Clearfield (CLFD) Stock Forecast & Price Target

Clearfield Inc. demonstrated robust growth in its Cable (MSO) sales, contributing $10 million or 24% of total revenue, which reflects a year-over-year increase of 33% and a sequential rise of 9%, driven by strong demand from fiber-to-the-home customers. The company's key segments, particularly Large Regionals and MSOs, accounted for 44% of its revenue mix—up from 39% a year prior—indicating a healthy growth trajectory with a sequential increase of 13% and a year-over-year increase of 31%. Furthermore, Clearfield's operational metrics are positive, with gross margins improving to 34.6%, complemented by forecasted sales growth of approximately 27% in FY27, bolstered by BEAD-driven demand and new product offerings, particularly in the edge data center market.

Clearfield Inc reported consolidated revenue of $50.4 million for F4Q25, which represented an 8% year-over-year increase but was overshadowed by a significant GAAP EPS loss of $(0.65), below consensus estimates, largely due to a $10.4 million asset impairment on the divested Nestor business unit. The company anticipates a decline in Community Broadband (CBB) revenue, projecting that it will reach its lowest levels in recent years, with 1Q revenue guidance for core CLFD falling between $30 million to $33 million, which is significantly below market expectations due to delays related to government shutdowns and BEAD initiatives. Furthermore, the FY26 EPS guidance range of $0.48 to $0.62 is considerably lower than previous estimates, highlighting struggles in Community Broadband sales, which declined 7% year-over-year due to these external pressures.