Wolfspeed 10-K Reveals $415.8M Loss, $350M Liquidity Covenant, and Dilution Overhang
Summary
Wolfspeed's fiscal 2026 10-K shows a $415.8M net loss, $1.1B in cash, and a $350M liquidity covenant. The filing details significant dilution from warrants and convertibles, plus new litigation disclosures.
Key Events · Earnings and Guidance · WOLF
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Fiscal 2026 Net Loss of $415.8M
Successor period revenue was $468.3M with a gross loss of $155.0M (-33.1% margin). Operating loss was $388.0M, driven by underutilization costs, restructuring, and fresh start accounting amortization.
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$350M Minimum Liquidity Covenant
The New Senior Secured Notes require at least $350M in unrestricted cash monthly. Wolfspeed held $1.1B in cash and short-term investments as of June 28, 2026, providing a cushion but limiting flexibility.
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Significant Dilution Overhang
70.8M shares reserved for future issuance: 4.9M Renesas warrants at $23.95, 2.0M pre-funded warrants, and convertible notes with conversion prices from $12.23 to $20.14. If fully exercised, dilution would be substantial.
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March 2026 Financing Details
Private placement raised $96.9M gross: 3.25M shares at $18.458 and 2.0M pre-funded warrants at $18.448. Also issued $379.0M of 1.5L Convertible Notes at 3.5% coupon, conversion price ~$20.14.
Analysis · WOLF · Manufacturing
Wolfspeed's first annual report since emerging from Chapter 11 bankruptcy shows a $415.8 million net loss on $468.3 million revenue for the successor period, with gross margin deeply negative at -33.1%. The company holds $1.1 billion in cash and short-term investments but faces a $350 million minimum liquidity covenant under its New Senior Secured Notes. The filing details significant dilution risk: 70.8 million shares reserved for future issuance, including 4.9 million Renesas warrants at $23.95, 2.0 million pre-funded warrants, and convertible notes with conversion prices as low as $12.23. The company also disclosed a securities class action was dismissed on August 12, 2026, but a new patent infringement lawsuit against Navitas was filed July 7, 2026. The 10-K confirms the company's survival is secured for at least 12 months, but the path to profitability remains uncertain with continued cash burn and restructuring costs.
How filings like this one have moved
In the 30 days to Oct 2, 2026, 36.4% of the 1070 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.57%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, WOLF was trading at $26.29 on NYSE in the Manufacturing sector, with a market capitalization of approximately $1.4B. The 52-week trading range was $1.16 to $80.82. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.