Clearfield | 10-Q: FY2025 Q3 Revenue Beats Estimate at USD 49.9 M

Revenue: As of FY2025 Q3, the actual value is USD 49.9 M, beating the estimate of USD 47.58 M.

EPS: As of FY2025 Q3, the actual value is USD 0.11, beating the estimate of USD 0.05.

EBIT: As of FY2025 Q3, the actual value is USD 2.978 M, beating the estimate of USD -621 K.

Clearfield Segment

• Net Sales: For the three months ended June 30, 2025, net sales were $38,755,000, an increase of 15% from $33,670,000 in the same period in 2024. For the nine months ended June 30, 2025, net sales were $109,074,000, up 22% from $89,371,000 in the same period in 2024.
• Net Income: For the three months ended June 30, 2025, net income was $2,328,000, compared to a net loss of $196,000 in the same period in 2024. For the nine months ended June 30, 2025, net income was $4,522,000, compared to a net loss of $8,464,000 in the same period in 2024.

Nestor Cables Segment

• Net Sales: For the three months ended June 30, 2025, net sales were $11,148,000, a decrease of 26% from $15,123,000 in the same period in 2024. For the nine months ended June 30, 2025, net sales were $23,473,000, down 23% from $30,562,000 in the same period in 2024.
• Net Loss: For the three months ended June 30, 2025, net loss was $722,000, compared to a net loss of $252,000 in the same period in 2024. For the nine months ended June 30, 2025, net loss was $3,494,000, compared to a net loss of $3,162,000 in the same period in 2024.

Cash Flow

• Operating Cash Flow: Net cash provided by operating activities was $18,116,000 for the nine months ended June 30, 2025, compared to $9,131,000 for the same period in 2024.
• Investing Cash Flow: Net cash provided by investing activities was $12,058,000 for the nine months ended June 30, 2025, compared to $12,322,000 for the same period in 2024.
• Financing Cash Flow: Net cash used in financing activities was -$12,360,000 for the nine months ended June 30, 2025, compared to -$33,704,000 for the same period in 2024.

Future Outlook and Strategy

• Core Business Focus: Clearfield aims to continue expanding its fiber management and delivery solutions, focusing on increasing sales to Large Regional Service Providers and MSO markets. The company is also working on improving its manufacturing efficiency and inventory management to enhance gross margins.
• Non-Core Business: Nestor Cables is focusing on stabilizing its sales in the European market and addressing the challenges posed by decreased demand.