U.S. — Wolfspeed reported revenue of $150 million for the third quarter of fiscal 2026. The company also refinanced approximately $97 million of its debt, reducing its senior secured note balance by 43%.

Wolfspeed's gross margin for the third quarter of fiscal 2026 was -27%, compared to -12% in the third quarter of fiscal 2025. Factory underutilization during the recent quarter accounted for approximately $46 million in costs. The company reported adjusted EBITDA of -$62 million and operating cash flow of -$84 million for the third quarter of fiscal 2026.

The company raised approximately $476 million through new convertible notes, stock, and warrants via a private placement. This refinancing is projected to lower Wolfspeed's annual interest expense by approximately $62 million. Over the previous year, Wolfspeed's long-term debt decreased from about $6.5 billion to $1.7 billion. Its total assets decreased to $3.1 billion from approximately $6.85 billion on June 29, 2025. "Wolfspeed reported revenue of $150 million, which was in line with guidance," said Robert Feurle, CEO of Wolfspeed.

Wolfspeed management expects revenue for the fourth quarter of fiscal 2026 to be between $140 million and $160 million. Management also anticipates that the gross margin will remain negative during this period. At the end of the third quarter of fiscal 2026, Wolfspeed held approximately $1.2 billion in cash and short-term investments. The Committee on Foreign Investment in the United States granted clearance for a transaction involving Renesas. Wolfspeed's first debt maturity is scheduled for 2030.

Why It Matters

Wolfspeed manufactures silicon carbide chips and materials, which are used in various sectors, including electric vehicles, industrial equipment, aerospace, and AI data centers. The company's recent financial activities, including additional financing and debt reduction, come as it operates with negative gross margins and factory underutilization costs. These actions address the company's debt structure and provide additional capital.

Wolfspeed has a consensus "Moderate Sell" rating among analysts. Two analysts cover Wolfspeed stock; one recommends a "Hold" rating, and the other recommends a "Strong Sell" rating. The average price target for Wolfspeed stock is $40.