Key Highlights

  • Revenue of USD 155.0 million compares with an estimate of USD 149.86 million and USD 196.8 million a year earlier.
  • Non-GAAP loss per share was USD 2.03 against an estimate of USD -1.99; GAAP loss per share was USD 2.61.
  • GAAP net loss was USD 143.8 million, and adjusted EBITDA on a non-GAAP basis was USD -54.7 million.
  • Cash and short-term investments were USD 995.1 million; second quarter Revenue targets USD 155 million to USD 175 million.

Wolfspeed (NYSE:WOLF) opened fiscal 2027 with the announcement of a conditional, 30-year, USD 1.5 billion Loan Commitment from the U.S. Department of War, intended to advance the domestic wide bandgap Supply chain. The commitment arrived alongside a first quarter, the period ended September 27, 2026, in which revenue was USD 155.0 million against an estimate of USD 149.86 million. Chief executive Robert Feurle said the commitment and several long-term supply agreements support the company's aim of returning to a path of sustainable growth.

How the Commitment and Contracts Fit the Quarter

The loan commitment was one of several items management placed around the quarter. The company expanded and extended its existing 150mm silicon carbide wafer supply agreement with Infineon Technologies AG to include 200mm, and announced a multiyear supply agreement for silicon carbide devices for BorgWarner's next-generation 800V inverter platform. It also introduced its proprietary TSiC technology for augmented reality, Quantum Computing and advanced optics.

The company noted that the loan commitment remains conditional. It cited completion of due diligence, negotiation of definitive agreements and receipt of required government approvals among the items tied to the financing.

Results Around the Event

Revenue was USD 155.0 million, which management said was above the midpoint of its guidance range, against USD 196.8 million a year earlier. Power Products revenue was USD 116.8 million against USD 131.8 million, and Materials Products revenue was USD 38.2 million against USD 65.0 million.

GAAP gross Margin was negative 22%, against negative 39%, and non-GAAP gross margin was negative 13%. The chief financial officer said non-GAAP gross margin improved 710 basis points sequentially on a slightly higher revenue base. Operating expenses were USD 78.8 million against USD 84.3 million, and the operating loss was USD 112.8 million against USD 161.4 million.

Net interest expense was USD 40.0 million against USD 0.7 million. The GAAP net loss was USD 143.8 million, or USD 2.61 per share, against a net loss of USD 643.6 million, or USD 4.12 per share, in the predecessor period. The non-GAAP net loss was USD 111.4 million, or USD 2.03 per share. Results are presented under fresh-start accounting adopted on September 29, 2025, so the periods before and after that date are not directly comparable.

Cash, Debt and Second Quarter Targets

Operating cash flow was negative USD 84.2 million and free cash flow was negative USD 96.5 million. Cash, cash equivalents and short-term investments were USD 995.1 million, against USD 1,088.6 million at June 28, 2026. Long-term debt was USD 930.3 million and convertible notes, net, were USD 750.3 million.

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

Guidance Versus Reported Results

First quarter revenue of USD 155.0 million sits alongside a second quarter revenue target of USD 155 million to USD 175 million, and a non-GAAP gross margin of negative 13% sits alongside a target that approaches breakeven.

Management named the conditional USD 1.5 billion commitment, the Infineon and BorgWarner supply agreements and the TSiC introduction as its stated developments. It targets second quarter non-GAAP operating expenses of USD 65 million to USD 69 million, and its chief financial officer described fiscal 2027 as a turning point.