Clearfield's Revenues Surge 28% Year Over Year: What's Driving Growth?

Clearfield, Inc. CLFD reported a substantial 28% top-line improvement year over year to $47.2 million in the second quarter of 2025. The upsurge is primarily driven by healthy traction in several end markets. In the Community Broadband end market, the company reported net sales of $18 million, up 12% year over year. The Large Regional Service Provider market generated staggering 255% year-over-year revenue growth to $11.3 million. 

The growth is backed by early orders for fiber network construction and reduced inventory levels. The company recorded 53% year-over-year growth in the Multiple System Operators market, which includes cable TV companies. 

Clearfield is shifting manufacturing of multiple components across multiple sites around the world. Such proactive diversification of the supply chain has mitigated the impact of high tariffs on its revenue growth to some extent.

Clearfield is also expected to gain from various regulatory programs. The Enhanced Alternative Connect America Cost Model (E-ACAM) program, which aims to increase broadband access in rural areas, is already contributing across Clearfield’s core markets. Clearfield is also realigning its portfolio offerings to tap into the BEAD funding program. With a modular product portfolio and strong customer relationships, the BEAD program is expected to be major growth catalyst in the Community Broadband market and Tier-3 service providers.

Per the RVA market research firm, the fiber industry is projected to increase at 12.5% compound annual growth rate. With a robust portfolio, Clearfield is well-positioned to capitalize on this emerging trend. Per the Zacks Consensus Estimate, Clearfield’s revenues are pegged at $183.65 million for 2025, indicating 10.16% year-over-year growth.

How Are Competitors Faring?

Clearfield faces stiff competition from CommScope Holding Company, Inc. COMM and Corning Incorporated GLW in the fiber infrastructure domain. CommScope’s Connectivity and Cable Solutions segment, which offers fiber optic and copper connectivity and cable solutions, reported a 19.7% revenue increase year over year in the first quarter. The growth is driven by healthy demand in the data center market, recovery in the broadband market and normalization of customers’ inventory. Per the Zacks Consensus Estimate, CommScope is expected to generate $3.288 billion from CCS segment, up from $2.823 billion a year ago.

There are several secular drivers of Corning’s fiber optic solutions business, primarily the increasing use of mobile devices that require efficient data transfer and networking systems. A broad portfolio consisting of optical fiber, hardware, cables and connectors, enabling it to create optical solutions to meet evolving customer needs. The company is also expected to gain from the BEAD funding program in the upcoming years. Per the Zacks Consensus Estimate, Corning is expected to generate $5.86 billion from the optical communication business, up from $4.65 billion a year ago.

CLFD’s Price Performance, Valuation and Estimates

Shares of Clearfield have increased 8.7% in a year compared with the Wireless Equipment industry’s growth of 37.8%.

Going by the price/book ratio, the company’s shares currently trade at 2.23 book value, down from the industry’s 5.21 but above the stock’s mean of 1.88.

CLFD is currently witnessing an uptrend in estimate revisions. Earnings estimates for 2025 have increased to 19 cents from a loss of 29 cents per share over the past 60 days, while the same for 2026 has remained unchanged at 67 cents.

Clearfield currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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