Wolfspeed Earnings Call Transcripts
Fiscal Year 2026
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Q4 FY26 revenue reached $150 million, driven by strong AI data center growth and new design wins, while gross margin remained negative due to underutilization. The company ended the quarter with $1.1 billion in cash, reduced net debt, and expects Q1 FY27 revenue of $140–$160 million.
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Q3 FY2026 revenue reached $150 million, with strong growth in AI data center applications and improved gross margin. Strategic refinancing reduced debt and interest expense, while new product launches and operational realignment support long-term growth ambitions.
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Q2 revenue reached $168M with strong AI data center growth, but margins remained negative due to underutilization and restructuring. The company completed its transition to 200mm manufacturing, improved liquidity, and expects Q3 revenue of $140–$160M amid ongoing EV market softness.
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Emerged from restructuring with a stronger balance sheet and focus on profitability, technology leadership, and operational excellence. Q1 revenue was $197M, with a net loss driven by one-time restructuring charges. Market softness expected to persist through fiscal 2026.
Fiscal Year 2025
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Revenue grew 2.2% sequentially to $185 million, with strong Mohawk Valley fab performance and ongoing restructuring to streamline operations and improve liquidity. Leadership transitions and cost-saving measures aim to accelerate profitability and position for growth in key markets.
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Revenue declined sequentially but exceeded guidance, with strong year-over-year EV growth and continued ramp at Mohawk Valley. Cost reductions, facility closures, and U.S. government funding are key to improving liquidity and profitability, while CapEx is set to drop sharply next year.
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Q1 revenue was $195M, with EV revenue up 2.5x YoY and $2.5B in new funding secured. The business is transitioning fully to 200mm, closing legacy fabs, reducing workforce by 20%, and targeting $200M annual cash savings. Non-GAAP EBITDA profitability is expected in 2H FY25.
Fiscal Year 2024
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EV and industrial markets are driving growth, with a major shift to 200mm wafer production for cost and margin gains. Strong design-in momentum, robust funding, and restructuring support a positive outlook, while China remains a key opportunity and competitive focus.
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Announced up to $2.5 billion in new funding from the CHIPS Act, Apollo-led investors, and tax credits to expand U.S. silicon carbide manufacturing. Operational streamlining and cost reductions are underway, with a focus on accelerating profitability and maintaining strategic leadership.
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Operational improvements have accelerated the transition to 200 mm production, with Mohawk Valley fab yields and cost advantages supporting the planned Durham shutdown. Funding strategies center on CHIPS Act grants, alternative financing, and tax credits, while strong design-ins and automotive growth offset near-term EV and industrial market volatility.
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Q4 revenue was $201M, with strong EV growth and Mohawk Valley ramping up, offset by industrial and energy market weakness. CapEx is being reduced, liquidity remains a focus, and the transition to 200mm is accelerating, with positive EBITDA targeted in the second half of FY25.