Clearfield’s CEO said it is seeing an increase in data center engagements

Beranek said that Clearfield has plotted a growth plan that focuses on distributed computing and edge infrastructure opportunities.

“Industry trends continue to support a shift toward compute closer to the end user, as low-latency AI applications require faster processing capabilities between compute and storage rather than relying solely on centralized data centers,” Beranek said. “This dynamic will drive the build-out of smaller distributed edge locations that function like compact data centers and require high-density fiber connectivity, particularly in markets served by Community Broadband providers.”

Clearfield has responded to the edge networks' needs with its NOVA Platform, one that the company said can be deployed quickly, scaled efficiently, and replicated across numerous sites.

NOVA can accommodate a wide range of environments, from large hyperscale and co-location data centers to enterprise campuses and broadband central offices, where operators need space-efficient solutions that can evolve as quickly as their capacity demands.

The product comes as hyperscalers, and the fiber providers that serve them are grappling with 100G and 400G growth, rising data workloads, and the increasing number of distributed and edge facilities. 

"Our NOVA Platform, announced last quarter, is designed to address this need by enabling the flexibility and scalability required to support the next generation of edge AI infrastructure," Beranek said. "The platform has been well received, and we anticipate shipping in the second half of the fiscal year."

BEAD constraints

While data centers might be a key prospect, in the near term, Clearfield is wading through delays in the Broadband Equity, Access, and Deployment (BEAD) funding process, which continues to strain its core broadband business.

In March, the Trump administration announced that it was delaying its planned guidance on how states can spend $21 billion in savings in the BEAD program, marking a key setback to an effort initiative focused on bringing broadband to underserved communities.

One bright spot this week was that fixed wireless access (FWA) provider Vistabeam announced during an event in Gering, Nebraska, that it had made what it claims to be the first customer connection funded by the BEAD Program.

Beranek noted that while the customer base is putting together their plans, the timing of funding rollouts is unclear.

“While we are seeing early-stage planning and design activity across our customer base, the timing of funding disbursements remains uncertain, which is delaying order activity,” Beranek said.

However, she added that it “expects meaningful BEAD-related revenue to materialize in fiscal 2027 as the program is deployed across the states” and it has “maintained a proactive approach to ensure that we are well positioned as demand materializes.”

Revenue challenges

Due to a pull-in by a large regional customer into last year's second quarter from our Fiscal Year 2025, Clearfield’s third quarter net sales were $34.4 million, down 15% from $40.6 million in the prior-year second quarter.

Clearfield’s results reflected the high end of its guidance range of $32 million to $35 million.

On a sequential basis, Clearfield’s revenue was flat due to expected seasonality in the winter months.

“Our performance was driven by continued strength in our Community Broadband market with year-to-date revenues up 5% over the same period of last year,” Beranek said.

One bright spot was Clearfield’s order backlog, which was $31.6 million, up $8.9 million, or 39%, from $22.8 million as of December 31, 2025, and up $3.5 million, or 12%, from $28.1 million as of March 31, 2025.

“Our backlog rose 39% sequentially from the first fiscal quarter, resulting in a book-to-bill ratio of 1.3 for the quarter, consistent with typical summer seasonality and supportive of our outlook for the second half of the year,” Beranek said.

For the third quarter of fiscal 2026, Clearfield expects net sales to be in the range of $42 million to $46 million and net income per share to be in the range of $0.17 to $0.21.

Looking ahead, Clearfield has reiterated its annual revenue guidance for fiscal 2026 in the $160 million to $170 million range.

Daniel Herzog, CFO of Clearfield, said the annual guidance “represents approximately 10% top-line growth at the midpoint.”  

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