Wolfspeed(US:WOLF)2025-10-29 20:24Revenue Performance - Consolidated revenue for the first quarter of fiscal 2026 was approximately $197 million, a slight increase from $195 million in the same quarter of fiscal 2025[6] - The Mohawk Valley Fab contributed $97 million in revenue, compared to $49 million in the prior year[6] - Total revenue for the three months ended September 28, 2025, was $196.8 million, slightly up from $194.7 million in the same period last year, an increase of 1.1%[21] - Wolfspeed expects revenue for the fiscal second quarter to be between $150 million and $190 million, anticipating a sequential decline due to market softness[4] Profitability and Loss - GAAP gross margin was (39)%, compared to (19)% in the previous year, reflecting underutilization costs of $47 million, up from $26 million[6] - GAAP loss per share was $(4.12), compared to $(2.23) in the same quarter last year, including $504 million of reorganization items related to Chapter 11[6] - Non-GAAP loss per share improved to $(0.55) from $(0.91) year-over-year[6] - Net loss for the three months ended September 28, 2025, was $643.6 million, compared to a net loss of $282.2 million for the same period in 2024, representing an increase in loss of 128.3%[20] - Non-GAAP gross loss was $51.2 million for the three months ended September 28, 2025, compared to a non-GAAP gross profit of $6.6 million in the same period of 2024, indicating a significant decline in performance[40] - GAAP operating loss for the three months ended September 28, 2025, was $161.4 million, an improvement from a loss of $230.1 million in the same period last year, resulting in a GAAP operating loss percentage of (82)% compared to (118)%[41] - Non-GAAP operating loss for the same period was $117.5 million, slightly worse than the $113.0 million loss in the prior year, with a non-GAAP operating loss percentage of (60)% versus (58)%[41] - GAAP net loss increased to $643.6 million from $282.2 million year-over-year, while non-GAAP net loss improved to $85.2 million from $115.8 million, with a non-GAAP diluted loss per share of ($0.55) compared to ($0.91) last year[44] - Adjusted EBITDA for the three months ended September 28, 2025, was ($57.4) million, a slight improvement from ($61.2) million in the same period last year[46] - Free cash flow for the quarter was negative $99.6 million, an improvement from negative $528.2 million in the prior year, with net cash used in operating activities of $5.7 million compared to negative $132.0 million last year[47] Cash and Assets - The company ended the quarter with $926 million in cash, cash equivalents, and short-term investments, providing financial flexibility post-emergence from Chapter 11[7] - Cash and cash equivalents at the end of the period were $571.6 million, down from $726.1 million at the end of September 2024, a decrease of 21.3%[20] - Total assets decreased from $6,854.4 million in June 2025 to $6,551.1 million in September 2025, a decline of approximately 4.4%[18] - Total current liabilities dropped dramatically from $7,090.0 million in June 2025 to $299.6 million in September 2025, a decrease of approximately 95.8%[18] Expenses and Cost Management - Research and development expenses were $31.7 million, down from $50.9 million in the prior year[16] - Total stock-based compensation expense decreased to $13.6 million from $23.7 million year-over-year, reflecting cost management efforts[41] - Restructuring and facility closure costs totaled $21.8 million, down from $87.1 million in the prior year, indicating improved operational efficiency[44] - The company incurred non-cash reorganization items of $475.7 million during the three months ended September 28, 2025, indicating substantial restructuring costs[20] - GAAP non-operating expense, net, significantly increased to $482.1 million from $51.7 million year-over-year, primarily due to reorganization items[43] Future Outlook - Wolfspeed plans to provide a comprehensive financial update in the first half of calendar 2026 but will not update its long-term model or guidance before then[5] - The company reported a significant increase in accounts receivable, net, from $2.0 million in September 2024 to $23.2 million in September 2025, an increase of 1,060%[20] - The company reported a gain on disposal of property and equipment of $5.3 million in the current quarter, compared to no such gain in the previous year[44] - The adjustments to GAAP net loss before provision for income taxes totaled $533.2 million, significantly higher than $133.0 million in the same period last year, reflecting substantial restructuring efforts[44]