WOLFSPEED CONFIDENTIAL & PROPRIETARY © 2025 Wolfspeed, Inc. All rights reserved. Wolfspeed® and the Wolfstreak logo are registered trademarks and the Wolfspeed logo is a trademark of Wolfspeed, Inc. FORWARD-LOOKING STATEMENTS AND NON-GAAP MEASURES Note on Forward-Looking Statements Wolfspeed FY25 Q2 Earnings J A N U A R Y 2 9 , 2 0 2 5 The schedules attached to this presentation are an integral part of the presentation. This presentation contains forward-looking statements involving risks and uncertainties, ...

Revenue Performance - Consolidated revenue for Q2 FY2025 was $181 million, down from $208 million in Q2 FY2024, with Mohawk Valley Fab contributing $52 million compared to $12 million[4]. - Revenue for the three months ended December 29, 2024, was $180.5 million, a decrease of 13.4% compared to $208.4 million for the same period in 2023[21]. - Power Products revenue for the three months ended December 29, 2024, was $90.8 million, down from $107.7 million for the same period in 2023[26]. - The company is targeting revenue from continuing operations in the range of $170 million to $200 million for Q3 FY2025[4]. Net Loss and Earnings Per Share - GAAP net loss is projected to be between $(295) million and $(270) million, translating to $(1.89) to $(1.73) per diluted share for Q3 FY2025[4]. - Non-GAAP net loss is expected to range from $(138) million to $(119) million, or $(0.88) to $(0.76) per diluted share for Q3 FY2025[4]. - The company reported a basic and diluted loss per share of ($2.88) for the three months ended December 29, 2024, compared to ($1.15) for the same period in 2023[21]. - GAAP net loss from continuing operations for the three months ended December 29, 2024, was ($372.2) million, compared to ($126.2) million for the same period in 2023[48]. - Non-GAAP diluted loss per share for the six months ended December 29, 2024, was ($1.86), compared to ($1.09) for the same period in 2023[48]. Gross Margin and Operating Loss - GAAP gross margin for Q2 FY2025 was (21)%, a decrease from 13% in Q2 FY2024, while non-GAAP gross margin was 2%, down from 16%[4]. - Non-GAAP gross profit for the three months ended December 29, 2024, was $3.2 million, with a non-GAAP gross margin percentage of 2%, compared to $34.2 million and 16% in the same period of 2023[44]. - The company incurred a GAAP operating loss of ($323.0) million for the three months ended December 29, 2024, compared to ($98.1) million for the same period in 2023[45]. - Non-GAAP operating loss for the three months ended December 29, 2024, was ($105.2) million, with a non-GAAP operating loss percentage of 58%, compared to ($70.8) million and 34% in the same period of 2023[45]. Operating Expenses and Restructuring Costs - Total operating expenses for the three months ended December 29, 2024, were $285.8 million, significantly higher than $125.9 million for the same period in 2023[21]. - Restructuring-related costs incurred in Q2 FY2025 amounted to $188.1 million, with $31.4 million recognized in cost of revenue and $156.7 million as operating expense[6]. - For Q3 FY2025, the company expects to incur $72 million in restructuring-related costs, with $35 million recognized in cost of revenue and $37 million as operating expense[7]. Cash Flow and Assets - Cash and cash equivalents decreased to $614.0 million as of December 29, 2024, from $904.4 million at the end of the previous period[25]. - Total current assets decreased to $2,227.1 million as of December 29, 2024, from $2,999.6 million as of June 30, 2024[23]. - Long-term debt increased to $3,384.2 million as of December 29, 2024, compared to $3,126.2 million as of June 30, 2024[23]. - Free cash flow for the six months ended December 29, 2024, was ($1,126.3) million, compared to ($1,271.6) million for the same period in 2023[51]. - Total free cash flow for the three months ended December 29, 2024, was ($598.1) million, compared to ($755.2) million for the same period in 2023[51]. Future Outlook - The company expects a GAAP net loss from continuing operations outlook range of ($295) to ($270) million for the three months ending March 30, 2025[54]. - Non-GAAP net loss from continuing operations outlook range for the same period is projected to be ($138) to ($119) million[54]. - Total adjustments to GAAP net loss before provision for income taxes for the three months ending March 30, 2025, are estimated at $119 million[54]. Strategic Initiatives - Wolfspeed aims to leverage its silicon carbide technologies to capitalize on long-term opportunities in high-voltage solutions[4]. - Wolfspeed has completed a $200 million at-the-market equity offering to strengthen its balance sheet and support growth plans[3]. - The company incurred $22.8 million in factory start-up costs and $28.9 million in underutilization costs in Q2 FY2025[11].

Core Viewpoint - Ambarella is positioned for a brighter future compared to Wolfspeed, which faces significant challenges in its core business and valuation [1][4][11]. Group 1: Wolfspeed Overview - Wolfspeed's stock price has declined over 90% in the past two years due to rising interest rates impacting growth in green energy and EV markets, and increased production costs [2]. - The company has been restructuring, including workforce reductions and leadership changes, with analysts expecting a 2% revenue dip in fiscal 2025 [3]. - Wolfspeed's current trading valuation is 8 times this year's sales, with an enterprise value of $6.2 billion, which is considered high given its challenges [4][11]. Group 2: Ambarella Overview - Ambarella specializes in image processing systems-on-a-chip and computer vision chips for various applications, including security cameras and connected vehicles [5]. - The company faced headwinds such as U.S. regulatory restrictions on sales to Chinese customers, a cooling IoT market, and competition from other chipmakers [6]. - Despite these challenges, Ambarella's revenue grew by 1.7% in fiscal 2023 and is expected to rebound with a projected 23% growth in fiscal 2025, driven by its automotive and IoT sectors [7][8]. Group 3: Future Projections - Ambarella's CEO indicated record levels of AI revenue, contributing to a higher average selling price, with expectations for continued growth in automotive and IoT markets [9]. - Analysts forecast revenue and adjusted earnings growth of 16% and 44%, respectively, for fiscal 2026, supported by the increasing demand for computer vision chips [9]. - Ambarella's enterprise value is currently $3.1 billion, trading at 10 times next year's projected sales, with potential for significant valuation increases if market conditions improve [12]. Group 4: Comparative Valuation - Wolfspeed's enterprise value includes $3.1 billion in long-term debt, while Ambarella has no long-term debt, which may affect their relative valuations [12]. - Ambarella could potentially surpass Wolfspeed in valuation if it continues to meet or exceed growth expectations, with a possible enterprise value of $3.8 billion by the end of fiscal 2026 [12][13].

Earnings Report and Estimates - Wolfspeed is scheduled to report its second-quarter fiscal 2025 results on Jan 29 [1] - The company expects a non-GAAP net loss between 89 cents and $1 14 per share for Q2 fiscal 2025 [2] - The Zacks Consensus Estimate for Q2 fiscal 2025 loss is $1 01 per share, compared to a loss of 55 cents per share in the year-ago quarter [2] - Wolfspeed anticipates Q2 fiscal 2025 revenues in the range of $160-$200 million [2] - The consensus revenue estimate is $179 37 million, indicating a 13 93% decline from the year-ago quarter [3] Performance and Market Position - Wolfspeed's fiscal Q2 performance is expected to benefit from its strong position in the semiconductor market, particularly in the EV and high-voltage power sectors [4] - The company's EV revenues grew over 250% year-over-year in fiscal Q1, with momentum expected to continue in Q2 [5] - Wolfspeed is focusing on becoming a leader in 200-millimeter silicon carbide by cutting costs and optimizing investments, which is expected to enhance profitability and operational efficiency [6] - The company aims to capitalize on the growing demand for silicon carbide in the global EV shift, as well as in industrial and energy markets [6] Revenue and Design Wins - Wolfspeed anticipates increased revenue contributions from its Mohawk Valley facility, targeting $50-$70 million as production ramps up [7] - The company has a strong backlog of design wins, supporting over 125 car models across more than 30 OEMs, which is expected to be a tailwind in Q2 [7] - In fiscal Q1 2025, Wolfspeed recorded $1 3 billion in design wins (its third highest on record) and $1 5 billion in design-ins, with approximately 70% for EV platforms [8] - The trend of strong design wins is expected to continue in Q2 [8] Competitive and Market Challenges - Increasing competitive pressure, delays in expected EV demand, persistent supply chain constraints, and weakness in the industrial and energy domain across Asia, particularly China, are expected to negatively impact Wolfspeed's top line in Q2 [8] Stocks to Consider - Bill Holdings (BILL) has an Earnings ESP of +29 71% and a Zacks Rank 1, with shares gaining 17 4% in the trailing 12 months [11] - AMETEK (AME) has an Earnings ESP of +0 54% and a Zacks Rank 2, with shares gaining 13 7% in the trailing 12 months [12] - CyberArk Software (CYBR) has an Earnings ESP of +2 71% and a Zacks Rank 2, with shares surging 52 4% in the trailing 12 months [12]

Group 1 - Wolfspeed is investing heavily in improving its manufacturing capabilities, which is expected to be a significant growth driver for the company [1] - The company continues to experience cash burn as it pursues these investments [1] - Wolfspeed is highlighted as a key player in the artificial intelligence sector, suggesting that investors in AI stocks should pay attention to this company [1] Group 2 - The discussion includes Wolfspeed's business strategy and growth opportunities, indicating a focus on long-term potential despite current financial challenges [1] - Potential risks associated with the company's strategy are acknowledged, emphasizing the need for careful consideration by investors [1]

Core Viewpoint - Wolfspeed (WOLF) is anticipated to report a year-over-year decline in earnings due to lower revenues for the quarter ending December 2024, with a consensus outlook indicating a significant impact on its near-term stock price based on actual results compared to estimates [1][2]. Earnings Expectations - The upcoming earnings report is expected to show a quarterly loss of $1.01 per share, reflecting a year-over-year change of -83.6%, with revenues projected at $179.37 million, down 13.9% from the previous year [3]. - The consensus EPS estimate has been revised 0.74% higher in the last 30 days, indicating a slight reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for Wolfspeed is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -2.49%, indicating a bearish outlook from analysts [10][11]. - Historically, Wolfspeed has beaten consensus EPS estimates three out of the last four quarters, with a recent surprise of +9.90% when it reported a loss of $0.91 instead of the expected loss of $1.01 [12][13]. Stock Movement Potential - The stock may experience upward movement if the actual earnings exceed expectations, while a miss could lead to a decline [2]. - Despite the negative Earnings ESP reading, it does not definitively indicate an earnings miss, as other factors can influence stock performance [9][14]. Conclusion - Wolfspeed does not currently appear to be a strong candidate for an earnings beat, and investors should consider additional factors when making decisions regarding the stock ahead of the earnings release [16].

Core Viewpoint - Rosen Law Firm is reminding investors who purchased Wolfspeed, Inc. securities between August 16, 2023, and November 6, 2024, about the January 17, 2025, lead plaintiff deadline for a class action lawsuit [1] Group 1: Class Action Details - Investors may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [1] - A class action lawsuit has already been filed, and interested parties must move the Court by January 17, 2025, to serve as lead plaintiff [2] - The lawsuit concerns Wolfspeed's Mohawk Valley fabrication facility and alleges that the company misrepresented its growth potential and operational status [4][5] Group 2: Allegations Against Wolfspeed - The complaint claims that Wolfspeed provided overly positive revenue projections while concealing material adverse facts about its growth potential [5] - To meet its projections, Wolfspeed would need to cancel future projects, including a facility in Saarland, Germany, and terminate a significant portion of its workforce [5] Group 3: Rosen Law Firm's Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved the largest settlement against a Chinese company at the time and ranking No. 1 for securities class action settlements in 2017 [3] - The firm has recovered hundreds of millions of dollars for investors, securing over $438 million in 2019 alone [3]

WOLF DEADLINE TODAY: ROSEN, A LEADING NATIONAL FIRM, Encourages Wolfspeed, Inc. Investors to Secure Counsel Before Important January 17 Deadline in Securities Class Action - WOLF ...

DEADLINE TODAY: Investors Are Invited To Contact The Schall Law Firm About A Securities Fraud Case Against Wolfspeed, Inc. ...

FINAL REMINDER WOLF DEADLINE: Bronstein, Gewirtz & Grossman LLC Alerts Wolfspeed, Inc. Investors to Participate in the Class Action Lawsuit ...