Wolfspeed Reports Financial Results for the First Quarter of Fiscal 2027
WOLFSPEED, INC. (WOLF) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Wolfspeed Reports Financial Results for the First Quarter of Fiscal 2027 DURHAM, N.C. November 4, 2026 -- Wolfspeed, Inc. (NYSE: WOLF) today announced its results for the first quarter of fiscal 2027. Recent Business Highlights • Announced conditional 30-year, $1.5 b
How this was made
The 30-second read
Why it matters
The earnings release provides fresh quantitative data and guidance, creating immediate trading opportunities.
Market read
First‑report earnings and guidance for a mid‑cap semiconductor firm, with a large government loan, make the article highly relevant for traders.
What to watch
Execution risk on the new supply agreements and the timeline for the loan disbursement may delay expected benefits.
Wolfspeed reported first-quarter fiscal 2027 revenue of $155.0 million, GAAP gross margin of (22) %, GAAP net loss of ($143.8) million, and adjusted EBITDA of ($54.7) million.
Revenue was $155.0 million and above the midpoint of guidance, while gross margin, operating income, net income, operating cash flow and free cash flow remained negative. The company guided to sequential non-GAAP gross-margin improvement approaching breakeven and cited conditional government financing and supply agreements as strategic support.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, net, three months ended September 27, 2026GAAP | $155M | – | – |
| Cost of revenue, net, three months ended September 27, 2026GAAP | 189.0 | – | – |
| Gross loss, three months ended September 27, 2026GAAP | (34.0) | – | – |
| Gross margin percentage, three months ended September 27, 2026GAAP | (22) % | – | – |
| Research and development, three months ended September 27, 2026GAAP | 27.8 | – | – |
| Sales, general and administrative, three months ended September 27, 2026GAAP | 39.9 | – | – |
| Gain on disposal of property and equipment, three months ended September 27, 2026GAAP | (3.2) | – | – |
| Restructuring and other expenses, three months ended September 27, 2026GAAP | 14.3 | – | – |
| Total operating expense, three months ended September 27, 2026GAAP | 78.8 | – | – |
| Operating loss, three months ended September 27, 2026GAAP | ($112.8) | – | – |
| Operating loss percentage, three months ended September 27, 2026GAAP | (73) % | – | – |
| Reorganization items, net, three months ended September 27, 2026GAAP | — | – | – |
| Interest expense, net, three months ended September 27, 2026GAAP | 40.0 | – | – |
| Non-operating (income) expense, net, three months ended September 27, 2026GAAP | (9.1) | – | – |
| Loss before income taxes, three months ended September 27, 2026GAAP | (143.7) | – | – |
| Income tax expense (benefit), three months ended September 27, 2026GAAP | 0.1 | – | – |
| Net loss, three months ended September 27, 2026GAAP | ($143.8) | – | – |
| Basic and diluted loss per share, three months ended September 27, 2026GAAP | ($2.61) | – | – |
| Weighted average shares, basic and diluted, three months ended September 27, 2026GAAP | 55,000 | – | – |
| Non-GAAP gross (loss) profit, three months ended September 27, 2026non-GAAP | ($19.8) | – | – |
| Non-GAAP gross margin percentage, three months ended September 27, 2026non-GAAP | (13) % | improved 710 basis points sequentially | – |
| Non-GAAP operating loss, three months ended September 27, 2026non-GAAP | ($83.4) | – | – |
| Non-GAAP operating loss percentage, three months ended September 27, 2026non-GAAP | (54) % | – | – |
| Non-GAAP non-operating income (expense), net, three months ended September 27, 2026non-GAAP | ($27.9) | – | – |
| Non-GAAP net loss, three months ended September 27, 2026non-GAAP | ($111.4) | – | – |
| Non-GAAP diluted loss per share, three months ended September 27, 2026non-GAAP | ($2.03) | – | – |
| EBITDA, three months ended September 27, 2026non-GAAP | (83.8) | – | – |
| Adjusted EBITDA, three months ended September 27, 2026non-GAAP | ($54.7) | – | – |
| Net cash used in operating activities, three months ended September 27, 2026GAAP | ($84.2) | – | – |
| Total free cash flow, three months ended September 27, 2026non-GAAP | ($96.5) | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Power ProductsNot separately provided. | $116.8M | – | – |
| Materials ProductsNot separately provided. | 38.2 | – | – |
Amounts quoted below without a unit are in millions, as in the filing’s tables. Per-share figures are as printed.
Second quarter of fiscal 2027 outlook
- Revenuebetween $155 million and $175 million
- Gross marginsequential non-GAAP gross margin improvement approaching breakeven
- Operating expensesbetween $65 million and $69 million
What drove it
- The company announced a conditional 30-year, $1.5 billion loan commitment from the U.S. Department of War to advance the domestic wide bandgap supply chain.
- Wolfspeed expanded and extended its existing 150mm long-term silicon carbide wafer supply agreement with Infineon Technologies AG to include 200mm.
- The company announced a multiyear supply agreement for silicon carbide devices supporting BorgWarner's next-generation 800V silicon carbide-based inverter platform.
- Wolfspeed commercially introduced TSiC technology for augmented reality, quantum computing and advanced optical applications.
- Non-GAAP gross margin reflected adjustments including stock-based compensation expense of 2.4 and a supply contract renegotiation fee of 11.8.
Concerns
- GAAP gross margin was (22) % and non-GAAP gross margin was (13) %.
- GAAP operating loss was ($112.8), GAAP net loss was ($143.8), and adjusted EBITDA was ($54.7).
- Net cash used in operating activities was ($84.2) and total free cash flow was ($96.5).
- The $1.5 billion loan commitment is conditional, with completion subject to due diligence, definitive agreements, government approvals, and conditions to closing and funding.
- The company states that financial statements after September 29, 2025 are not comparable with statements on or before that date because of fresh-start accounting.
What to watch
- Second-quarter fiscal 2027 revenue target of between $155 million and $175 million.
- Whether sequential non-GAAP gross-margin improvement approaches breakeven in the second quarter of fiscal 2027.
- Second-quarter fiscal 2027 non-GAAP operating-expense target of between $65 million and $69 million.
- Progress toward completing the conditional 30-year, $1.5 billion loan commitment.
- Execution of the expanded Infineon agreement and the BorgWarner multiyear supply agreement.
Balance sheet and cash flow
- Cash, cash equivalents, and short-term investments were $995.1 as of September 27, 2026, compared with $1,088.6 as of June 28, 2026.
- Cash and cash equivalents were $411.3 as of September 27, 2026.
- Short-term investments were $583.8 as of September 27, 2026.
- Long-term debt was 930.3 as of September 27, 2026, compared with 931.0 as of June 28, 2026.
- Convertible notes, net were 750.3 as of September 27, 2026, compared with 756.5 as of June 28, 2026.
- Purchases of property and equipment were (10.6) for the three months ended September 27, 2026.
- Purchases of patent and licensing rights were (1.8) for the three months ended September 27, 2026.
- Cash used in investing activities was (80.1) for the three months ended September 27, 2026.
- Cash used in financing activities was (1.2) for the three months ended September 27, 2026.
Analysis
Wolfspeed reported first-quarter fiscal 2027 revenue of $155.0 million, compared with $196.8 in the predecessor-period column. Power Products revenue was $116.8 and Materials Products revenue was 38.2. Management said revenue of $155 million was above the midpoint of guidance. The release also states that results after the September 29, 2025 Effective Date are not comparable with results on or before that date because the company adopted fresh-start accounting following its Chapter 11 proceeding.
Profitability remained negative. GAAP gross loss was ($34.0), producing a GAAP gross margin percentage of (22) %, while non-GAAP gross loss was ($19.8) and non-GAAP gross margin percentage was (13) %. The company cited a 710-basis-point sequential improvement in adjusted non-GAAP gross margin. GAAP operating loss was ($112.8), non-GAAP operating loss was ($83.4), GAAP net loss was ($143.8), and non-GAAP net loss was ($111.4). Adjusted EBITDA was ($54.7).
Cash generation and liquidity remain central considerations. Net cash used in operating activities was ($84.2), and total free cash flow was ($96.5). Cash, cash equivalents, and short-term investments were $995.1 as of September 27, 2026, while long-term debt was 930.3 and convertible notes, net were 750.3. The company reported a conditional 30-year, $1.5 billion loan commitment from the U.S. Department of War, but disclosed that the financing remains subject to due diligence, definitive agreements, government approvals, and closing and funding conditions.
For the second quarter of fiscal 2027, Wolfspeed targets revenue between $155 million and $175 million, sequential non-GAAP gross-margin improvement approaching breakeven, and non-GAAP operating expenses between $65 million and $69 million. Operational developments included the Infineon wafer-supply agreement expansion to include 200mm, a multiyear BorgWarner device supply agreement, and commercial introduction of TSiC technology. The key reported markers are execution against the revenue range, the targeted move in non-GAAP gross margin, operating-expense control, operating cash flow, and progress on the conditional loan commitment.
Management, verbatim
We continued to build momentum across Wolfspeed and are advancing every pillar of our strategy. The conditional $1.5 billion commitment from the U.S. Department of War, coupled with the multiple long-term supply agreements we announced support our commitment to returning Wolfspeed to a path of long-term, sustainable growth.
Robert Feurle, CEO
Our revenue results of $155 million were above the midpoint of guidance, and adjusted non-GAAP gross margin improved 710 basis points sequentially, on a slightly higher revenue base. Also, upon completion, the conditional loan commitment is expected to deliver significant annual interest savings, reinforcing our conviction that fiscal 2027 marks a turning point.
Gregor van Issum, CFO
Not in the filing
stated, not guessed- Previous-release outlook was not provided; therefore, no comparison of actual results with prior guidance is available.
- No prior-quarter financial statement amounts were provided for the reported metrics.
- No reported percentage year-over-year changes were provided for total revenue, product-line revenue, profitability metrics, or cash-flow metrics.
- No reported product-line revenue percentage changes were provided.
- No tax-rate guidance was provided.
- No numeric second-quarter fiscal 2027 gross-margin target was provided.
- No share repurchases or dividends were reported.
Written by an AI language model 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 checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. 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 filed an 8‑K reporting its first‑quarter FY2027 financial results and forward guidance, including a conditional $1.5 billion loan from the U.S. Department of War.
Ticker impact
Wolfspeed disclosed Q1 FY2027 results with $155M revenue, GAAP loss of $144M and issued guidance for Q2 revenue $155M‑$175M.
likely upside as market prices in issued guidance and the $1.5B loan commitment
First‑report earnings release with new revenue and loss figures plus forward‑looking guidance and a sizable government loan, providing fresh data for traders.
Market effects
Silicon‑carbide semiconductor sector may see increased investor interest from the loan and new supply agreements.
U.S. defense‑related funding could boost related industrial stocks in the domestic market.
The loan highlights U.S. strategic push for domestic wide‑bandgap supply, potentially influencing global semiconductor supply chains.
Counterpoint
The sizable GAAP loss and cash burn could outweigh the positive loan news, leading to short pressure.
Key entities
- companyWolfspeed, Inc.
U.S. semiconductor manufacturer listed on NYSE under ticker WOLF.
- governmentU.S. Department of War
Provider of a conditional 30‑year, $1.5 billion loan commitment.
