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Enlisting Capital: Wolfspeed's Defense DealWolfspeed NYSE: WOLF said it is advancing its silicon carbide technology roadmap, expanding its presence in AI data centers and pursuing operating and capital-structure improvements, Chief Executive Officer Robert Feurle said at the company’s 2026 annual shareholder meeting.

The company also said shareholders approved all proposals presented at the virtual meeting, including the election of seven directors, the 2026 Employee Stock Purchase Plan, an advisory vote on executive compensation and the ratification of PricewaterhouseCoopers LLP as Wolfspeed’s independent auditor for the current fiscal year.

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Technology and Manufacturing Roadmap These 3 Short-Squeeze Candidates Have Catalysts, But Their Risks Are Just as LargeFeurle said Wolfspeed’s strategy is centered on technology leadership, customer and revenue diversification, operational execution and financial discipline.

He pointed to the company’s June announcement that its fifth-generation silicon carbide MOSFET technology had reached commercial readiness. According to Feurle, the Gen 5 MOSFETs provide what he described as the industry’s best specific on-resistance while maintaining switching behavior introduced with the company’s Gen 4 products.

Power Struggle: Wolfspeed Sues Navitas Over AI ChipsWolfspeed’s 10 kV silicon carbide MOSFET was also recognized at PCIM, a European power-technology conference, as a top innovation at the event, Feurle said.

The CEO said Wolfspeed believes its vertically integrated 200 mm manufacturing capabilities, along with developing 300 mm capabilities, position the company to support growing demand for silicon carbide technology.

AI Data Center Revenue Growth Feurle said Wolfspeed continues to make progress across its core end markets and improve relationships with longstanding customers. He also highlighted AI data centers as an emerging growth market for the company.

Full-year fiscal 2026 revenue from the AI data center end market more than doubled from the prior year, according to Feurle. He said Wolfspeed has expanded its leadership presence with industry veterans in the San Francisco Bay Area and is seeing the benefits in both day-to-day customer interactions and revenue trends.

“We are extremely well-positioned” to support AI data center adoption as it scales, Feurle said, citing the company’s silicon carbide technology and manufacturing platform.

Operations and Financial Discipline Operational execution remains a central priority, Feurle said. Wolfspeed is focused on improving production yields and lowering unit production costs while maintaining speed, quality and cost discipline.

These efforts are intended to support both legacy and new customers and create a stronger foundation for sustainable growth and profitability, he said.

On financing, Feurle said Wolfspeed benefited from a refinancing completed in March that strengthened its capital structure and reduced its cost of capital.

He also discussed the company’s recently announced conditional 30-year, $1.5 billion loan commitment from the U.S. Department of War. The commitment is intended to help advance the domestic wide-bandgap semiconductor supply chain, according to Feurle.

Feurle said the conditional commitment could provide long-term capital to support Wolfspeed’s strategy and further strengthen its capital structure. He said the financing’s pay-in-kind structure during its first five years could reduce intermediate-term cash interest payments, while lower capital costs could benefit customers, shareholders and national security.

Shareholder Votes Approved Melissa Garrett, Wolfspeed’s general counsel and corporate secretary, said a quorum was present at the meeting based on shares represented virtually or by proxy. The company’s inspector of elections reported that each proposal received the votes required for approval and that the advisory vote on executive compensation was favorable.

Wolfspeed expects to report final voting results in a Form 8-K filing with the Securities and Exchange Commission within four business days of the meeting.

About Wolfspeed (NYSE:WOLF)Wolfspeed, Inc is a semiconductor company focused on silicon carbide (SiC) technologies. Its products are designed to support the conversion and management of electrical power in applications that require high efficiency, high voltage, and operation at elevated temperatures.

The company develops and manufactures SiC power devices, including metal-oxide-semiconductor field-effect transistors, diodes, power modules, and related components. It also produces SiC materials such as wafers and epitaxial substrates used by semiconductor manufacturers.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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DURHAM, N.C.--(BUSINESS WIRE)--Wolfspeed, Inc (NYSE: WOLF), a global leader in silicon carbide technology, and Infineon Technologies AG (FSE: IFX / OTCQX: IFNNY) today announced the expansion and extension of their existing long-term silicon carbide (SiC) wafer supply agreement. The expanded agreement adds 200 mm silicon carbide wafers to the existing 150 mm supply and builds on a supply relationship between the two companies spanning more than 20 years. With this agreement, Wolfspeed strengthe.

Wolfspeed, Inc. (NYSE:WOLF – Get Free Report) shares fell 9.1% during trading on Monday. The stock traded as low as $28.08 and last traded at $27.8330. 957,415 shares were traded during mid-day trading, a decline of 78% from the average daily volume of 4,297,762 shares. The stock had previously closed at $30.61.

Analyst Upgrades and Downgrades A number of equities research analysts recently weighed in on WOLF shares. Wall Street Zen cut Wolfspeed from a “sell” rating to a “strong sell” rating in a research note on Saturday, September 19th. TD Cowen reiterated a “hold” rating and issued a $25.00 target price on shares of Wolfspeed in a research note on Thursday, August 20th. Susquehanna cut their target price on Wolfspeed from $40.00 to $30.00 and set a “neutral” rating on the stock in a research note on Tuesday, July 21st. Weiss Ratings upgraded shares of Wolfspeed from a “sell (d)” rating to a “sell (d+)” rating in a report on Thursday. Finally, Zacks Research upgraded shares of Wolfspeed to a “hold” rating in a report on Friday, September 25th. One equities research analyst has rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $25.00.

View Our Latest Research Report on Wolfspeed

Wolfspeed Price Performance The stock’s 50-day moving average is $28.11 and its 200 day moving average is $35.21. The company has a market cap of $1.44 billion and a PE ratio of -1.72. Wolfspeed (NYSE:WOLF – Get Free Report) last announced its earnings results on Wednesday, August 19th. The company reported ($2.26) earnings per share for the quarter, beating the consensus estimate of ($2.45) by $0.19. The firm had revenue of $149.60 million during the quarter, compared to analyst estimates of $150.00 million. During the same quarter last year, the business earned ($0.77) earnings per share. Wolfspeed’s revenue was down 24.1% on a year-over-year basis. On average, analysts expect that Wolfspeed, Inc. will post -8.27 EPS for the current year.

Institutional Trading of Wolfspeed Institutional investors have recently made changes to their positions in the business. FNY Investment Advisers LLC purchased a new position in Wolfspeed during the 2nd quarter worth $204,000. AXQ Capital LP acquired a new position in Wolfspeed during the 2nd quarter valued at about $208,000. Concurrent Investment Advisors LLC acquired a new position in Wolfspeed during the 2nd quarter valued at about $229,000. Royal Bank of Canada purchased a new stake in Wolfspeed in the first quarter valued at about $89,000. Finally, WINTON GROUP Ltd purchased a new stake in Wolfspeed in the second quarter valued at about $299,000.

Wolfspeed Company Profile (Get Free Report)

Wolfspeed, Inc (NYSE:WOLF) develops and manufactures semiconductor technologies based primarily on silicon carbide, a wide-bandgap material designed to support efficient power conversion and high-temperature operation. Its products are used in applications where reduced energy loss, higher power density and improved thermal performance are important.

The company’s offerings include silicon carbide wafers and materials, power modules, metal-oxide-semiconductor field-effect transistors (MOSFETs), diodes and other power semiconductor devices.

See Also Five stocks we like better than Wolfspeed China Still Dominates Rare Earths—These 3 U.S. Companies Could Benefit 3 REITs That May Win in a Higher Interest Rate Environment Broadcom’s Anthropic Bet Gets Bigger as $60 Billion Financing Raises the Stakes Insider Buying Signals Opportunity in H.B. Fuller, FocalTherics, Cardinal Receive News & Ratings for Wolfspeed Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Wolfspeed and related companies with MarketBeat.com's FREE daily email newsletter.

A conditional federal loan commitment sent Wolfspeed surging while rival chipmakers sank alongside the broader semiconductor sector, and the gap between a government promise and actual funding could define what comes next for a company fresh out of bankruptcy.

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A conditional federal financing commitment is drawing heavy buying into Wolfspeed (NYSE:WOLF | WOLF Price Prediction), while larger power chipmakers drift lower with the rest of the semiconductor group. Wolfspeed stock is at $35.89, up 14% in morning trading.

Meanwhile, shares of On Semiconductor (NASDAQ:ON), a direct silicon carbide rival, are down 2% to $80.59. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is down 0.4% to $774.23, a mild pullback for stocks overall.

Shares of Texas Instruments (NASDAQ:TXN), a diversified analog chipmaker, are also sliding 1% to $284.72.

Department of War Commitment Fuels Wolfspeed Rally Wolfspeed stated on October 7 that the company received a conditional loan commitment letter from the U.S. Department of War, through the department’s Office of Strategic Capital, for up to $1.5 billion of long-term financing. The money is reserved for Wolfspeed’s domestic development and production of silicon carbide materials and wide bandgap power devices, and the letter provides for a senior secured delayed-draw term loan facility, meaning the company would draw funds in stages. In exchange, Wolfspeed would be required to issue the Department of War warrants (rights to buy stock at a set price) to purchase up to 7.5% of its fully diluted equity, issuable pro rata as financing tranches are funded.

That commitment letter is still conditional. Execution of definitive agreements and completion of the financing remain subject to due diligence, closing conditions, governmental approvals and appropriations, and Wolfspeed cautioned that there’s no assurance any funding will be provided. For a company still building out U.S. capacity, the gap between a commitment and a closed loan carries real weight for Wolfspeed.

Wolfspeed Breaks From the Chip Pack This financing fits a broader Department of War push to strengthen the domestic industrial base. Among the four pillars in the department’s fiscal 2027 investment budget request is industrial strength, defined as reinforcing the domestic defense manufacturing ecosystem, and a U.S.-based silicon carbide supplier such as Wolfspeed lines up with that goal.

Shares of Wolfspeed are up 108% year to date (YTD), and the financing news adds a fresh leg to that run. The iShares Semiconductor ETF (NASDAQ:SOXX) is down 2% to $572.03, a deeper decline than the broad market is posting, and that split shows Wolfspeed is moving on company-specific news while its sector slips.

What to Watch Next Wolfspeed’s upside hinges on long-dated government capital reaching a company that emerged from bankruptcy protection last year and still has to fund a domestic capacity build. Government backing could strengthen Wolfspeed’s hand with customers weighing long-term supply commitments. A bear case starts with the conditional status of the commitment, and the warrants tied to the facility would hand the government a slice of Wolfspeed’s equity as the money is drawn.

Wolfspeed’s next milestone is the signing of definitive agreements, because a commitment letter stays nonbinding on both sides until those documents are executed. Company updates on due diligence and on the governmental approvals and appropriations the financing requires are worth tracking, since each step brings Wolfspeed closer to drawing funds. Any change to the size or terms of the facility could reset the math for Wolfspeed stock.

Contact [email protected] for any questions or corrections.

Wolfspeed Inc. (NYSE:WOLF) shares jumped in after-hours trading Wednesday after the silicon carbide chipmaker got a conditional commitment for up to $1.5 billion in long-term financing from the U.S. Department of Defense. 

WOLF stock is soaring. See the chart and price action here.  DoD Loan DetailsThe money would come from the department’s Office of Strategic Capital as a senior secured, delayed-draw term loan with a 30-year term. The proposed loan is nearly as large as Wolfspeed’s market value, which was about $1.63 billion at Wednesday’s close, per Benzinga Pro data. 

Wolfspeed plans to use the money to upgrade its gallium nitride epitaxy work for communications infrastructure and electronic warfare systems. 

It also wants to make its current silicon carbide chips and future gallium nitride chips resistant to radiation. Both materials go into power and radio-frequency systems for defense, aerospace and AI.

“SiC and GaN have critical national security applications,” CEO Robert Feurle said.

Feurle added that the scale and 30-year term of the commitment “reflect the long-term importance of the technology and manufacturing capabilities Wolfspeed has built in the United States.”

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Dilution AttachedThe loan comes with an equity kicker. Wolfspeed would give the department VWAP-based warrants for up to 7.5% of its fully diluted equity. The warrants would be issued in proportion as each part of the loan is funded.

CFO Gregor van Issum called the deal “another significant milestone in our ongoing efforts to optimize Wolfspeed’s capital structure and improve our financial foundation.”

Nothing is locked in yet. The financing still depends on due diligence, final agreements, government approvals, funding from Congress and third-party consents. Wolfspeed warned there’s no guarantee any money will be provided.

WOLF Price ActionBefore the news, Wolfspeed stock was up about 80% this year, closing Wednesday’s regular session at $31.37. Wolfspeed shares were up 25.06% at $39.23 during after-hours trading Wednesday, according to market data from Benzinga Pro.

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Wolfspeed, Inc. (WOLF) witnessed a jump in share price last session on above-average trading volume. The latest trend in earnings estimate revisions for the stock doesn't suggest further strength down the road.

Wolfspeed Expands 200 mm Silicon Carbide Portfolio with New Premium Power Substrates Wolfspeed, Inc. (NYSE: WOLF), a global leader in silicon carbide (SiC) technology, today announced the commercial availability of its new Premium 200 mm n-type silicon carbide substrate, expanding its 200 mm SiC materials portfolio with a higher-quality starting material designed to improve yield through reduced defects and greater wafer-shape stability.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260927368960/en/

Wolfspeed expands 200 mm portfolio with premium substrate

As the SiC devices industry pushes toward higher voltages and larger die sizes, material-level quality and wafer consistency have become critical differentiators. Wolfspeed’s Premium 200 mm n-type SiC substrate delivers a multi-metric leap in quality spanning defect density, micropipe count, and wafer shape stability.

By removing variability from the starting material, Wolfspeed’s premium material gives silicon carbide device manufacturers a more predictable, higher-yielding starting material, increasing the probability of first-time design success and reducing qualification delays at a time when the margin for error is shrinking.

“Wolfspeed leads in advancing silicon carbide materials technology, and this latest addition to our 200 mm portfolio reflects our expertise behind those efforts,” said Dr. Cengiz Balkas, EVP, Materials Business Unit at Wolfspeed. “We’re giving customers a stronger foundation for developing increasingly demanding silicon carbide devices, backed by the manufacturing experience and scale to support them as needs grow.”

Wolfspeed’s Premium 200 mm n-type SiC substrate delivers fewer than 0.01 micropipes per square centimeter, or fewer than three micropipes per wafer, as validated by X-ray topography using the industry-standard method, as well as low threading screw dislocations. Combined with Wolfspeed’s proven wafer-shape and lot-to-lot consistency, the higher bare-wafer quality translates directly into better epitaxial performance achieved entirely within customers’ existing epitaxy processes.

Backed by mature manufacturing processes and deep materials expertise, Wolfspeed’s premium material delivers higher yield per lot and improved manufacturing economics. The product is orderable today, with dedicated capacity and a clear product expansion roadmap. Wolfspeed has the manufacturing confidence and ability to quickly ramp new capacity as market demand grows within the company’s established large-scale silicon carbide manufacturing facility.

Wolfspeed’s 200 mm manufacturing operations have been in continuous production since 2022, reflecting more than four years of process refinement and yield improvement and establishing a mature, reliable supply foundation for customers.

The Wolfspeed® Premium 200 mm n-type SiC substrate is available now. View products

About Wolfspeed, Inc.

Wolfspeed (NYSE: WOLF) leads the market in the worldwide adoption of silicon carbide technologies that power the world’s most disruptive innovations. As the pioneers of silicon carbide, and creators of the most advanced semiconductor technology on earth, we are committed to powering a better world for everyone. Through silicon carbide material, Power Modules, Discrete Power Devices and Power Die Products targeted for various applications, we will bring you The Power to Make It Real™. Learn more at wolfspeed.com.

Wolfspeed® is a registered trademark and The Power to Make It Real™ is a trademark of Wolfspeed, Inc.

Forward-Looking Statements

This press release contains forward-looking statements involving risks and uncertainties, both known and unknown, that may cause Wolfspeed’s actual results to differ materially from those indicated in the forward-looking statements. Forward-looking statements by their nature address matters that are, to different degrees, uncertain, such as statements about Wolfspeed’s strategic plans, priorities, growth opportunities, and ability to achieve profitability. Actual results could differ materially due to factors detailed in Wolfspeed’s filings with the U.S. Securities and Exchange Commission (“SEC”), including its most recent Annual Report on Form 10-K and subsequent SEC filings. These forward-looking statements represent Wolfspeed’s judgment as of the date of this release. Except as required under U.S. federal securities laws, Wolfspeed disclaims any intent or obligation to update any forward-looking statements after the date of this release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260927368960/en/

Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

Click for the complete disclosure

, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Wolfspeed, Inc. ("Wolfspeed" or the "Company") (NYSE: WOLF). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.

The investigation concerns whether Wolfspeed and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. 

[Click here for information about joining the class action]

On August 19, 2026, Wolfspeed reported its financial results for the fourth quarter of 2026. Among other items, Wolfspeed reported revenue of $149.6 million, falling well short of the consensus estimate of $223.55 million. Wolfspeed also reported an adjusted loss of $2.26 per share, significantly worse than the consensus estimate of $0.52 per share. 

On this news, Wolfspeed's stock price fell $2.74 per share, or 9.42%, to close at $26.35 per share on August 20, 2026.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.

Attorney advertising. Prior results do not guarantee similar outcomes.

CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected] 
646-581-9980 ext. 7980

SOURCE Pomerantz LLP

Wolfspeed is positioned for a 2-3x upside if business stabilizes, driven by Mohawk Valley 200 mm Power/Devices revenue growth. Double-digit quarterly growth in Power/Devices revenue offsets Materials' decline, with break-even profit margin revenue possible by the end of 2027. Strong operational execution is evidenced by exceeded yield targets, major design wins, and progress on 300mm wafer engineering samples.

NEW YORK, Sept. 15, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Wolfspeed, Inc. (“Wolfspeed” or the “Company”) (NYSE: WOLF). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.

The investigation concerns whether Wolfspeed and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. 

[Click here for information about joining the class action]

On August 19, 2026, Wolfspeed reported its financial results for the fourth quarter of 2026. Among other items, Wolfspeed reported revenue of $149.6 million, falling well short of the consensus estimate of $223.55 million. Wolfspeed also reported an adjusted loss of $2.26 per share, significantly worse than the consensus estimate of $0.52 per share. 

On this news, Wolfspeed’s stock price fell $2.74 per share, or 9.42%, to close at $26.35 per share on August 20, 2026.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.

Attorney advertising. Prior results do not guarantee similar outcomes.

CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980

NEW YORK, Sept. 08, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Wolfspeed, Inc. (“Wolfspeed” or the “Company”) (NYSE: WOLF). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.

The investigation concerns whether Wolfspeed and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. 

[Click here for information about joining the class action]

On August 19, 2026, Wolfspeed reported its financial results for the fourth quarter of 2026. Among other items, Wolfspeed reported revenue of $149.6 million, falling well short of the consensus estimate of $223.55 million. Wolfspeed also reported an adjusted loss of $2.26 per share, significantly worse than the consensus estimate of $0.52 per share. 

On this news, Wolfspeed’s stock price fell $2.74 per share, or 9.42%, to close at $26.35 per share on August 20, 2026.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.

Attorney advertising. Prior results do not guarantee similar outcomes.

CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980

NEW YORK, Sept. 01, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Wolfspeed, Inc. (“Wolfspeed” or the “Company”) (NYSE: WOLF).  Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.

The investigation concerns whether Wolfspeed and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. 

[Click here for information about joining the class action]

On August 19, 2026, Wolfspeed reported its financial results for the fourth quarter of 2026.  Among other items, Wolfspeed reported revenue of $149.6 million, falling well short of the consensus estimate of $223.55 million.  Wolfspeed also reported an adjusted loss of $2.26 per share, significantly worse than the consensus estimate of $0.52 per share. 

On this news, Wolfspeed’s stock price fell $2.74 per share, or 9.42%, to close at $26.35 per share on August 20, 2026.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.

Attorney advertising. Prior results do not guarantee similar outcomes.

CONTACT:
Danielle Peyton
Pomerantz LLP

[email protected] ext. 7980  

7.89K Followers

Analyst’s Disclosure: I/we have a beneficial long position in the shares of WOLF either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Wolfspeed (WOLF -2.24%) had been one of the hottest stocks in the market this spring, surging on hopes that it could become the next AI winner.

The rise coincided with a bullish report from Substack publication Citrini Research, which had earlier come into prominence after publishing a thought piece about how artificial intelligence (AI) would negatively impact software-as-a-service (SaaS) stocks, helping sink that sector.

However, after its shares reached more than $80, Wolfspeed stock has come crashing back down to earth, retracing the big move it had made in May following Citrini pumping the stock. Its latest pullback coincided with another disheartening earnings report on Aug. 19.

Image source: The Motley Fool

Negative gross margins and weak sales persist Wolfspeed emerged from bankruptcy last fall, wiping out some expensive debt and finding itself on better footing. However, many of the issues that pushed it into bankruptcy in the first place remain. The chief among them is negative gross margins.

Wolfspeed positioned itself as the leader in silicon carbide (SiC) powered chips. The company constructed expensive manufacturing plants to build out a vertically integrated supply chain. SiC has superior heat-conducting properties compared to typical silicon chips, and thus initially was projected to play a major role in the electric vehicle (EV) market.

However, the company ran into severe execution bottlenecks and market headwinds. The move to larger 200mm wafers proved to be more technically challenging than imagined, while EV demand started to slow. Meanwhile, Tesla decided to greatly reduce its use of SiC moving forward.

That left Wolfspeed with severely underutilized, brand-spanking-new plants, which is one of the worst things a semiconductor company can experience. It is also one of the reasons why most traditional silicon-based chipmakers use a fabless model and rely on third-party foundries like Taiwan Semiconductor Manufacturing.

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Wolfspeed's operational issues persisted in its fiscal fourth quarter, with the company seeing negative gross margins of 25% due to continued plant underutilization. Adjusted gross margins, meanwhile, came in at negative 19.9%, a 70-basis point sequential improvement.

Revenue growth continues to be an issue, with revenue falling 24% year over year from $197 million to $149.6 million. It was also a slight sequential decline from $150.2 million in fiscal Q3 and right in the middle of its $140 million to $160 million outlook.

While auto revenue remained soft, the company did see its AI data center revenue more than double year over year and rise 20% sequentially. It highlighted a few new design wins with power supply companies, while saying SiC content was increasing in data centers due to the transition to 800-volt architectures.

Given its negative gross margins and $600 million in net debt, cash flow remains an issue. The company has negative operating cash flow of $180.3 million over the past nine months after exiting bankruptcy, and negative free cash flow of $253.7 million. It will look to retire some high-interest debt to help with its cash flow moving forward.

Looking ahead, the company once again guided for quarterly revenue to be in the $140 million to $160 million range and for gross margins to remain negative. It said it would likely need revenue to reach $800 million in revenue for its adjusted gross margins to break even.

Even after coming out of bankruptcy, Wolfspeed still finds itself in a precarious position. Negative gross margins and free cash flow are never great signs for a business, and the company will need to see a meaningful acceleration in sales just to get to breakeven gross margins, which isn't exactly a huge accomplishment.

That said, the transition to 800-volt architectures in AI data centers is a legitimate structural shift, and the opportunity for SiC is both real and accelerating. So, there is the potential for a big turnaround in the stock. This makes Wolfspeed an interesting, but highly speculative, stock to buy at this point.

Wolfspeed
WOLF -9.8% 8

shares fell 10% on early Thursday after the silicon carbide semiconductor maker posted a wider-than-expected quarterly loss, while its near-term revenue forecast landed close to Wall Street expectations.

For the fiscal fourth quarter ended June 28, Wolfspeed reported an adjusted loss of $2.26 per share, compared with the $1.47 loss analysts had anticipated. Revenue rose 24% from a year earlier to $149.6 million, broadly matching the $150 million consensus estimate.

The company's adjusted gross margin remained negative at 20%. Revenue tied to AI data-center applications increased 20% from the prior quarter, highlighting continued demand from that market despite the overall quarterly loss.

For the current quarter, Wolfspeed projects revenue between $140 million and $160 million, putting the midpoint near the $150.4 million analyst estimate. The company also expects non-GAAP operating expenses of $62 million to $66 million.

Wolfspeed emerged from Chapter 11 restructuring in September 2025 and is continuing efforts to reduce debt and its cost of capital.

The earnings miss and negative gross margin may keep pressure on shares despite continued AI data-center growth.

Check the Warning Signs for

WOLF

now!

Wolfspeed NYSE: WOLF reported fourth-quarter fiscal 2026 revenue of $150 million, landing at the midpoint of its guidance range, as growth in artificial intelligence data-center applications helped offset softer automotive demand.

DURHAM, N.C.--(BUSINESS WIRE)--Wolfspeed, Inc. (NYSE: WOLF) today announced its results for the fourth quarter of fiscal 2026. Business Highlights AI data center revenue more than doubled year-over-year in fiscal 2026 and increased approximately 20% sequentially in the fourth quarter, demonstrating the long-term potential of this moderate but growing opportunity. Launched fifth-generation SiC MOSFET, representing a significant advancement in the Company's technology roadmap. 10kV MOSFET named “.

-

Announcement highlights

Wolfspeed and LITEON announce strategic partnership to enable 800 VDC power solutions for next-generation AI data center deployments LITEON is collaborating with Wolfspeed to leverage silicon carbide MOSFETs for its next-generation 800 VDC sidecar power platform, targeting leading hyperscale customers and future design opportunities Leverages Wolfspeed's industry-leading 200mm silicon carbide manufacturing platform to provide supply chain resilience and scalable volume production for AI infrastructure deployments DURHAM, N.C.--(BUSINESS WIRE)--Wolfspeed, Inc. (NYSE: WOLF), a global leader in silicon carbide technology, and LITEON Technology Corporation, a leading provider of AI power solutions, today announced a strategic partnership and the successful qualification of Wolfspeed's silicon carbide technology for deployment within LITEON's 800 VDC power sidecar and compute rack PSU platforms. These platforms are designed to support next-generation AI data centers for leading hyperscale customers, with the potential for broader adoption across multiple cloud service provider (CSP) platforms and future deployments.

AI-driven growth is accelerating the industry's transition to 800 VDC power architectures as data centers prioritize energy efficiency, power density, scalability, and total cost of ownership in critical applications such as power supply units (PSUs) and battery backup units (BBUs). Wolfspeed's family of silicon carbide MOSFETs enables more efficient power delivery across a wide range of operating conditions, helping power system designers maximize efficiency while reducing bill of materials (BOM) costs and simplifying procurement.

LITEON is collaborating with Wolfspeed to leverage silicon carbide technology and its 200mm silicon carbide manufacturing platform, in support of hyperscale AI infrastructure deployments. The partnership reflects both companies' commitment to delivering highly reliable 800 VDC power solutions that can be rapidly deployed at scale while meeting the demanding performance and durability requirements of next-generation AI data centers.

"Our partnership with LITEON demonstrates Wolfspeed's commitment to enabling the rapidly growing AI data center market through advanced silicon carbide technology and a robust, scalable supply chain," said Robert Feurle, Chief Executive Officer of Wolfspeed. "As hyperscale customers accelerate investments in AI infrastructure, Wolfspeed is uniquely positioned to support the industry's transition to higher-efficiency power architectures."

"Integrating Wolfspeed's silicon carbide technology into our 800V VDC power architecture strengthens LITEON's ability to meet the performance, efficiency, and reliability requirements of next-generation AI infrastructure," said John Chang, General Manager, Cloud Infrastructure Platform & Solution SBG, LITEON Technology. " As demand for AI infrastructure continues to accelerate, this collaboration strengthens our ability to support next-generation data center platforms."

About Wolfspeed, Inc.

Wolfspeed (NYSE: WOLF) leads the market in the worldwide adoption of silicon carbide technologies that power the world’s most disruptive innovations. As the pioneers of silicon carbide, and creators of the most advanced semiconductor technology on earth, we are committed to powering a better world for everyone. Through silicon carbide material, Power Modules, Discrete Power Devices and Power Die Products targeted for various applications, we will bring you The Power to Make It Real™. Learn more at wolfspeed.com.

Wolfspeed® is a registered trademark and The Power to Make It Real™ is a trademark of Wolfspeed, Inc.

Forward-Looking Statements

This press release contains forward-looking statements involving risks and uncertainties, both known and unknown, that may cause Wolfspeed’s actual results to differ materially from those indicated in the forward-looking statements. Forward-looking statements by their nature address matters that are, to different degrees, uncertain, such as statements about Wolfspeed’s strategic plans, priorities, growth opportunities, and ability to achieve profitability. Actual results could differ materially due to factors detailed in Wolfspeed’s filings with the U.S. Securities and Exchange Commission (“SEC”), including its most recent Annual Report on Form 10-K and subsequent SEC filings. These forward-looking statements represent Wolfspeed’s judgment as of the date of this release. Except as required under U.S. federal securities laws, Wolfspeed disclaims any intent or obligation to update any forward-looking statements after the date of this release.

More News From Wolfspeed, Inc.

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DURHAM, N.C.--(BUSINESS WIRE)--Wolfspeed, Inc. (NYSE: WOLF), a global leader in silicon carbide technology, announced today that Andy W. Mattes has been appointed to its Board of Directors, effective immediately. Andy W. Mattes is a technology executive with more than 40 years of leadership experience in the semiconductor and advanced technology industries. He previously served as public-company CEO of Coherent and Diebold Nixdorf and has held senior leadership roles at Hewlett Packard, Siemens.

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DURHAM, N.C.--(BUSINESS WIRE)--Wolfspeed (NYSE: WOLF), a U.S.-based pioneer in wide bandgap compound semiconductor technology, today announced that it has filed a patent infringement lawsuit in the United States District Court for the District of Delaware against Navitas Semiconductor ("Navitas").The lawsuit asserts that a broad range of Navitas products infringes multiple Wolfspeed patents, including U.S. Patent Nos. 8,169,005, 10,998,418, 10,886,396, 10,749,443, and 11,888,392. Products accuse.

DURHAM, N.C.--(BUSINESS WIRE)--Wolfspeed, Inc. (NYSE: WOLF), a global leader in silicon carbide technology, today announced two executive appointments that strengthen the company's leadership team and support its continued growth and engagement with customers, investors, and stakeholders. The appointments come as Wolfspeed accelerates global expansion, deepens engagement with policymakers and advances long-term growth strategy. Brad Kohn will rejoin Wolfspeed as Executive Vice President, Chief.

DURHAM, N.C.--(BUSINESS WIRE)--Wolfspeed, Inc. (NYSE: WOLF) today announced its results for the third quarter of fiscal 2026.

Business Highlights

Continued sequential quarterly growth in AI data center applications of approximately 30%, reflecting a moderate but expanding part of the Company's business with meaningful long-term potential. Launched first commercially available 10 kV SiC power MOSFET for grid modernization, industrial electrification and AI data center infrastructure. Introduced next-gen TOLT portfolio to address growing AI data center demand. Durham facilities now focused on materials production, further increasing earnings potential of the site. CFIUS clearance and equity issuance to Renesas completes Chapter 11 procedures. Quarterly Financial Highlights

Consolidated revenue of approximately $150 million, aligned with midpoint of guidance range. GAAP gross margin of (27)% and Non-GAAP gross margin of (21)%. GAAP net loss of $120 million and adjusted EBITDA of ($62) million. Operating cash flow of ($84) million. Refinanced approximately $476 million of first-lien debt, reducing total debt balance by $97 million and annual interest expense by an estimated $62 million. Improved the Company’s equity position by more than $400 million, primarily from the strategic refinancing and reclassification of Renesas ownership upon CFIUS clearance $1.2 billion of cash, cash equivalents and short term investments as of March 29, 2026. “In the third quarter, we continued to make meaningful progress against our priorities, improving Wolfspeed’s long-term growth trajectory and our financial flexibility to execute our strategic priorities,” said Wolfspeed CEO Robert Feurle. “We accelerated innovation across the business, launching our next-generation TOLT portfolio, introducing the first commercially available 10 kV silicon carbide power MOSFET, and continuing to advance our 300mm substrate platform. At the same time, we continue to deepen our engagement with a diversified customer base."

“Our third-quarter actions represent another major step in strengthening our balance sheet,” said Wolfspeed CFO Gregor van Issum. “We successfully reduced our highest-cost first-lien debt by 43%, decreased the total debt by $97 million and thereby reduced the annual interest expense by an estimated $62 million. Backed by $1.2 billion in liquidity and rigorous operational discipline, we are well-positioned to continue to fund our highest-priority initiatives."

Business Outlook:

The Company expects to generate revenue between $140 million and $160 million for its fiscal fourth quarter. The Company expects operating expenses to be approximately flat with the fiscal third quarter and gross margins to remain negative in the fourth quarter.

Quarterly Conference Call:

Wolfspeed will provide additional commentary on a conference call at 5:00 p.m. Eastern time today reviewing the highlights of its third quarter results.

The conference call will be available to the public through a live audio web broadcast via the Internet. For webcast details, visit Wolfspeed's website at investor.wolfspeed.com/events.cfm.

About Wolfspeed, Inc.

Wolfspeed (NYSE: WOLF) leads the market in the worldwide adoption of silicon carbide technologies that power the world’s most disruptive innovations. As the pioneers of silicon carbide, and creators of the most advanced semiconductor technology on earth, we are committed to powering a better world for everyone. Through silicon carbide material, Power Modules, Discrete Power Devices and Power Die Products targeted for various applications, we will bring you The Power to Make It Real.TM Learn more at www.wolfspeed.com.

Fresh Start Accounting:

As a result of emerging from a voluntary proceeding under Chapter 11 and qualifying for the adoption of fresh-start accounting, on September 29, 2026 (the "Effective Date"), Wolfspeed’s assets and liabilities were recorded at their estimated fair values which, in some cases, are significantly different than amounts included in our financial statements prior to the Effective Date. Accordingly, our condensed consolidated financial statements after the Effective Date are not comparable with our condensed consolidated financial statements on or before that date.

References to “Successor” relate to our financial position and results of operations after the Effective Date. References to “Predecessor” refer to our financial position and results of operations on or before the Effective Date.

Non-GAAP Financial Measures:

This press release highlights the Company's financial results on both a GAAP and a non-GAAP basis. The GAAP results include certain costs, charges and expenses that are excluded from non-GAAP results. By publishing the non-GAAP measures, management intends to provide investors with additional information to further analyze the Company's performance, core results and underlying trends. Wolfspeed's management evaluates results and makes operating decisions using both GAAP and non-GAAP measures included in this press release. Non-GAAP results are not prepared in accordance with GAAP, and non-GAAP information should be considered a supplement to, and not a substitute for, financial statements prepared in accordance with GAAP. Investors and potential investors are encouraged to review the reconciliation of non-GAAP financial measures to their most directly comparable GAAP measures attached to this press release.

Forward Looking Statements:

This press release contains forward-looking statements involving risks and uncertainties, both known and unknown, that may cause Wolfspeed’s actual results to differ materially from those indicated in the forward-looking statements. Forward-looking statements by their nature address matters that are, to different degrees, uncertain, including estimates, forecasts, and projections about possible or assumed future results of Wolfspeed’s business, financial condition, liquidity, results of operations, plans, and objectives and Wolfspeed’s industry and market growth. Words such as “could,” “will,” “may,” “assume,” “forecast,” “position,” “predict,” “strategy,” “expect,” “intend,” “plan,” “estimate,” “anticipate,” “believe,” “project,” “budget,” “potential,” “forward” or “continue” and similar expressions are used to identify forward-looking statements. All statements in this press release that are not historical are forward-looking statements, including statements regarding Wolfspeed’s position in the industry, the impacts of Wolfspeed's recent restructuring and the expected strength of its capital structure, and Wolfspeed's ability to design and sell products for new industries. Actual results could differ materially due to a number of factors, including but not limited to, risks and uncertainties associated with Wolfspeed's recent emergence from Chapter 11 bankruptcy, including the potential effects on Wolfspeed's relationship with its various stakeholders, including customers, vendors, contractors, employees or suppliers, its ability to attract, motivate, and/or retain management and key personnel, its ability to retain customers, and third parties willing to do business with Wolfspeed on acceptable terms or at all; ongoing uncertainty in global economic and geopolitical conditions; changes in progress on infrastructure development or changes in customer or industrial demand that could negatively affect product demand, including as a result of an economic slowdown or recession, collectability of receivables and other related matters if consumers and businesses defer purchases or payments, or default on payments; risks associated with Wolfspeed’s expansion plans, including cost overruns, the timing and amount of government incentives actually received, including, among other things, any direct grants and tax credits, issues in installing and qualifying new equipment and ramping production, poor production process yields and quality control, and potential increases to Wolfspeed’s restructuring costs; Wolfspeed’s ability to obtain additional funding as needed, including, among other things, from government funding, public or private equity offerings, or debt financings, on favorable terms and on a timely basis, if at all; the risk that Wolfspeed does not meet its production commitments to those customers who provide Wolfspeed with capacity reservation deposits or similar payments; the risk that Wolfspeed may experience production difficulties that preclude it from shipping sufficient quantities to meet customer orders or that result in higher production costs, lower yields and lower margins; Wolfspeed’s ability to lower costs; the risk that Wolfspeed’s results will suffer if it is unable to balance fluctuations in customer demand and capacity, including scaling back its manufacturing expenses or overhead costs quickly enough to correspond to lower than expected demand or bringing on additional capacity on a timely basis to meet customer demand; the risk that longer manufacturing lead times may cause customers to fulfill their orders with a competitor’s products instead; product mix; risks associated with the ramp-up of production of Wolfspeed’s new products, and Wolfspeed’s entry into new business channels and industries different from those in which it has historically operated; Wolfspeed’s ability to convert customer design-ins to design-wins and sales of significant volume, and, if customer design-in activity does result in such sales, when such sales will ultimately occur and what the amount of such sales will be; the risk that the markets for Wolfspeed’s products will not develop as it expects, including the adoption of Wolfspeed’s products by electric vehicle manufacturers and the overall adoption of electric vehicles and our ability to diversify our end markets in medium- to high-voltage verticals such as AI datacenters; the risk that the economic and political uncertainty caused by the tariffs imposed or announced by the United States on imported goods, and corresponding tariffs and other retaliatory measures imposed by other countries (including China) in response, may continue to negatively impact demand for Wolfspeed’s products; the risk that Wolfspeed or its channel partners are not able to develop and expand customer bases and accurately anticipate demand from end customers, including production and product mix, which can result in increased inventory and reduced orders as Wolfspeed experiences wide fluctuations in supply and demand; risks related to international sales and purchases; risks resulting from the concentration of Wolfspeed’s business among few customers, including the risk that customers may reduce or cancel orders or fail to honor purchase commitments; the risk that Wolfspeed’s investments may experience periods of significant market value and interest rate volatility causing it to recognize fair value losses on Wolfspeed’s investment; the risk posed by managing an increasingly complex supply chain (including managing the impacts of supply constraints in the semiconductor industry and meeting purchase commitments under take-or-pay arrangements with certain suppliers) that has the ability to supply a sufficient quantity of raw materials, subsystems and finished products with the required specifications and quality; risks relating to outbreaks of infectious diseases or similar public health events, including the risk of disruptions to Wolfspeed’s operations, supply chain, including its contract manufacturers, or customer demand; the risk Wolfspeed may be required to record a significant charge to earnings if its amortizable assets become impaired; risks relating to confidential information theft or misuse, including through cyber-attacks or cyber intrusion; Wolfspeed’s ability to complete development and commercialization of products under development; the rapid development of new technology and competing products that may impair demand or render Wolfspeed’s products obsolete; the potential lack of customer acceptance for Wolfspeed’s products; risks associated with ongoing litigation; the risk that customers do not maintain their favorable perception of Wolfspeed’s brand and products, resulting in lower demand for its products; the risk that Wolfspeed’s products fail to perform or fail to meet customer requirements or expectations, resulting in significant additional costs; risks associated with strategic transactions; the risk that Wolfspeed is not able to successfully execute or achieve the potential benefits of Wolfspeed’s efforts to enhance its value; and other factors discussed in Wolfspeed’s filings with the Securities and Exchange Commission (the “SEC”), including Wolfspeed’s report on Form 10-K for the fiscal year ended June 29, 2025, and subsequent reports filed with the SEC. These forward-looking statements represent Wolfspeed’s judgment as of the date of this press release. Except as required under the U.S. federal securities laws and the rules and regulations of the SEC, Wolfspeed disclaims any intent or obligation to update any forward-looking statements after the date of this press release, whether as a result of new information, future events, developments, changes in assumptions or otherwise.

Wolfspeed® is a registered trademark of Wolfspeed, Inc.

WOLFSPEED, INC

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

  Successor

Predecessor

(in millions of U.S. Dollars, except per share data)

Three months ended March 29, 2026

Three months ended March 30, 2025

Revenue, net

$

150.2

$

185.4

Cost of revenue, net

190.2

207.9

Gross loss

(40.0

)

(22.5

)

Gross margin percentage

(27

)%

(12

)%

Operating expenses:

Research and development

27.2

42.2

Sales, general and administrative

37.0

41.1

Factory start-up costs

—

23.5

Gain on disposal of property and equipment

(0.5

)

(0.2

)

Restructuring and other expenses

10.6

65.4

Total operating expense

74.3

172.0

Operating loss

(114.3

)

(194.5

)

Operating loss percentage

(76

)%

(105

)%

Interest expense, net of capitalized interest

52.1

85.4

Non-operating (income) expense, net

(46.2

)

5.5

Loss before income taxes

(120.2

)

(285.4

)

Income tax (benefit) expense

(0.3

)

0.1

Net loss

($

119.9

)

($

285.5

)

Basic loss per share

Net loss

($

3.05

)

($

1.86

)

Diluted loss per share

Net loss

($

3.05

)

($

1.86

)

Weighted average shares (in thousands)

Basic

39,282

153,897

Diluted

39,282

153,897

WOLFSPEED, INC

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

  Successor

Predecessor

(in millions of U.S. Dollars, except share data)

Period from September 30, 2025 to March 29, 2026

Period from June 30, 2025 to September 29, 2025

Nine months ended March 30, 2025

Revenue, net

$

318.7

$

196.8

$

560.6

Cost of revenue, net

437.0

273.9

656.5

Gross loss

(118.3

)

(77.1

)

(95.9

)

Gross margin percentage

(37

)%

(39

)%

(17

)%

Operating expenses:

Research and development

52.1

31.7

137.5

Sales, general and administrative

66.4

37.9

154.4

Factory start-up costs

—

—

66.0

Gain on disposal of property and equipment

(2.9

)

(5.7

)

(1.0

)

Restructuring and other expenses

38.8

20.4

294.8

Total operating expense

154.4

84.3

651.7

Operating loss

(272.7

)

(161.4

)

(747.6

)

Operating loss percentage

(86

)%

(82

)%

(133

)%

Reorganization items, net

—

(563.4

)

—

Interest expense, net

110.1

0.7

230.4

Non-operating income, net

(113.2

)

(22.4

)

(38.5

)

(Loss) income before income taxes

(269.6

)

423.7

(939.5

)

Income tax expense

0.9

3.5

0.4

Net (loss) income

($

270.5

)

$

420.2

($

939.9

)

Basic (loss) earnings per share

Net (loss) income

($

8.27

)

$

2.69

($

6.88

)

Diluted (loss) earnings per share

Net (loss) income

($

8.27

)

$

2.22

($

6.88

)

Weighted average shares (in thousands)

Basic

32,706

156,185

136,550

Diluted

32,706

189,052

136,550

WOLFSPEED, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

  Successor as of

Predecessor as of

(in millions of U.S. Dollars)

March 29, 2026

June 29, 2025

Assets

Cash, cash equivalents, and short-term investments

$

1,164.8

$

955.4

Accounts receivable, net

96.8

178.8

Inventories, net

280.5

435.4

Prepaid expenses

43.0

97.2

Investment tax credit receivable

71.5

653.4

Other current assets

52.5

222.0

Total current assets

1,709.1

2,542.2

Property and equipment, net

717.1

3,916.5

Intangible assets, net

409.2

23.8

Long-term investment tax credit receivable

109.5

105.0

Other assets

202.4

266.9

Total assets

$

3,147.3

$

6,854.4

Liabilities and Stockholders' Equity

Accounts payable and accrued expenses

$

115.7

$

280.2

Contract liabilities and distributor-related reserves

70.5

50.0

Income taxes payable

0.6

0.8

Finance lease liabilities

0.3

0.5

Current maturity on long-term borrowings

—

6,538.0

Other current liabilities

56.0

220.5

Total current liabilities

243.1

7,090.0

Long-term debt

922.2

—

Convertible notes, net

798.3

—

Finance lease liabilities - long-term

1.8

8.4

Other long-term liabilities

160.2

203.1

Total liabilities

2,125.6

7,301.5

Stockholders’ equity:

Common stock

0.1

0.2

Additional paid-in-capital

1,292.3

4,094.1

Accumulated other comprehensive loss

(0.2

)

(3.8

)

Accumulated deficit

(270.5

)

(4,537.6

)

Total stockholders' equity (deficit)

1,021.7

(447.1

)

Total liabilities and stockholders’ equity (deficit)

$

3,147.3

$

6,854.4

WOLFSPEED, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

  Successor

Predecessor

(in millions of U.S. Dollars)

Period from September 30, 2025 to March 29, 2026

Period from June 30, 2025 to September 29 2025

Nine months ended March 30, 2025

Operating activities:

Net (loss) income

($

270.5

)

$

420.2

($

939.9

)

Adjustments to reconcile net loss to cash used in operating activities of continuing operations:

Non-cash reorganization items

—

(625.6

)

—

Depreciation and amortization

68.3

69.3

191.7

Gain on sale of property

(2.9

)

(5.7

)

(1.0

)

Gain on RTP Fab Transfer

—

(25.4

)

—

Amortization and write-off of deferred financing costs

10.5

—

34.7

Stock-based compensation

17.9

13.6

62.7

Loss on equity investment

—

10.9

9.2

Inventory write-off

29.1

29.0

—

Loss on disposal or impairment of property and equipment

2.9

0.2

153.7

Impairment of right-of-use assets

—

—

4.8

Loss on debt extinguishment

2.8

—

—

Gain on contingent cash

(10.0

)

—

—

Amortization of premium on investments, net

(1.1

)

(1.2

)

(7.8

)

Change in fair value of liability classified derivative contracts

(87.8

)

—

—

Paid-in-kind interest on long-term debt

21.8

—

75.5

Deferred income taxes

1.1

1.0

—

Changes in operating assets and liabilities:

91.5

91.3

(52.8

)

Cash used in operating activities

(126.4

)

(22.4

)

(469.2

)

Investing activities:

Purchases of property and equipment

(67.8

)

(104.0

)

(1,059.5

)

Purchases of patent and licensing rights

(1.8

)

(1.4

)

(3.9

)

Proceeds from sale of property and equipment

26.9

13.9

1.0

Proceeds from sale of MACOM Shares

—

92.7

—

Purchases of short-term investments

(301.7

)

(83.4

)

(243.2

)

Proceeds from maturities of short-term investments

186.3

151.8

773.1

Proceeds from sale of short-term investments

1.0

67.2

39.4

Reimbursement of capital expenditures from incentives and investment credits

733.1

0.1

238.6

Cash provided by (used in) investing activities

576.0

136.9

(254.5

)

Financing activities:

Proceeds from Existing Senior Secured Notes

—

—

240.0

Proceeds from issuance of 1.5L Convertible Notes

379.0

—

—

Proceeds from issuance of New Common Stock and Pre-Funded Warrants

96.9

—

—

Proceeds from issuance of 2L Convertible Notes through the rights offering

—

275.0

—

Payments on Existing Senior Secured Notes

—

(308.5

)

—

Payments of deferred financing costs

(4.8

)

(3.5

)

(40.2

)

Payment of Contingent Cash

—

(10.0

)

—

Proceeds from contingent consideration

10.0

—

—

Proceeds from issuance of Old Common Stock

—

—

203.9

Adequate protection payments on Existing Senior Secured Notes

—

(38.4

)

—

Tax withholding on vested equity awards

—

(0.6

)

(3.9

)

Payments on long-term debt borrowings, including finance lease obligations

(716.4

)

—

(0.4

)

Incentive-related escrow refunds

—

—

10.0

Payment of Existing Senior Secured Notes commitment fees

—

(15.5

)

—

Payment of unused capacity fee on pre-emergence debt

—

—

(1.5

)

Cash (used in) provided by financing activities

(235.3

)

(101.5

)

407.9

Effects of foreign exchange changes on cash and cash equivalents

(0.2

)

0.8

0.1

Net change in cash, cash equivalents and restricted cash

214.1

13.8

(315.7

)

Cash and cash equivalents, beginning of period

481.0

467.2

1,045.9

Cash and cash equivalents, end of period

$

695.1

$

481.0

$

730.2

add: Short-term Investments

$

469.7

$

354.4

$

599.4

Cash, cash equivalents, and short-term investments

$

1,164.8

$

835.4

$

1,329.6

Product Line Revenue

  Successor

Predecessor

(in millions of U.S. Dollars)

Three months ended March 29, 2026

Three months ended March 30, 2025

Power Products

$

100.1

$

107.5

Materials Products

50.1

77.9

Total

$

150.2

$

185.4

Non-GAAP Measures of Financial Performance

To supplement the Company's consolidated financial statements presented in accordance with generally accepted accounting principles ("GAAP"), Wolfspeed uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP gross margin, non-GAAP operating loss, non-GAAP non-operating (expense) income, net, non-GAAP net loss, non-GAAP diluted loss per share, non-GAAP EBITDA, adjusted EBITDA and free cash flow. These measures are presented for continuing operations only.

Reconciliation to the nearest GAAP measure of all historical non-GAAP measures included in this press release can be found in the tables included with this press release.

Non-GAAP measures presented in this press release are not in accordance with or an alternative to measures prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Wolfspeed's results of operations as determined in accordance with GAAP. These non-GAAP measures should only be used to evaluate Wolfspeed's results of operations in conjunction with the corresponding GAAP measures.

Wolfspeed believes that these non-GAAP measures, when shown in conjunction with the corresponding GAAP measures, enhance investors' and management's overall understanding of the Company's current financial performance and the Company's prospects for the future, including cash flows available to pursue opportunities to enhance shareholder value. In addition, because Wolfspeed has historically reported certain non-GAAP results to investors, the Company believes the inclusion of non-GAAP measures provides consistency in the Company's financial reporting.

For its internal budgeting process, and as discussed further below, Wolfspeed's management uses financial statements that do not include the items listed below and the income tax effects associated with the foregoing. Wolfspeed's management also uses non-GAAP measures, in addition to the corresponding GAAP measures, in reviewing the Company's financial results.

Wolfspeed excludes the following items from one or more of its non-GAAP measures when applicable:

Stock-based compensation expense. This expense consists of expenses for stock options, restricted stock, performance stock awards and employee stock purchases through its Employee Stock Purchase Program. Wolfspeed excludes stock-based compensation expenses from its non-GAAP measures because they are non-cash expenses that Wolfspeed does not use to evaluate core operating performance.

Restructuring and facility closure costs. During the first quarter of fiscal 2025, the Company began a headcount reduction and facility consolidation plan (the "2025 Restructuring Plan") to incur costs to optimize its operating model and accelerate its transition to 200 mm silicon carbide offerings through facility closures and headcount reduction initiatives. Wolfspeed does not include these expenses when evaluating core operating activities for strategic decision making, forecasting future results and evaluating current performance, as these activities may be non-recurring, unusual, infrequent or directly related to an event that is distinct and non-reflective of the Company's ongoing business operations. Restructuring and facility closure costs associated with the 2025 Restructuring Plan primarily consist of severance, asset-related charges and other closure-related costs related to facilities in the process of closing or are already closed. Other closure-related costs primarily consist of contract termination costs, manufacturing transition charges and certain inventory abandonments that are directly attributable to a facility closure. Contract termination costs are directly attributable to facility closures and other restructuring-related activities. Manufacturing transition charges include non-productive manufacturing expenses incurred during the period from when shutdown activities commence to when a facility is closed. Inventory abandonments relate to identification and disposal of inventory that will not be utilized after a product line is transferred to a new manufacturing location. Loss on disposition of assets results from abandonment of non-productive assets in accordance with a restructuring plan. During the second quarter of fiscal 2026, the Company implemented and substantially completed a headcount reduction. The costs related to this initiative, primarily severance, were recorded in the second quarter of fiscal 2026.

Amortization of acquisition-related intangibles. Wolfspeed incurred amortization or impairment of acquisition-related intangibles in connection with acquisitions. Wolfspeed excludes these items because they are non-cash expenses that Wolfspeed does not use to evaluate core operating performance. These costs are recorded within "Restructuring and other expenses". Amortization related to intangibles recognized upon the adoption of fresh start accounting are not excluded from non-GAAP measures other than EBITDA.

Legal Settlement. In the third quarter of fiscal 2025, Wolfspeed incurred costs to settle legal matters that were considered outside the ordinary course of business, given the nature of the litigation and remedies sought. Wolfspeed excludes these extraordinary items because Wolfspeed believes they are not indicative of Wolfspeed's overall operating performance.

Change in fair value of liability-classified derivative contracts. The Company remeasures liability-classified derivatives, including the forward equity contract, an embedded conversion feature on one of its new 2.5% Convertible Second-Lien Senior Secured Notes due 2031, and its liability-classified warrant, to fair value each reporting period. Each derivative contract was remeasured using the observable market prices, Goldman Sachs binomial lattice model and a Black-Scholes model, respectively. Wolfspeed excludes the impact of these gains or losses from its non-GAAP measures because Wolfspeed believes they are not reflective of the ongoing operating results of Wolfspeed's business.

Gain/loss on disposal of property and equipment. Wolfspeed sold idle equipment and a building, which included the building improvements and land during fiscal 2026. Wolfspeed does not believe these gains and losses are reflective of ongoing operating results.

Project, transformation and transaction costs. The Company has incurred professional services fees and other costs associated with completed and potential acquisitions and divestitures, transformation programs focused on optimizing the Company's administrative processes, and certain costs associated with the Chapter 11 cases that are not accounted for as Reorganization items, net in accordance with ASC 852. These costs are recorded within "Restructuring and other expenses". Wolfspeed excludes these items because Wolfspeed believes they are not reflective of the ongoing operating results of Wolfspeed's business.

Amortization of premiums, discount and debt issuance costs. net Interest expense for certain of the Company's outstanding debt obligations includes amortization of premiums/discount and debt issuance costs. Wolfspeed excludes amortization of premium/discount and debt issuance costs from its non-GAAP measures because they are non-cash expenses that Wolfspeed does not use to evaluate core operating performance.

Gain/Loss on equity investment. The Company received shares of MACOM common stock in connection with the divestiture of the RF product line. These shares are accounted for utilizing the fair value option and changes in the fair value of the shares are recognized in income. The Company disposed of the MACOM shares in September 2025. Wolfspeed excluded the impact of these gains or losses from its non-GAAP measures because Wolfspeed believes it is not reflective of the ongoing operating results of Wolfspeed's business.

Gain/loss on contingent cash gain. During the third quarter of fiscal 2026, the $10 million held in escrow in accordance with the Chapter 11 plan of reorganization was remitted back to the Company, resulting in a gain for the Company. Wolfspeed does not believe the gain is reflective of the ongoing operating results of Wolfspeed's business.

Gain/loss on debt extinguishment. The Company recognizes gains/losses on debt extinguishment which represents the accounting impact of partial principal repayments on its long-term debt, equal to the difference between the net carrying amount of the extinguished portion of the debt and the reacquisition price (including any premiums and third-party costs). Wolfspeed believes it is not reflective of the ongoing operating results of Wolfspeed's business.

Income tax adjustment. This amount reconciles GAAP tax expense (benefit) to a calculated non-GAAP tax expense (benefit) utilizing a non-GAAP tax rate. The non-GAAP tax rate estimates an appropriate tax rate if the listed non-GAAP adjustments were excluded. The non-GAAP tax rate estimate applied to the non-GAAP adjustments includes application of a zero-tax rate where a valuation allowance exists on a non-GAAP basis. This reconciling item adjusts non-GAAP net (loss) income to the amount it would be if the calculated non-GAAP tax rate was applied to non-GAAP (loss) income before income taxes.

Wolfspeed may incur some of these same expenses, including income taxes associated with these expenses, in future periods.

In addition to the non-GAAP measures discussed above, Wolfspeed also uses free cash flow as a measure of operating performance and liquidity. Free cash flow represents operating cash flows from continuing operations, less net purchases of property and equipment and patent and licensing rights. Wolfspeed considers free cash flow to be an operating performance and a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business after the purchases of property and equipment, a portion of which can then be used to, among other things, invest in Wolfspeed's business, make strategic acquisitions and strengthen the balance sheet. A limitation of the utility of free cash flow as a measure of operating performance and liquidity is that it does not represent the residual cash flow available to the company for discretionary expenditures, as it excludes certain mandatory expenditures such as debt service.

WOLFSPEED, INC.

Reconciliation of GAAP to Non-GAAP Measures

(in millions of U.S. Dollars, except per share amounts and percentages)

(unaudited)

  Non-GAAP Gross Margin

  Successor

Predecessor

Three months ended March 29, 2026

Three months ended March 30, 2025

GAAP gross loss

($

40.0

)

($

22.5

)

GAAP gross margin percentage

(27

)%

(12

)%

Adjustments:

Stock-based compensation expense

2.8

9.7

Restructuring and facility closure costs

6.2

16.8

Non-GAAP gross (loss) profit

($

31.0

)

$

4.0

Non-GAAP gross margin percentage

(21

)%

2

%

Non-GAAP Operating Loss

  Successor

Predecessor

Three months ended March 29, 2026

Three months ended March 30, 2025

GAAP operating loss

($

114.3

)

($

194.5

)

GAAP operating loss percentage

(76

)%

(105

)%

Adjustments:

Stock-based compensation expense:

Cost of revenue, net

2.8

9.7

Research and development

1.2

3.1

Sales, general and administrative

6.3

6.0

Total stock-based compensation expense

10.3

18.8

Amortization of acquisition-related intangibles

—

0.3

Legal settlements

—

17.0

Project, transformation and transaction costs

5.0

6.8

Restructuring and facility closure costs:

Cost of revenue, net

6.2

16.8

Restructuring and other expenses

1.7

40.7

Total restructuring and other costs

7.9

57.5

Gain on disposal of property and equipment

(0.5

)

—

Total adjustments to GAAP operating loss

22.7

100.4

Non-GAAP operating loss

($

91.6

)

($

94.1

)

Non-GAAP operating loss percentage

(61

)%

(51

)%

Non-GAAP Non-Operating Income (Expense), net

  Successor

Predecessor

Three months ended March 29, 2026

Three months ended March 30, 2025

GAAP non-operating income (expense), net

($

5.9

)

($

90.9

)

Adjustments:

Change in fair value of liability classified derivative contracts

(28.7

)

—

Loss on debt extinguishment

2.8

—

Loss on equity investment

—

24.9

Amortization of premiums, discount and debt issuance costs, net

4.9

14.5

Gain on contingent cash

(10.0

)

—

Non-GAAP non-operating income (expense), net

($

36.9

)

($

51.5

)

Non-GAAP Net Loss

  Successor

Predecessor

Three months ended March 29, 2026

Three months ended March 30, 2025

GAAP net loss

($

119.9

)

($

285.5

)

Adjustments:

Stock-based compensation expense

10.3

18.8

Amortization of acquisition-related intangibles

—

0.3

Legal settlements

—

17.0

Project, transformation and transaction costs

5.0

6.8

Restructuring and facility closure costs

7.9

57.5

Gain on disposal of property and equipment

(0.5

)

—

Loss on equity investment

—

24.9

Amortization of premiums, discount and debt issuance costs, net

4.9

14.5

Change in fair value of liability classified derivative contracts

(28.7

)

—

Loss on debt extinguishment

2.8

—

Gain on contingent cash

(10.0

)

—

Total adjustments to GAAP net loss before provision for income taxes

(8.3

)

139.8

Income tax adjustment - benefit

—

34.9

Non-GAAP net loss

($

128.2

)

($

110.8

)

Non-GAAP diluted loss per share

($

3.26

)

($

0.72

)

Diluted weighted average shares (in thousands)

39,282

153,897

Adjusted EBITDA

  Successor

Predecessor

Three months ended March 29, 2026

Three months ended March 30, 2025

GAAP net loss

($

119.9

)

($

285.5

)

Income tax (benefit) expense

(0.3

)

0.1

Interest expense, net

41.2

65.9

Depreciation and amortization

30.9

53.9

EBITDA (Non-GAAP)

(48.1

)

(165.6

)

Reconciling items to adjusted EBITDA (Non-GAAP)

Stock based compensation

10.3

18.8

Project, transformation and transaction costs

5.0

6.8

Legal settlements

—

17.0

Loss on equity investment

—

24.9

Restructuring and facility closure costs(1)

7.5

52.9

Gain on disposal of property and equipment

(0.5

)

—

Change in fair value of liability classified derivative contracts

(28.7

)

—

Loss on debt extinguishment

2.8

—

Gain on contingent cash

(10.0

)

—

Adjusted EBITDA (Non-GAAP)

($

61.7

)

($

45.2

)

Free Cash Flow

  Successor

Predecessor

Three months ended March 29, 2026

Three months ended March 30, 2025

Net cash used in operating activities

($

83.8

)

($

142.1

)

Less: PP&E spending, net of reimbursements from long-term incentive agreement

(5.0

)

(24.1

)

Less: Patents spending

(1.2

)

(1.5

)

Total free cash flow

($

90.0

)

($

167.7

)

More News From Wolfspeed, Inc.

Wolfspeed stock is challenging resistance. What’s driving WOLF to record levels? Today's move looks like a classic rebound: the stock sold off on the headline numbers, and now traders are stepping back in as the dust settles.

The Setup: A Bad Quarter Yesterday, A Relief Move TodayThe company reported a third-quarter loss of $3.26 per share, much deeper than the $2.02 loss analysts expected and far worse than the 72 cent loss in the same quarter last year. Revenue came in at $150.2 million, well below the $194.8 million consensus and down nearly 19% year‑over‑year.

Wolfspeed also guided fourth-quarter revenue to $140 through $160 million, with gross margins expected to stay negative.

Balance Sheet Moves May Be Stabilizing SentimentThe company refinanced $476 million of first‑lien debt, which reduced its total debt by $97 million and lowered annual interest expense by an estimated $62 million.

Management also noted that Wolfspeed's equity position improved by more than $400 million, largely due to the strategic refinancing and the reclassification of Renesas ownership following CFIUS clearance. Liquidity remains solid as well, with $1.2 billion in cash, cash equivalents and short‑term investments at the end of the quarter.

Management also pointed to ongoing product and technology progress, including the launch of its next‑generation TOLT portfolio, the first commercially available 10 kV silicon carbide MOSFET, and continued advancement of its 300mm substrate platform. The CFO, Gregor van Issum, emphasized that these moves significantly strengthen the balance sheet and give the company more flexibility to fund its highest‑priority initiatives.

WOLF Shares Are On The RiseWOLF Price Action: Wolfspeed shares were up 16.11% at $42.53 at the time of publication on Wednesday. The stock is trading at a new 52-week high, according to Benzinga Pro.

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While shares of Wolfspeed (WOLF 6.89%) skyrocketed following its fiscal third-quarter earnings report, the company still faces serious issues. The question is: Could the company be headed toward bankruptcy again?

Remarkably, Wolfspeed shares are up nearly 170% this year, as of this writing. The company emerged from bankruptcy last fall with reduced debt and a new management team. However, the operational issues the company has faced have not yet been fixed.

Today's Change

(

-6.89

%) $

-3.14

Current Price

$

42.40

Serious issues remain Two of Wolfspeed's biggest issues before bankruptcy were negative gross margins and operating cash flow, and those issues have not gone away. For fiscal Q3, Wolfspeed recorded a gross margin of -27%, while its adjusted gross margin was -21%. That means it is selling its silicon carbide components for less than it costs to make them.

This pricing crunch stems largely from underutilization of its manufacturing facility, which it said contributed roughly $46 million. However, even if you strip that out, its gross margins would still be a paltry 4.6%. The company has struggled with yield issues in the past. On the earnings call, management said that it is "making progress with qualification on 200 millimeter material." Wolfspeed is still trying to prove to customers that its 200 millimeter wafers are reliable and defect-free.

At the same time, Wolfspeed's sales have struggled, which is also likely contributing to its underutilization issues. In fiscal Q3, its revenue fell 19% to $150.2 million. Electric vehicles (EVs) were supposed to be the big market for its silicon carbide chips, but the company has been struggling in this segment despite increasing EV adoption. As a result, it is trying to shift into other markets, like AI data centers, but it's still early.

Meanwhile, the company continues to burn cash. It produced negative operating cash flow of $84 million in the quarter. It ended the quarter with $1.2 billion in cash and short-term investments against $1.7 billion in debt, of which $798.3 million was in the form of convertible debt. In May, after the quarter, it closed a private placement of stock, convertible notes, and pre-funded warrants and redeemed nearly $476 million in senior secured notes. It said the move will save it $62 million a year in interest expense.

Looking ahead, Wolfspeed guided that its fiscal fourth-quarter revenue would come in between $140 million and $160 million. That's down from $197 million last year.

Image source: Getty Images.

Given Wolfspeed's cash on hand and cash outflows together with the interest expense savings it will get from its recent balance sheet reshuffling, it doesn't look like the company is headed toward bankruptcy again any time soon.

However, this business continues to struggle. It doesn't appear that Wolfspeed has convinced its customers that its yield issues with 200millimeter wafers are fully resolved, and it is already trying to move to 300mm, which is even more technologically challenging. Meanwhile, what was supposed to be its main market with EVs just isn't materializing.

As such, this is a stock I'd be selling.