WOLF · Wolfspeed, Inc.

Wolfspeed's Q3 fiscal 2026 results showed revenue of $150.2 million, down from $185.4 million in the prior year quarter but meeting guidance midpoint, driven by sequential 30% growth in AI data center applications amid broader market challenges. Gross margins deteriorated to GAAP (27)% from (12)% year-over-year, with Non-GAAP at (21)%, reflecting high cost of revenue at $190.2 million versus revenue. Operating loss narrowed to $114.3 million from $194.5 million, aided by lower R&D expenses ($27.2 million vs $42.2 million) and significantly reduced restructuring costs ($10.6 million vs $65.4 million), though SG&A remained elevated at $37 million. Net loss improved to $119.9 million or ($3.05) per share, benefiting from $46.2 million non-operating income and lower interest expense post-refinancing. CEO Robert Feurle highlighted innovation progress, including launch of 10 kV SiC MOSFET for grid and AI infrastructure, next-gen TOLT portfolio, and Durham facilities shift to materials production. CFO Gregor van Issum emphasized balance sheet strengthening via refinancing $476 million first-lien debt, reducing total debt by $97 million and annual interest by $62 million, boosting equity over $400 million with $1.2 billion liquidity. Post-Chapter 11 fresh start accounting applies from September 29, 2026, limiting comparability. Q4 outlook projects $140-160 million revenue, flat operating expenses, and persistent negative margins, signaling ongoing operational discipline amid strategic AI and electrification focus.