Wolfspeed Q4 Earnings Miss Estimates, Revenues Decline Y/Y

Core Insights - Wolfspeed (WOLF) reported a non-GAAP loss of 77 cents per share for the fourth quarter of fiscal 2025, missing the Zacks Consensus Estimate by 6.94% and showing a loss of 89 cents per share in the same quarter last year [1] - Revenues totaled $197 million, a decrease of 1.8% year over year, but exceeded the consensus estimate by 4.10% [1] - The revenue contribution from Mohawk Valley Fab was $94.1 million in the reported quarter [1] Revenue Breakdown - Power Products accounted for 60.2% of total revenues, with revenues increasing 13.4% year over year to $118.6 million [2] - Materials Products contributed 39.8% of revenues, but saw a decline of 18.4% year over year to $78.4 million [2] Operating Performance - Wolfspeed reported a negative non-GAAP gross margin of 1%, down from 5.4% in the year-ago quarter, impacted by underutilization costs of $23.6 million [3] - Sales, general, and administrative expenses were $36.1 million, representing 18.3% of total revenues, down 41.4% year over year [3] - Research and development expenses decreased 37.3% year over year to $37.6 million, accounting for 19.1% of total revenues [4] - The company incurred a non-GAAP operating loss of $119.8 million, wider than the $112 million loss in the same quarter last year [4] Financial Position - As of June 29, 2025, Wolfspeed had cash, cash equivalents, and short-term investments of $955.4 million, down from $1.32 billion as of March 30, 2025 [5] - Cash used in operating activities was $242.5 million in the reported quarter, compared to $142.1 million in the previous quarter [5] - Free cash outflow was $454 million, significantly higher than the previous quarter's $167.7 million [5] Market Position - Wolfspeed currently holds a Zacks Rank 3 (Hold) [6] - Comparatively, DELL Technologies and ServiceTitan Inc. have a Zacks Rank 2 (Buy), while Hewlett-Packard has a Zacks Rank 1 (Strong Buy) [6]