Wolfspeed (WOLF) Q2 2026 earnings summary

Executive summary

• Emerged from Chapter 11 bankruptcy on September 29, 2025, adopting fresh start accounting, reducing total debt by approximately 70%, and ending the quarter with $1.3 billion in cash and equivalents.

• Achieved 50% quarter-over-quarter growth in AI data center revenue, driven by new customer wins in automotive, industrial, and wind energy sectors.

• Completed shutdown of Durham 150mm fab ahead of schedule, transitioning production to Mohawk Valley 200mm fab and benefiting gross margin.

• Demonstrated 300mm silicon carbide wafer, marking a significant technology milestone.

• Refocused strategy on financial discipline, technology leadership, and operational excellence, with a diversified go-to-market approach across automotive, industrial & energy, aerospace & defense, and materials.

Financial highlights

• Q2 FY26 revenue was $168.5 million, with $75–76 million from Mohawk Valley; Power Products revenue was $118.3 million and Materials Products revenue was $50.2 million.

• Non-GAAP gross margin was -34%, while GAAP gross margin was -46%, both impacted by underutilization and inventory step-ups.

• Adjusted EBITDA for Q2 was negative $81.8 million.

• Operating expenses reduced by $200 million annualized; CAPEX down 90% YoY to $31 million.

• Ended the quarter with $1.3 billion in cash, cash equivalents, and short-term investments.

Outlook and guidance

• Q3 FY26 revenue expected between $140 million and $160 million, reflecting customer inventory build and weaker EV demand.

• Operating expenses projected flat or slightly down sequentially; gross margin to remain negative but expected to improve.

• Long-range plan and financial targets update anticipated in the first half of calendar 2026.

• Liquidity expected to be sufficient for at least the next 12 months, supported by cash, investments, and operating cash flows.