Fri, May 9, 4:33 PM (14 days ago)
**Clearfield, Inc. (CLFD) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Q1 2025 revenue was $47.17 million, up 28% YoY, driven by increased sales to Large Regional Service Providers, MSOs, and Community Broadband customers. - **Profit Margins:** Gross profit margin improved to 30.1% in Q1 2025 from 7.7% in Q1 2024, due to higher volumes and better inventory management. - **Net Income:** Q1 2025 net income was $1.33 million, a significant improvement from a net loss of $5.91 million in Q1 2024. - **Cash Flow:** Operating cash flow was $10.20 million for the six months ended March 31, 2025, reflecting improved operational efficiency and inventory management. **Segment Performance:** - **Clearfield Segment:** Revenue increased 47% YoY, with improved gross margins due to higher volumes and reduced excess inventory charges. - **Nestor Cables Segment:** Revenue decreased 30% YoY due to lower demand in European markets, but saw improved operational efficiencies. **Liquidity and Capital Resources:** - **Cash and Investments:** As of March 31, 2025, Clearfield had $111.99 million in cash and short-term investments, and $41.36 million in long-term investments. - **Line of Credit:** The company has a $40 million revolving line of credit with no outstanding borrowings as of March 31, 2025. **Future Operations and Uncertainties:** - **Tariffs:** New tariffs may impact future financial results, particularly cost of sales and gross profit, depending on the extent and duration of the tariffs. - **Market Demand:** The company's ability to predict future revenue is limited by customer deployment schedules and macroeconomic factors. - **Operational Risks:** The company faces risks related to supply chain disruptions, competition, and regulatory changes. **Management's Outlook:** - Clearfield aims to utilize its available cash and assets for organic growth, potential strategic transactions, and share repurchase programs. - The company expects its existing liquidity and cash flow from operations to meet working capital and investment requirements beyond the next 12 months. **Financial Metrics:** - **EPS:** Q1 2025 EPS was $0.09, compared to a loss of $0.40 in Q1 2024. - **Debt:** The company has no outstanding debt on its $40 million line of credit as of March 31, 2025. **Conclusion:** Clearfield, Inc. demonstrated strong financial improvement in Q1 2025, with significant revenue growth, improved profit margins, and positive net income. The company's strategic focus on operational efficiencies and market demand positions it for continued growth, despite potential uncertainties related to tariffs and market conditions.