Wolfspeed on Thursday reported fourth-quarter fiscal 2026 revenue of $149.6 million, falling short of analyst expectations by $73.95 million, or 33.1%, despite matching the company’s guidance midpoint. Adjusted loss per share deepened to $2.26, compared with a 52-cent loss anticipated by analysts.
The company’s materials revenue totaled approximately $43 million, while power revenue reached $106 million, up 6% sequentially. Adjusted non-GAAP gross margin improved to -19.9% from -20.6% in the prior quarter, though it remained negative. Non-GAAP operating expenses rose to $62 million from $61 million in Q3, while adjusted non-GAAP EBITDA was negative $62 million. Operating cash flow was negative $54 million, including a $41 million benefit from inventory reduction.
Wolfspeed’s cash and short-term investments stood at about $1.1 billion at quarter-end, with net debt of roughly $600 million. The company’s highest-priority debt carries an interest rate near 16%, and holders of $46 million in second-lien convertible notes voluntarily converted debt to equity, saving approximately $1 million in annual interest. The current ratio was 7.03.
Shares of Wolfspeed fell 7.5% during regular trading to close at $29.10, before dropping an additional 10.5% in after-hours trading to $26.03, for a total decline of about 17.3% from the prior close. The stock remains far below its 52-week high of $80.82 and well above its low of $1.16.
The company’s AI data center revenue more than doubled year-over-year and rose about 20% sequentially. Wolfspeed also completed its transition from 6-inch to 8-inch manufacturing capability at its Mohawk Valley facility in upstate New York. For the first quarter of fiscal 2027, Wolfspeed guided revenue to $140 million to $160 million, with non-GAAP gross margin expected to remain negative. Non-GAAP operating expenses are projected at $62 million to $66 million.
CFO Gregor van Issum estimated that an annual revenue run rate of roughly $800 million is required to achieve break-even gross margins. CEO Robert Feurle emphasized the company’s commitment to delivering on guidance, while highlighting the benefits of its Gen 5 technology for EV applications.
