Conestoga Capital Advisors exited its position in Badger Meter during the second quarter of 2026 after the company reported a decline in first-quarter revenue and offered low visibility for a meaningful recovery. The firm noted that while Badger Meter management believes there was no pull-forward of demand post-pandemic, increased activity in recent years may have created an air pocket of demand. Badger Meter, a US-based flow measurement and smart water metering solutions provider, closed at $139.44 per share on August 5, 2026, with a market capitalization of $4.04 billion, and its shares lost 25.65% over the past 52 weeks. The exit was disclosed in Conestoga's second-quarter 2026 investor letter, which also reported that the Conestoga Small Cap Composite returned 14.32% net-of-fees for the quarter, compared to a 25.71% return for the Russell 2000 Growth Index.
Badger Meter IncFirst-quarter revenue decline and low visibility for recovery, with potential air pocket in demand.
