WOLF earnings analysis
What we found in WOLF's 10-K: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Wolfspeed has a credible silicon-carbide strategy centered on vertical integration, 200mm production, power products and emerging AI data-center demand, but the financial trajectory remains severely impaired. The 39-week Successor period produced $468.3 million of revenue, a negative 33.1% gross margin, a negative 82.9% operating margin and diluted EPS of negative $10.64, while prior annual revenue declined from $807.2 million in fiscal 2024 to $757.6 million in fiscal 2025. Bankruptcy reduced legacy obligations and improved liquidity, but high-cost secured debt, facility underutilization, customer concentration and uncertain demand leave the risk/reward unfavorable until sustained margin and cash-flow improvement is demonstrated.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Silicon carbide strategy remains differentiated
- Management positions Wolfspeed as a vertically integrated supplier of U.S.-made silicon carbide products and identifies four priorities: advancing technology leadership, diversifying revenue and customers, driving operational excellence, and strict financial discipline.
- Power products and AI are growth focus
- AI data center demand is identified as an emerging growth opportunity, alongside grid modernization and renewable energy and storage. Power Products generated $324.7 million, or 69.3% of Successor-period revenue, while Materials Products generated $143.6 million.
- Mix is shifting toward power products
- Power Products increased year over year on stronger industrial demand and emerging AI/data-center applications, partly offset by reduced automotive demand and pricing pressure. Materials Products declined as customers rebalanced supply against weaker end-market demand and Chinese substrate supply increased.
- Liquidity strengthened after restructuring
- Liquidity improved after restructuring: cash, cash equivalents and short-term investments totaled $1.0886 billion at June 28, 2026, versus $955.4 million at June 29, 2025. The company also received approximately $733.2 million in investment-credit and government-incentive reimbursements during the Successor period.
- Capex is being materially reduced
- Capital intensity moderated sharply: purchases of property and equipment were $72.9 million in the 39-week Successor period versus $1.2714 billion in fiscal 2025 and $2.2740 billion in fiscal 2024.
- Debt repayment prioritized
- The company reduced New Senior Secured Notes principal by $175.0 million in December 2025 and redeemed another $475.9 million in March 2026, funded by $379.0 million of 1.5L convertible notes and approximately $96.9 million of equity and pre-funded-warrant proceeds.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Post-bankruptcy comparability and execution
- The Chapter 11 emergence and fresh-start accounting create a new reporting entity: the company states post-September 29, 2025 results are not comparable with historical periods. The plan was based on a $3.8 billion reorganization value versus approximately $7.6 billion of post-petition liabilities and allowed claims.
- High-cost debt and liquidity covenant
- Although debt was reduced, the company had $1.6875 billion of debt carrying value at June 28, 2026, including $695.1 million of New Senior Secured Notes and $992.4 million of convertible and second-lien notes. The New Senior Secured Notes require at least $350.0 million of unrestricted cash and, because the June 23, 2026 step-down conditions were not met, carry a 15.875% cash interest rate.
- Concentrated and noncommitted customer demand
- Customer concentration remains material and shifted toward a larger single-customer exposure: two customers represented 11% and 27% of Successor-period revenue, compared with 19% and 18% in fiscal 2025. The filing also states many orders are purchase-order based without long-term commitments, increasing revenue volatility if customers alter purchasing behavior.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-10.64
- Gross margin
- -33.1%
- Operating margin
- -82.9%
- Segment
- Power Products: $324.7 million, 69.3% of Successor-period revenue
- Segment
- Materials Products: $143.6 million, 30.7% of Successor-period revenue
- Segment
- One reportable segment; product lines are disclosed separately
What they said about what is next.
The 10-K does not provide formal annual numeric guidance. Management says fiscal 2027 gross capital investment is expected to continue decreasing, while the timing and extent of demand growth remain uncertain.
The filing reads worse than the one before it.
What came before.
- 10-Q · May 7, 2026
- Wolfspeed reported Q3 fiscal 2026 earnings with total revenue of $150.2 million, slightly surpassing the consensus estimate of $150 million. The company posted an EPS loss of -$3.26, better than the expected -$3.94,…
- 10-Q · November 7, 2025
- Wolfspeed reported net revenue of $196.8 million for the quarter ended September 28, 2025 (up $2.1 million vs $194.7 million a year ago). The company recorded a net loss of $643.6 million (loss per share $4.12) driven…
- 10-K · August 26, 2025
- Wolfspeed, Inc. (WOLF) is undergoing significant restructuring through a Chapter 11 filing aimed at reducing debt by approximately 70%, or about $4.6 billion, while continuing to operate as a debtor-in-possession. The…
- 10-Q · January 30, 2025
- Wolfspeed reported quarterly revenue of $180.5 million and a gross loss of $37.2 million, with operating loss widening to $323.0 million and net loss of $372.2 million (EPS -$2.88). Liquidity shows large investment in…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
Read the next one first.
We read every filing WOLF makes the day it lands, and put it next to what the options market did about it. Members get both, and an alert when a filing arrives.
Cancel anytime · Month to month · Switch tiers whenever