The quarter met Wolfspeed’s own revenue range but missed the market’s much higher bar. Q4 revenue of $149.6 million was essentially at the midpoint of the company’s prior $140–$160 million guide, but published estimates were closer to $229 million. The result therefore reads as a substantial revenue miss, even though it was technically within management’s forecast. The Q4 range itself was already known, making the main new information the size of the gap to broader expectations.
| Metric | Q4 FY2026 | Q4 FY2025 | Read-through |
|---|---|---|---|
| Revenue | $149.6M (Financial Highlights) | $197.0M (Financial Highlights) | Down 24% year over year |
| GAAP gross margin | -25% (Financial Highlights) | -13% (Financial Highlights) | Worse by 12 percentage points |
| Non-GAAP gross margin | -20% (Non-GAAP Gross Margin) | -1% (Non-GAAP Gross Margin) | Material deterioration |
| Non-GAAP operating loss | -$92.1M (Non-GAAP Operating Loss) | -$94.0M (Non-GAAP Operating Loss) | Roughly flat despite lower restructuring charges |
| Non-GAAP net loss | -$116.9M (Non-GAAP Net Loss) | -$119.8M (Non-GAAP Net Loss) | Similar total loss |
| Non-GAAP diluted loss per share | -$2.26 (Non-GAAP Net Loss) | -$0.77 (Non-GAAP Net Loss) | Much worse per share after the capital reset |
| Adjusted EBITDA | -$62.4M (Adjusted EBITDA) | -$40.7M (Adjusted EBITDA) | Loss widened |
| Free cash flow | -$60.9M (Free Cash Flow) | -$454.0M (Free Cash Flow) | Improved mainly because capital spending and reimbursements changed |
AI demand is growing, but it is not yet large enough to change the consolidated result. AI data-center revenue more than doubled during fiscal 2026 and rose about 20% sequentially in Q4. 〔0〕 That is the clearest strategic positive, but total revenue still fell year over year, with Materials Products dropping to $43.3 million from $78.4 million while Power Products declined to $106.3 million from $118.6 million (Segment results — Power Products and Materials Products). The filing shows an encouraging growth pocket, not a consolidated recovery.
The core operating picture deteriorated beneath the cleaner headline loss. GAAP net loss narrowed to $145.4 million from $669.3 million, but the comparison is heavily distorted by the prior-year $359.2 million goodwill impairment and $55.8 million of pre-petition charges. On the more useful operating measures, non-GAAP gross margin worsened to negative 20% from negative 1%, and adjusted EBITDA fell to negative $62.4 million from negative $40.7 million (Non-GAAP Gross Margin; Adjusted EBITDA). In other words, lower exceptional charges made GAAP results look better while the underlying manufacturing economics became worse.
The balance sheet is safer after restructuring, but the business remains cash-burning and heavily leveraged. Cash, cash equivalents, and short-term investments ended at $1.09 billion, while long-term debt and convertible notes totaled about $1.69 billion (Balance Sheet). Holders of $46 million of convertible notes converted debt to equity. That reduces debt modestly, but Q4 still produced negative free cash flow of $60.9 million and adjusted EBITDA remained deeply negative (Cash Flow statement; Adjusted EBITDA).
The next-quarter guide does not reset the weak expectation. Fiscal Q1 2027 revenue is guided to $140–$160 million, with non-GAAP gross margin expected to remain negative and operating expenses at $62–$66 million. The range is broadly flat with Q4’s actual revenue and offers no evidence yet of a near-term inflection. Net versus expectations, this is a miss: AI momentum and post-bankruptcy balance-sheet repair are real, but they do not offset the revenue shortfall, worsening gross margin, and wider adjusted EBITDA loss.
Read the original 8-K on SEC EDGAR ↗