Wolfspeed Reports $168.5M Revenue Decline and Significant Restructuring Post-Bankruptcy

Wolfspeed, Inc. reported its financial results for the period ending December 28, 2025, revealing a net revenue of $168.5 million, a decrease of 6.6% compared to $180.5 million in the same period the previous year. The company experienced a gross loss of $78.3 million, reflecting a significant increase in costs associated with revenue, which totaled $246.8 million. This contrasts with a gross profit of $37.2 million in the prior year, indicating challenges in managing production costs and pricing pressures in the market.

The company underwent substantial changes following its emergence from Chapter 11 bankruptcy on September 29, 2025, adopting fresh start accounting. This transition resulted in a new financial reporting structure, making comparisons with previous periods less relevant. The restructuring led to a significant reduction in total debt by approximately 70%, from $4.6 billion to $1.3 billion, which has improved the company's liquidity position, with cash and cash equivalents increasing to $1.03 billion from $467.2 million as of June 29, 2025.

Operationally, Wolfspeed's product lines showed mixed performance. Revenue from Power Products increased to $118.3 million, up from $90.8 million, driven by demand in automotive and industrial applications. However, revenue from Materials Products fell sharply to $50.2 million from $89.7 million, attributed to lower volumes as customers adjusted their orders in response to weaker market demand. The company also reported a decrease in research and development expenses, down to $24.9 million from $44.4 million, reflecting a strategic shift in resource allocation post-restructuring.

Wolfspeed's workforce has been reduced by approximately 28% as part of its restructuring efforts, which included the closure of its 150mm device fabrication facility. The company anticipates incurring additional costs related to this transition, with total restructuring costs expected to reach around $460 million. Looking ahead, Wolfspeed aims to leverage its improved financial position to enhance operational efficiency and drive growth in the silicon carbide market, particularly in emerging sectors such as AI and renewable energy.

The company remains cautious about market conditions, noting ongoing challenges such as softening demand and competitive pressures. However, it is optimistic about long-term growth prospects, supported by its strategic initiatives and the anticipated recovery in demand for its products.