Earnings

Wolfspeed Posts Mixed Q4 Results Amid Bankruptcy

Silicon carbide maker beats revenue estimates but misses on earnings as it navigates Chapter 11 restructuring, with stock down 80% year-to-date.

Wolfspeed, Inc. (WOLF), the silicon carbide technology specialist currently undergoing Chapter 11 bankruptcy, reported mixed financial results for its fourth quarter of fiscal year 2025. The company announced revenue of $197 million, surpassing analyst consensus estimates of $191.4 million. However, its adjusted loss per share of $0.77 was wider than the anticipated $0.72, underscoring the significant financial pressures it faces.

The Durham, North Carolina-based firm has seen its market value plummet, with its stock declining 80% year-to-date as it navigates the costly restructuring process. For the full fiscal year, Wolfspeed posted revenue of $758 million, a decrease from $807 million in fiscal 2024. The company's bottom line revealed substantial stress, with a full-year GAAP loss per share of $11.39, more than double the $4.56 loss reported in the prior year.

Financial filings revealed the depth of the challenges, including a $359.2 million goodwill impairment and $417.6 million in restructuring expenses for the fiscal year. Gross margins have also suffered, turning negative in the fourth quarter. The company's new Mohawk Valley Fab has been a key contributor to revenue, but underutilization costs at the facility continue to weigh heavily on profitability.

Despite the bleak performance, Wolfspeed management is focused on its post-bankruptcy future. The company is operating under a Plan of Reorganization, which it expects to be approved by the court next month. The plan aims to create a more stable financial foundation by reducing its debt load by approximately 70%.

'We are confident in the future of Wolfspeed,' stated CEO Robert Feurle, who pointed to the company’s 'world-class' facilities, leadership team, and robust intellectual property portfolio as key assets for its turnaround. The company's strategic initiatives include optimizing its operating model and accelerating the transition to 200 mm silicon carbide technology. Investors and stakeholders are now closely watching for the court's approval of the reorganization plan, a critical step for Wolfspeed to emerge from bankruptcy and attempt to regain its footing in the competitive semiconductor market.