Wolfspeed, Inc.

What they do

Wolfspeed develops wide bandgap semiconductors focused on silicon carbide materials and devices for power applications. Product families include silicon carbide bare wafers, epitaxial wafers, GaN epitaxial layers on silicon carbide, and power devices such as MOSFETs, power modules, discrete power devices and power die products. The majority of products are manufactured at facilities in North Carolina, New York and Arkansas, with some contract manufacturing, and R&D sites in North Carolina, Arkansas and New York.

Revenue drivers

• Automotive power devices — Products targeted at electric vehicles and fast charging within the Automotive domain; the company describes this as a primary end market but does not break out revenue by segment in the excerpts.
• Industrial & Energy power devices — Targeted at AI data centers, grid modernization, renewable energy and storage; AI data center revenue more than doubled year over year in fiscal 2026 and rose about 20% sequentially in Q4, though management calls the opportunity moderate but growing.
• Silicon carbide materials — Bare wafers, epitaxial wafers and GaN epitaxial layers on silicon carbide sold as materials products; specific revenue contribution is not disclosed in the provided excerpts.
• Aerospace and defense — Cited as an existing and emerging application area, including a 10kV MOSFET named Top Innovation at the 2026 PCIM conference and an MOU with GE Aerospace.

Recent performance

Fiscal 2026 fourth quarter consolidated revenue was approximately $150 million, in line with the midpoint of guidance. GAAP gross margin was (25)% and non-GAAP gross margin was (20)%. GAAP net loss was $145 million and adjusted EBITDA was ($62) million, with operating cash flow of ($54) million. The company ended the quarter with $1.1 billion of cash, cash equivalents and short-term investments as of June 28, 2026. Annual revenue fell from $757.6M in fiscal 2025 to a fiscal 2026 net income of $4.4M, aided by fresh start accounting and reorganization effects.

Strategy

Management is expanding the device business, highlighted by AI data center growth and the launch of the fifth-generation SiC MOSFET. The company launched a dedicated data center solutions team based in Silicon Valley and announced a strategic collaboration with LITEON Technology. Management said it is aggressively targeting initiatives to further reduce debt and cost of capital, and noted that during Q4 holders of $46 million of convertible notes voluntarily converted debt to equity. Andy Mattes was appointed to the Board of Directors.

Risks

• Chapter 11 history — Historical financial information will not be indicative of future performance, and stakeholder confidence may be impaired following emergence from the Chapter 11 Cases.
• Customer concentration — The company depends on a concentrated group of customers for significant revenue.
• Market growth uncertainty — Global silicon carbide market growth may not develop as rapidly as anticipated, and end markets are cyclical.
• Manufacturing execution — Manufacturing yield issues, cost targets, production yield goals, capacity balance and facility utilization all present operational risks.

Outlook

For the first quarter of fiscal 2027, the company expects revenue between $140 million and $160 million. Non-GAAP gross margin is expected to remain negative. Non-GAAP operating expenses are expected between $62 million and $66 million for the first quarter of fiscal 2027.