Wolfspeed Reports $196.8 Million Revenue and Emerges from Chapter 11 Bankruptcy

Wolfspeed, Inc. reported a net revenue of $196.8 million for the three months ending September 28, 2025, reflecting a slight increase of 1% compared to $194.7 million in the same period last year. The growth was primarily driven by a 36% increase in revenue from Power Products, which reached $131.8 million, while revenue from Materials Products decreased by 33% to $65.0 million. The company experienced a gross loss of $77.1 million, resulting in a gross margin of -39.2%, a decline from -18.6% in the prior year, attributed to underutilization costs and unfavorable product mix changes.

In terms of operational performance, Wolfspeed's operating loss improved to $161.4 million from $230.1 million year-over-year. However, the company reported a net loss of $643.6 million, significantly higher than the $282.2 million loss recorded in the previous year, leading to a diluted loss per share of $4.12 compared to $2.23. The increase in net loss was influenced by $503.8 million in reorganization items related to the company's Chapter 11 bankruptcy proceedings, which included professional fees and adjustments for liabilities subject to compromise.

Wolfspeed emerged from Chapter 11 bankruptcy on September 29, 2025, following a comprehensive restructuring plan that reduced its total debt by approximately 70%, amounting to around $4.6 billion. The company issued new secured financing totaling $2.1 billion, which included new Senior Secured Notes and Convertible Notes. The restructuring also involved a conversion from a North Carolina corporation to a Delaware corporation, with the issuance of 25.8 million shares of new common stock.

Operationally, the company has focused on optimizing its manufacturing processes and enhancing product innovation. As of September 28, 2025, Wolfspeed reported cash and cash equivalents of $571.6 million, an increase from $467.2 million at the end of the previous fiscal period. The company generated $5.7 million in cash from operating activities, a significant turnaround from the $132.0 million used in the same quarter last year. This improvement was attributed to lower interest payments and favorable changes in working capital.

Looking ahead, Wolfspeed aims to accelerate product innovation and improve financial performance while continuing to invest in its business. The company anticipates that its current operating forecast will support its ability to maintain operations and meet obligations in the ordinary course of business. The management remains focused on leveraging its position as a supplier of U.S.-made silicon carbide products to capitalize on growth opportunities in the semiconductor industry.