Q1 2026 Clearfield Inc Earnings Call

February 4, 2026

Only mode, a brief question and answer session will follow the formal presentation.

If anyone should require operator assistance during the conference, please press star zero on your telephone keypad.

please also note, today's event is being recorded

At this time, I'd like to turn the floor over to Gregory mcniff investor relations. Please go ahead sir.

Thank you joining me on today's call are Sheri baronet clearfields president and CEO and Dan hertzog, Clearfield CFO. As a reminder Clearfield, publishes a quarterly shareholder letter which provides an overview of the company's Financial results operational highlights. And future outlook, you can find both the shareholder letter and the earnings release on clear Fields, industrial relations website.

Operator: Good afternoon, everyone, and welcome to the Clearfield Fiscal First Quarter 2026 conference call. All participants will be in a listen-only mode. A brief question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please also note, today's event is being recorded. At this time, I'd like to turn the floor over to Gregory McNiff, Investor Relations. Please go ahead, sir.

After brief prepared remarks, we will open the floor for a question and answer session.

Gregory McNiff: Thank you. Joining me on today's call are Cheri Beranek, Clearfield's President and CEO, and Dan Herzog, Clearfield CFO. As a reminder, Clearfield publishes a quarterly shareholder letter, which provides an overview of the company's financial results, operational highlights, and future outlook. You can find both the shareholder letter and the earnings release on Clearfield's investor relations website. After brief prepared remarks, we will open the floor for a question-and-answer session. Please note that during this call, management will be making remarks regarding future events and the future financial performance of the company. These remarks constitute forward-looking statements for purposes of the Safe Harbor provisions of the Private Securities Litigation Reform Act. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements.

Q1 2026 Clearfield Inc Earnings Call

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Q1 2026 Clearfield Inc Earnings Call

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Wednesday, February 4th, 2026 at 10:00 PM

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Please note, that during this call, management will be making remarks regarding future events in the future financial performance of the company. These remarks constitute forward-looking statements for purposes of the Safe Harbor provisions of the private Securities. Litigation Reform Act. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. It is important. To also, note that the company undertakes, no, obligation to update such statements except as required by law.

Gregory McNiff: Please note that during this call, management will be making remarks regarding future events and the future financial performance of the company. These remarks constitute forward-looking statements for purposes of the Safe Harbor provisions of the Private Securities Litigation Reform Act. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements.

Gregory McNiff: It is important to also note that the company undertakes no obligation to update such statements except as required by law. The company cautions you to consider risk factors that could cause actual results to differ materially from those in the forward-looking statements contained in today's press release, shareholder letter, and on this conference call. The Risk Factors section in Clearfield's most recent Form 10-K filing with the Securities and Exchange Commission and its subsequent filings on Form 10-Q provide a description of these risks. Additionally, as announced on 12 November 2025, Clearfield sold its Nestor Cables business. Following the divestiture of Nestor, we are reporting only on the Clearfield segment. Clearfield is reflected as continuing operations, with Nestor classified as discontinued operations and assets and liabilities held for sale for Q1 of 2026 and all prior periods on our financials.

The company, cautions you, to consider risk factors that could cause actual results to differ materially from those in the forward-looking statements contained in. Today's press release shareholder letter. And on this conference, call the risk factor section in Clearfield, most recent form 10K filing with the Securities and Exchange Commission and its subsequent filings on form 10q. Provided a description of these risks. Additionally, as announced on November 12th 2025, Clearfield sold, its Nestor cables business following the deveste of Nestor we are reporting only on the Clearfield. Segment Clearfield is reflected as continuing operations with Nestor classified as discontinued operations and assets and liabilities held for sale. For first fiscal quarter of 2026 and all prior periods on our financials. With that, I would like to turn the call over to clarfield to president and CEO Sheri, baronick Sherry.

Good afternoon, everyone. Thank you for joining us to discuss Clearfield results for the first quarter of fiscal 2026. I'll begin with an overview of the quarter, and our strategic priorities. And then I'll turn in the call over to Dan to review the financial details and Outlook.

Gregory McNiff: Additionally, as announced on 12 November 2025, Clearfield sold its Nestor Cables business. Following the divestiture of Nestor, we are reporting only on the Clearfield segment. Clearfield is reflected as continuing operations, with Nestor classified as discontinued operations and assets and liabilities held for sale for Q1 of 2026 and all prior periods on our financials.

During the quarter, we saw signs of stabilization and an early Rebound in community Broadband, demand reinforcing confidence. In our long-term Outlook Clearfield continues to operate as the leading provider of fiber Management Solutions for the community Broadband Market, Guided by a disciplined strategy. Anchored, in our 3, pillar framework to deliver better broadband and Beyond

This framework remains focused on protecting and strengthening our Core Business, expanding market, share and selectively, extending our technology into adjacent markets.

Gregory McNiff: With that, I would like to turn the call over to Clearfield's President and CEO, Cheri Beranek. Cheri?

Cheri Beranek: Good afternoon, everyone. Thank you for joining us to discuss Clearfield's results for Q1 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. During the quarter, we saw signs of stabilization and an early rebound in community broadband demand, reinforcing confidence in our long-term outlook. Clearfield continues to operate as the leading provider of fiber management solutions for the community broadband market, guided by a disciplined strategy anchored in our three pillar framework to deliver better broadband and beyond. This framework remains focused on protecting and strengthening our core business, expanding market share, and selectively extending our technology into adjacent markets.

The company, cautions you, to consider risk factors that could cause actual results to differ materially from those in the forward-looking statements contained in. Today's press release shareholder letter. And on this conference, call the risk factor section in Clearfield most recent form 10K filing with the Securities and Exchange Commission and its subsequent filings on form 10q. Provided a description of these rests. Additionally as announced on November 12th 2025, Clearfield sold. Its Nestor cables business following the deveste of Nestor we are reporting only on the Clearfield. Segment Clearfield is reflective of continuing operations with Nestor classified as discontinued operations and assets and liabilities held for sale. For first fiscal quarter of 2026 and all prior periods on our financials. With that, I would like to turn the call over to clarfield to president and CEO Sheri, baronick Sherry.

Turning to results first quarter, net sales from continuing operations with 34.3 million exceeding. Our guidance range of 30 to 33 million that outperformance, reflected a favorable, seasonal product mix and a solid demand, across key customer segments.

Net loss per share from continuing operations was 2 cents.

Good afternoon, everyone. Thank you for joining us to discuss Clearfield results for the first 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.

As a reminder in November we completed the sale of our nestra cables business with this transaction behind us. Our focus and portfolio are now fully centered on the Clearfield business and the execution of our core strategy.

During the quarter, we saw signs of stabilization and an early rebound in community broadband demand, reinforcing confidence. In our long-term outlook, Clearfield continues to operate as the leading provider of fiber management solutions for the community broadband market, guided by a disciplined strategy anchored in our three-pillar framework to deliver better broadband and beyond.

This framework remains focused on protecting and strengthening our Core Business, expanding market, share and selectively, extending our technology into adjacent markets.

Cheri Beranek: Turning to results, Q1 net sales from continuing operations were $34.3 million, exceeding our guidance range of $30 to 33 million. That outperformance reflected a favorable seasonal product mix and a solid demand across key customer segments. Net loss per share from continuing operations was $0.02. As a reminder, in November, we completed the sale of our Nestor Cables business. With this transaction behind us, our focus and portfolio are now fully centered on the Clearfield business and the execution of our core strategy. Following the end of the quarter, we introduced the Nova Platform, a modular, high-density fiber system designed to make building and expanding modern networks simpler.

Following the end of the quarter, we introduced the Nova platform, a modular high-density fiber system designed to make building and expanding modern networks simpler. The Nova platform takes the cassette based modular design approach that is long defined, our success in broadband, and it extends it into new environments, including AI Data Center and Edge compute networks in which we expect our broadband service provider customers to play a key role in future builds.

Turning to results, first quarter net sales from continuing operations were $34.3 million, exceeding our guidance range of $33 to $38 million. That outperformance reflected a favorable seasonal product mix and solid demand from key customer segments.

Net loss per share from continuing operations was 2 cents.

As a reminder, in November we completed the sale of our Nestor cables business. With this transaction behind us, our focus and portfolio are now fully centered on the Clearfield business and the execution of our core strategy.

Cheri Beranek: The Nova Platform takes the cassette-based modular design approach that has long defined our success in broadband, and it extends it into new environments, including AI, data center, and edge compute networks, in which we expect our broadband service provider customers to play a key role in future build-outs. This product launch represents an important step in the execution of our better broadband and beyond strategy. As networks continue to grow in size and complexity, customers are looking for solutions that reduce installation time and cost, improve day-to-day operations, and scale efficiently as capacity needs increase. While we expect near-term revenue contribution from Nova to be modest, the platform is strategically important as we focus on early customer adoption and validation.

A modular, high-density fiber system designed to make building and expanding modern networks simpler.

New applications and customer opportunities, particularly as demand for higher density. Fiber Solutions, expands across Regional data centers, Edge facilities, and Enterprise environments.

The Nova platform takes the cassette based modular design approach that is long defined, our success in broadband, and it extends it into new environments, including AI Data Center and Edge compute networks in which we expect our broadband service provider customers to play a key role in future buildout.

Cheri Beranek: As networks continue to grow in size and complexity, customers are looking for solutions that reduce installation time and cost, improve day-to-day operations, and scale efficiently as capacity needs increase. While we expect near-term revenue contribution from Nova to be modest, the platform is strategically important as we focus on early customer adoption and validation.

Alongside this product momentum execution across our Core Business. Our core Broadband markets remain steady Community Broadband remains a foundational element of our business supported by long-standing customer relationships and a portfolio-based approach that emphasizes selling multiple clear, field Solutions across customer deployments

Large regional service providers and msos also remain important growth drivers and reflect the flexibility of our platform.

This product launch represents an important step in the execution of our better broadband and Beyond strategy. As networks continue to grow in size and complexity, customers are looking for solutions that reduce installation time and cost improve day-to-day operations and scale, efficiently as capacity needs increase.

In addition, recent acquisition approvals involving large Regional customers create a favorable backdrop for continued opportunity.

Cheri Beranek: Over time, we expect the Nova Platform to support new applications and customer opportunities, particularly as demand for higher density fiber solutions expands across regional data centers, edge facilities, and enterprise environments. Alongside this product momentum, execution across our core business. Our core broadband markets remain steady. Community broadband remains a foundational element of our business, supported by long-standing customer relationships and a portfolio-based approach that emphasizes selling multiple Clearfield solutions across customer deployments. Large regional service providers and MSOs also remain important growth drivers and reflect the flexibility of our platform. In addition, recent acquisition approvals involving large regional customers create a favorable backdrop for continued opportunity. As broadband providers look ahead to their next phase of investment, the BEAD program remains a major area of focus across the industry.

While we expect near-term revenue contribution from Nova to be modest, the platform is strategically important as we focus on early customer adoption and validation over time. We expect the Nova platform to support new applications and customer opportunities, particularly as demand for higher-density fiber solutions expands across regional data centers, edge facilities, and enterprise environments.

Cheri Beranek: Large regional service providers and MSOs also remain important growth drivers and reflect the flexibility of our platform. In addition, recent acquisition approvals involving large regional customers create a favorable backdrop for continued opportunity. As broadband providers look ahead to their next phase of investment, the BEAD program remains a major area of focus across the industry.

Alongside this product momentum, execution across our Core Business continues. Our core Broadband markets remain steady. Community Broadband remains a foundational element of our business, supported by long-standing customer relationships and a portfolio-based approach that emphasizes selling multiple Clearfield solutions across customer deployments.

While we continue to expect bead related Revenue, contribution in fiscal 2026 to be modest. Service providers are actively preparing for deployment, customers are working through Planning Network design, and vendor decisions. And Clearfield is staying closely engaged to ensure we are ready. When funding is released

To support this effort. We are taking a structured and proactive approach with expected, bead, recipients focusing on where customers are and their planning process and how we can best support them as these projects take shape.

In addition, recent acquisition of approvals involving large Regional customers create a favorable backdrop for continued opportunity.

This allows us to allocate resources thoughtfully and to remain aligned with customers as programs move forward.

Cheri Beranek: We are encouraged by the progress that the NTIA has made in advancing the BEAD program, and are pleased with the level of planning and network design activity we are seeing from both current and prospective customers. While we continue to expect BEAD-related revenue contribution in fiscal 2026 to be modest, service providers are actively preparing for deployment. Customers are working through planning, network design, and vendor decisions, and Clearfield is staying closely engaged to ensure we are ready when funding is released. To support this effort, we are taking a structured and proactive approach with expected BEAD recipients, focusing on where customers are in their planning process and how we can best support them as these projects take shape. This allows us to allocate resources thoughtfully and to remain aligned with customers as programs move forward.

We Believe Community Broadband providers are likely to move more quickly than through, 1 operators. Once funding approvals occur, which aligns well with clear Fields, focus and customer mix.

however, the supply chain constraints of us-made, optical, fiber, that is required under the Baba, the build America buy American act could restrain near-term deployment

We are working alongside others in the industry to address the issue.

As Broadband providers, look ahead to their next phase of investment. The bead program remains a major area of focus across the industry. We are encouraged by the progress that the ntia has made in advancing the bead program and are pleased with the level of planning and network design activity. We are seeing from both current and prospective customers, while we continue to expect bead related Revenue contribution in fiscal 2026 to be modest. Service providers are actively preparing for deployment, customers are working through Planning Network design, and vendor decisions in Clearfield is staying closely engaged to ensure we are ready. When funding is released

Beyond fiscal 2026. We expect B to become a positive contributor with timing dependent entirely on federal funding releases and supply chain constraints.

And with that, I'll turn the call over to Dan to review our financials and our Outlook in more detail.

Thank you, Sherry and good afternoon everyone. I will now review our first quarter results, beginning with sales,

Cheri Beranek: We believe community broadband providers are likely to move more quickly than Tier 1 operators once funding approvals occur, which aligns well with Clearfield's focus and customer mix. However, supply chain constraints of US-made optical fiber that is required under the BABA, the Build America, Buy America Act, could restrain near-term deployment. We are working alongside others in the industry to address the issue. Beyond fiscal 2026, we expect BEAD to become a positive contributor, with timing dependent entirely on federal funding releases and supply chain constraints. With that, I'll turn the call over to Dan to review our financials and our outlook in more detail.

This allows us to allocate resources thoughtfully and to remain aligned with customers as programs move forward.

as noted earlier all Financial results for fiscal 2026 and prior periods are presented on a Clearfield continuing operations, only basis,

We Believe Community Broadband providers are likely to move more quickly than Tier 1 operators. Once funding approvals occur, which aligns well with clear Fields, focus and customer mix.

First quarter, net sales from continuing operations were 34.3 million exceeding. Our guidance range of 30 to 33 million and up 16% from 29.7 million in the prior year period.

However, the supply chain constraints of U.S.-made optical fiber that is required under the BABA—the Build America, Buy American Act—could restrain near-term deployment.

We are working alongside others in the industry to address the issue.

Gross margin was 33.2%. Compared to 29.2% in the prior year, quarter driven primarily by improved overhead absorption and better inventory utilization

Operating expenses from continuing operations increased to 13.2 million from 10.7 million year-over-year.

The Beyond fiscal 2026. We expect B to become a positive contributor with timing dependent entirely on federal funding releases and supply chain constraints.

In technology and customer expansion initiatives.

Daniel Herzog: Thank you, Cheri, and good afternoon, everyone. I will now review our Q1 results, beginning with sales. As noted earlier, all financial results for fiscal 2026 and prior periods are presented on a Clearfield continuing operations only basis. Q1 net sales from continuing operations were $34.3 million, exceeding our guidance range of $30 to 33 million, and up 16% from $29.7 million in the prior year period. Gross margin was 33.2%, compared to 29.2% in the prior year quarter, driven primarily by improved overhead absorption and better inventory utilization. Operating expenses from continuing operations increased to $13.2 million from $10.7 million year-over-year, reflecting continued investment in technology and customer expansion initiatives.

And with that, I'll turn the call over to Dan to review our financials and our Outlook in more detail.

Thank you, Sherry, and good afternoon, everyone. I will now review our first quarter results, beginning with sales.

We had an income tax benefit from continuing operations of $1,000, for the first quarter of fiscal 2026 compared to income tax expense from continuing operations of 53,000 for the year ago quarter.

as noted earlier all Financial results for fiscal 2026 and prior periods are presented on a Clearfield continuing operations, only basis,

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 the lower level of pre-tax book loss.

First quarter, net sales from continuing operations were 34.3 million exceeding. Our guidance range of 30 to 33 million and up 16% from 29.7 million in the prior year period.

Net loss per share from continuing operations was 2 cents in the first quarter of fiscal 2026 compared to a loss of 2 cents per share in the comparable period last year.

Gross margin was 33.2%. Compared to 29.2% in the prior year, quarter driven primarily by improved overhead absorption and better inventory utilization

Operating expenses from continuing operations increased to $13.2 million from $10.7 million year-over-year.

In technology and customer expansion initiatives.

Daniel Herzog: We had an income tax benefit from continuing operations of $1,000 for Q1 of fiscal 2026, compared to income tax expense from continuing operations of $53,000 for the year-ago quarter. The income tax rate for Q1 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 per share from continuing operations was $0.02 in Q1 of fiscal 2026, compared to a loss of $0.02 per share in the comparable period last year.

Net loss from discontinued operations. For the first first quarter of fiscal 2026 was 340,000 or 2 cents per basic and diluted share compared to a net loss. From discontinued operations, for the first quarter of fiscal, 2025 of 1.6 million or 11 cents per basic and diluted share.

We ended the quarter with the 157 million in cash, short-term and long-term Investments, and no debt, reflecting continued, balance sheet strength, and discipline, Capital Management.

We had an income tax benefit from continuing operations of $1,000, for the first quarter of fiscal 2026 compared to income tax expense from continuing operations of 53,000 for the year ago quarter.

Is lower than the statutory rate, due to the impact of discrete items and the lower level of pre-tax book loss.

In November 2025, our board of directors, increased our share repurchase authorization from 65 million to 85 million.

Net loss per share from continuing operations was 2 cents in the first quarter of fiscal 2026 compared to a loss of 2 cents per share in the comparable period last year.

Leaving 23.1 million available for additional repurchases as of December 3120.

Daniel Herzog: Net loss from discontinued operations for Q1 of fiscal 2026 was $340,000, or $0.02 per basic and diluted share, compared to a net loss from discontinued operations for Q1 of fiscal 2025 of $1.6 million, or $0.11 per basic and diluted share. We ended the quarter with approximately $157 million in cash, short-term and long-term investments, and no debt, reflecting continued balance sheet strength and disciplined capital management. During the quarter, the company invested $5.2 million to repurchase 179,000 shares. 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.

For the second fiscal quarter of 2026, we anticipate net sales from continuing operations to be 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 2 cents to 10 cents.

The earnings per share. Ranges are based on the number of shares outstanding at the end of the first quarter, and do not reflect potential additional share repurchases completed.

We ended the quarter with $157 million in cash, short-term and long-term investments, and no debt, reflecting continued balance sheet strength and disciplined capital management.

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.

During the quarter, the company invested 5.2 million to repurchase 179,000 shares.

We expect growth to be driven by Steady demand for fiber connectivity across our community Broadband, large Regional, and MSO customers.

In November 2025, our board of directors, increased our share repurchase authorization from 65 million to 85 million.

With bead related Revenue, contribution expected to remain modest during fiscal 2026.

leaving 23.1 million available for additional repurchases as of December, 31 2025,

Daniel Herzog: For Q2 fiscal 2026, we anticipate net sales from continuing operations to be in the range of $32 million to $35 million, operating expenses to be up slightly relative to Q1, and net loss per diluted share in the range of $0.02 to $0.10. The earnings per share ranges are based on the number of shares outstanding at the end of Q1 and do not reflect potential additional share repurchases completed. For the full year of fiscal 2026, we are reiterating our guidance for net sales from continuing operations in the range of $160 million to $170 million.

We expect operating expenses as a percentage of Revenue to remain consistent with fiscal 2025.

For the second fiscal quarter of 2026, we anticipate net sales from continuing operations to be in the range of 32 million to 35 million.

And earnings per share from continuing operations to be in the range of 48 cents to 62 cents.

And with that, we will open the call to your questions.

Operating expenses to be up slightly, relative to the first quarter.

And net loss per diluted share in the range of 2 cents to 10 cents.

Thank you. We will now begin the question and answer session to ask a question. You may press star then 1 on your touchtone phone,

If you are using a speaker-phone, please pick up your handset before pressing the keys.

if at any time your question has been addressed and you would like to withdraw your question, please press star then 2

At this time, we will pause momentarily to assemble our roster.

Daniel Herzog: We expect growth to be driven by steady demand for fiber connectivity across our community broadband, large regional, and MSO customers, with BEAD-related revenue contribution expected to remain modest during fiscal 2026. We expect operating expenses as a percentage of revenue to remain consistent with fiscal 2025, and earnings per share from continuing operations to be in the range of $0.48 to $0.62. And with that, we will open the call to your questions.

The earnings per share. Ranges are based on the number of shares outstanding at the end of the first quarter, and do not reflect potential additional share repurchases, completed for the full year of fiscal 2026. We are reiterating our guidance for net sales, from continuing operations, in the range of 160 million to 170 million.

We expect growth to be driven by Steady demand for fiber connectivity across our community Broadband, large Regional, and MSO customers.

The first question will come from Ryan Kuhn with nikhom and Company. Please go ahead.

With bead-related revenue, contribution is expected to remain modest during fiscal 2026.

Hi. This is Matt. Kavanagh on for Ryan, thank you for the question.

We expect operating expenses as a percentage of revenue to remain consistent with fiscal 2025.

And earnings per share from continuing operations to be in the range of 48 cents to 62 cents.

On the Nova product line, it would be great to better understand who the Target customer type is for these products.

And with that, we will open the call to your questions.

Operator: Thank you. We will now begin the question and answer session. To ask a question, you may press star, then one on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. At this time, we will pause momentarily to assemble our roster. The first question will come from Ryan Koontz with Needham and Company. Please go ahead.

And maybe how you're thinking about the revenue opportunity from Nova over the medium to longer term.

Thank you. We will now begin the question and answer session to ask a question. You may press star then 1 on your touchtone phone,

If you are using a speaker-phone, please pick up your handset before pressing the keys.

if at any time your question has been addressed and you would like to withdraw your question, please press star then 2

At this time, we will pause momentarily to assemble our roster.

The first question will come from Ryan Coons with Needham and Company. Please go ahead.

Matt Cavanagh: Hi, this is Matt Cavanagh on for Ryan. Thank you for the question. On the Nova product line, it would be great to better understand who the target customer type is for these products and maybe how you're thinking about the revenue opportunity from Nova over the medium to longer term. Thank you.

Hi, this is Matt Tavar on for Ryan. Thank you for the question.

Great. Yeah, nice to talk to you. Matt. The, um, you know, the initial Target customer, I think we'll see is existing Community Broadband customers who are opening data centers, you know, for their, uh, enhanced Revenue base. So, this would be customers, like South Dakota, networks, or kalajdzic, um, who understand, um, that the requirements associated with, with high density, and they're looking at how they're going to be able to do that, uh, additionally, um, as we move into adjacent markets, the products are designed in a different way with the concept of modularity. Uh, being able to do the same type of thing that we do with today's cassettes. So that every uh, rack unit is optimized for the type of connector or service, offering single mode, multi, whatever the high speed, you know, ultra um Ultra small form, factor connector might be

Cheri Beranek: Okay, great. Yeah, nice to talk to you, Matt. The, you know, the initial target customer I think we'll see is existing community broadband customers who are opening data centers, you know, for their, enhanced revenue base. So this would be customers like South Dakota Networks or Cologix, who understand that the requirements associated with high density, and they're looking at how they're going to be able to do that. Additionally, as we move into adjacent markets, the products are designed in a different way, with the concept of modularity, being able to do the same type of thing that we do with today's cassettes, so that every rack unit is optimized for the type of connector or service offering, single mode, multi-mode, or whatever the high speed, you know, ultra, ultra-small form factor connector might be.

Um, so I think we'll see uh, customers there of of a, a traditional database type environment but not the big, um, super scale. Um, uh, hyperscale markets that will require additional Innovation, um, and an additional uh, product offering that you'll see from us, uh, probably in about a year.

Cheri Beranek: Additionally, as we move into adjacent markets, the products are designed in a different way, with the concept of modularity, being able to do the same type of thing that we do with today's cassettes, so that every rack unit is optimized for the type of connector or service offering, single mode, multi-mode, or whatever the high speed, you know, ultra, ultra-small form factor connector might be.

The um, from a revenue perspective. Um, we don't see, um, a significant Revenue contribution in, uh, 26. But we do see the Nova platform becoming, um, over the next 2 to 3 years, the, uh, early, the kind of the dominant product offering of the company and that a lot of what we're doing, uh, with Nova will be brought in will be brought back into Community Broadband, so that we'll have a single cassette, and a Cass, a single platform, um, for optimization of all, uh, density requirements throughout our customer base.

Cheri Beranek: So I think we'll see customers there of a traditional database type environment, but not the big super scale hyper scale markets that will require additional innovation and an additional product offering that you'll see from us probably in about a year. From a revenue perspective, we don't see a significant revenue contribution in 2026, but we do see the Nova Platform becoming over the next two to three years really the kind of the dominant product offering of the company, and that a lot of what we're doing with Nova will be brought then- will be brought back into Community Broadband, so that we'll have a single cassette and a single platform for optimization of all density requirements throughout our customer base.

Okay, great. Yeah, nice to talk to you. Matt. The, um, you know, the initial Target customer, I think we'll see is existing Community Broadband customers who are opening data centers, you know, for their, uh, enhanced Revenue base. So, this would be customers, like South Dakota, networks, or kalajdzic, um, who understand, um, that the requirements associated with, with high density, and they're looking at how they're going to be able to do that, uh, additionally, um, as we move into adjacent markets, the products are designed in a different way with the concept of modularity. Uh, being able to do the same type of thing that we do with today's cassettes. So that every uh, rack unit is optimized for the type of connector or service, offering single mode, multi mode or whatever the high speed, you know, ultra um Ultra small form, factor connector might be

Great. Thank you. That sounds uh, really exciting and it oh it is. Thank you.

Cheri Beranek: From a revenue perspective, we don't see a significant revenue contribution in 2026, but we do see the Nova Platform becoming over the next two to three years really the kind of the dominant product offering of the company, and that a lot of what we're doing with Nova will be brought then- will be brought back into Community Broadband, so that we'll have a single cassette and a single platform for optimization of all density requirements throughout our customer base.

Um, so I think we’ll see, uh, customers there of, of a traditional database-type environment, but not the big, um, super-scale, um, uh, hyperscale markets. That will require additional innovation, um, and an additional, uh, product offering that you’ll see from us, um, probably in about a year.

as as a follow-up, you, you would also mentioned earlier on bead Community Broadband customers, maybe being more likely to move quickly on their projects and their larger counterparts. Could you expand on why this might be the case and how it's affecting clear Fields outlook for the program over the next several years, right? Mhm.

It, um, you know, we've

Becoming, um, over the next two to three years, the, uh, early, the kind of the dominant product offering of the company, and that a lot of what we're doing, uh, with Nova will be brought—then will be brought back into Community Broadband, so that we'll have a single cassette, and a Cass, a single platform, um, for optimization of all, uh, density requirements throughout our customer base.

Matt Cavanagh: Great, thank you. That sounds really exciting. And-

Cheri Beranek: Oh, it is. Thank you.

Great, thank you. That sounds, uh, really exciting—and it, oh, it is. Thank you.

Matt Cavanagh: As a follow-up, you had also mentioned earlier on BEAD, community broadband customers maybe being more likely to move quickly on their projects than their larger counterparts. Could you expand on why this might be the case and how it's affecting Clearfield's outlook for the program over the next several years?

Cheri Beranek: Right. Mm-hmm. Right. Well, you know, we've seen over the years that, you know, Community Broadband, despite definition of being smaller, are more nimble players, and they'll be able to, you know, kind of optimize, you know, their deployments and can switch easier from one opportunity to the other or can pounce onto the the money availability and move forward. You know, the larger providers, you know, absolutely are going to deliver, you know, their BEAD initiatives, but they already have, you know, the AT&T, Charter; they already have their build plans for the year, and we don't see them moving, you know, the application from one point to the next.

As a follow-up—you had also mentioned earlier on BEAD, community broadband customers maybe being more likely to move quickly on their projects than their larger counterparts. Could you expand on why this might be the case, and how it's affecting Clearfield's outlook for the program over the next several years?

Smaller are are more Nimble players and they'll be able to, um, you know, kind of, uh, optimize, you know, with their deployments. And again, and can switch easier from 1 opportunity to the other or can polish, um, onto the, uh, the money availability and move forward. You know, the the larger providers, you know, absolutely are going to deliver, you know, there be an initiatives, but they already have, you know, it's a 18 pH Charter. They already have their bill plans for the year and we don't see them moving. Um, you know, the application from 1 point to the next. So we're, um, we're optimistic that even with some supply chain challenges, that, you know, our small providers are going to be in a position to be able to get a little bit of a head start. And we're we're tracking. There are 319 different broadband service providers, who are slated, um, based upon the early, you know, tentative Awards, um, to be part of the, of the B program and we are, uh,

Cheri Beranek: You know, the larger providers, you know, absolutely are going to deliver, you know, their BEAD initiatives, but they already have, you know, the AT&T, Charter; they already have their build plans for the year, and we don't see them moving, you know, the application from one point to the next.

Systematically tracking each of those of those customers based upon our penetration as a customer, you know, where are we at in regard to the sales cycle and really trying to apply, you know, the same type of high-level sales and customer support that we've done for the last 15 years. To now really, you know, put the sauce on thick, um, within bead so uh because we're excited about it. But you know, more to come, uh, coming quarters.

Here's that, you know, Community Broadband, despite definition of being smaller our, our more Nimble players and they'll be able to, um, you know, kind of, uh, optimize, you know, with their deployments and and, and can switch easier from 1 opportunity to the other or can polish, um, onto the, uh, the money availability and move forward. You know, the the larger providers, you know, absolutely are going to deliver, you know, their bead initiatives, but they already have, you know, it's the 18th pH Charter. I mean, they already have their bill plans for the year and we don't

Cheri Beranek: So we're optimistic that even with some supply chain challenges, you know, our small providers are going to be in a position to be able to get a little bit of a head start. You know, we're tracking. There are 319 different broadband service providers who are slated, based upon the early, you know, tentative awards, to be part of the BEAD program. We are systematically tracking each of those customers based upon our penetration as a customer. You know, where are we at in regard to the sales cycle? Really trying to apply, you know, the same type of high-level sales and customer support that we've done for the last 15 years to now really, you know, put the sauce on thick, within BEAD.

See them moving. Um, you know, the application from one point to the next.

Great. Thank you. And um, just 1 more if I may but is there any way as you're talking about the potential fiber shortage to maybe quantify uh the revenue impact and how that's affecting your fiscal 26 Outlook.

Cheri Beranek: We are systematically tracking each of those customers based upon our penetration as a customer. You know, where are we at in regard to the sales cycle? Really trying to apply, you know, the same type of high-level sales and customer support that we've done for the last 15 years to now really, you know, put the sauce on thick, within BEAD.

Cheri Beranek: So, we're excited about it, but, you know, more to come, coming quarters.

Yeah, I think if you could tell me it's really difficult to quantify specifically, you know what's going to happen with fiber Supply? Um, especially as it relates, you know, it's from aaba perspective. Um the the current um suppliers of of Baba uh compliant uh fiber you know we said with the bear extruded fiber are on and a lead times of of over a year and that is not um consistent with being able to have uh a good aggressive bead program and I'm sure it is not with the ntia intended when they said there was enough fiber to go around under the Baba program.

So we're um, we're optimistic that even with some supply chain challenges, that, you know, our small providers are going to be in a position to be able to get a little bit of a head start, you know? We're we're tracking. There are 319 different broadband service providers who are slated, um, based upon the early, you know, tentative Awards, um, to be part of the, of the B program and we are, uh, systematically tracking each of those of those customers based upon our penetration, as a customer, you know, where are we at in regard to the sales cycle and really trying to apply, you know, the same type of high level sales and customer support that we've done for the last 15 years. To now really, you know, put the sauce on thick, um, within bead so uh, because we're excited about it. But you know, more to come, uh, coming quarters.

Matt Cavanagh: Great. Thank you. And just one more, if I may, but is there any way, as you're talking about the potential fiber shortage, to maybe quantify the revenue impact and how that's affecting your fiscal 2026 outlook?

Great, thank you. And, um, just one more if I may. Is there any way, as you're talking about the potential fiber shortage, to maybe quantify the revenue impact and how that's affecting your fiscal '26 outlook?

Cheri Beranek: Yeah, I think it's really difficult to quantify specifically, you know, what's going to happen with fiber supply, especially as it relates, you know, just from a BABA perspective. The current suppliers of BABA compliant fiber, you know, sorry, the bare extruded fiber, are on lead times of over a year. And that is not consistent with being able to have a good, aggressive BEAD program, and I'm sure it is not what the NTIA intended when they said there was enough fiber to go around under the BABA program. And so we as an industry are looking at ways by which we can offer waivers or alternative types of means by which to ensure that we can get a head start.

And so we as a as an industry um are looking at Ways by which that we can offer um uh waivers or alternative types of of means by which to ensure that we can get a head start and because of the uncertainty of all of that, um, it's 1 of the reasons why there is, uh really know uh guidance in fiscal year, 26 associated with bead Revenue.

Great. Thank you, Sherry.

The next question will come from Tim SEO with Northland Capital markets, please go ahead.

Yeah, I think I can tell you it's really difficult to quantify specifically, you know what's going to happen with fiber Supply? Um, especially as it relates, you know, it's from a baba perspective. Um, the, the current, um, suppliers of of Baba, uh, compliant, um,

Hey, good afternoon.

Cheri Beranek: And that is not consistent with being able to have a good, aggressive BEAD program, and I'm sure it is not what the NTIA intended when they said there was enough fiber to go around under the BABA program.

Got a couple of I guess, hey, um, call them merger related questions. Not, not you so much but, uh, customers and competitors. Um, so I'd be interested if you had

Cheri Beranek: And so we as an industry are looking at ways by which we can offer waivers or alternative types of means by which to ensure that we can get a head start. Because of the uncertainty of all of that, it's one of the reasons why there is really no guidance in fiscal year 2026 associated with BEAD revenue.

Fiber. You know, so the the bare extruded fiber are on and a lead times of of over a year and that is not um consistent with being able to have uh a good aggressive bead program and I'm sure it is not with the ntia intended when they said there was enough fiber to go around under the Baba program.

Any observations or thoughts or the early impact of both?

Verizon's combination with Frontier clearly. They're

Cheri Beranek: Because of the uncertainty of all of that, it's one of the reasons why there is really no guidance in fiscal year 2026 associated with BEAD revenue.

guiding capex, way down as combined with seeming, to keep the fiber build steady, it's not increasing and also anything out of the

Uh, the commscope, AOL merger, that might be driving any opportunities for clear film.

Timothy Paul Savageaux: ... Great. Thank you, Cheri.

Cheri Beranek: You're welcome.

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