Key Highlights

  • Sales for the fiscal first quarter, which closed September 27, 2026, reached USD 155.0 million, a drop of roughly 21% (calculated) from USD 196.8 million a year before.
  • On a GAAP basis the net loss came to USD 143.8 million, or USD 2.61 a share, while adjusted EBITDA, a non-GAAP metric, was negative USD 55 million.
  • Gross Margin stood at negative 22% under GAAP and negative 13% on a non-GAAP basis, and management said the non-GAAP figure gained 710 basis points on the previous quarter.
  • The company holds USD 995.1 million in cash and short-term investments and has announced a conditional USD 1.5 billion Loan Commitment with a 30-year term.

Revenue Beats Guidance Midpoint but Losses Persist

Wolfspeed (NYSE:WOLF) published its fiscal first-quarter 2027 numbers on November 4, 2026. Sales of USD 155.0 million topped the midpoint of management's forecast range, but they trailed the USD 196.8 million booked a year earlier. The gross result was a USD 34.0 million loss, while operating loss reached USD 112.8 million and the Bottom Line showed a USD 143.8 million net loss. Net interest cost climbed to USD 40.0 million from USD 0.7 million. Because the company left Chapter 11 on September 29, 2025 and adopted fresh-start accounting, the USD 2.61 per-share loss cannot be lined up against last year's USD 4.12, which rests on a much larger share base.

A Conditional USD 1.5 Billion Loan and New Supply Deals

Management unveiled a conditional 30-year, USD 1.5 billion loan commitment from the U.S. Department of War, earmarked for the domestic wide bandgap supply chain. If finalized, the company expects the arrangement to produce substantial yearly interest savings. Completion still depends on due diligence, final agreements and government sign-off. Separately, the Infineon silicon carbide wafer pact now covers 200mm wafers, a multiyear device deal was struck with BorgWarner for its 800V inverter platform, and Megmeet, a newer AI Data Center customer, presented a partner award.

Negative Cash Flow, USD 1.68 Billion of Debt and the Next Guidance

Operating cash flow was a USD 84 million outflow. Cash and short-term holdings slid from USD 1,088.6 million on June 28, 2026 to USD 995.1 million. Calculated together, long-term debt of USD 930.3 million and convertible notes of USD 750.3 million total roughly USD 1.68 billion. The company's second-quarter fiscal 2027 targets call for USD 155 million to USD 175 million of revenue, non-GAAP operating spending of USD 65 million to USD 69 million, and a non-GAAP gross margin that nears breakeven. Yield problems, customer concentration and lingering effects of the reorganization feature among the stated risks. Those targets are the benchmarks against which the next quarter will be judged.

Where Things Stand

Only in part. Wolfspeed (NYSE:WOLF) cut its non-GAAP gross margin Deficit by 710 basis points quarter over quarter and cleared its Revenue guidance midpoint, but gross margin is still negative and the net loss reached USD 143.8 million. USD 995.1 million in cash and the pending loan provide a cushion, though the loan has not closed. Watch second-quarter revenue against the USD 155 million to USD 175 million range, progress toward a near-breakeven margin and the loan paperwork.