA requirements. Our focus remains on understanding where customers are in their planning process, and how we can best support them as projects take shape. We believe this approach enables us to allocate resources effectively and to stay closely aligned with customers as their deployments advance. Looking ahead, we are increasingly focused on longer-term opportunities tied to distributed compute and edge infrastructure. Industry trends continue to support a shift toward compute closer to the end user, as low-latency AI applications require faster processing capabilities between compute and storage rather than relying solely on centralized data centers. This dynamic will drive the build-out of smaller distributed edge locations that function like compact data centers and require high-density fiber connectivity, particularly in markets served by Community Broadband providers. As a result, there is growing demand for solutions that can be deployed quickly, scaled efficiently, and replicated across numerous sites. We are actively positioning the company to participate in this evolution. Our NOVA Platform announced last quarter, is designed to address this need by enabling the flexibility and scalability required to support the next generation of edge AI infrastructure. The platform has been well received, and we anticipate shipping in the second half of the fiscal year. You can also expect a series of new product launches as we bring proven, hardened, reliable, and scalable outside plant techniques and strategies into this space. With that, I'll turn the call over to Dan to review our financials and outlook in more detail. Daniel Herzog: Thank you, Cheri, and good afternoon, everyone. As a reminder, in November, we completed the sale of our Nestor Cables business. As a result, all financial results presented for fiscal year 2025 and all prior periods reflect the Clearfield segment as 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 in our Balance Sheet. With this transaction behind us, our focus and portfolio are now fully centered on the Clearfield business and the execution of our core strategy. Second quarter net sales were $34.4 million, a 15% decrease from $40.6 million in the prior-year second quarter. This decline was partially due to a pull-in by a Large Regional Customer into last year's second quarter from our Fiscal Year 2025, third quarter. Revenue was flat sequentially, primarily due to expected seasonality in the winter months. Gross profit margin was 32.5%, down from 34.4% in the prior-year second quarter and down slightly from 33.2% in the first quarter of fiscal 2026 mainly due to lower sales volume. Operating expenses for the second quarter of fiscal 2026 were $13.2 million in comparison to $12.3 million in the prior-year second quarter. Primarily due to investments to support future planned growth, including in adjacent markets. Net loss in the second quarter of fiscal 2026 was $500,000, or a net loss of $0.04 per diluted share, compared to net income of $1.3 million, or net income of $0.18 per diluted share, in the prior-year second quarter. We ended the quarter with approximately $147 million in cash, short-term and long-term investments and no debt. During the quarter, we repurchased 237,000 shares for $7.3 million as part of our share buyback program. For the third fiscal quarter of 2026, we anticipate net sales from continuing operations to be in the range of $42 million to $46 million. Operating expenses to remain relatively consistent with our second quarter and net income per diluted share in the range of $0.17 to $0.21. The earnings per share ranges are based on the number of shares outstanding at the end of the second quarter of Fiscal 2026 and do not reflect potential additional share repurchases completed. For the full year fiscal 2026, we are reiterating our guidance for net sales from continuing operations in the range of $160 million to $170 million, which represents approximately 10% top-line growth at the midpoint. Operating expenses as a percentage of revenue to remain consistent with Fiscal 2025 and net income per share to be in the range of $0.48 to $0.62 and with that, we will open the call to your questions. Operator: [Operator Instructions] The first question comes from Ryan Koontz with Needham & Company. Ryan Koontz: I wonder if you could give us a little more color on where BEAD is here. We're hearing from other vendors and just industry press that maybe Operators are starting to see that money in engaging in products. What are you seeing in terms of hard data from Operators that are going to get BEAD [indiscernible]? Are you starting to see forecasts or maybe early orders? Any color there would be great. Cheryl Beranek: Ryan, yes, the BEAD is, unfortunately, I would say, slower than expected. We are expected by the industry, but consistent with our outlook that we believe it is a '27 revenue opportunity for us, starting in late fall, early winter, and moving into next year. We absolutely are seeing customers talking about their planning cycles. We're talking to customers about their network designs and the kind of products that they'll be looking for from us and quoting that activity. I would say that there have been some challenges associated with trying to be able to align the availability of optical fiber from the fiber vendors so that there's a knowledge of when that product -- those materials are going to ship, so they can plan accordingly and to receive their financing. And so I would say today, it is -- I think the government still has some work to do in order to get material or the program underway. But then we're going to have some obstacles associated with just how that fiber -- excuse me, the project financing, the match gets aligned. And then as I indicated, some of the fiber that needs to be able to come from the domestic providers. Ryan Koontz: Maybe on the regional service providers, any updates there in terms of puts and takes and how you're thinking about this build season with the regionals broadly... Cheryl Beranek: I would say that's -- we started with the negative, which is the things we can't control, which are the programs under BEAD. But as it relates to private financing, both in Community Broadband as well as in the Large Regional, we're seeing a strong build season, which is why we're looking at forecasting a 10% increase over last year. After -- for the year after a pretty slow start for the first half of the year. There has been some uncertainty in the Large Regional as they have been acquired by the Tier 1, so that those accounts have a little bit of learning to do. In regard to where the bathroom is in the new place or how they place their purchase orders, I guess, is a better way to say it. But we also are seeing other Large Regionals start to come into play and start to be more active in their deployments. So I think across the board, the Large Regionals are a nice healthy marketplace that will continue to build both with internal financing and with private financing from other vendors. Operator: [Operator Instructions] Since there are no more questions, this concludes the question-and-answers session. I would like to turn the conference back over to Cheri Beranek for any closing remarks. Please go ahead. Cheryl Beranek: Thank you so much. While it's unfortunate and disappointing that the BEAD programs are going to be delayed into '27 for any meaningful revenue. We are extremely proud and pleased with the work that we've done to stay alongside our customers and to be supporting them in their planning process. We thank our shareholders for continuing to be patience with us as we continue to support our customers, and are very excited about where that will go as we move forward. Also, want to reiterate the strength of private financing and the work that's being done to allow fiber-to-the-home to continue to expand as we know that fiber-driven networks do provide the best average revenue increase per subscriber for our shareholders or our service provider customers and are pleased and excited about where that will go. Finally, I did want to point out or remind everyone that Clearfield is about a Fiber-to-the-Anywhere opportunity. And our strategic plan very strongly supports our core marketplace and making sure that we protect our core, but we are investing over the course of the last, really, 18 months in adjacent market opportunities. Both bringing our existing product line to new markets as well as to be able to introduce new customers to new product lines. So continue to look forward to telling you about those in the coming months and quarters ahead. With that, we're excited about the Build Season. And unfortunately, well, fortunately, we're looking forward to warmer weather; it's a little chilly here in Minnesota today. Thanks so much. We appreciate your support. Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. Before you buy stock in Clearfield, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Clearfield wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Clearfield (CLFD) Q2 2026 Earnings Transcript was originally published by The Motley Fool