News: Microelectronics
3 November 2025
Wolfspeed cuts quarterly loss after CapEx slashed during restructuring
For its fiscal first-quarter 2026 (to 28 September 2025), Wolfspeed Inc of Durham, NC, USA — which makes silicon carbide (SiC) materials and power semiconductor devices — has reported revenue of $196.8m, roughly level with last quarter and up by just 1% on $194.7m a year ago.
Materials Products revenue has fallen back by 17% from $78.4m last quarter to $65m, down 33% on $97.6m a year ago. In contrast, following a low of $90.8m in fiscal Q2/2025, Power Products revenue has rebounded further, by 11% from $118.6m last quarter to $131.8m (up 35.7% on $97.1m a year ago). Of this, the Mohawk Valley Fab in Marcy, NY (opened in April 2022 to produce SiC power devices on larger, 200mm wafers) contributed $97m, rising by 3.1% from $94.1m last quarter and roughly doubling from $49m a year ago.
On a non-GAAP basis, gross margin was –26%, compared with +1% last quarter and +3% a year ago. However, this includes the impact of under-utilization costs related to the Mohawk Valley Fab and to The JP (the John Palmour Manufacturing Center for Silicon Carbide) materials facility in Siler City, NC. The latter rose from $26m a year ago to $47m since, prior to its attainment of production readiness in late fiscal 2025, Siler City’s costs were presented as start-up costs, which were $19.7m a year ago.
Net loss has been cut from $115.8m ($0.91 per share) a year ago and $119.8m ($0.77 per share) last quarter to $85.2m ($0.55 per share). However, this excludes $503.8m of reorganization items related to Chapter 11 case (including $28m of professional fees and $476m of debt-related adjustments).
Operating cash flow has been cut to just –$5.7m, from –$242.5m last quarter and –$132m a year ago. Capital expenditure (CapEx) was $103.9m (slashed from $211.6m last quarter and $395m a year ago (which mainly comprised investment into The JP). Free cash outflow has hence improved further, from –$528.2m a year ago and –$454m last quarter to –$99.6m.
Cash, cash equivalents, and short-term investments have fallen further, from $1687.6 a year ago and $955.4m last quarter to $926m.
Chapter 11 emergence & recapitalization
After filing for Chapter 11 bankruptcy protection on 30 June, Wolfspeed emerged from Chapter 11 on 29 September. The firm says that, throughout the restructuring process, it was able to maintain payments to its vendors, continue serving customers, and operate business as usual. Wolfspeed adds that, as of the end of fiscal Q1/2026, the balance sheet of $926m provides the financial flexibility to execute on its self-funded business plan post-emergence.
Near-term outlook
For its fiscal second-quarter 2026, Wolfspeed expects revenue to fall sequentially to $150–190m, driven primarily by accelerated customer purchases in fiscal Q1 (as certain customers built up inventory by placing orders from the Durham fab prior to its planned closure at year-end) and by certain customers pursuing second-sourcing of products during Wolfspeed’s bankruptcy process. In addition, in line with others in the industry, Wolfspeed has experienced ongoing softness in the market that it expects will continue through fiscal 2026.
Longer-term outlook
“Through our restructuring, we’ve strengthened the foundation of the company, emerging as a leaner organization with a focus on product innovation and market leadership,” says CEO Robert Feurle. “We’re building a stronger Wolfspeed that capitalizes on our world-class 200mm manufacturing footprint and leadership in silicon carbide,” he adds. “As we look ahead, we’re taking a disciplined approach to align the business with the near-term headwinds while advancing into new, high-growth applications like AI data centers, aerospace, and energy storage. We believe these actions position Wolfspeed to deliver sustainable growth and long-term value.”
Wolfspeed completes financial restructuring and emerges from Chapter 11 protection
Wolfspeed’s quarterly revenue rebounds by 6%, led by 10% growth in Power Products
Wolfspeed announces commercial launch of 200mm silicon carbide wafers
Wolfspeed appoints former NXP and ams OSRAM executive Gregor van Issum as CFO
