Wolfspeed reported third-quarter fiscal 2026 revenue of approximately $150 million, in line with guidance, while continuing to execute on strategic initiatives focused on AI infrastructure, high-voltage silicon carbide technologies, and balance sheet optimization.

During the quarter, Wolfspeed highlighted approximately 30% sequential growth in AI data center-related business, signaling expanding traction in one of its targeted long-term growth markets. The company also introduced several notable technology milestones, including the industry’s first commercially available 10 kV SiC power MOSFET and a next-generation TOLT package portfolio designed for AI data center power systems.

Operationally, Wolfspeed continued advancing its 300 mm SiC substrate platform and shifted its Durham facilities toward materials production, aiming to improve long-term earnings potential and manufacturing efficiency.

Financially, the company reported a GAAP gross margin of negative 27% and a GAAP net loss of $120 million, reflecting ongoing underutilization costs and the heavy investment phase associated with scaling SiC manufacturing. Adjusted EBITDA was negative $62 million, while operating cash flow was negative $84 million.

A key development during the quarter was the refinancing of approximately $476 million in first-lien debt, which reduced total debt by $97 million and lowered annual interest expenses by an estimated $62 million. Wolfspeed also improved its equity position by more than $400 million, aided by refinancing actions and the completion of Renesas-related equity transactions following CFIUS clearance.

The company ended the quarter with approximately $1.2 billion in cash, cash equivalents, and short-term investments, providing liquidity to continue funding strategic priorities despite ongoing operating losses.

Looking ahead, Wolfspeed expects fourth-quarter revenue between $140 million and $160 million, with gross margins expected to remain negative as the company continues navigating a challenging near-term profitability environment.

From a market perspective, Wolfspeed’s results reflect the current state of the SiC industry: strong long-term secular demand driven by AI infrastructure, grid modernization, and electrification, but near-term financial pressure stemming from aggressive capacity expansion and slower-than-expected demand normalization in certain end markets. The company’s focus on high-voltage SiC, AI power systems, and 300 mm wafer technology underscores its strategy to position itself for the next phase of power semiconductor growth.

Original – Wolfspeed