WOLFSPEED, INC. (WOLF): Results of Operations and Financial Condition
WOLFSPEED, INC. (WOLF) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Wolfspeed Reports Financial Results for the Fourth Quarter of Fiscal 2026 DURHAM, N.C. August 19, 2026 -- Wolfspeed, Inc. (NYSE: WOLF) today announced its results for the fourth quarter of fiscal 2026. Business Highlights • AI data center revenue more than doubled ye
How this was made
The 30-second read
Why it matters
The earnings release provides fresh guidance and highlights both growth in AI data‑center revenue and significant losses, shaping short‑term market sentiment.
Market read
The earnings miss and negative guidance are likely to pressure Wolfspeed and may influence related semiconductor stocks.
What to watch
The launch of a fifth‑generation SiC MOSFET and a new data‑center team may provide longer‑term upside not reflected in the short‑term numbers.
Wolfspeed reported fourth-quarter revenue of $149.6 million, negative gross margins and a $145.4 million GAAP net loss, while guiding fiscal first-quarter 2027 revenue to $140 million to $160 million.
Revenue was aligned with the midpoint of guidance and AI data center revenue grew approximately 20% sequentially, but total revenue declined versus the reported predecessor-year period, gross margins remained negative, adjusted EBITDA was negative, and operating cash flow and free cash flow were negative.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, netGAAP | $149.6 million | – | – |
| Cost of revenue, netGAAP | $186.4 million | – | – |
| Gross lossGAAP | ($36.8) million | – | – |
| Gross margin percentageGAAP | (25)% | – | – |
| Gross (loss) profitnon-GAAP | ($29.8) million | – | – |
| Gross margin percentagenon-GAAP | (20)% | – | – |
| Research and development expenseGAAP | $27.9 million | – | – |
| Sales, general and administrative expenseGAAP | $37.3 million | – | – |
| Restructuring and other expensesGAAP | $15.9 million | – | – |
| Operating lossGAAP | ($115.4) million | – | – |
| Operating loss percentageGAAP | (77)% | – | – |
| Operating lossnon-GAAP | ($92.1) million | – | – |
| Operating loss percentagenon-GAAP | (62)% | – | – |
| Interest expense, net of capitalized interestGAAP | $39.8 million | – | – |
| Net lossGAAP | ($145.4) million | – | – |
| Diluted loss per shareGAAP | ($2.81) | – | – |
| Net lossnon-GAAP | ($116.9) million | – | – |
| Non-GAAP diluted loss per sharenon-GAAP | ($2.26) | – | – |
| Adjusted EBITDAnon-GAAP | ($62.4) million | – | – |
| Net cash used in operating activitiesother | ($54.1) million | – | – |
| Free cash flownon-GAAP | ($60.9) million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Power ProductsThe filing cited strong growth in AI data center applications and the launch of the fifth-generation SiC MOSFET, but did not provide a product-line-specific revenue driver. | $106.3 million | – | – |
| Materials ProductsNot specified in the filing. | $43.3 million | – | – |
First quarter of fiscal 2027 outlook
- Revenue$140 million to $160 million
- Gross marginNon-GAAP gross margin expected to remain negative
- Operating expenses$62 million to $66 million non-GAAP operating expenses
What drove it
- AI data center revenue more than doubled year-over-year in fiscal 2026 and increased approximately 20% sequentially in the fourth quarter.
- The company launched its fifth-generation SiC MOSFET.
- Wolfspeed launched a dedicated data center solutions team based in Silicon Valley and announced a strategic collaboration with LITEON Technology.
- The company announced a Memorandum of Understanding with GE Aerospace.
- Additional headcount reductions were implemented in the second and fourth quarters of fiscal 2026.
Concerns
- GAAP gross margin was (25)% and non-GAAP gross margin was (20)%.
- The company reported a GAAP operating loss of ($115.4) million, GAAP net loss of ($145.4) million, and adjusted EBITDA of ($62.4) million.
- Operating cash flow was ($54.1) million and free cash flow was ($60.9) million.
- The company expects non-GAAP gross margin to remain negative in the first quarter of fiscal 2027.
- The filing states that post-Effective Date Successor financial statements are not comparable with Predecessor financial statements on or before September 29, 2025 because of fresh-start accounting following emergence from Chapter 11.
What to watch
- Revenue delivery within the $140 million to $160 million range for the first quarter of fiscal 2027.
- Whether non-GAAP gross margin remains negative as guided and the pace of margin improvement.
- Growth in AI data center applications following approximately 20% sequential AI data center revenue growth in the fourth quarter.
- Execution of initiatives to reduce debt and cost of capital.
- The impact of additional headcount reductions and the company's stated non-GAAP operating-expense target of $62 million to $66 million.
Balance sheet and cash flow
- $1,088.6 million of cash, cash equivalents, and short-term investments as of June 28, 2026.
- $576.3 million of cash and cash equivalents and $512.3 million of short-term investments as of June 28, 2026.
- $931.0 million of long-term debt as of June 28, 2026.
- $756.5 million of convertible notes, net, as of June 28, 2026.
- Holders of $46 million of convertible notes exercised a voluntary conversion of their debt to equity during the fourth quarter.
- Successor-period cash used in operating activities was ($180.8) million for the period from September 30, 2025 to June 28, 2026.
- Successor-period purchases of property and equipment were ($72.9) million for the period from September 30, 2025 to June 28, 2026.
- Successor-period reimbursement of capital expenditures from incentives and investment credits was $733.2 million for the period from September 30, 2025 to June 28, 2026.
- Successor-period cash provided by investing activities was $530.7 million for the period from September 30, 2025 to June 28, 2026.
- Successor-period cash used in financing activities was ($254.0) million for the period from September 30, 2025 to June 28, 2026.
Analysis
Wolfspeed generated $149.6 million of fourth-quarter revenue, which the company described as aligned with the midpoint of its guidance range. Power Products contributed $106.3 million and Materials Products contributed $43.3 million. The company highlighted AI data center revenue as its fastest-growing end market, stating that it more than doubled year-over-year in fiscal 2026 and increased approximately 20% sequentially in the fourth quarter. Product and commercial actions included the launch of the fifth-generation SiC MOSFET, a dedicated Silicon Valley data center solutions team, a strategic collaboration with LITEON Technology, and a Memorandum of Understanding with GE Aerospace.
Profitability remained under pressure. GAAP gross loss was ($36.8) million, producing a (25)% GAAP gross margin, while non-GAAP gross loss was ($29.8) million and non-GAAP gross margin was (20)%. GAAP operating loss was ($115.4) million, non-GAAP operating loss was ($92.1) million, and adjusted EBITDA was ($62.4) million. Fourth-quarter restructuring and other expenses were $15.9 million, and the filing also states that the company implemented additional headcount reductions in the second and fourth quarters of fiscal 2026.
Cash generation remained negative in the quarter, with net cash used in operating activities of ($54.1) million and free cash flow of ($60.9) million. At June 28, 2026, the company reported $1,088.6 million of cash, cash equivalents, and short-term investments, alongside $931.0 million of long-term debt and $756.5 million of convertible notes, net. Management emphasized debt reduction and lowering the cost of capital, while noting that holders of $46 million of convertible notes voluntarily converted debt to equity during the fourth quarter.
For the first quarter of fiscal 2027, Wolfspeed expects revenue of $140 million to $160 million, non-GAAP gross margin to remain negative, and non-GAAP operating expenses of $62 million to $66 million. The immediate operating focus is therefore on maintaining demand momentum in AI data center applications while improving a gross-margin profile that remains below zero. Comparisons with the predecessor-year period require caution because the company states that its Successor financial statements after September 29, 2025 are not comparable with Predecessor financial statements on or before that date due to fresh-start accounting after its Chapter 11 emergence.
Management, verbatim
We continued to expand our device business, highlighted by strong growth in AI data center applications and the launch of our fifth-generation SiC MOSFET. These achievements strengthen our technology leadership and confidence in our long-term growth opportunities.
Robert Feurle, CEO
We are aggressively targeting initiatives to further reduce our debt and cost of capital as well as enhance our financial positioning.
Gregor van Issum, CFO
Not in the filing
stated, not guessed- Previous-quarter financial results and sequential comparisons for consolidated revenue, product-line revenue, margins, earnings, cash flow, and other core financial metrics.
- Prior-quarter outlook, so comparison of reported results with prior guidance.
- Numerical first-quarter fiscal 2027 non-GAAP gross-margin guidance.
- GAAP operating-expense guidance and a quantitative reconciliation of non-GAAP operating-expense guidance to GAAP operating expenses.
- Forward tax-rate guidance.
- Share repurchases, dividends, or other shareholder capital-return amounts.
- A reported fourth-quarter debt repayment amount.
- Product-line-specific year-over-year and sequential percentage changes.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Wolfspeed emerged from Chapter 11 bankruptcy and is now reporting its first post‑bankruptcy earnings.
Ticker impact
Wolfspeed reported Q4 2026 results with $150M revenue, GAAP net loss of $145M and gave Q1 2027 guidance of $140-160M revenue.
Potential short‑term price decline as investors digest the loss and weak guidance.
The disclosed loss and negative guidance are material new facts that typically trigger sell pressure.
Market effects
AI data‑center and SiC semiconductor segments may see heightened scrutiny after Wolfspeed's weak results.
U.S. semiconductor stocks could face short‑term pressure.
Limited to the semiconductor sector; no broad macro impact.
Counterpoint
If investors believe the AI data‑center opportunity will materialize, the stock could be undervalued despite the loss.
Key entities
- CompanyWolfspeed, Inc.
U.S. listed semiconductor manufacturer (NYSE: WOLF).
- CompanyGE Aerospace
Partner in a memorandum of understanding with Wolfspeed.
