{"success":true,"data":{"pressRelease":{"id":"123212","rtpr_id":"nBwcQ8zna","ticker":"WOLF","exchange":"NYSE","all_tickers":["WOLF"],"title":"Wolfspeed Reports Financial Results for the Fourth Quarter of Fiscal 2026","author":"Business Wire","published_at":"2026-08-19T20:05:00.365Z","article_body":"Wolfspeed Reports Financial Results for the Fourth Quarter of Fiscal 2026\n\nWolfspeed, Inc. (NYSE: WOLF) today announced its results for the fourth\nquarter of fiscal 2026.\n\nBusiness Highlights\n\n\n * AI data center revenue more than doubled year-over-year in fiscal 2026 and\nincreased approximately 20% sequentially in the fourth quarter, demonstrating\nthe long-term potential of this moderate but growing opportunity.\n\n * Launched fifth-generation SiC MOSFET, representing a significant advancement\nin the Company's technology roadmap.\n\n * 10kV MOSFET named “Top Innovation” at the 2026 Power Conversion and\nIntelligent Motion conference and announced Memorandum of Understanding with\nGE Aerospace.\n\n * Launched a dedicated data center solutions team, based in Silicon Valley, to\ncapitalize on and supplement growth in our fastest growing end market and a\nstrategic collaboration with LITEON Technology.\n\n * Appointed Andy Mattes, experienced public technology company executive, to the\nBoard of Directors.\n\nQuarterly Financial Highlights\n\n\n * Consolidated revenue of approximately $150 million, aligned with midpoint of\nguidance range.\n\n * GAAP gross margin of (25)% and Non-GAAP gross margin of (20)%.\n\n * GAAP net loss of $145 million and adjusted EBITDA (non-GAAP) of ($62) million.\n\n * Operating cash flow of ($54) million.\n\n * $1.1 billion of cash, cash equivalents and short-term investments as of June\n28, 2026.\n\n“We continued to expand our device business, highlighted by strong growth in\nAI data center applications and the launch of our fifth-generation SiC MOSFET.\nThese achievements strengthen our technology leadership and confidence in our\nlong-term growth opportunities,” said Wolfspeed CEO Robert Feurle.\n\n“We are aggressively targeting initiatives to further reduce our debt and\ncost of capital as well as enhance our financial positioning,” said\nWolfspeed CFO Gregor van Issum. “During the fourth quarter, our capital\nstructure further improved as holders of $46 million of our convertible notes\nexercised a voluntary conversion of their debt to equity”.\n\nBusiness Outlook:\n\nThe Company expects to generate revenue between $140 million and $160 million\nfor its first quarter of fiscal 2027 with non-GAAP gross margin expected to\nremain negative. The Company expects non-GAAP operating expenses between $62\nmillion and $66 million for its first quarter of fiscal 2027. Please see\n\"Non-GAAP Guidance\" below for additional information.\n\nQuarterly Conference Call:\n\nWolfspeed will provide additional commentary on a conference call at 5:00 p.m.\nEastern time today reviewing the highlights of its fourth quarter results.\n\nThe conference call will be available to the public through a live audio web\nbroadcast via the Internet. For webcast details, visit Wolfspeed's website at\ninvestor.wolfspeed.com/events.cfm\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Finvestor.wolfspeed.com%2Fevents.cfm&esheet=54592030&newsitemid=20260819859398&lan=en-US&anchor=investor.wolfspeed.com%2Fevents.cfm&index=1&md5=3f2d652ceaac94f2dfbdc9c7f31b3477)\n.\n\nAbout Wolfspeed, Inc.\n\nWolfspeed (NYSE: WOLF) leads the market in the worldwide adoption of silicon\ncarbide technologies that power the world’s most disruptive innovations. As\nthe pioneers of silicon carbide, and creators of the most advanced\nsemiconductor technology on earth, we are committed to powering a better world\nfor everyone. Through silicon carbide material, Power Modules, Discrete Power\nDevices and Power Die Products targeted for various applications, we will\nbring you The Power to Make It Real.(TM) Learn more at www.wolfspeed.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.wolfspeed.com&esheet=54592030&newsitemid=20260819859398&lan=en-US&anchor=www.wolfspeed.com&index=2&md5=9ad971b88b43521cd41353c781c05a52)\n.\n\nFresh Start Accounting:\n\nAs a result of emerging from a voluntary proceeding under Chapter 11 and\nqualifying for the adoption of fresh-start accounting, on September 29, 2025\n(the \"Effective Date\"), Wolfspeed’s assets and liabilities were recorded at\ntheir estimated fair values which, in some cases, are significantly different\nthan amounts included in our financial statements prior to the Effective Date.\nAccordingly, our condensed consolidated financial statements after the\nEffective Date are not comparable with our condensed consolidated financial\nstatements on or before that date.\n\nReferences to “Successor” relate to our financial position and results of\noperations after the Effective Date. References to “Predecessor” refer to\nour financial position and results of operations on or before the Effective\nDate.\n\nNon-GAAP Financial Measures:\n\nThis press release highlights the Company's financial results on both a GAAP\nand a non-GAAP basis. The GAAP results include certain costs, charges and\nexpenses that are excluded from non-GAAP results. By publishing the non-GAAP\nmeasures, management intends to provide investors with additional information\nto further analyze the Company's performance, core results and underlying\ntrends. Wolfspeed's management evaluates results and makes operating decisions\nusing both GAAP and non-GAAP measures included in this press release. Non-GAAP\nresults are not prepared in accordance with GAAP, and non-GAAP information\nshould be considered a supplement to, and not a substitute for, financial\nstatements prepared in accordance with GAAP. Investors and potential investors\nare encouraged to review the reconciliation of non-GAAP financial measures to\ntheir most directly comparable GAAP measures attached to this press release.\n\nNon-GAAP Guidance:\n\nThis press release includes guidance for Non-GAAP Operating Expenses, which is\na non-GAAP financial measure. The Company is unable to provide a quantitative\nreconciliation of this forward-looking non-GAAP financial measure to the most\ndirectly comparable forward-looking GAAP financial measure, GAAP Operating\nExpenses, without unreasonable effort.\n\nThis is due to the inherent difficulty in forecasting and quantifying certain\nfuture items that are necessary for such a reconciliation. These unavailable\nitems include, but are not limited to, share-based compensation, project,\ntransformation and transaction costs, and restructuring charges, the amounts\nof which could be material.\n\nFor the same reasons, the Company is unable to address the probable\nsignificance of the unavailable information, which could have a significant\nimpact on our future GAAP financial results. A reconciliation is not available\nfor these periods because these items cannot be predicted with a reasonable\ndegree of certainty.\n\nForward Looking Statements:\n\nThis press release contains forward-looking statements involving risks and\nuncertainties, both known and unknown, that may cause Wolfspeed’s actual\nresults to differ materially from those indicated in the forward-looking\nstatements. Forward-looking statements by their nature address matters that\nare, to different degrees, uncertain, including estimates, forecasts, and\nprojections about possible or assumed future results of Wolfspeed’s\nbusiness, financial condition, liquidity, results of operations, plans, and\nobjectives and Wolfspeed’s industry and market growth. Words such as\n“could,” “will,” “may,” “assume,” “forecast,”\n“position,” “predict,” “strategy,” “expect,” “intend,”\n“plan,” “estimate,” “anticipate,” “believe,” “project,”\n“budget,” “potential,” “forward” or “continue” and similar\nexpressions are used to identify forward-looking statements. All statements in\nthis press release that are not historical are forward-looking statements,\nincluding statements regarding Wolfspeed’s position in the industry and\nlong-term growth prospects, our ability to achieve our targets for the first\nquarter of fiscal 2027 and beyond, initiatives to reduce Wolfspeed's debt and\ncost of capital and the expected growth in AI data center applications for\nWolfspeed's products. Actual results could differ materially due to a number\nof factors, including but not limited to, risks and uncertainties associated\nwith Wolfspeed's emergence from Chapter 11 bankruptcy, including the potential\neffects on Wolfspeed's relationship with its various stakeholders, including\ncustomers, vendors, contractors, employees or suppliers, its ability to\nattract, motivate, and/or retain management and key personnel, its ability to\nretain customers, and third parties willing to do business with Wolfspeed on\nacceptable terms or at all; ongoing uncertainty in global economic and\ngeopolitical conditions; changes in progress on infrastructure development or\nchanges in customer or industrial demand that could negatively affect product\ndemand, including as a result of an economic slowdown or recession,\ncollectability of receivables and other related matters if consumers and\nbusinesses defer purchases or payments, or default on payments; risks\nassociated with Wolfspeed’s expansion plans, including cost overruns, the\ntiming and amount of government incentives actually received, including, among\nother things, any direct grants and tax credits, issues in installing and\nqualifying new equipment and ramping production, poor production process\nyields and quality control, and potential increases to Wolfspeed’s costs;\nWolfspeed’s ability to obtain additional funding as needed, including, among\nother things, from government funding, public or private equity offerings, or\ndebt financings, on favorable terms and on a timely basis, if at all; the risk\nthat Wolfspeed does not meet its production commitments to those customers who\nprovide Wolfspeed with capacity reservation deposits or similar payments; the\nrisk that Wolfspeed may experience production difficulties that preclude it\nfrom shipping sufficient quantities to meet customer orders or that result in\nhigher production costs, lower yields and lower margins; Wolfspeed’s ability\nto lower costs; the risk that Wolfspeed’s results will suffer if it is\nunable to balance fluctuations in customer demand and capacity, including\nscaling back its manufacturing expenses or overhead costs quickly enough to\ncorrespond to lower than expected demand or bringing on additional capacity on\na timely basis to meet customer demand; the risk that longer manufacturing\nlead times may cause customers to fulfill their orders with a competitor’s\nproducts instead; product mix; risks associated with the ramp-up of production\nof Wolfspeed’s new products, and Wolfspeed’s entry into new business\nchannels and industries different from those in which it has historically\noperated; Wolfspeed’s ability to convert customer design-ins to design-wins\nand sales of significant volume, and, if customer design-in activity does\nresult in such sales, when such sales will ultimately occur and what the\namount of such sales will be; the risk that the markets for Wolfspeed’s\nproducts will not develop as it expects, including the adoption of\nWolfspeed’s products by electric vehicle manufacturers and the overall\nadoption of electric vehicles and our ability to diversify our end markets in\nmedium- to high-voltage verticals such as AI datacenters; the risk that the\neconomic and political uncertainty caused by tariffs imposed or announced by\nthe United States on imported goods, and corresponding tariffs and other\nretaliatory measures imposed by other countries (including China) in response,\nmay continue to negatively impact demand for Wolfspeed’s products; the risk\nthat Wolfspeed or its channel partners are not able to develop and expand\ncustomer bases and accurately anticipate demand from end customers, including\nproduction and product mix, which can result in increased inventory and\nreduced orders as Wolfspeed experiences wide fluctuations in supply and\ndemand; risks related to international sales and purchases; risks resulting\nfrom the concentration of Wolfspeed’s business among few customers,\nincluding the risk that customers may reduce or cancel orders or fail to honor\npurchase commitments; the risk that Wolfspeed’s investments may experience\nperiods of significant market value and interest rate volatility causing it to\nrecognize fair value losses on Wolfspeed’s investment; the risk posed by\nmanaging an increasingly complex supply chain (including managing the impacts\nof supply constraints in the semiconductor industry and meeting purchase\ncommitments under take-or-pay arrangements with certain suppliers) that has\nthe ability to supply a sufficient quantity of raw materials, subsystems and\nfinished products with the required specifications and quality; risks relating\nto outbreaks of infectious diseases or similar public health events, including\nthe risk of disruptions to Wolfspeed’s operations, supply chain, including\nits contract manufacturers, or customer demand; the risk Wolfspeed may be\nrequired to record a significant charge to earnings if its amortizable assets\nbecome impaired; risks relating to confidential information theft or misuse,\nincluding through cyber-attacks or cyber intrusion; Wolfspeed’s ability to\ncomplete development and commercialization of products under development; the\nrapid development of new technology and competing products that may impair\ndemand or render Wolfspeed’s products obsolete; the potential lack of\ncustomer acceptance for Wolfspeed’s products; risks associated with ongoing\nlitigation; the risk that customers do not maintain their favorable perception\nof Wolfspeed’s brand and products, resulting in lower demand for its\nproducts; the risk that Wolfspeed’s products fail to perform or fail to meet\ncustomer requirements or expectations, resulting in significant additional\ncosts; risks associated with strategic transactions; the risk that Wolfspeed\nis not able to successfully execute or achieve the potential benefits of\nWolfspeed’s efforts to enhance its value; and other factors discussed in\nWolfspeed’s filings with the Securities and Exchange Commission (the\n“SEC”), including Wolfspeed’s report on Form 10-K for the fiscal year\nended June 29, 2025, and subsequent reports filed with the SEC. These\nforward-looking statements represent Wolfspeed’s judgment as of the date of\nthis press release. Except as required under the U.S. federal securities laws\nand the rules and regulations of the SEC, Wolfspeed disclaims any intent or\nobligation to update any forward-looking statements after the date of this\npress release, whether as a result of new information, future events,\ndevelopments, changes in assumptions or otherwise.\n\nWolfspeed(®) is a registered trademark of Wolfspeed, Inc.\n WOLFSPEED, INC \n CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS \n (unaudited) \n   \n   Successor   Predecessor \n (in millions of U.S. Dollars, except per share data) Three months   Three months \n \nended June 28, \nended June 29, \n \n2026 \n2025 \n Revenue, net $149.6     $197.0   \n Cost of revenue, net 186.4     222.7   \n Gross loss (36.8 )   (25.7 ) \n Gross margin percentage (25 )%   (13 )% \n         \n Operating expenses:       \n Research and development 27.9     37.6   \n Sales, general and administrative 37.3     36.1   \n Factory start-up costs —     19.2   \n Gain on disposal of property and equipment (2.5 )   (19.0 ) \n Goodwill impairment —     359.2   \n Restructuring and other expenses 15.9     122.8   \n Operating loss (115.4 )   (581.6 ) \n Operating loss percentage (77 )%   (295 )% \n Interest expense, net of capitalized interest 39.8     84.8   \n Non-operating (income) expense, net (10.3 )   13.0   \n Loss before income taxes (144.9 )   (679.4 ) \n Income tax expense (benefit) 0.5     (10.1 ) \n Net loss ($145.4 )   ($669.3 ) \n         \n Basic loss per share       \n Net loss ($2.81 )   ($4.30 ) \n         \n Diluted loss per share       \n Net loss ($2.81 )   ($4.30 ) \n         \n Weighted average shares (in thousands)       \n Basic 51,799     155,631   \n Diluted 51,799     155,631   \n\n WOLFSPEED, INC \n CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS \n (unaudited) \n   \n   Successor   Predecessor \n (in millions of U.S. Dollars, except share data) Period from September 30, 2025 to June 28, 2026   Period from June 30, 2025 to September 29, 2025   Fiscal Year Ended June 29, 2025 \n Revenue, net $468.3     $196.8     $757.6   \n Cost of revenue, net 623.3     273.9     879.2   \n Gross loss (155.0 )   (77.1 )   (121.6 ) \n Gross margin percentage (33 )%   (39 )%   (16 )% \n             \n Operating expenses:           \n Research and development 80.0     31.7     175.1   \n Sales, general and administrative 103.7     37.9     190.5   \n Factory start-up costs —     —     85.2   \n Gain on disposal of property and equipment (5.4 )   (5.7 )   (20.0 ) \n Goodwill impairment —     —     359.2   \n Restructuring and other expenses 54.7     20.4     417.6   \n Operating loss (388.0 )   (161.4 )   (1,329.2 ) \n Operating loss percentage (83 )%   (82 )%   (175 )% \n Reorganization items, net —     (563.4 )   —   \n Interest expense, net 149.9     0.7     315.2   \n Non-operating income, net (123.5 )   (22.4 )   (25.5 ) \n (Loss) income before income taxes (414.4 )   423.7     (1,618.9 ) \n Income tax expense (benefit) 1.4     3.5     (9.7 ) \n Net (loss) income ($415.8 )   $420.2     ($1,609.2 ) \n             \n Basic (loss) earnings per share           \n Net (loss) income ($10.64 )   $2.69     ($11.39 ) \n             \n Diluted (loss) earnings per share           \n Net (loss) income ($10.64 )   $2.22     ($11.39 ) \n             \n Weighted average shares (in thousands)           \n Basic 39,094     156,185     141,320   \n Diluted 39,094     189,052     141,320   \n\n WOLFSPEED, INC. \n CONDENSED CONSOLIDATED BALANCE SHEETS \n (unaudited) \n   \n   Successor as of   Predecessor as of \n (in millions of U.S. Dollars) June 28, 2026   June 29, 2025 \n Assets       \n         \n Cash, cash equivalents, and short-term investments $1,088.6     $955.4   \n Accounts receivable, net 98.2     178.8   \n Inventories, net 234.2     435.4   \n Prepaid expenses 38.8     97.2   \n Investment tax credit receivable 84.4     653.4   \n Other current assets 45.2     222.0   \n Total current assets 1,589.4     2,542.2   \n Property and equipment, net 691.4     3,916.5   \n Intangible assets, net 392.2     23.8   \n Long-term investment tax credit receivable 116.5     105.0   \n Other assets 215.4     266.9   \n Total assets $3,004.9     $6,854.4   \n         \n Liabilities and Stockholders' Equity       \n         \n Accounts payable and accrued expenses $118.5     $280.2   \n Contract liabilities and distributor-related reserves 61.1     50.0   \n Income taxes payable 0.7     0.8   \n Finance lease liabilities 0.2     0.5   \n Current maturity on long-term borrowings —     6,538.0   \n Other current liabilities 51.1     220.5   \n Total current liabilities 231.6     7,090.0   \n Long-term debt 931.0     —   \n Convertible notes, net 756.5     —   \n Finance lease liabilities - long-term 1.9     8.4   \n Other long-term liabilities 153.7     203.1   \n Total liabilities 2,074.7     7,301.5   \n         \n Stockholders’ equity:       \n Common stock 0.1     0.2   \n Additional paid-in-capital 1,345.9     4,094.1   \n Accumulated other comprehensive loss —     (3.8 ) \n Accumulated deficit (415.8 )   (4,537.6 ) \n Total stockholders' equity (deficit) 930.2     (447.1 ) \n Total liabilities and stockholders’ equity (deficit) $3,004.9     $6,854.4   \n\n WOLFSPEED, INC. \n CONSOLIDATED STATEMENTS OF CASH FLOWS \n (unaudited) \n   \n   Successor   Predecessor \n (in millions of U.S. Dollars) Period from September 30, 2025 to June 28, 2026   Period from June 30, 2025 to September 29 2025   Fiscal Year Ended June 29, 2025 \n Operating activities:           \n Net (loss) income ($415.8 )   $420.2     ($1,609.2 ) \n Adjustments to reconcile net loss to cash used in operating activities of           \n continuing operations: \n Non-cash reorganization items —     (625.6 )   —   \n Depreciation and amortization 100.0     69.3     252.1   \n Goodwill impairment —     —     359.2   \n Gain on sale of property (5.4 )   (5.7 )   (20.0 ) \n Gain on RTP Fab Transfer —     (25.4 )   —   \n Amortization and write-off of deferred financing costs 16.4     —     103.6   \n Stock-based compensation 27.1     13.6     73.3   \n Loss (gain) on equity investment —     10.9     (22.6 ) \n Inventory write-off 34.0     29.0     6.8   \n Loss on disposal or impairment of property and equipment 3.1     0.2     171.7   \n Impairment of right-of-use assets —     —     4.8   \n Loss on debt extinguishment 3.3     —     —   \n Gain on contingent cash (10.0 )   —     —   \n Amortization of premium on investments, net (2.4 )   (1.2 )   (9.1 ) \n Change in fair value of liability classified derivative contracts (87.8 )   —     —   \n Paid-in-kind interest on long-term debt 27.8     —     83.2   \n Deferred income taxes 0.6     1.0     (10.3 ) \n Changes in operating assets and liabilities: 128.3     91.3     (95.2 ) \n Cash used in operating activities (180.8 )   (22.4 )   (711.7 ) \n Investing activities:           \n Purchases of property and equipment (72.9 )   (104.0 )   (1,271.4 ) \n Purchases of patent and licensing rights (3.6 )   (1.4 )   (5.3 ) \n Proceeds from sale of property and equipment 29.4     13.9     85.9   \n Proceeds from sale of MACOM Shares —     92.7     —   \n Purchases of short-term investments (492.3 )   (83.4 )   (390.9 ) \n Proceeds from maturities of short-term investments 307.5     151.8     986.7   \n Proceeds from sale of short-term investments 29.4     67.2     86.5   \n Reimbursement of capital expenditures from incentives and investment credits 733.2     0.1     240.4   \n Cash provided by (used in) investing activities 530.7     136.9     (268.1 ) \n Financing activities:           \n Proceeds from Existing Senior Secured Notes —     —     240.0   \n Proceeds from issuance of 1.5L Convertible Notes 379.0     —     —   \n Proceeds from issuance of New Common Stock and Pre-Funded Warrants 96.9     —     —   \n Proceeds from issuance of 2L Convertible Notes through the rights offering —     275.0     —   \n Payments on Existing Senior Secured Notes —     (308.5 )   —   \n Payments of deferred financing costs (18.6 )   (3.5 )   (47.9 ) \n Payments of equity issuance costs (3.5 )   —     —   \n Payment of Contingent Cash —     (10.0 )   —   \n Proceeds from contingent consideration 10.0     —     —   \n Proceeds from issuance of Old Common Stock —     —     203.9   \n Adequate protection payments on Existing Senior Secured Notes —     (38.4 )   —   \n Tax withholding on vested equity awards (1.2 )   (0.6 )   (3.9 ) \n Payments on long-term debt borrowings, including finance lease obligations (716.6 )   —     (0.5 ) \n Incentive-related escrow refunds —     —     10.0   \n Payment of Existing Senior Secured Notes commitment fees —     (15.5 )   —   \n Payment of unused capacity fee on pre-emergence debt —     —     (1.5 ) \n Cash (used in) provided by financing activities (254.0 )   (101.5 )   400.1   \n Effects of foreign exchange changes on cash and cash equivalents (0.6 )   0.8     1.0   \n Net change in cash, cash equivalents and restricted cash 95.3     13.8     (578.7 ) \n             \n Cash and cash equivalents, beginning of period 481.0     467.2     1,045.9   \n Cash and cash equivalents, end of period $576.3     $481.0     $467.2   \n add: Short-term Investments $512.3     $354.4     $488.2   \n Cash, cash equivalents, and short-term investments $1,088.6     $835.4     $955.4   \n\n Product Line Revenue \n   \n   Successor   Predecessor \n (in millions of U.S. Dollars) Three months ended June 28, 2026   Three months ended June 29, 2025 \n Power Products $106.3   $118.6 \n Materials Products 43.3   78.4 \n Total $149.6   $197.0 \n\n\nNon-GAAP Measures of Financial Performance\n\nTo supplement the Company's consolidated financial statements presented in\naccordance with generally accepted accounting principles (\"GAAP\"), Wolfspeed\nuses non-GAAP measures of certain components of financial performance. These\nnon-GAAP measures include non-GAAP gross margin, non-GAAP operating loss,\nnon-GAAP non-operating (expense) income, net, non-GAAP net loss, non-GAAP\ndiluted loss per share, non-GAAP EBITDA, adjusted EBITDA and free cash flow.\nThese measures are presented for continuing operations only.\n\nReconciliation to the nearest GAAP measure of all historical non-GAAP measures\nincluded in this press release can be found in the tables included with this\npress release.\n\nNon-GAAP measures presented in this press release are not in accordance with\nor an alternative to measures prepared in accordance with GAAP and may be\ndifferent from non-GAAP measures used by other companies. In addition, these\nnon-GAAP measures are not based on any comprehensive set of accounting rules\nor principles. Non-GAAP measures have limitations in that they do not reflect\nall of the amounts associated with Wolfspeed's results of operations as\ndetermined in accordance with GAAP. These non-GAAP measures should only be\nused to evaluate Wolfspeed's results of operations in conjunction with the\ncorresponding GAAP measures.\n\nWolfspeed believes that these non-GAAP measures, when shown in conjunction\nwith the corresponding GAAP measures, enhance investors' and management's\noverall understanding of the Company's current financial performance and the\nCompany's prospects for the future, including cash flows available to pursue\nopportunities to enhance shareholder value. In addition, because Wolfspeed has\nhistorically reported certain non-GAAP results to investors, the Company\nbelieves the inclusion of non-GAAP measures provides consistency in the\nCompany's financial reporting.\n\nFor its internal budgeting process, and as discussed further below,\nWolfspeed's management uses financial statements that do not include the items\nlisted below and the income tax effects associated with the foregoing.\nWolfspeed's management also uses non-GAAP measures, in addition to the\ncorresponding GAAP measures, in reviewing the Company's financial results.\n\nWolfspeed excludes the following items from one or more of its non-GAAP\nmeasures when applicable:\n\nStock-based compensation expense. This expense consists of expenses for stock\noptions, restricted stock, performance stock awards and employee stock\npurchases through its Employee Stock Purchase Program. Wolfspeed excludes\nstock-based compensation expenses from its non-GAAP measures because they are\nnon-cash expenses that Wolfspeed does not use to evaluate core operating\nperformance.\n\nRestructuring and facility closure costs. During the first quarter of fiscal\n2025, the Company began a headcount reduction and facility consolidation plan\n(the \"2025 Restructuring Plan\") to incur costs to optimize its operating model\nand accelerate its transition to 200 mm silicon carbide offerings through\nfacility closures and headcount reduction initiatives. Wolfspeed does not\ninclude these expenses when evaluating core operating activities for strategic\ndecision making, forecasting future results and evaluating current\nperformance, as these activities may be non-recurring, unusual, infrequent or\ndirectly related to an event that is distinct and non-reflective of the\nCompany's ongoing business operations. Restructuring and facility closure\ncosts associated with the 2025 Restructuring Plan primarily consist of\nseverance, asset-related charges and other closure-related costs related to\nfacilities in the process of closing or are already closed. Other\nclosure-related costs primarily consist of contract termination costs,\nmanufacturing transition charges and certain inventory abandonments that are\ndirectly attributable to a facility closure. Contract termination costs are\ndirectly attributable to facility closures and other restructuring-related\nactivities. Manufacturing transition charges include non-productive\nmanufacturing expenses incurred during the period from when shutdown\nactivities commence to when a facility is closed. Inventory abandonments\nrelate to identification and disposal of inventory that will not be utilized\nafter a product line is transferred to a new manufacturing location. Loss on\ndisposition of assets results from abandonment of non-productive assets in\naccordance with a restructuring plan. During the second and fourth quarters of\nfiscal 2026, the Company implemented additional headcount reductions. The\ncosts related to these initiatives, primarily severance, were recorded in the\nsecond and fourth quarters of fiscal 2026, as applicable.\n\nAmortization of acquisition-related intangibles. Wolfspeed incurred\namortization of acquisition-related intangibles in connection with\nacquisitions. Wolfspeed excludes these items because they are non-cash\nexpenses that Wolfspeed does not use to evaluate core operating performance.\nThese costs are recorded within \"Restructuring and other expenses\".\nAmortization related to intangibles recognized upon the adoption of fresh\nstart accounting are not excluded from non-GAAP measures other than EBITDA.\n\nGoodwill impairment. Wolfspeed determined that goodwill for its single\nreporting unit was fully impaired, resulting in a $359.2 million impairment\ncharge during fiscal 2025. Wolfspeed excluded this amount as Wolfspeed does\nnot believe it is reflective of the Company's ongoing operating results.\n\nGain/loss on disposal of property and equipment. Wolfspeed sold idle equipment\nand a building, which included the building improvements and land during\nfiscal 2026. Wolfspeed sold two properties including buildings, building\nimprovements and land during fiscal 2025. Wolfspeed does not believe these\ngains and losses are reflective of ongoing operating results.\n\nWrite-off of deferred financing costs. Wolfspeed wrote off the deferred\nfinancing costs for its then outstanding debt in the fourth quarter of fiscal\n2025. This is due to the restructuring support agreement and the voluntarily\nfiled prepackaged bankruptcy petitions (the \"Chapter 11 Cases\") on June 30,\n2025. Wolfspeed does not believe this is reflective of its ongoing operating\nresults.\n\nPre-petition charges. Wolfspeed recognized Pre-petition charges that consist\nprimarily of professional fees directly related to, but incurred prior to, the\nfiling of the Chapter 11 Cases. Wolfspeed does not believe this is reflective\nof its ongoing operating results.\n\nProject, transformation and transaction costs. The Company has incurred\nprofessional services fees and other costs associated with completed and\npotential acquisitions and divestitures, transformation programs focused on\noptimizing the Company's administrative processes, and certain costs\nassociated with the Chapter 11 Cases that are not accounted for as\nReorganization items, net in accordance with ASC 852. These costs are recorded\nwithin \"Restructuring and other expenses\". Wolfspeed excludes these items\nbecause Wolfspeed believes they are not reflective of the ongoing operating\nresults of Wolfspeed's business.\n\nAmortization of premiums, discount and debt issuance costs. net Interest\nexpense for certain of the Company's outstanding debt obligations includes\namortization of premiums/discount and debt issuance costs. Wolfspeed excludes\namortization of premium/discount and debt issuance costs from its non-GAAP\nmeasures because they are non-cash expenses that Wolfspeed does not use to\nevaluate core operating performance.\n\nGain/Loss on equity investment. The Company received shares of MACOM common\nstock in connection with the divestiture of the RF product line. These shares\nwere accounted for utilizing the fair value option and changes in the fair\nvalue of the shares are recognized in income. The Company disposed of the\nMACOM shares in September 2025. Wolfspeed excluded the impact of these gains\nor losses from its non-GAAP measures because Wolfspeed believes it is not\nreflective of the ongoing operating results of Wolfspeed's business.\n\nProceeds from settlement reimbursement and miscellaneous items. During the\nfourth quarter of fiscal 2026, the Company settled a dispute with a customer\nfor damaged tools that were disposed in a prior year and recorded proceeds for\nthe sale of miscellaneous parts. Wolfspeed believes the proceeds are not\nreflective of the ongoing operating results of Wolfspeed's business.\n\nIncome tax adjustment. This amount reconciles GAAP tax expense (benefit) to a\ncalculated non-GAAP tax expense (benefit) utilizing a non-GAAP tax rate. The\nnon-GAAP tax rate estimates an appropriate tax rate if the listed non-GAAP\nadjustments were excluded. The non-GAAP tax rate estimate applied to the\nnon-GAAP adjustments includes application of a zero-tax rate where a valuation\nallowance exists on a non-GAAP basis. This reconciling item adjusts non-GAAP\nnet (loss) income to the amount it would be if the calculated non-GAAP tax\nrate was applied to non-GAAP (loss) income before income taxes.\n\nWolfspeed may incur some of these same expenses, including income taxes\nassociated with these expenses, in future periods.\n\nIn addition to the non-GAAP measures discussed above, Wolfspeed also uses free\ncash flow as a measure of operating performance and liquidity. Free cash flow\nrepresents operating cash flows from continuing operations, less net purchases\nof property and equipment and patent and licensing rights. Wolfspeed considers\nfree cash flow to be an operating performance and a liquidity measure that\nprovides useful information to management and investors about the amount of\ncash generated by the business after the purchases of property and equipment,\na portion of which can then be used to, among other things, invest in\nWolfspeed's business, make strategic acquisitions and strengthen the balance\nsheet. A limitation of the utility of free cash flow as a measure of operating\nperformance and liquidity is that it does not represent the residual cash flow\navailable to the company for discretionary expenditures, as it excludes\ncertain mandatory expenditures such as debt service.\n WOLFSPEED, INC. \n Reconciliation of GAAP to Non-GAAP Measures \n (in millions of U.S. Dollars, except per share amounts and percentages) \n (unaudited) \n   \n Non-GAAP Gross Margin \n   Successor   Predecessor \n   Three months ended June 28, 2026   Three months ended June 29, 2025 \n GAAP gross loss ($36.8 )   ($25.7 ) \n GAAP gross margin percentage (25 )%   (13 )% \n Adjustments:       \n Stock-based compensation expense 2.0     9.7   \n Restructuring and facility closure costs 5.0     14.6   \n Non-GAAP gross (loss) profit ($29.8 )   ($1.4 ) \n Non-GAAP gross margin percentage (20 )%   (1 )% \n\n Non-GAAP Operating Loss \n   Successor   Predecessor \n   Three months ended June 28, 2026   Three months ended June 29, 2025 \n GAAP operating loss ($115.4 )   ($581.6 ) \n GAAP operating loss percentage (77 )%   (295 )% \n Adjustments:       \n Stock-based compensation expense:       \n Cost of revenue, net 2.0     9.7   \n Research and development 1.2     2.4   \n Sales, general and administrative 6.0     (1.5 ) \n Total stock-based compensation expense 9.2     10.6   \n Amortization of acquisition-related intangibles —     0.3   \n Project, transformation and transaction costs 6.1     8.9   \n Pre-petition charges —     55.8   \n Restructuring and facility closure costs:       \n Cost of revenue, net 5.0     14.6   \n Restructuring and other expenses 5.5     54.9   \n Total restructuring and other costs 10.5     69.5   \n Goodwill impairment —     359.2   \n Gain on disposal of property and equipment (2.5 )   (16.7 ) \n Total adjustments to GAAP operating loss 23.3     487.6   \n Non-GAAP operating loss ($92.1 )   ($94.0 ) \n Non-GAAP operating loss percentage (62 )%   (48 )% \n\n Non-GAAP Non-Operating Income (Expense), net \n   Successor   Predecessor \n   Three months ended June 28, 2026   Three months ended June 29, 2025 \n GAAP non-operating income (expense), net ($29.5 )   ($97.8 ) \n Adjustments:       \n Gain on equity investment —     (31.8 ) \n Amortization of premiums, discount and debt issuance costs, net 5.9     14.3   \n Write-off of deferred financing cost —     54.7   \n Proceeds from settlement and miscellaneous items (0.7 )   —   \n Non-GAAP non-operating income (expense), net ($24.3 )   ($60.6 ) \n\n Non-GAAP Net Loss \n   Successor   Predecessor \n   Three months ended June 28, 2026   Three months ended June 29, 2025 \n GAAP net loss ($145.4 )   ($669.3 ) \n Adjustments:       \n Stock-based compensation expense 9.2     10.6   \n Amortization of acquisition-related intangibles —     0.3   \n Project, transformation and transaction costs 6.1     8.9   \n Pre-petition charges —     55.8   \n Restructuring and facility closure costs 10.5     69.5   \n Goodwill impairment —     359.2   \n Gain on disposal of property and equipment (2.5 )   (16.7 ) \n Gain on equity investment —     (31.8 ) \n Amortization of premiums, discount and debt issuance costs, net 5.9     14.3   \n Proceeds from settlement and miscellaneous items (0.7 )   —   \n Write-off of deferred financing cost —     54.7   \n Total adjustments to GAAP net loss before provision for income taxes 28.5     524.8   \n Income tax adjustment - benefit —     24.7   \n Non-GAAP net loss ($116.9 )   ($119.8 ) \n         \n Non-GAAP diluted loss per share ($2.26 )   ($0.77 ) \n Diluted weighted average shares (in thousands) 51,799     155,631   \n\n Adjusted EBITDA \n   Successor   Predecessor \n   Three months ended June 28, 2026   Three months ended June 29, 2025 \n GAAP net loss ($145.4 )   ($669.3 ) \n Income tax (benefit) expense 0.5     (10.1 ) \n Interest expense, net 30.0     75.8   \n Depreciation and amortization 31.7     60.4   \n EBITDA (Non-GAAP) (83.2 )   (543.2 ) \n         \n Reconciling items to adjusted EBITDA (Non-GAAP)       \n Stock based compensation 9.2     10.6   \n Project, transformation and transaction costs 6.1     8.9   \n Pre-petition charges —     55.8   \n Gain on equity investment —     (31.8 ) \n Restructuring and facility closure costs((1)) 8.7     61.8   \n Goodwill impairment —     359.2   \n Gain on disposal of property and equipment (2.5 )   (16.7 ) \n Write-off of deferred financing cost —     54.7   \n Proceeds from settlement and miscellaneous items (0.7 )   —   \n Adjusted EBITDA (Non-GAAP) ($62.4 )   ($40.7 ) \n         \n ((1) )Excludes restructuring-related depreciation of $1.8 million and $7.7 \n million included in \"Depreciation and amortization\" for the three months ended \n June 28, 2026 and June 29, 2025, respectively. \n\n Free Cash Flow \n   Successor   Predecessor \n   Three months ended June 28, 2026   Three months ended June 29, 2025 \n Net cash used in operating activities ($54.1 )   ($242.5 ) \n Less: PP&E spending, net of reimbursements from long-term incentive (5.0 )   (210.1 ) \n agreement \n Less: Patents spending (1.8 )   (1.4 ) \n Total free cash flow ($60.9 )   ($454.0 ) \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260819859398/en/\n(https://www.businesswire.com/news/home/20260819859398/en/)\n\nDan Whalen\n\nWolfspeed, Inc.\n\nVice President, Investor Relations\n\ninvestorrelations@wolfspeed.com (mailto:investorrelations@wolfspeed.com)\n\n\nCopyright Business Wire 2026","article_body_html":"","raw_payload":{"data":{"id":"nBwcQ8zna","title":"Wolfspeed Reports Financial Results for the Fourth Quarter of Fiscal 2026","author":"Business Wire","ticker":"WOLF","created":"2026-08-19T20:05:00.365Z","tickers":["WOLF"],"exchange":"NYSE","article_body":"Wolfspeed Reports Financial Results for the Fourth Quarter of Fiscal 2026\n\nWolfspeed, Inc. (NYSE: WOLF) today announced its results for the fourth\nquarter of fiscal 2026.\n\nBusiness Highlights\n\n\n * AI data center revenue more than doubled year-over-year in fiscal 2026 and\nincreased approximately 20% sequentially in the fourth quarter, demonstrating\nthe long-term potential of this moderate but growing opportunity.\n\n * Launched fifth-generation SiC MOSFET, representing a significant advancement\nin the Company's technology roadmap.\n\n * 10kV MOSFET named “Top Innovation” at the 2026 Power Conversion and\nIntelligent Motion conference and announced Memorandum of Understanding with\nGE Aerospace.\n\n * Launched a dedicated data center solutions team, based in Silicon Valley, to\ncapitalize on and supplement growth in our fastest growing end market and a\nstrategic collaboration with LITEON Technology.\n\n * Appointed Andy Mattes, experienced public technology company executive, to the\nBoard of Directors.\n\nQuarterly Financial Highlights\n\n\n * Consolidated revenue of approximately $150 million, aligned with midpoint of\nguidance range.\n\n * GAAP gross margin of (25)% and Non-GAAP gross margin of (20)%.\n\n * GAAP net loss of $145 million and adjusted EBITDA (non-GAAP) of ($62) million.\n\n * Operating cash flow of ($54) million.\n\n * $1.1 billion of cash, cash equivalents and short-term investments as of June\n28, 2026.\n\n“We continued to expand our device business, highlighted by strong growth in\nAI data center applications and the launch of our fifth-generation SiC MOSFET.\nThese achievements strengthen our technology leadership and confidence in our\nlong-term growth opportunities,” said Wolfspeed CEO Robert Feurle.\n\n“We are aggressively targeting initiatives to further reduce our debt and\ncost of capital as well as enhance our financial positioning,” said\nWolfspeed CFO Gregor van Issum. “During the fourth quarter, our capital\nstructure further improved as holders of $46 million of our convertible notes\nexercised a voluntary conversion of their debt to equity”.\n\nBusiness Outlook:\n\nThe Company expects to generate revenue between $140 million and $160 million\nfor its first quarter of fiscal 2027 with non-GAAP gross margin expected to\nremain negative. The Company expects non-GAAP operating expenses between $62\nmillion and $66 million for its first quarter of fiscal 2027. Please see\n\"Non-GAAP Guidance\" below for additional information.\n\nQuarterly Conference Call:\n\nWolfspeed will provide additional commentary on a conference call at 5:00 p.m.\nEastern time today reviewing the highlights of its fourth quarter results.\n\nThe conference call will be available to the public through a live audio web\nbroadcast via the Internet. For webcast details, visit Wolfspeed's website at\ninvestor.wolfspeed.com/events.cfm\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Finvestor.wolfspeed.com%2Fevents.cfm&esheet=54592030&newsitemid=20260819859398&lan=en-US&anchor=investor.wolfspeed.com%2Fevents.cfm&index=1&md5=3f2d652ceaac94f2dfbdc9c7f31b3477)\n.\n\nAbout Wolfspeed, Inc.\n\nWolfspeed (NYSE: WOLF) leads the market in the worldwide adoption of silicon\ncarbide technologies that power the world’s most disruptive innovations. As\nthe pioneers of silicon carbide, and creators of the most advanced\nsemiconductor technology on earth, we are committed to powering a better world\nfor everyone. Through silicon carbide material, Power Modules, Discrete Power\nDevices and Power Die Products targeted for various applications, we will\nbring you The Power to Make It Real.(TM) Learn more at www.wolfspeed.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.wolfspeed.com&esheet=54592030&newsitemid=20260819859398&lan=en-US&anchor=www.wolfspeed.com&index=2&md5=9ad971b88b43521cd41353c781c05a52)\n.\n\nFresh Start Accounting:\n\nAs a result of emerging from a voluntary proceeding under Chapter 11 and\nqualifying for the adoption of fresh-start accounting, on September 29, 2025\n(the \"Effective Date\"), Wolfspeed’s assets and liabilities were recorded at\ntheir estimated fair values which, in some cases, are significantly different\nthan amounts included in our financial statements prior to the Effective Date.\nAccordingly, our condensed consolidated financial statements after the\nEffective Date are not comparable with our condensed consolidated financial\nstatements on or before that date.\n\nReferences to “Successor” relate to our financial position and results of\noperations after the Effective Date. References to “Predecessor” refer to\nour financial position and results of operations on or before the Effective\nDate.\n\nNon-GAAP Financial Measures:\n\nThis press release highlights the Company's financial results on both a GAAP\nand a non-GAAP basis. The GAAP results include certain costs, charges and\nexpenses that are excluded from non-GAAP results. By publishing the non-GAAP\nmeasures, management intends to provide investors with additional information\nto further analyze the Company's performance, core results and underlying\ntrends. Wolfspeed's management evaluates results and makes operating decisions\nusing both GAAP and non-GAAP measures included in this press release. Non-GAAP\nresults are not prepared in accordance with GAAP, and non-GAAP information\nshould be considered a supplement to, and not a substitute for, financial\nstatements prepared in accordance with GAAP. Investors and potential investors\nare encouraged to review the reconciliation of non-GAAP financial measures to\ntheir most directly comparable GAAP measures attached to this press release.\n\nNon-GAAP Guidance:\n\nThis press release includes guidance for Non-GAAP Operating Expenses, which is\na non-GAAP financial measure. The Company is unable to provide a quantitative\nreconciliation of this forward-looking non-GAAP financial measure to the most\ndirectly comparable forward-looking GAAP financial measure, GAAP Operating\nExpenses, without unreasonable effort.\n\nThis is due to the inherent difficulty in forecasting and quantifying certain\nfuture items that are necessary for such a reconciliation. These unavailable\nitems include, but are not limited to, share-based compensation, project,\ntransformation and transaction costs, and restructuring charges, the amounts\nof which could be material.\n\nFor the same reasons, the Company is unable to address the probable\nsignificance of the unavailable information, which could have a significant\nimpact on our future GAAP financial results. A reconciliation is not available\nfor these periods because these items cannot be predicted with a reasonable\ndegree of certainty.\n\nForward Looking Statements:\n\nThis press release contains forward-looking statements involving risks and\nuncertainties, both known and unknown, that may cause Wolfspeed’s actual\nresults to differ materially from those indicated in the forward-looking\nstatements. Forward-looking statements by their nature address matters that\nare, to different degrees, uncertain, including estimates, forecasts, and\nprojections about possible or assumed future results of Wolfspeed’s\nbusiness, financial condition, liquidity, results of operations, plans, and\nobjectives and Wolfspeed’s industry and market growth. Words such as\n“could,” “will,” “may,” “assume,” “forecast,”\n“position,” “predict,” “strategy,” “expect,” “intend,”\n“plan,” “estimate,” “anticipate,” “believe,” “project,”\n“budget,” “potential,” “forward” or “continue” and similar\nexpressions are used to identify forward-looking statements. All statements in\nthis press release that are not historical are forward-looking statements,\nincluding statements regarding Wolfspeed’s position in the industry and\nlong-term growth prospects, our ability to achieve our targets for the first\nquarter of fiscal 2027 and beyond, initiatives to reduce Wolfspeed's debt and\ncost of capital and the expected growth in AI data center applications for\nWolfspeed's products. Actual results could differ materially due to a number\nof factors, including but not limited to, risks and uncertainties associated\nwith Wolfspeed's emergence from Chapter 11 bankruptcy, including the potential\neffects on Wolfspeed's relationship with its various stakeholders, including\ncustomers, vendors, contractors, employees or suppliers, its ability to\nattract, motivate, and/or retain management and key personnel, its ability to\nretain customers, and third parties willing to do business with Wolfspeed on\nacceptable terms or at all; ongoing uncertainty in global economic and\ngeopolitical conditions; changes in progress on infrastructure development or\nchanges in customer or industrial demand that could negatively affect product\ndemand, including as a result of an economic slowdown or recession,\ncollectability of receivables and other related matters if consumers and\nbusinesses defer purchases or payments, or default on payments; risks\nassociated with Wolfspeed’s expansion plans, including cost overruns, the\ntiming and amount of government incentives actually received, including, among\nother things, any direct grants and tax credits, issues in installing and\nqualifying new equipment and ramping production, poor production process\nyields and quality control, and potential increases to Wolfspeed’s costs;\nWolfspeed’s ability to obtain additional funding as needed, including, among\nother things, from government funding, public or private equity offerings, or\ndebt financings, on favorable terms and on a timely basis, if at all; the risk\nthat Wolfspeed does not meet its production commitments to those customers who\nprovide Wolfspeed with capacity reservation deposits or similar payments; the\nrisk that Wolfspeed may experience production difficulties that preclude it\nfrom shipping sufficient quantities to meet customer orders or that result in\nhigher production costs, lower yields and lower margins; Wolfspeed’s ability\nto lower costs; the risk that Wolfspeed’s results will suffer if it is\nunable to balance fluctuations in customer demand and capacity, including\nscaling back its manufacturing expenses or overhead costs quickly enough to\ncorrespond to lower than expected demand or bringing on additional capacity on\na timely basis to meet customer demand; the risk that longer manufacturing\nlead times may cause customers to fulfill their orders with a competitor’s\nproducts instead; product mix; risks associated with the ramp-up of production\nof Wolfspeed’s new products, and Wolfspeed’s entry into new business\nchannels and industries different from those in which it has historically\noperated; Wolfspeed’s ability to convert customer design-ins to design-wins\nand sales of significant volume, and, if customer design-in activity does\nresult in such sales, when such sales will ultimately occur and what the\namount of such sales will be; the risk that the markets for Wolfspeed’s\nproducts will not develop as it expects, including the adoption of\nWolfspeed’s products by electric vehicle manufacturers and the overall\nadoption of electric vehicles and our ability to diversify our end markets in\nmedium- to high-voltage verticals such as AI datacenters; the risk that the\neconomic and political uncertainty caused by tariffs imposed or announced by\nthe United States on imported goods, and corresponding tariffs and other\nretaliatory measures imposed by other countries (including China) in response,\nmay continue to negatively impact demand for Wolfspeed’s products; the risk\nthat Wolfspeed or its channel partners are not able to develop and expand\ncustomer bases and accurately anticipate demand from end customers, including\nproduction and product mix, which can result in increased inventory and\nreduced orders as Wolfspeed experiences wide fluctuations in supply and\ndemand; risks related to international sales and purchases; risks resulting\nfrom the concentration of Wolfspeed’s business among few customers,\nincluding the risk that customers may reduce or cancel orders or fail to honor\npurchase commitments; the risk that Wolfspeed’s investments may experience\nperiods of significant market value and interest rate volatility causing it to\nrecognize fair value losses on Wolfspeed’s investment; the risk posed by\nmanaging an increasingly complex supply chain (including managing the impacts\nof supply constraints in the semiconductor industry and meeting purchase\ncommitments under take-or-pay arrangements with certain suppliers) that has\nthe ability to supply a sufficient quantity of raw materials, subsystems and\nfinished products with the required specifications and quality; risks relating\nto outbreaks of infectious diseases or similar public health events, including\nthe risk of disruptions to Wolfspeed’s operations, supply chain, including\nits contract manufacturers, or customer demand; the risk Wolfspeed may be\nrequired to record a significant charge to earnings if its amortizable assets\nbecome impaired; risks relating to confidential information theft or misuse,\nincluding through cyber-attacks or cyber intrusion; Wolfspeed’s ability to\ncomplete development and commercialization of products under development; the\nrapid development of new technology and competing products that may impair\ndemand or render Wolfspeed’s products obsolete; the potential lack of\ncustomer acceptance for Wolfspeed’s products; risks associated with ongoing\nlitigation; the risk that customers do not maintain their favorable perception\nof Wolfspeed’s brand and products, resulting in lower demand for its\nproducts; the risk that Wolfspeed’s products fail to perform or fail to meet\ncustomer requirements or expectations, resulting in significant additional\ncosts; risks associated with strategic transactions; the risk that Wolfspeed\nis not able to successfully execute or achieve the potential benefits of\nWolfspeed’s efforts to enhance its value; and other factors discussed in\nWolfspeed’s filings with the Securities and Exchange Commission (the\n“SEC”), including Wolfspeed’s report on Form 10-K for the fiscal year\nended June 29, 2025, and subsequent reports filed with the SEC. These\nforward-looking statements represent Wolfspeed’s judgment as of the date of\nthis press release. Except as required under the U.S. federal securities laws\nand the rules and regulations of the SEC, Wolfspeed disclaims any intent or\nobligation to update any forward-looking statements after the date of this\npress release, whether as a result of new information, future events,\ndevelopments, changes in assumptions or otherwise.\n\nWolfspeed(®) is a registered trademark of Wolfspeed, Inc.\n WOLFSPEED, INC \n CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS \n (unaudited) \n   \n   Successor   Predecessor \n (in millions of U.S. Dollars, except per share data) Three months   Three months \n \nended June 28, \nended June 29, \n \n2026 \n2025 \n Revenue, net $149.6     $197.0   \n Cost of revenue, net 186.4     222.7   \n Gross loss (36.8 )   (25.7 ) \n Gross margin percentage (25 )%   (13 )% \n         \n Operating expenses:       \n Research and development 27.9     37.6   \n Sales, general and administrative 37.3     36.1   \n Factory start-up costs —     19.2   \n Gain on disposal of property and equipment (2.5 )   (19.0 ) \n Goodwill impairment —     359.2   \n Restructuring and other expenses 15.9     122.8   \n Operating loss (115.4 )   (581.6 ) \n Operating loss percentage (77 )%   (295 )% \n Interest expense, net of capitalized interest 39.8     84.8   \n Non-operating (income) expense, net (10.3 )   13.0   \n Loss before income taxes (144.9 )   (679.4 ) \n Income tax expense (benefit) 0.5     (10.1 ) \n Net loss ($145.4 )   ($669.3 ) \n         \n Basic loss per share       \n Net loss ($2.81 )   ($4.30 ) \n         \n Diluted loss per share       \n Net loss ($2.81 )   ($4.30 ) \n         \n Weighted average shares (in thousands)       \n Basic 51,799     155,631   \n Diluted 51,799     155,631   \n\n WOLFSPEED, INC \n CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS \n (unaudited) \n   \n   Successor   Predecessor \n (in millions of U.S. Dollars, except share data) Period from September 30, 2025 to June 28, 2026   Period from June 30, 2025 to September 29, 2025   Fiscal Year Ended June 29, 2025 \n Revenue, net $468.3     $196.8     $757.6   \n Cost of revenue, net 623.3     273.9     879.2   \n Gross loss (155.0 )   (77.1 )   (121.6 ) \n Gross margin percentage (33 )%   (39 )%   (16 )% \n             \n Operating expenses:           \n Research and development 80.0     31.7     175.1   \n Sales, general and administrative 103.7     37.9     190.5   \n Factory start-up costs —     —     85.2   \n Gain on disposal of property and equipment (5.4 )   (5.7 )   (20.0 ) \n Goodwill impairment —     —     359.2   \n Restructuring and other expenses 54.7     20.4     417.6   \n Operating loss (388.0 )   (161.4 )   (1,329.2 ) \n Operating loss percentage (83 )%   (82 )%   (175 )% \n Reorganization items, net —     (563.4 )   —   \n Interest expense, net 149.9     0.7     315.2   \n Non-operating income, net (123.5 )   (22.4 )   (25.5 ) \n (Loss) income before income taxes (414.4 )   423.7     (1,618.9 ) \n Income tax expense (benefit) 1.4     3.5     (9.7 ) \n Net (loss) income ($415.8 )   $420.2     ($1,609.2 ) \n             \n Basic (loss) earnings per share           \n Net (loss) income ($10.64 )   $2.69     ($11.39 ) \n             \n Diluted (loss) earnings per share           \n Net (loss) income ($10.64 )   $2.22     ($11.39 ) \n             \n Weighted average shares (in thousands)           \n Basic 39,094     156,185     141,320   \n Diluted 39,094     189,052     141,320   \n\n WOLFSPEED, INC. \n CONDENSED CONSOLIDATED BALANCE SHEETS \n (unaudited) \n   \n   Successor as of   Predecessor as of \n (in millions of U.S. Dollars) June 28, 2026   June 29, 2025 \n Assets       \n         \n Cash, cash equivalents, and short-term investments $1,088.6     $955.4   \n Accounts receivable, net 98.2     178.8   \n Inventories, net 234.2     435.4   \n Prepaid expenses 38.8     97.2   \n Investment tax credit receivable 84.4     653.4   \n Other current assets 45.2     222.0   \n Total current assets 1,589.4     2,542.2   \n Property and equipment, net 691.4     3,916.5   \n Intangible assets, net 392.2     23.8   \n Long-term investment tax credit receivable 116.5     105.0   \n Other assets 215.4     266.9   \n Total assets $3,004.9     $6,854.4   \n         \n Liabilities and Stockholders' Equity       \n         \n Accounts payable and accrued expenses $118.5     $280.2   \n Contract liabilities and distributor-related reserves 61.1     50.0   \n Income taxes payable 0.7     0.8   \n Finance lease liabilities 0.2     0.5   \n Current maturity on long-term borrowings —     6,538.0   \n Other current liabilities 51.1     220.5   \n Total current liabilities 231.6     7,090.0   \n Long-term debt 931.0     —   \n Convertible notes, net 756.5     —   \n Finance lease liabilities - long-term 1.9     8.4   \n Other long-term liabilities 153.7     203.1   \n Total liabilities 2,074.7     7,301.5   \n         \n Stockholders’ equity:       \n Common stock 0.1     0.2   \n Additional paid-in-capital 1,345.9     4,094.1   \n Accumulated other comprehensive loss —     (3.8 ) \n Accumulated deficit (415.8 )   (4,537.6 ) \n Total stockholders' equity (deficit) 930.2     (447.1 ) \n Total liabilities and stockholders’ equity (deficit) $3,004.9     $6,854.4   \n\n WOLFSPEED, INC. \n CONSOLIDATED STATEMENTS OF CASH FLOWS \n (unaudited) \n   \n   Successor   Predecessor \n (in millions of U.S. Dollars) Period from September 30, 2025 to June 28, 2026   Period from June 30, 2025 to September 29 2025   Fiscal Year Ended June 29, 2025 \n Operating activities:           \n Net (loss) income ($415.8 )   $420.2     ($1,609.2 ) \n Adjustments to reconcile net loss to cash used in operating activities of           \n continuing operations: \n Non-cash reorganization items —     (625.6 )   —   \n Depreciation and amortization 100.0     69.3     252.1   \n Goodwill impairment —     —     359.2   \n Gain on sale of property (5.4 )   (5.7 )   (20.0 ) \n Gain on RTP Fab Transfer —     (25.4 )   —   \n Amortization and write-off of deferred financing costs 16.4     —     103.6   \n Stock-based compensation 27.1     13.6     73.3   \n Loss (gain) on equity investment —     10.9     (22.6 ) \n Inventory write-off 34.0     29.0     6.8   \n Loss on disposal or impairment of property and equipment 3.1     0.2     171.7   \n Impairment of right-of-use assets —     —     4.8   \n Loss on debt extinguishment 3.3     —     —   \n Gain on contingent cash (10.0 )   —     —   \n Amortization of premium on investments, net (2.4 )   (1.2 )   (9.1 ) \n Change in fair value of liability classified derivative contracts (87.8 )   —     —   \n Paid-in-kind interest on long-term debt 27.8     —     83.2   \n Deferred income taxes 0.6     1.0     (10.3 ) \n Changes in operating assets and liabilities: 128.3     91.3     (95.2 ) \n Cash used in operating activities (180.8 )   (22.4 )   (711.7 ) \n Investing activities:           \n Purchases of property and equipment (72.9 )   (104.0 )   (1,271.4 ) \n Purchases of patent and licensing rights (3.6 )   (1.4 )   (5.3 ) \n Proceeds from sale of property and equipment 29.4     13.9     85.9   \n Proceeds from sale of MACOM Shares —     92.7     —   \n Purchases of short-term investments (492.3 )   (83.4 )   (390.9 ) \n Proceeds from maturities of short-term investments 307.5     151.8     986.7   \n Proceeds from sale of short-term investments 29.4     67.2     86.5   \n Reimbursement of capital expenditures from incentives and investment credits 733.2     0.1     240.4   \n Cash provided by (used in) investing activities 530.7     136.9     (268.1 ) \n Financing activities:           \n Proceeds from Existing Senior Secured Notes —     —     240.0   \n Proceeds from issuance of 1.5L Convertible Notes 379.0     —     —   \n Proceeds from issuance of New Common Stock and Pre-Funded Warrants 96.9     —     —   \n Proceeds from issuance of 2L Convertible Notes through the rights offering —     275.0     —   \n Payments on Existing Senior Secured Notes —     (308.5 )   —   \n Payments of deferred financing costs (18.6 )   (3.5 )   (47.9 ) \n Payments of equity issuance costs (3.5 )   —     —   \n Payment of Contingent Cash —     (10.0 )   —   \n Proceeds from contingent consideration 10.0     —     —   \n Proceeds from issuance of Old Common Stock —     —     203.9   \n Adequate protection payments on Existing Senior Secured Notes —     (38.4 )   —   \n Tax withholding on vested equity awards (1.2 )   (0.6 )   (3.9 ) \n Payments on long-term debt borrowings, including finance lease obligations (716.6 )   —     (0.5 ) \n Incentive-related escrow refunds —     —     10.0   \n Payment of Existing Senior Secured Notes commitment fees —     (15.5 )   —   \n Payment of unused capacity fee on pre-emergence debt —     —     (1.5 ) \n Cash (used in) provided by financing activities (254.0 )   (101.5 )   400.1   \n Effects of foreign exchange changes on cash and cash equivalents (0.6 )   0.8     1.0   \n Net change in cash, cash equivalents and restricted cash 95.3     13.8     (578.7 ) \n             \n Cash and cash equivalents, beginning of period 481.0     467.2     1,045.9   \n Cash and cash equivalents, end of period $576.3     $481.0     $467.2   \n add: Short-term Investments $512.3     $354.4     $488.2   \n Cash, cash equivalents, and short-term investments $1,088.6     $835.4     $955.4   \n\n Product Line Revenue \n   \n   Successor   Predecessor \n (in millions of U.S. Dollars) Three months ended June 28, 2026   Three months ended June 29, 2025 \n Power Products $106.3   $118.6 \n Materials Products 43.3   78.4 \n Total $149.6   $197.0 \n\n\nNon-GAAP Measures of Financial Performance\n\nTo supplement the Company's consolidated financial statements presented in\naccordance with generally accepted accounting principles (\"GAAP\"), Wolfspeed\nuses non-GAAP measures of certain components of financial performance. These\nnon-GAAP measures include non-GAAP gross margin, non-GAAP operating loss,\nnon-GAAP non-operating (expense) income, net, non-GAAP net loss, non-GAAP\ndiluted loss per share, non-GAAP EBITDA, adjusted EBITDA and free cash flow.\nThese measures are presented for continuing operations only.\n\nReconciliation to the nearest GAAP measure of all historical non-GAAP measures\nincluded in this press release can be found in the tables included with this\npress release.\n\nNon-GAAP measures presented in this press release are not in accordance with\nor an alternative to measures prepared in accordance with GAAP and may be\ndifferent from non-GAAP measures used by other companies. In addition, these\nnon-GAAP measures are not based on any comprehensive set of accounting rules\nor principles. Non-GAAP measures have limitations in that they do not reflect\nall of the amounts associated with Wolfspeed's results of operations as\ndetermined in accordance with GAAP. These non-GAAP measures should only be\nused to evaluate Wolfspeed's results of operations in conjunction with the\ncorresponding GAAP measures.\n\nWolfspeed believes that these non-GAAP measures, when shown in conjunction\nwith the corresponding GAAP measures, enhance investors' and management's\noverall understanding of the Company's current financial performance and the\nCompany's prospects for the future, including cash flows available to pursue\nopportunities to enhance shareholder value. In addition, because Wolfspeed has\nhistorically reported certain non-GAAP results to investors, the Company\nbelieves the inclusion of non-GAAP measures provides consistency in the\nCompany's financial reporting.\n\nFor its internal budgeting process, and as discussed further below,\nWolfspeed's management uses financial statements that do not include the items\nlisted below and the income tax effects associated with the foregoing.\nWolfspeed's management also uses non-GAAP measures, in addition to the\ncorresponding GAAP measures, in reviewing the Company's financial results.\n\nWolfspeed excludes the following items from one or more of its non-GAAP\nmeasures when applicable:\n\nStock-based compensation expense. This expense consists of expenses for stock\noptions, restricted stock, performance stock awards and employee stock\npurchases through its Employee Stock Purchase Program. Wolfspeed excludes\nstock-based compensation expenses from its non-GAAP measures because they are\nnon-cash expenses that Wolfspeed does not use to evaluate core operating\nperformance.\n\nRestructuring and facility closure costs. During the first quarter of fiscal\n2025, the Company began a headcount reduction and facility consolidation plan\n(the \"2025 Restructuring Plan\") to incur costs to optimize its operating model\nand accelerate its transition to 200 mm silicon carbide offerings through\nfacility closures and headcount reduction initiatives. Wolfspeed does not\ninclude these expenses when evaluating core operating activities for strategic\ndecision making, forecasting future results and evaluating current\nperformance, as these activities may be non-recurring, unusual, infrequent or\ndirectly related to an event that is distinct and non-reflective of the\nCompany's ongoing business operations. Restructuring and facility closure\ncosts associated with the 2025 Restructuring Plan primarily consist of\nseverance, asset-related charges and other closure-related costs related to\nfacilities in the process of closing or are already closed. Other\nclosure-related costs primarily consist of contract termination costs,\nmanufacturing transition charges and certain inventory abandonments that are\ndirectly attributable to a facility closure. Contract termination costs are\ndirectly attributable to facility closures and other restructuring-related\nactivities. Manufacturing transition charges include non-productive\nmanufacturing expenses incurred during the period from when shutdown\nactivities commence to when a facility is closed. Inventory abandonments\nrelate to identification and disposal of inventory that will not be utilized\nafter a product line is transferred to a new manufacturing location. Loss on\ndisposition of assets results from abandonment of non-productive assets in\naccordance with a restructuring plan. During the second and fourth quarters of\nfiscal 2026, the Company implemented additional headcount reductions. The\ncosts related to these initiatives, primarily severance, were recorded in the\nsecond and fourth quarters of fiscal 2026, as applicable.\n\nAmortization of acquisition-related intangibles. Wolfspeed incurred\namortization of acquisition-related intangibles in connection with\nacquisitions. Wolfspeed excludes these items because they are non-cash\nexpenses that Wolfspeed does not use to evaluate core operating performance.\nThese costs are recorded within \"Restructuring and other expenses\".\nAmortization related to intangibles recognized upon the adoption of fresh\nstart accounting are not excluded from non-GAAP measures other than EBITDA.\n\nGoodwill impairment. Wolfspeed determined that goodwill for its single\nreporting unit was fully impaired, resulting in a $359.2 million impairment\ncharge during fiscal 2025. Wolfspeed excluded this amount as Wolfspeed does\nnot believe it is reflective of the Company's ongoing operating results.\n\nGain/loss on disposal of property and equipment. Wolfspeed sold idle equipment\nand a building, which included the building improvements and land during\nfiscal 2026. Wolfspeed sold two properties including buildings, building\nimprovements and land during fiscal 2025. Wolfspeed does not believe these\ngains and losses are reflective of ongoing operating results.\n\nWrite-off of deferred financing costs. Wolfspeed wrote off the deferred\nfinancing costs for its then outstanding debt in the fourth quarter of fiscal\n2025. This is due to the restructuring support agreement and the voluntarily\nfiled prepackaged bankruptcy petitions (the \"Chapter 11 Cases\") on June 30,\n2025. Wolfspeed does not believe this is reflective of its ongoing operating\nresults.\n\nPre-petition charges. Wolfspeed recognized Pre-petition charges that consist\nprimarily of professional fees directly related to, but incurred prior to, the\nfiling of the Chapter 11 Cases. Wolfspeed does not believe this is reflective\nof its ongoing operating results.\n\nProject, transformation and transaction costs. The Company has incurred\nprofessional services fees and other costs associated with completed and\npotential acquisitions and divestitures, transformation programs focused on\noptimizing the Company's administrative processes, and certain costs\nassociated with the Chapter 11 Cases that are not accounted for as\nReorganization items, net in accordance with ASC 852. These costs are recorded\nwithin \"Restructuring and other expenses\". Wolfspeed excludes these items\nbecause Wolfspeed believes they are not reflective of the ongoing operating\nresults of Wolfspeed's business.\n\nAmortization of premiums, discount and debt issuance costs. net Interest\nexpense for certain of the Company's outstanding debt obligations includes\namortization of premiums/discount and debt issuance costs. Wolfspeed excludes\namortization of premium/discount and debt issuance costs from its non-GAAP\nmeasures because they are non-cash expenses that Wolfspeed does not use to\nevaluate core operating performance.\n\nGain/Loss on equity investment. The Company received shares of MACOM common\nstock in connection with the divestiture of the RF product line. These shares\nwere accounted for utilizing the fair value option and changes in the fair\nvalue of the shares are recognized in income. The Company disposed of the\nMACOM shares in September 2025. Wolfspeed excluded the impact of these gains\nor losses from its non-GAAP measures because Wolfspeed believes it is not\nreflective of the ongoing operating results of Wolfspeed's business.\n\nProceeds from settlement reimbursement and miscellaneous items. During the\nfourth quarter of fiscal 2026, the Company settled a dispute with a customer\nfor damaged tools that were disposed in a prior year and recorded proceeds for\nthe sale of miscellaneous parts. Wolfspeed believes the proceeds are not\nreflective of the ongoing operating results of Wolfspeed's business.\n\nIncome tax adjustment. This amount reconciles GAAP tax expense (benefit) to a\ncalculated non-GAAP tax expense (benefit) utilizing a non-GAAP tax rate. The\nnon-GAAP tax rate estimates an appropriate tax rate if the listed non-GAAP\nadjustments were excluded. The non-GAAP tax rate estimate applied to the\nnon-GAAP adjustments includes application of a zero-tax rate where a valuation\nallowance exists on a non-GAAP basis. This reconciling item adjusts non-GAAP\nnet (loss) income to the amount it would be if the calculated non-GAAP tax\nrate was applied to non-GAAP (loss) income before income taxes.\n\nWolfspeed may incur some of these same expenses, including income taxes\nassociated with these expenses, in future periods.\n\nIn addition to the non-GAAP measures discussed above, Wolfspeed also uses free\ncash flow as a measure of operating performance and liquidity. Free cash flow\nrepresents operating cash flows from continuing operations, less net purchases\nof property and equipment and patent and licensing rights. Wolfspeed considers\nfree cash flow to be an operating performance and a liquidity measure that\nprovides useful information to management and investors about the amount of\ncash generated by the business after the purchases of property and equipment,\na portion of which can then be used to, among other things, invest in\nWolfspeed's business, make strategic acquisitions and strengthen the balance\nsheet. A limitation of the utility of free cash flow as a measure of operating\nperformance and liquidity is that it does not represent the residual cash flow\navailable to the company for discretionary expenditures, as it excludes\ncertain mandatory expenditures such as debt service.\n WOLFSPEED, INC. \n Reconciliation of GAAP to Non-GAAP Measures \n (in millions of U.S. Dollars, except per share amounts and percentages) \n (unaudited) \n   \n Non-GAAP Gross Margin \n   Successor   Predecessor \n   Three months ended June 28, 2026   Three months ended June 29, 2025 \n GAAP gross loss ($36.8 )   ($25.7 ) \n GAAP gross margin percentage (25 )%   (13 )% \n Adjustments:       \n Stock-based compensation expense 2.0     9.7   \n Restructuring and facility closure costs 5.0     14.6   \n Non-GAAP gross (loss) profit ($29.8 )   ($1.4 ) \n Non-GAAP gross margin percentage (20 )%   (1 )% \n\n Non-GAAP Operating Loss \n   Successor   Predecessor \n   Three months ended June 28, 2026   Three months ended June 29, 2025 \n GAAP operating loss ($115.4 )   ($581.6 ) \n GAAP operating loss percentage (77 )%   (295 )% \n Adjustments:       \n Stock-based compensation expense:       \n Cost of revenue, net 2.0     9.7   \n Research and development 1.2     2.4   \n Sales, general and administrative 6.0     (1.5 ) \n Total stock-based compensation expense 9.2     10.6   \n Amortization of acquisition-related intangibles —     0.3   \n Project, transformation and transaction costs 6.1     8.9   \n Pre-petition charges —     55.8   \n Restructuring and facility closure costs:       \n Cost of revenue, net 5.0     14.6   \n Restructuring and other expenses 5.5     54.9   \n Total restructuring and other costs 10.5     69.5   \n Goodwill impairment —     359.2   \n Gain on disposal of property and equipment (2.5 )   (16.7 ) \n Total adjustments to GAAP operating loss 23.3     487.6   \n Non-GAAP operating loss ($92.1 )   ($94.0 ) \n Non-GAAP operating loss percentage (62 )%   (48 )% \n\n Non-GAAP Non-Operating Income (Expense), net \n   Successor   Predecessor \n   Three months ended June 28, 2026   Three months ended June 29, 2025 \n GAAP non-operating income (expense), net ($29.5 )   ($97.8 ) \n Adjustments:       \n Gain on equity investment —     (31.8 ) \n Amortization of premiums, discount and debt issuance costs, net 5.9     14.3   \n Write-off of deferred financing cost —     54.7   \n Proceeds from settlement and miscellaneous items (0.7 )   —   \n Non-GAAP non-operating income (expense), net ($24.3 )   ($60.6 ) \n\n Non-GAAP Net Loss \n   Successor   Predecessor \n   Three months ended June 28, 2026   Three months ended June 29, 2025 \n GAAP net loss ($145.4 )   ($669.3 ) \n Adjustments:       \n Stock-based compensation expense 9.2     10.6   \n Amortization of acquisition-related intangibles —     0.3   \n Project, transformation and transaction costs 6.1     8.9   \n Pre-petition charges —     55.8   \n Restructuring and facility closure costs 10.5     69.5   \n Goodwill impairment —     359.2   \n Gain on disposal of property and equipment (2.5 )   (16.7 ) \n Gain on equity investment —     (31.8 ) \n Amortization of premiums, discount and debt issuance costs, net 5.9     14.3   \n Proceeds from settlement and miscellaneous items (0.7 )   —   \n Write-off of deferred financing cost —     54.7   \n Total adjustments to GAAP net loss before provision for income taxes 28.5     524.8   \n Income tax adjustment - benefit —     24.7   \n Non-GAAP net loss ($116.9 )   ($119.8 ) \n         \n Non-GAAP diluted loss per share ($2.26 )   ($0.77 ) \n Diluted weighted average shares (in thousands) 51,799     155,631   \n\n Adjusted EBITDA \n   Successor   Predecessor \n   Three months ended June 28, 2026   Three months ended June 29, 2025 \n GAAP net loss ($145.4 )   ($669.3 ) \n Income tax (benefit) expense 0.5     (10.1 ) \n Interest expense, net 30.0     75.8   \n Depreciation and amortization 31.7     60.4   \n EBITDA (Non-GAAP) (83.2 )   (543.2 ) \n         \n Reconciling items to adjusted EBITDA (Non-GAAP)       \n Stock based compensation 9.2     10.6   \n Project, transformation and transaction costs 6.1     8.9   \n Pre-petition charges —     55.8   \n Gain on equity investment —     (31.8 ) \n Restructuring and facility closure costs((1)) 8.7     61.8   \n Goodwill impairment —     359.2   \n Gain on disposal of property and equipment (2.5 )   (16.7 ) \n Write-off of deferred financing cost —     54.7   \n Proceeds from settlement and miscellaneous items (0.7 )   —   \n Adjusted EBITDA (Non-GAAP) ($62.4 )   ($40.7 ) \n         \n ((1) )Excludes restructuring-related depreciation of $1.8 million and $7.7 \n million included in \"Depreciation and amortization\" for the three months ended \n June 28, 2026 and June 29, 2025, respectively. \n\n Free Cash Flow \n   Successor   Predecessor \n   Three months ended June 28, 2026   Three months ended June 29, 2025 \n Net cash used in operating activities ($54.1 )   ($242.5 ) \n Less: PP&E spending, net of reimbursements from long-term incentive (5.0 )   (210.1 ) \n agreement \n Less: Patents spending (1.8 )   (1.4 ) \n Total free cash flow ($60.9 )   ($454.0 ) \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260819859398/en/\n(https://www.businesswire.com/news/home/20260819859398/en/)\n\nDan Whalen\n\nWolfspeed, Inc.\n\nVice President, Investor Relations\n\ninvestorrelations@wolfspeed.com (mailto:investorrelations@wolfspeed.com)\n\n\nCopyright Business Wire 2026"},"type":"article","timestamp":"2026-08-19T20:05:00.506296904Z","server_sent_at_ms":1787169900506},"received_at":"2026-08-19T20:05:01.412Z","source_url":"https://www.businesswire.com/news/home/20260819859398/en/"},"analysis":{"id":"112200","press_release_id":"123212","analysis_json":{"industry":{"label":"Semiconductors & Semiconductor Equipment","sector":"Information Technology"},"redFlags":["GAAP gross margin of (25)% and Non-GAAP gross margin of (20)%","Non-GAAP gross margin expected to remain negative in Q1"],"eventType":"earnings","narrative":"Wolfspeed reported Q4 revenue of approximately $150 million, with AI data center revenue doubling year-over-year and increasing 20% sequentially.\n\nThe company posted a GAAP net loss of $145 million and negative gross margins, though it strengthened its capital structure by converting $46 million of convertible notes to equity.\n\nFor the first quarter of fiscal 2027, the company expects revenue between $140 million and $160 million with non-GAAP operating expenses of $62 million to $66 million.","sentiment":"mixed","agentHooks":{"shouldPost":true,"suggestedAngle":"AI revenue surges but negative gross margins persist in post-bankruptcy earnings report."},"keyFigures":{"revenue":149600000,"guidance":"Q1 2027 revenue $140M-$160M; non-GAAP OpEx $62M-$66M","customDimensions":{"cash":1100000000,"gaap_gross_margin":"-25%","non_gaap_gross_margin":"-20%","convertible_notes_converted":46000000}},"quotedText":"We continued to expand our device business, highlighted by strong growth in AI data center applications and the launch of our fifth-generation SiC MOSFET.","namedEntities":{"people":[{"name":"Robert Feurle","role":"CEO"},{"name":"Gregor van Issum","role":"CFO"},{"name":"Andy Mattes","role":"Board of Directors"}],"products":["fifth-generation SiC MOSFET","10kV MOSFET"],"companies":[{"name":"Wolfspeed, Inc.","ticker":"WOLF"},{"name":"GE Aerospace","relationship":"partner"},{"name":"LITEON Technology","relationship":"partner"}],"dollarAmounts":[{"amount":"$150 million","context":"Q4 consolidated revenue"},{"amount":"$145 million","context":"Q4 GAAP net loss"},{"amount":"$62 million","context":"Q4 adjusted EBITDA"},{"amount":"$54 million","context":"Q4 operating cash flow outflow"},{"amount":"$1.1 billion","context":"cash, cash equivalents and short-term investments"},{"amount":"$46 million","context":"convertible notes converted to equity"},{"amount":"$140 million","context":"Q1 2027 revenue guidance low end"},{"amount":"$160 million","context":"Q1 2027 revenue guidance high end"}]},"materialImpact":{"score":3,"reasoning":"Earnings release highlights strong AI data center revenue growth and debt conversion, but offset by persistent negative gross margins and substantial net losses."},"tickerRelevance":{"others":[],"primary":"WOLF"},"globalImportance":35,"audienceRelevance":25,"eventTypeSecondary":["product_launch","board_change"],"importanceComponents":{"tickerTier":"mid-cap","eventGravity":"earnings_turnaround","sectorWeight":"semiconductors"}},"event_type":"earnings","event_type_secondary":["product_launch","board_change"],"sentiment":"mixed","material_impact_score":3,"narrative":"Wolfspeed reported Q4 revenue of approximately $150 million, with AI data center revenue doubling year-over-year and increasing 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Technology","relationship":"partner"}],"dollarAmounts":[{"amount":"$150 million","context":"Q4 consolidated revenue"},{"amount":"$145 million","context":"Q4 GAAP net loss"},{"amount":"$62 million","context":"Q4 adjusted EBITDA"},{"amount":"$54 million","context":"Q4 operating cash flow outflow"},{"amount":"$1.1 billion","context":"cash, cash equivalents and short-term investments"},{"amount":"$46 million","context":"convertible notes converted to equity"},{"amount":"$140 million","context":"Q1 2027 revenue guidance low end"},{"amount":"$160 million","context":"Q1 2027 revenue guidance high end"}]},"model_name":"glm-4.7","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-08-19T20:14:54.980Z","global_importance":35,"audience_relevance":25,"importance_components":{"tickerTier":"mid-cap","eventGravity":"earnings_turnaround","sectorWeight":"semiconductors"}},"durationMs":204977,"modelName":"glm-4.7"}}