Wolfspeed Q4 FY2026: Revenue In Line, But Gross Margin Deeply Negative; Guides Q1 Revenue $140M-$160M
Summary
Wolfspeed's Q4 FY2026 results show revenue in line with guidance but deeply negative margins and continued cash burn, offset by a strong cash position. Guidance for Q1 FY2027 suggests ongoing losses.
Key Events · Earnings and Guidance · WOLF
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Q4 Revenue In Line, Losses Persist
Revenue of $149.6 million matched guidance, but GAAP net loss was $145.4 million and adjusted EBITDA was -$62 million.
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Gross Margin Deeply Negative
GAAP gross margin was -25% and non-GAAP gross margin was -20%, reflecting high costs and underutilization.
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Cash Burn Continues
Operating cash flow was -$54 million for the quarter, though the company holds $1.1 billion in cash and short-term investments.
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Convertible Notes Converted
Holders voluntarily converted $46 million of convertible notes to equity, reducing debt but increasing share count.
Analysis · WOLF · Manufacturing
Wolfspeed reported Q4 FY2026 revenue of $149.6 million, in line with guidance, but GAAP gross margin was -25% and adjusted EBITDA was -$62 million. The company continues to burn cash, with operating cash flow of -$54 million for the quarter. However, it holds $1.1 billion in cash and short-term investments, providing runway. Management guided Q1 FY2027 revenue to $140-$160 million with non-GAAP gross margin expected to remain negative, indicating ongoing operational challenges. The voluntary conversion of $46 million in convertible notes to equity reduces debt but adds dilution. This filing provides the full financial picture and forward guidance, making it a material update for investors.
At the time of this filing, WOLF was trading at $26.51 on NYSE in the Manufacturing sector, with a market capitalization of approximately $1.5B. The 52-week trading range was $1.16 to $80.82. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.