Wolfspeed reports mixed Q4 results as it prepares to emerge from Chapter 11

[Silicon Carbide]
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Wolfspeed (NYSE:WOLF [https://seekingalpha.com/symbol/WOLF]) reported mixed fourth quarter fiscal 2025 financial results [https://seekingalpha.com/news/4488973-wolfspeed-non-gaap-eps-of-0_77-misses-by-0_05-revenue-of-197m-beats-by-5_61m] as the silicon carbide technology company expects to emerge from Chapter 11 bankruptcy in the months ahead.

Shares inched up 1% during early post-market trading on Monday.

"Our next important milestone is for the court to approve our Plan of Reorganization next month, and emerge from Chapter 11 shortly thereafter, with a much stronger financial structure," said Wolfspeed CEO Robert Feurle.

For the quarter ended June 29, Wolfspeed reported adjusted losses per share of $0.77 versus the consensus estimate calling for losses per share of $0.72.

Revenue for the quarter totaled $197M, which was more than the estimate of $191.4M.

The company noted its Mohawk Valley Fab continues to ramp up, producing revenue of $94.1M, which was a year-over-year increase of $53.1M. However, adjusted gross margin for the quarter was minus 13% compared to 1% one year prior. Gross margin for the entirety of fiscal year 2025 was minus 16% versus 10% in fiscal 2024.

"Reflecting upon my first three months with Wolfspeed, I am more confident than ever in my decision to join the Company and our opportunity to further strengthen our position in the industry," Feurle said. "With our world-class greenfield and vertically integrated facility footprint, recent additions to the senior leadership team, and robust IP portfolio, Wolfspeed is well-positioned to be the global leader in silicon carbide technology."

In late June, Wolfspeed revealed its restructuring [https://seekingalpha.com/news/4463989-wolfspeed-surges-more-than-100-after-revealing-restructuring-plan] process. After finishing the process, Wolfspeed expects to reduce its debt by 70%, or $4.6B, and reduce its annual total cash interest payments by 60%.

Wolfspeed share value has deteriorated by 80% year to date.

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