Wolfspeed Loses $144 Million On $155 Million Of Revenue And Targets Near-Breakeven Adjusted Margin
The silicon carbide maker targets $155 million to $175 million in second-quarter revenue and cites a conditional $1.5 billion government loan.
Wolfspeed, which makes silicon carbide materials and power devices, lost $144 million on revenue of about $155 million in its fiscal first quarter, results it released Wednesday. Revenue came in above the midpoint of the company's guidance, and management targets an adjusted gross margin approaching breakeven next quarter.
Margins improve, losses persist
Gross margin was negative 22% under standard accounting and negative 13% on an adjusted basis, the company reported. CFO Gregor van Issum said the adjusted margin improved 710 basis points from the prior quarter, on a slightly higher revenue base.
Adjusted EBITDA, an operating-profit measure that strips out many costs, was negative $55 million. Operating cash flow was negative $84 million, and the net loss works out to $2.61 a share.
Cash, cash equivalents and short-term investments stood at $995.1 million on September 27, down from $1,088.6 million at June 28. Power products brought in $116.8 million of revenue and materials $38.2 million.
Fresh-start accounting took effect September 29, 2025, when Wolfspeed emerged from Chapter 11, so year-earlier figures are not comparable with the current period.
A $1.5 billion loan and new supply deals
Wolfspeed announced a conditional 30-year, $1.5 billion loan commitment from the U.S. Department of War. CEO Robert Feurle said it, together with the long-term supply agreements, supports a return to "long-term, sustainable growth." Van Issum said the loan, once completed, is expected to deliver significant annual interest savings.
The commitment depends on due diligence, definitive agreements and government approvals. Wolfspeed also extended its silicon carbide wafer supply agreement with Infineon Technologies to include 200mm, and announced a multiyear device supply agreement supporting BorgWarner's 800V inverter platform.
The company makes bare and epitaxial wafers, diodes, transistors and power modules for electric vehicles, AI data centers, solar inverters and grid equipment.
Guidance for the second quarter
For the second quarter, Wolfspeed targets revenue of $155 million to $175 million and adjusted operating expenses of $65 million to $69 million. It holds its earnings call at 5:00 p.m. Eastern on Wednesday.
Wolfspeed's second-quarter revenue target starts at the $155 million it just reported.
Sources
- 8-K Filing — WOLFSPEED, INC. (WOLF) — SEC EDGAR
- Exhibit ex991q1-27.htm — WOLFSPEED, INC. 8-K exhibit — SEC EDGAR
- WOLF Stock: Wolfspeed Just Got a New Catalyst from BorgWarner — Yahoo Finance
- Wolfspeed (WOLF) Could Be 17% Undervalued Following New Silicon Carbide Deals — Yahoo Finance
- What Is Wolfspeed (WOLF) Signaling With Its New Tech And EV Supply Deal? — Yahoo Finance
- Wolfspeed secures multiyear silicon carbide supply deal with BorgWarner for EV inverters - Automotive Technology Insight | Forecasts | Industry News | Supply Chain — autotechinsight.spglobal.com
- Wolfspeed Reports Financial Results for the First Quarter of Fiscal 2027 — businesswire.com
