Wolfspeed Inc.

Wolfspeed reported fourth-quarter fiscal 2026 revenue of $150 million, including Materials revenue of approximately $43 million and Power revenue of approximately $106 million. Adjusted non-GAAP gross margin was negative 19.9%, improving 70 basis points sequentially, and adjusted non-GAAP EBITDA was negative $62 million, about flat with the prior quarter. Non-GAAP operating expenses were $62 million versus $61 million in the prior quarter; gross capital expenditures were $5 million versus $38 million in the prior quarter; operating cash flow was negative $54 million, including a $41 million inventory benefit; and the company ended with approximately $1.1 billion in cash and short-term investments. Net debt was approximately $600 million, and $46 million of 2L convertible notes were voluntarily converted, saving about $1 million of annual interest expense. For first-quarter fiscal 2027, management guided revenue to $140 million-$160 million, non-GAAP gross margin to remain negative, and non-GAAP operating expenses to $62 million-$66 million.

Robert Feurle framed the quarter as evidence that Wolfspeed is executing on a broader transformation, citing a refreshed leadership team, a stronger capital structure and a more customer-centric go-to-market strategy. He emphasized momentum in AI data centers, saying revenue in that business more than doubled in fiscal 2026 and rose about 20% sequentially in Q4, with design wins across the ecosystem and opportunities extending beyond power supplies into solid-state transformers and other high-voltage applications. His tone was constructive and confident, but he repeatedly noted the company is still early in the turnaround and that broader end-market demand remains hard to predict.

Gregor Van Issum focused on margin improvement, liquidity and debt reduction. He said Q4 non-GAAP gross margin was negative 19.9%, with sequential improvement driven mainly by mix, while factory underutilization remains the key constraint and gross margin neutrality is the next milestone; in response to a question, he said roughly an $800 million annual run rate is the ballpark for breakeven gross margin, depending on mix. He also highlighted $1.1 billion in cash and short-term investments, $600 million of net debt, $5 million of capex, and the $46 million conversion of 2L notes that cut annual interest expense by about $1 million.

Analysts pressed management on whether June marked the bottom for automotive and industrial, when data center revenue might become more meaningful, and how gross margins could turn positive. Feurle said the company is seeing good traction in both I&E and auto, but demand is still hard to forecast because some customers are changing product mix. On AI, he said growth is being driven by 800-volt deployment and solid-state transformers across 750-volt, 1,200-volt, 2.3-kilovolt and 3.3-kilovolt opportunities; Van Issum said gross margin neutrality is mainly a volume and utilization issue, with about an $800 million annual run rate as a rough breakeven point.