Wolfspeed (WOLF) Q1 2026 earnings summary

Executive summary

• Emerged from Chapter 11 bankruptcy on September 29, 2025, reducing funded debt by approximately 70% and annual cash interest payments by 60%, and maintaining operations and vendor payments throughout restructuring.

• Issued 25.8 million new common shares, reserved 73 million for future issuance, and converted to a Delaware corporation.

• Priorities include accelerating profitability, technology leadership in silicon carbide, and operational excellence, supported by a refreshed leadership team.

• Business reorganized around key markets: automotive, industrial, energy, aerospace, defense, and materials, to diversify revenue and reduce dependency on any single segment.

• Focused on product innovation and technology leadership in high-growth verticals such as AI data centers, aerospace, and energy storage.

Financial highlights

• Fiscal Q1 revenue was $197 million, up 1% year-over-year, with Mohawk Valley Fab revenue nearly doubling to $97 million.

• GAAP gross margin was (39)%, down from (19)% year-over-year; non-GAAP gross margin was (26)% versus 3%, impacted by $29 million in inventory reserves and $47 million in underutilization costs.

• GAAP net loss was $643.6 million, or ($4.12) per share, including $504 million in reorganization items; non-GAAP net loss was $0.55 per share, a $0.36 improvement year-over-year.

• Ended the quarter with $926 million in cash and short-term investments, including $91 million from the sale of MACOM equity.

• Free cash flow was $(99.6) million, a significant improvement from $(528.2) million in the prior year.

Outlook and guidance

• Q2 revenue expected between $150 million and $190 million, reflecting customer inventory build-up and last-time buys ahead of Durham fab closure.

• No update to long-term guidance until the first half of calendar 2026; comprehensive long-range plan to be unveiled then.

• Anticipates continued market softness through fiscal 2026 and is not providing profitability guidance due to upcoming fresh-start accounting.

• Expects to receive $0.7 billion in refundable tax credits and continues to pursue federal funding opportunities.