Clearfield, Inc. reported net sales of $49.9 million for the fiscal third quarter of 2025, representing a 2% increase year-over-year and surpassing analyst estimates of $47.58 million. The Clearfield segment was a primary driver, delivering 15% year-over-year revenue growth.
The company achieved a net income of $1.6 million, or $0.11 per diluted share, for Q3 FY25, a significant improvement from a GAAP net loss of $0.04 per share in the prior year quarter and exceeding analyst estimates of $0.05. Gross profit rose 42%, with gross margin improving to 30.5%, an 8.6 percentage point increase year-over-year, partly due to lower non-cash excess inventory charges and $1.6 million in inventory recoveries.
Clearfield updated its full-year fiscal 2025 revenue guidance to a range of $180 million to $184 million, an increase from the previous range of $170 million to $185 million. For the fourth quarter of fiscal 2025, the company projected net sales between $47 million and $51 million and EPS between $0.03 and $0.11.
Inventory levels continued to trend down, decreasing to $53.8 million as of June 30, 2025, from $66.8 million as of September 30, 2024. The company also repurchased $5.6 million in shares during the quarter, with $8.4 million remaining authorized for future buybacks. Management anticipates federal broadband funding programs, including BEAD and E-ACAM, will contribute materially to revenue from fiscal year 2026 onward.
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