Clearfield Starts Data-Center Shipments, Sets 2027 Sales Range

The Tip Desk · November 12, 2026 · 3 min read

Fiscal 2027 net sales are expected at $195 million to $205 million after $151.9 million of continuing-operations sales in fiscal 2026.

Clearfield, Inc. (CLFD), a fiber connectivity supplier, said it began shipments against a previously announced $22 million hyperscale data-center order in the fiscal fourth quarter, a milestone it had expected to start in early fiscal 2027 after receiving the order following the third-quarter close.

The Minneapolis company also guided fiscal 2027 net sales of $195 million to $205 million, just over 30% growth from fiscal 2026 revenue at the midpoint, and first-quarter fiscal 2027 net sales of $48 million to $52 million.

Net sales from continuing operations fell 4% to $39.3 million in the fiscal fourth quarter ended September 30, 2026, reversing the 13% year-over-year increase to $43.9 million in the third quarter. Gross profit margin from continuing operations compressed to 30.7% from 34.6% a year earlier, after already declining to 31.8% in the third quarter. The company attributed the latest drop to higher product costs absorbed, particularly in the latter part of the fiscal year.

The company swung to a $73,000 net loss from continuing operations, or $0.00 a share, from net income of $1.8 million, or $0.13 a share, a year earlier, after third-quarter net income of $3.0 million, or $0.22 a share. Operating expenses from continuing operations were $13.1 million, or 33.3% of net sales. The company said first-quarter fiscal 2027 operating expenses as a percentage of net sales should remain consistent with the fourth quarter.

Sales order backlog rose 106% to $43.3 million as of September 30, 2026, from $21.0 million at June 30, 2026, after a 39% increase to $31.6 million at the end of the second quarter. President and Chief Executive Officer Cheri Beranek said the company also announced shipments to one of the first BEAD-funded deployments in Minnesota.

For the year ended September 30, 2026, net sales from continuing operations were $151.9 million, up 1% from $150.1 million in fiscal 2025. The company cited growth in the Large Regional segment, partly offset by softness in the MSO market. Full-year gross margin from continuing operations declined to 32.0% from 33.7% in fiscal 2025. Net income from continuing operations fell to $2.1 million, or $0.16 a share, from $6.3 million, or $0.45 a share. Operating expenses from continuing operations for fiscal 2026 were $50.9 million, or 33.5% of net sales.

Beranek said fiscal 2026 was a pivotal transition year as the company continued serving established broadband customers while expanding fiber-management work into the AI infrastructure market. Chief Financial Officer Dan Herzog said the company is excited about growth opportunities in fiscal 2027, with revenue expected in the $195 million to $205 million range, supported by an anticipated gradual recovery in broadband demand and the expected ramp-up of the data-center business. Guidance also reflects current expectations regarding the data-center environment and potential supply-chain constraints of optical fiber, cable and connectors, as well as the evolving tariff situation, the company said.

The company repurchased about 60,000 shares for $1.8 million in the three months ended September 30, 2026, leaving about $13.2 million remaining for future repurchases. Cash and cash equivalents were $29.3 million and short-term investments were $79.0 million at year-end. Herzog said that over the past three fiscal years the company generated approximately $41 million in cumulative free cash flow and returned $65 million to shareholders through share repurchases, and that with $157 million in cash and investments and no debt it has flexibility to invest in the business. Beranek said she plans to retire effective March 31, 2027, or earlier upon the appointment of a successor, and will continue as President and CEO Emeritus to support the transition.