Wolfspeed Reports $155 Million in Quarterly Revenue Amid Post-Bankruptcy Recovery
Wolfspeed (WOLF) is navigating its first major financial milestones following a 2025 Chapter 11 bankruptcy. The company reported quarterly revenue of $155 million, a decrease from the predecessor period's $196.8 million. While gross margins improved by 7.1 percentage points sequentially to negative 12.8%, the company continues to face significant challenges, including negative adjusted EBITDA of $55 million and negative free cash flow of $97 million. On a positive note, Wolfspeed secured a conditional $1.5 billion, 30-year loan commitment from the U.S. Department of Defense, which is expected to significantly reduce interest expenses. Demand for silicon carbide chips in AI data centers has more than doubled over the last twelve months, and new supply agreements have been signed with Infineon and BorgWarner. However, high underutilization at the Mohawk Valley fabrication plant remains a primary hurdle to achieving profitability.
Topics: Bankruptcy Restructuring Government Loan Revenue Report Silicon Carbide