Wolfspeed (WOLF) investor relations material

Executive summary

• Q1 FY27 revenue was $155.0M, down 21.2% YoY but above the guidance midpoint; adjusted non-GAAP gross margin improved 710 bps sequentially to -12.8%.

• Weaker Materials and automotive demand and pricing pressure weighed on sales; AI data center demand and Industrial & Energy growth provided opportunities.

• Quarter-end cash, cash equivalents and short-term investments totaled $995.1M; a conditional $1.5B government financing commitment could support refinancing and domestic production projects.

Financial highlights

• Revenue was $155.0M versus $196.8M a year earlier; gross loss was $34.0M, while operating loss narrowed to $112.8M from $161.4M.

• Adjusted non-GAAP gross margin was -12.8%, improving 710 bps QoQ; non-GAAP operating expenses were $63.6M and adjusted EBITDA was -$54.7M.

• GAAP net loss was $143.8M, or $2.61 per share; adjusted non-GAAP net loss was $111.4M, or $2.03 per share.

• Operating cash flow was -$84.2M; gross capex was $11M. Quarter-end cash, cash equivalents and short-term investments were $995.1M.

Outlook and guidance

• Q2 FY27 revenue guidance is $155M–$175M; non-GAAP gross margin is expected to improve sequentially toward breakeven.

• Q2 non-GAAP operating expenses are guided to $65M–$69M, with anticipated AI data center growth a primary driver of the sequential increase.

• FY27 capital spending is expected to remain modest after major expansion phases at Mohawk Valley and Siler City were substantially completed.

• The conditional government financing could provide up to $1.5B in tranches; funding depends on due diligence, definitive agreements, approvals and other conditions.