Wolfspeed posts Q1 FY2027 loss, revenue near guidance and secures $1.5 bn Department of War loan
Wolfspeed reported fiscal Q1 2027 revenue of $155.0 million, a slight increase from the prior quarter but 21% below a year earlier, and a GAAP net loss of $143.8 million. Non‑GAAP gross margin was negative 12.8% and adjusted EBITDA was –$54.7 million. The company guided Q2 revenue of $155‑175 million and said a conditional $1.5 billion, 30‑year loan from the U.S. Department of War is pending, which it expects to generate over $50 million in annual interest savings.
Why it matters
The loan’s refinancing is projected to save more than $50 million in annual interest and up to $100 million with interest‑in‑kind payments, improving cash flow prospects. Management indicated that reaching 25‑30% utilization at the Mohawk Valley plant and the loan funding are key to moving toward breakeven margins in the second quarter.
Key facts
- 1Fiscal Q1 2027 revenue was $155.0 million, up from $149.6 million in Q4 FY2026 but down 21% year‑over‑year. mlq.ai
- 2GAAP net loss for the quarter was $143.8 million, or $2.61 per share. mlq.ai
- 3Non‑GAAP gross margin was negative 12.8%, a 710‑basis‑point sequential improvement. finance.yahoo.com
- 4Adjusted EBITDA was –$54.7 million. mlq.ai
- 5Operating cash flow was negative $84.2 million. mlq.ai
- 6The company guided Q2 FY2027 revenue of $155‑175 million and expects non‑GAAP gross margin to approach breakeven. mlq.ai
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.