Wolfspeed(WOLF) - 2026 Q2 - Quarterly Results

Financial Performance - Consolidated revenue for the quarter was approximately $168 million, with $76 million from the Mohawk Valley Fab[5] - Revenue for the period from September 30, 2025, to December 28, 2025, was $168.5 million, a decrease from $180.5 million in the same period last year, representing a decline of 6.8%[18] - Power Products revenue was $118.3 million, up from $90.8 million in the same period last year, reflecting a growth of 30.5%[27] - The company expects revenue for the fiscal third quarter to be between $140 million and $160 million[7] Operating Loss and Expenses - GAAP net loss reported at $151 million and adjusted EBITDA at ($82) million[5] - Total operating expenses were $80.1 million, significantly lower than $285.8 million in the previous year, indicating a reduction of 72%[18] - The operating loss for the period was $158.4 million, with an operating loss percentage of -94%, compared to -179% in the prior year[18] - Net loss for the period was $150.6 million, translating to a basic and diluted loss per share of $5.78, compared to a profit of $6.81 per share in the previous year[21] - Non-GAAP operating loss for the same period was $114.5 million, with a non-GAAP operating loss percentage of -68%[50] - Adjusted EBITDA for the period was reported at -$81.8 million, reflecting ongoing operational challenges[53] Cash and Investments - Cash, cash equivalents, and short-term investments totaled $1.3 billion as of December 28, 2025[5] - Cash and cash equivalents at the end of the period were $1,028.8 million, an increase from $481.0 million at the beginning of the period[26] - Free cash flow for the period was $627.1 million, a significant improvement compared to a cash outflow of $598.1 million in the prior year[54] Cost Reductions and Restructuring - Annualized operating expense reduction of approximately $200 million compared to Q2 FY 2025[5] - Capital expenditures decreased by 90% year-over-year[5] - In Q1 fiscal 2025, the company initiated a headcount reduction and facility consolidation plan, incurring restructuring costs primarily consisting of severance and asset-related charges[33] - In Q2 fiscal 2026, the company completed a headcount reduction, with associated severance costs recorded during this period[34] - The company incurred $24.6 million in restructuring and facility closure costs during the reporting period[50] Technology and Innovation - Demonstrated a single-crystal 300-millimeter silicon carbide wafer, indicating progress in technology leadership[5] - Key customer wins include partnerships with Toyota and Hopewind for onboard charging systems and industrial inverters, respectively[5] Liabilities and Financial Health - The company reported a significant reduction in total liabilities from $7,301.5 million to $2,817.7 million, a decrease of approximately 61.4%[24] Non-GAAP Measures - The company is focusing on non-GAAP measures to enhance understanding of financial performance, including non-GAAP gross margin and adjusted EBITDA[28] - The company continues to exclude certain non-cash expenses from its non-GAAP measures, including amortization of acquisition-related intangibles and executive severance costs, to better reflect core operating performance[35][41]