DURHAM, N.C.--(BUSINESS WIRE)--November 04, 2026-- 

Wolfspeed, Inc. (NYSE: WOLF) today announced its results for the first quarter of fiscal 2027.

Recent Business Highlights

   --  Announced conditional 30-year, $1.5 billion loan commitment from U.S. 
      Department of War to advance domestic wide bandgap supply chain. 
 
   --  Expanded and extended existing 150mm long-term supply silicon carbide 
      wafer supply agreement with Infineon Technologies AG to include 200mm. 
 
   --  Announced a multiyear supply agreement for our silicon carbide devices 
      to support BorgWarner's next-generation 800V silicon carbide-based 
      inverter platform. 
 
   --  Awarded the Strategic Partner Award from Megmeet, an emerging customer 
      in the AI data center market. 
 
   --  Commercially introduced our proprietary silicon carbide (TSiCTM) 
      technology expanding the potential of silicon carbide to enable 
      next-generation augmented reality ("AR"), quantum computing and advanced 
      optical applications. 

Quarterly Financial Highlights

   --  Consolidated revenue of approximately $155 million, higher than the 
      midpoint of guidance range. 
 
   --  GAAP gross margin of (22)% and Non-GAAP gross margin of (13)%. 
 
   --  GAAP net loss of ($144) million and adjusted EBITDA (non-GAAP) of ($55) 
      million. 
 
   --  Operating cash flow of ($84) million. 
 
   --  $1 billion of cash, cash equivalents and short-term investments as of 
      September 27, 2026. 

"We continued to build momentum across Wolfspeed and are advancing every pillar of our strategy. The conditional $1.5 billion commitment from the U.S. Department of War, coupled with the multiple long-term supply agreements we announced support our commitment to returning Wolfspeed to a path of long-term, sustainable growth." said Wolfspeed CEO Robert Feurle.

"Our revenue results of $155 million were above the midpoint of guidance, and adjusted non-GAAP gross margin improved 710 basis points sequentially, on a slightly higher revenue base. Also, upon completion, the conditional loan commitment is expected to deliver significant annual interest savings, reinforcing our conviction that fiscal 2027 marks a turning point." said Wolfspeed CFO Gregor van Issum.

Business Outlook:

The Company targets to generate revenue between $155 million and $175 million for its second quarter of fiscal 2027 with sequential non-GAAP gross margin improvement approaching breakeven. The Company targets non-GAAP operating expenses between $65 million and $69 million for its second quarter of fiscal 2027. Please see "Non-GAAP Guidance" below for additional information.

Quarterly Conference Call:

Wolfspeed will provide additional commentary on a conference call at 5:00 p.m. Eastern time today reviewing the highlights of its first quarter results.

The conference call will be available to the public through a live audio web broadcast via the Internet. For webcast details, visit Wolfspeed's website at investor.wolfspeed.com/events.cfm.

About Wolfspeed, Inc.

Wolfspeed (NYSE: WOLF) leads the market in the worldwide adoption of silicon carbide technologies that power the world's most disruptive innovations. As the pioneers of silicon carbide, and creators of the most advanced semiconductor technology on earth, we are committed to powering a better world for everyone. Through silicon carbide material, Power Modules, Discrete Power Devices and Power Die Products targeted for various applications, we will bring you The Power to Make It Real.(TM) Learn more at www.wolfspeed.com.

Fresh Start Accounting:

As a result of emerging from a voluntary proceeding under Chapter 11 and qualifying for the adoption of fresh-start accounting, on September 29, 2025 (the "Effective Date"), Wolfspeed's assets and liabilities were recorded at their estimated fair values which, in some cases, are significantly different than amounts included in our financial statements prior to the Effective Date. Accordingly, our condensed consolidated financial statements after the Effective Date are not comparable with our condensed consolidated financial statements on or before that date.

References to "Successor" relate to our financial position and results of operations after the Effective Date. References to "Predecessor" refer to our financial position and results of operations on or before the Effective Date.

Non-GAAP Financial Measures:

This press release highlights the Company's financial results on both a GAAP and a non-GAAP basis. The GAAP results include certain costs, charges and expenses that are excluded from non-GAAP results. By publishing the non-GAAP measures, management intends to provide investors with additional information to further analyze the Company's performance, core results and underlying trends. Wolfspeed's management evaluates results and makes operating decisions using both GAAP and non-GAAP measures included in this press release. Non-GAAP results are not prepared in accordance with GAAP, and non-GAAP information should be considered a supplement to, and not a substitute for, financial statements prepared in accordance with GAAP. Investors and potential investors are encouraged to review the reconciliation of non-GAAP financial measures to their most directly comparable GAAP measures attached to this press release.

Non-GAAP Guidance:

This press release includes guidance for Non-GAAP Operating Expenses, which is a non-GAAP financial measure. The Company is unable to provide a quantitative reconciliation of this forward-looking non-GAAP financial measure to the most directly comparable forward-looking GAAP financial measure, GAAP Operating Expenses, without unreasonable effort.

This is due to the inherent difficulty in forecasting and quantifying certain future items that are necessary for such a reconciliation. These unavailable items include, but are not limited to, share-based compensation, project, transformation and transaction costs, and restructuring charges, the amounts of which could be material.

For the same reasons, the Company is unable to address the probable significance of the unavailable information, which could have a significant impact on our future GAAP financial results. A reconciliation is not available for these periods because these items cannot be predicted with a reasonable degree of certainty.

Forward Looking Statements:

This press release contains forward-looking statements involving risks and uncertainties, both known and unknown, that may cause Wolfspeed's actual results to differ materially from those indicated in the forward-looking statements. Forward-looking statements by their nature address matters that are, to different degrees, uncertain, including estimates, forecasts, and projections about possible or assumed future results of Wolfspeed's business, financial condition, liquidity, results of operations, plans, and objectives and Wolfspeed's industry and market growth. Words such as "could," "will," "may," "assume," "forecast," "position," "predict," "strategy," "expect," "intend," "plan," "estimate, " "anticipate," "believe," "project," "budget," "potential," "forward" or "continue" and similar expressions are used to identify forward-looking statements. All statements in this press release that are not historical are forward-looking statements, including statements regarding Wolfspeed's position in the industry and long-term growth prospects; Wolfspeed's ability to achieve its targets for the second quarter of fiscal 2027 and beyond; the anticipated benefits of the conditional loan commitment from the U.S. Department of War's Office of Strategic Capital (the "OSC Loan Commitment"), including expected improvements to Wolfspeed's capital structure and anticipated annual and cash interest savings, and the ability to complete the related financing; the expected benefits of Wolfspeed's long-term supply agreements; Wolfspeed's ability to return to a path of long-term, sustainable growth; initiatives to reduce Wolfspeed's debt and cost of capital; and the expected growth in AI data center applications for Wolfspeed's products. Actual results could differ materially due to a number of factors, including but not limited to, risks and uncertainties associated with ongoing impacts from Wolfspeed's 2025 Chapter 11 reorganization, including effects on its commercial relationships with customers, vendors, suppliers and other stakeholders; ongoing uncertainty in global economic and geopolitical conditions; the ability of Wolfspeed and its channel partners to generate and accurately forecast customer demand, convert design-ins into design-wins and volume sales, manage product mix and inventory levels, and respond to changes in economic conditions and end-market demand; risks associated with Wolfspeed's ability to receive and retain certain tax incentives and other government grants, loans and incentives, including with respect to the OSC Loan Commitment; production risks, including poor production process yields, quality control issues and related manufacturing inefficiencies or disruptions; Wolfspeed's ability to obtain additional funding as needed, including, among other things, from government funding, public or private equity offerings, or debt financings, on favorable terms and on a timely basis, if at all; risks related to consummation of the financing contemplated by the OSC Loan Commitment, including completion of due diligence, negotiation of definitive agreements, receipt of required government approvals, and Wolfspeed's ability to satisfy the conditions to closing and funding; the risk that Wolfspeed does not meet its production commitments to those customers who provide Wolfspeed with capacity reservation deposits or similar payments; risks related to production difficulties and longer manufacturing lead times that could increase costs, reduce margins, and cause customers to purchase competing products; risks related to balancing fluctuations in customer demand and manufacturing capabilities; risks