Wolfspeed (WOLF) investor relations material

Executive summary

• Achieved 50% quarter-over-quarter growth in AI data center revenue, driven by next-gen portfolio and new customer wins in automotive, industrial, and wind energy sectors.

• Emerged from Chapter 11 bankruptcy with a strengthened capital structure, $1.3 billion in cash, and completed CFIUS clearance.

• Completed shutdown of Durham 150mm fab ahead of schedule, transitioning to 200mm manufacturing and benefiting gross margin.

• Achieved a significant technology milestone with successful production of a 300mm silicon carbide wafer.

• Refocused strategy on financial discipline, technology leadership, and diversified go-to-market across automotive, industrial & energy, aerospace & defense, and materials.

Financial highlights

• Q2 revenue was $168–$168.5 million, with $75–$76 million from Mohawk Valley; power revenue was $118–$118.3 million, materials revenue $50–$50.2 million.

• Non-GAAP gross margin was -34%, impacted by underutilization, inventory step-ups, and Fresh Start Accounting.

• Adjusted EBITDA for Q2 was negative $81.8–$82 million.

• Operating cash flow for Q2 was negative $43–$71 million; CapEx reduced to $31 million, down 90% year-over-year.

• Ended the quarter with $1.3 billion in cash and short-term investments.

Outlook and guidance

• Q3 revenue expected between $140 million and $160 million, reflecting customer inventory build and weaker EV demand.

• Operating expenses projected flat or slightly down sequentially; gross margin to remain negative but improve quarter-over-quarter.

• Long-range plan and financial targets update anticipated in the first half of calendar 2026.

• Continued focus on liquidity and diversification into high-voltage, high-growth verticals.