Wolfspeed, Inc. (WOLF)

Wolfspeed reported fiscal fourth-quarter 2026 revenue of approximately $150 million on August 19, 2026, with a GAAP net loss of $145 million 2.

GAAP gross margin was negative 25 percent, so making the chips cost more than they sold for 2. The company said AI data center revenue rose about 20 percent from the prior quarter 2.

The newest news is financing 3. On October 7, 2026, Wolfspeed said it holds a conditional commitment letter from the U.S. Department of War for a senior secured loan of up to $1.5 billion 3.

The loan is not final 3. The filing lists due diligence, definitive agreements, congressional authorization and appropriations as conditions, and one condition is that Wolfspeed bring in at least $750 million of its own qualifying capital 3.

Evertiq reported that the department would receive warrants for up to 7.5 percent of the company's fully diluted equity if definitive agreements are signed 9.

At the annual meeting on October 27, 2026, stockholders elected seven directors and approved a 2026 employee stock purchase plan 5.

Wolfspeed says it began as a North Carolina corporation in 1987 and is headquartered in Durham, North Carolina 1. It moved its legal home to Delaware as part of its bankruptcy plan 1.

Over the years it sold businesses that were not silicon carbide 1. The 10-K records the sale of its LED business to SMART Global Holdings in fiscal 2021 and of its radio-frequency product line to MACOM, partly paid in MACOM shares 1.

The bet was on building its own silicon carbide factories 1. A grant agreement signed in the fourth quarter of fiscal 2020 gave New York's development agency the right to reimburse up to $500.0 million of costs at the Marcy, New York device fab 1.

A customer also helped pay for it 6. In July 2023 Renesas agreed to provide up to $2.0 billion in unsecured deposits tied to a ten-year wafer supply arrangement 6. Wolfspeed received $1.0 billion in July 2023, $500.0 million in February 2024 and $500.0 million in June 2024 6.

Revenue did not follow the spending 1. It was $807.2 million in fiscal 2024 and $757.6 million in fiscal 2025 1. Fiscal 2025 ended with a gross loss of $121.6 million, an operating loss of $1,329.2 million and a $359.2 million goodwill impairment 1.

The 10-K gives reasons 1. It says Wolfspeed had been experiencing softening demand and continued price pressure, and that its materials sales fell as customers cut order sizes and as Chinese suppliers added substrate supply 1.

The strain ended in court 1. Wolfspeed and Wolfspeed Texas LLC filed for Chapter 11 on June 30, 2025, after signing a Restructuring Support Agreement on June 22, 2025 1. eeNews Europe reported on July 1, 2025 that the deal would cut debt by $4.6 billion and interest payments by 60 percent 8.

The court confirmed the plan on September 8, 2025, and Wolfspeed emerged on September 29, 2025 1. Its roughly $3.1 billion of convertible notes were discharged, and holders of the old 156,479,390 shares received about 1,306,896 new ones 1. Renesas's roughly $2.1 billion of deposits were also discharged 1.

After emergence Wolfspeed used cash to retire new secured notes: $175.0 million of principal on December 22, 2025, and $475.9 million more on March 26, 2026 1. It also received about $733 million in manufacturing tax credits, New York grants and other government credits 1. All regulatory approvals Renesas needed came in on January 29, 2026 1.

Power devices

Power Products are silicon carbide Schottky diodes, transistors called MOSFETs and power modules, sold for electric vehicles and charging, server power supplies, solar inverters and AI data centers 1.

Power sales were $324.7 million, or 69.3 percent of revenue, in the 39 weeks after emergence, and $131.8 million in the 13 weeks before it 1. The company credits stronger industrial demand, last-time buys tied to closing its older Durham fab and AI data center growth, partly offset by weaker automotive demand and price pressure 1.

In its August release Wolfspeed said it launched a fifth-generation silicon carbide MOSFET, and that its 10kV MOSFET was named a top innovation at the 2026 Power Conversion and Intelligent Motion conference 2. It also announced a memorandum of understanding with GE Aerospace 2.

The 10-K names Infineon, ON Semiconductor, Rohm, STMicroelectronics, Bosch and Silan among power device rivals 1.

Silicon carbide and GaN materials

Materials Products are bare and epitaxial silicon carbide wafers and gallium nitride (GaN) layers grown on silicon carbide, bought by chipmakers and by research customers 1.

Materials sales were $143.6 million, or 30.7 percent of revenue, after emergence and $65.0 million before it, against $343.6 million in fiscal 2025 1. The 10-K says substrate customers kept adjusting order timing to match weaker demand 1.

It names SICC and TanKeBlue in China as growing competitors in materials 1.

Customers and where sales go

Two customers each made up more than 10 percent of revenue, together 38 percent after emergence and 41 percent before 1. Distributors made up about 45 percent of revenue 1.

By region, the United States was $160.4 million (34.3 percent) of post-emergence revenue, Hong Kong $88.8 million (19.0 percent) and Europe $79.2 million (16.9 percent) 1.

Plants and people

The Durham, North Carolina site holds headquarters, research and production in 1,004,000 square feet it owns, and Siler City, North Carolina, a materials plant, covers 1,836,000 square feet 1. The Marcy, New York fab is 634,000 square feet 1.

During the period ended June 28, 2026 Wolfspeed closed its 150mm device fab in Durham, and it now makes all power devices in the 200mm Marcy fab 1. It employed 2,371 regular employees on June 28, 2026 1.

Robert Feurle is chief executive and Gregor van Issum is chief financial officer, both quoted in the August release 2. Andy Mattes joined the board 2.

Problems and disputes

Wolfspeed sued Navitas Semiconductor in Delaware federal court on July 7, 2026, alleging infringement of five U.S. patents by Navitas's GaN and silicon carbide products 1. Navitas's response was due August 28, 2026 1.

The 10-K says it expects significant underutilization costs until demand meets or exceeds plant capacity, and its supplier take-or-pay agreements require at least $164 million of purchases over four years 1.

The umbrella, in words

Wolfspeed sells under its own name 1. The 10-K names one wholly owned subsidiary, Wolfspeed Texas LLC, which filed for Chapter 11 beside the parent 1.

It owns shares of no listed company that the 10-K highlights today: the MACOM shares it received for its radio-frequency line produced cash proceeds and, before emergence, a realized loss 1.

Debt and land: the Durham and Siler City sites are owned and the Moore Drive site in Durham and a site in Fayetteville, Arkansas are leased 1.

As of the proxy, Renesas Electronics America reported 18,745,855 shares, or 34.2 percent of those outstanding, including shares issuable on conversion of notes 6. Slate Path Capital reported 11.7 percent, T. Rowe Price Associates 11.5 percent and Capital Research Global Investors 7.3 percent 6. Directors and officers as a group held under 1 percent 6.

Renesas keeps the right to appoint a director under an Investor Rights Agreement and named a board observer from September 27, 2026 6.

For the first quarter of fiscal 2027, Wolfspeed expects revenue between $140 million and $160 million and non-GAAP operating expenses between $62 million and $66 million, with non-GAAP gross margin expected to remain negative 2.

The Department of War financing would come in up to four tranches: $600 million first, then $900 million split in tranches of $200 million to $400 million 3. The facility is expected to have a 30-year maturity and a 36-month commitment period 3.

The first tranche would repay in full the senior secured notes due 2030 3. Interest is provisionally contemplated at the Treasury rate of a similar maturity plus 1.25 to 1.75 percentage points, and it may be capitalized for the first five years 3.

In return, the department would receive warrants for 5 percent and 2.5 percent of outstanding equity as tranches are funded, with a non-voting board observer 3. Wolfspeed would have to keep its headquarters in the United States, and most directors would have to be U.S. citizens 7.

In the 10-K, management lists four priorities: advancing technology leadership, diversifying revenue and customers, driving operational excellence and demonstrating strict financial discipline 1.

The project the loan is tied to covers building out domestic silicon carbide wafer and power device production, domestic GaN production, GaN-on-SiC radio-frequency epitaxial wafer technology and radiation hardening 34.

Wolfspeed said in the 10-K it expects its lower level of capital investment to continue in fiscal 2027, and it is pursuing federal funding opportunities 1. It ended fiscal 2026 with $1,088.6 million in cash and short-term investments and said it can fund operations for at least the next 12 months 1.

Stockholders ratified PricewaterhouseCoopers as auditor for the fiscal year ending June 27, 2027, and the new employee stock purchase plan covers up to 1,700,000 shares 56. The Navitas patent case in Delaware is pending 1.

How it operates

Wolfspeed calls itself an innovator of wide bandgap semiconductors, focused on silicon carbide materials and devices for power applications. In plainer words, it grows the material, silicon carbide, and makes the switches cut from it that turn electric power on and off. By its own account those switches bring increased efficiency and faster switching speeds and, as a result, reduced system size and weight over comparable silicon power devices. The products are aimed at electric vehicles and fast charging, and at industrial and energy uses including AI data centers, grid modernization, renewable energy and storage, aerospace and defense. 1213

The two product families sit at different points of the chain. Materials products are silicon carbide bare wafers, epitaxial wafers and gallium nitride epitaxial layers grown on silicon carbide wafers, sold to customers who use them to build their own radio frequency and power products, and to corporate, government and university buyers doing research. Power device products are silicon carbide Schottky diodes, metal oxide semiconductor field effect transistors, which the filing shortens to MOSFETs, and power modules, sold to customers and distributors for electric vehicles and charging infrastructure, server power supplies, solar inverters, uninterruptible and industrial power supplies, AI data centers and grid modernization. 1415

Revenue leans on very few buyers. Two customers each took more than a tenth of consolidated revenue in every period the annual report covers, and together they accounted for 41%, 38%, 37% and 37% of it across the two parts of fiscal 2026 and the two fiscal years before. In the nine-month stretch after the company came out of bankruptcy, the two took 11% and 27%. About 45% of revenue is sold through distributors, which stock inventory and resell to their own customer base of resellers, manufacturers and end users, and one distributor on its own was more than a tenth of revenue in each period. 1617181920

Revenue is counted by the shipping address, so it shows where the goods land rather than where the finished equipment is sold. In fiscal 2025 Europe was the largest destination at 151.3 million dollars, 20.0% of revenue, after falling 48.7% from 295.2 million the year before, with the United States second at 135.5 million, 17.9%. In fiscal 2026 that order turned over: the United States took 160.4 million dollars of the successor period's revenue, 34.3% of it, while Europe took 79.2 million, 16.9%. Two thirds of revenue in that period still came from outside the United States, against 77% in the three months before it. 2122232425

Most products are made in the company's own plants in North Carolina, New York and Arkansas, with contract manufacturers, some of them captive lines, for parts of fabrication, assembly and packaging, and assembly and test subcontractors across Asia. Substrates are grown at the materials plant in Durham, North Carolina. During fiscal 2025 device production moved from 150mm wafers to 200mm; during the period ended June 28, 2026 the 150mm fabrication plant in Durham closed and all power devices are now made at the 200mm plant in Marcy, New York. Very little of the asset base sits abroad: 11.2 million dollars of property and equipment was held outside the United States at the end of fiscal 2026, against 142.9 million a year earlier, mostly at contract manufacturing space in Malaysia. 2627282930

The specifics

The year's defining event is a bankruptcy. On June 30, 2025 Wolfspeed and its subsidiary Wolfspeed Texas LLC filed prepackaged Chapter 11 petitions in the United States Bankruptcy Court for the Southern District of Texas, to carry out a plan settled in advance with holders of more than 97% of its senior secured notes, more than 67% of its convertible notes and Renesas Electronics America Inc. The court confirmed the plan on September 8, 2025 and the company emerged on September 29, 2025, with total debt cut by about 70% against pre-emergence levels. It reincorporated from North Carolina to Delaware on the way through. It ended fiscal 2026 with 1.1 billion dollars of cash, equivalents and short term investments, against a covenant that requires 350.0 million at each month end, helped by 698.6 million dollars of cash tax refunds collected in the successor period under the refundable federal chip manufacturing credit created by the CHIPS and Science Act of 2022. 31323334353637

Emerging reset the books. The company adopted fresh start accounting, which gave it a new basis of accounting and made it a new entity for financial reporting, so the statements after September 29, 2025 are not comparable with those before. Fiscal 2026 is therefore reported in two pieces: a predecessor period from June 30, 2025 to September 29, 2025, and a successor period from September 30, 2025 to June 28, 2026. The reset also pushed costs into the successor period: 23 million dollars of extra product cost as written-up work in progress and finished goods were sold, and 42 million of extra amortization on developed technology and other intangibles. 383940

The plan changed who owns the company. About 3.1 billion dollars of convertible notes were discharged, as were about 2.1 billion dollars of customer refundable deposits owed to Renesas. The old common stock was cancelled: 156,479,390 shares were outstanding immediately before the effective date, and existing holders received about 1,306,896 of the 25,840,656 new shares issued under the plan, the rest going to pre-petition convertible noteholders. Renesas received 203.6 million dollars of new convertible notes, a warrant over 4,943,555 shares, and 16,852,372 shares once regulatory approvals came through in January 2026. The filing says those former convertible holders and Renesas may control the outcome of matters put to stockholders, including director elections. 414243444546

Technology is protected by patents and trade secrets: as of June 28, 2026 the company owned or exclusively licensed 550 issued United States patents and about 921 foreign patents, with expiry dates running as far as 2051, and it says no single patent is material to the business. In July 2026 it sued Navitas Semiconductor Corp. and three other named companies in the United States District Court of Delaware over five patents covering gallium nitride and silicon carbide products. In materials it says it holds a well-established leadership position and names SICC Co., LTD. and TanKeBlue Semiconductor Co., Ltd of China as growing competition; in power devices it names Infineon Technologies AG, ON Semiconductor Corporation, Rohm Co. Ltd., ST Microelectronics N.V., Robert Bosch GmbH and Silan Microelectronics Co. Ltd. 47484950

What drives growth, line by line

Fiscal 2026 is reported in two pieces because of the bankruptcy: 468.3 million dollars of revenue in the successor period and 196.8 million in the predecessor period, against 757.6 million for the whole of fiscal 2025. The filing says net sales across the two pieces were down 12% on fiscal 2025. On the record this site holds, revenue had already fallen 6.1% in fiscal 2025, to 757.6 million from 807.2 million, after four straight years of growth from 470.7 million in fiscal 2020. 395152

Power Products. Power products are now much the bigger half. In fiscal 2025 the line brought 414.0 million dollars, 54.6% of revenue, near enough flat against 415.6 million the year before. In fiscal 2026 it was 324.7 million in the successor period, 69.3% of that period's revenue, and 131.8 million in the predecessor period, 67.0% of that one's. The filing credits stronger demand for industrial applications products, partly end-of-life buys tied to the closure of the Durham fabrication plant, and growth in emerging uses for silicon carbide devices such as AI and data center applications, set against a reduction in automotive demand and continued pricing pressure through the year. 213953

Materials Products. Materials, the wafer and substrate side, is shrinking. In fiscal 2025 it brought 343.6 million dollars, 45.4% of revenue, down 12.3% from 391.6 million. In fiscal 2026 it was 143.6 million in the successor period, 30.7% of that period's revenue, and 65.0 million in the predecessor period, 33.0% of that one's. The filing puts the fall down to lower volumes, as substrate customers keep adjusting the timing and size of their orders to rebalance supply against weaker end market demand, and to pricing pressure from increased substrate supply, particularly from suppliers in China. 213954

What comes next, in the company's own words: it has been experiencing softening demand and continued price pressure in certain applications; it continues to expect increased mid and long term demand growth, though it says the timing and extent of those increases remain uncertain; and it expects to keep incurring significant underutilization costs until market demand meets or exceeds its production capacity. Gross capital investment fell through fiscal 2026 once the first phases of the Mohawk Valley and Siler City projects were substantially complete, and the company expects that lower level of investment to continue in fiscal 2027. It also says it keeps pursuing federal funding, including awards that may be made available under the CHIPS and Science Act. 55565758

The read's section on the people who run it is on the People tab.

What the desk infers Inferred

1. Inferred

   One of the two customers that each take more than a tenth of revenue is the distributor the filing singles out separately, so part of what looks like customer concentration is concentration of resale rather than of end demand.

   Because

   • The filing says two customers each represented more than 10% of consolidated revenue in each period, and that no other customer did. 1619
   • It also says one distributor on its own represented over 10% of revenue in each of those same periods. 19
   • About 45% of revenue is sold through distributors, so a distributor is easily large enough to be one of the two. 18
   • Distributors stock inventory and resell to their own customer base of value added resellers, manufacturers and end users, so one distributor account can stand for many buyers. 20
   Confidence 75 of 100Wrong if A filing or a note that counts distributors outside the customer concentration figures, or that names both of the customers above a tenth of revenue as manufacturers buying for their own products.
2. Inferred

   Renesas is both a large owner of the reorganized company and one of its wafer customers: it is the counterparty to the ten-year wafer supply agreement that the discharged deposits were meant to secure.

   Because

   • The customer refundable deposits were term loans of about 2.1 billion dollars made by Renesas under an Unsecured Customer Refundable Deposit Agreement dated July 5, 2023. 59
   • Those deposits carried a higher interest rate, either 10% or 15% instead of 6%, if the company could not meet supply targets under a ten-year wafer supply agreement with the same customer, which makes the depositor a buyer of wafers. 60
   • On emergence Renesas received 203.6 million dollars of new convertible notes, a warrant over 4,943,555 shares and 16,852,372 shares of new common stock. 4344
   • The filing says former holders of the convertible notes and Renesas may control the outcome of matters put to stockholders, including director elections. 46
   Confidence 85 of 100Wrong if A filing that names a different counterparty to the ten-year wafer supply agreement, or that says Renesas neither holds shares of the reorganized company nor buys wafers from it.
3. Inferred

   The company's oldest advantage, silicon carbide substrates, is wearing away faster than its device business, with Chinese substrate supply setting the terms in wafers while power devices hold up on industrial and data center demand.

   Because

   • In fiscal 2025 materials revenue fell 12.3% to 343.6 million dollars while power products were near enough unchanged at 414.0 million. 21
   • Materials fell from 45.4% of revenue in fiscal 2025 to 30.7% of the successor period's revenue in fiscal 2026. 2139
   • The filing blames lower volumes and pricing pressure attributable to increased substrate supply, particularly from suppliers in China. 54
   • It names SICC Co., LTD. and TanKeBlue Semiconductor Co., Ltd in China as increased competition in exactly the wafer and epitaxy products where it says it holds a well-established leadership position. 49
   Confidence 70 of 100Wrong if A year in which materials revenue grows faster than power products, or a filing that puts the materials decline down to the company keeping its own substrates for its own devices rather than to outside competition.

Wolfspeed, Inc. (“Wolfspeed”, the “Company”, “we”, “our”, or “us”) is an innovator of wide bandgap semiconductors, focused on silicon carbide materials and devices for power applications.

On September 29, 2025 (the “Effective Date”), we emerged from the Chapter 11 Cases upon all the conditions to the effectiveness of the Plan being satisfied or waived and the Plan becoming effective.

What it warns about, in its own words

• Certain former convertible noteholders and Renesas may significantly influence matters submitted to stockholders.
• Impaired stakeholder confidence and weakened relationships following Chapter 11 emergence may adversely affect our business.
• Our dependence on a concentrated customer base creates revenue vulnerability.
• Our ability to achieve manufacturing cost targets and production yield goals is critical to profitability.