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,…
Earnings analysis · 10-K
WOLF earnings analysis
Filed August 20, 2026 · Our reading of the company's report
The latest report
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…
Read full summary
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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-10.64
- Gross margin
- -33.1%
- Operating margin
- -82.9%
What stood out
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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.
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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.
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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.
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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.
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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.
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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.
What to watch
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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.
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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.
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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.
Management's outlook
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.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.