Wolfspeed (WOLF) Q3 2026 earnings summary

Executive summary

• Q3 FY2026 revenue was $150.2 million, matching guidance and reflecting stable execution and progress on technology leadership, financial discipline, and operational excellence.

• Achieved sequential quarterly growth of ~30% in AI data center applications, expanding long-term business potential.

• Launched the first commercially available 10kV SiC power MOSFET and next-gen TOLT portfolio, targeting grid modernization and AI data center infrastructure.

• Emerged from Chapter 11 bankruptcy, completed CFIUS clearance, and finalized equity issuance to Renesas, significantly restructuring the balance sheet.

• Organizational realignment and operational restructuring, including headcount reductions and facility consolidation, are driving improved execution.

Financial highlights

• Q3 FY26 consolidated revenue was $150.2M, with Power Products at $100.1M and Materials Products at $50.1M.

• GAAP gross margin was (27)%, non-GAAP gross margin (21)%, both remaining negative due to underutilization and restructuring costs.

• GAAP net loss was $119.9M; adjusted EBITDA was ($61.7M); operating cash flow was ($84M); free cash flow was ($90M).

• Ended the quarter with $1.2B in cash, cash equivalents, and short-term investments.

• Net debt position was $555M; stockholders’ equity improved to $1.02B from a deficit of ($447.1M) at prior year-end.

Outlook and guidance

• Q4 FY2026 revenue guidance is $140M–$160M; non-GAAP gross margin expected to remain negative and OPEX to be flat quarter-over-quarter.

• Management expects continued underutilization costs until market demand aligns with expanded production capacity.

• Liquidity is projected to be sufficient for at least the next 12 months, supported by cash, investments, and reduced debt service.

• Long-term goal is to return to above-market revenue growth, diversify the customer base, and achieve EBITDA and cash flow profitability.

• Capital expenditures are expected to decrease as major expansion projects are substantially complete.