Wolfspeed Sets Second-Quarter Revenue Target of $155 Million to $175 Million

The Tip Desk · November 11, 2026 · 3 min read

First-quarter sales were $155 million, above the prior guidance midpoint, and the company now targets $155 million to $175 million in the next quarter.

Wolfspeed, Inc. (WOLF), the silicon carbide semiconductor maker, reported first-quarter fiscal 2027 revenue of $155 million, above the midpoint of the $140 million to $160 million range it had set for the period.

The company said non-GAAP gross margin improved 710 basis points sequentially to (13)% from (20)% on a slightly higher revenue base. GAAP gross margin was (22)%.

GAAP net loss was $143.8 million, or $2.61 a share, on 55 million weighted-average shares. Adjusted EBITDA was ($55) million. Operating cash flow was ($84) million. Cash, cash equivalents and short-term investments were $1 billion as of September 27, 2026.

Power products generated $116.8 million of the quarter’s sales. Materials products contributed $38.2 million.

Chief Executive Officer Robert Feurle said the company continued to build momentum and was advancing every pillar of its strategy. Chief Financial Officer Gregor van Issum said the revenue results were above the midpoint of guidance and that fiscal 2027 marks a turning point.

The quarter’s commercial announcements centered on long-term supply and a conditional government loan. Wolfspeed said it announced a conditional 30-year, $1.5 billion loan commitment from the U.S. Department of War to advance the domestic wide-bandgap supply chain. Upon completion, the company said the commitment is expected to deliver significant annual interest savings.

It also expanded and extended an existing 150mm long-term silicon carbide wafer supply agreement with Infineon Technologies AG to include 200mm, and announced a multiyear supply agreement for silicon carbide devices to support BorgWarner’s next-generation 800V silicon carbide-based inverter platform. The company commercially introduced proprietary silicon carbide (TSiC) technology aimed at augmented reality, quantum computing and advanced optical applications, and said it was awarded the Strategic Partner Award from Megmeet, an emerging customer in the AI data center market.

Restructuring and other expenses were $14.3 million. Interest expense, net, was $40.0 million. Research and development spending was $27.8 million. Sales, general and administrative expense was $39.9 million. A $3.2 million gain on disposal of property and equipment reduced operating expenses.

The company had said in August that it expected first-quarter fiscal 2027 revenue of $140 million to $160 million, with non-GAAP gross margin expected to remain negative, and non-GAAP operating expenses of $62 million to $66 million.

For the second quarter of fiscal 2027, Wolfspeed targets revenue of $155 million to $175 million, with sequential non-GAAP gross margin improvement approaching breakeven. It targets non-GAAP operating expenses of $65 million to $69 million.

The company emerged from a voluntary Chapter 11 proceeding and adopted fresh-start accounting on September 29, 2025. Successor-period results after that date are not comparable with Predecessor-period results.

Long-term debt was $930.3 million and convertible notes, net, were $750.3 million as of September 27, 2026. Inventories, net, were $203.5 million.

Free cash flow was ($96.5) million. Purchases of property and equipment were $10.6 million.

Van Issum’s comment that fiscal 2027 marks a turning point sat alongside the conditional Department of War commitment and the Infineon and BorgWarner supply agreements. The company’s next-quarter revenue target of $155 million to $175 million overlaps the $140 million to $160 million range it had issued for the first quarter, and it targets sequential non-GAAP gross margin improvement approaching breakeven.