Wolfspeed(US:WOLF) The Motley Fool·2025-12-01 16:00Core Viewpoint - Wolfspeed has received a significant income tax refund of $698.6 million from the IRS, which will enhance its cash position but does not fully mitigate its ongoing cash burn issues [1][2][3]. Financial Position - The company has already received $186.5 million in cash refunds under the Advanced Manufacturing Investment Credit (AMIC) for fiscal 2025 and is working towards monetizing approximately $1 billion in cash tax refunds accrued from the AMIC [3]. - Following the latest tax refund, Wolfspeed's cash balance is expected to reach approximately $1.5 billion, providing enhanced financial flexibility for its manufacturing operations [5]. Cash Burn Concerns - Despite the positive cash influx, Wolfspeed has been burning cash for five consecutive years, with nearly $2 billion burned last year and an estimated $2.3 billion expected to be burned this year [5]. - The company currently has about $925 million more cash than debt on its balance sheet, but this cash reserve may not be sufficient to sustain operations in the long term given the ongoing cash burn [3][5].