While navigating its Chapter 11 proceedings, semiconductor specialist Wolfspeed has announced its fourth-quarter 2025 financial results, revealing a complex picture of revenue strength coupled with deepening losses.
Profitability Pressures Overshadow Revenue Beat
The company’s quarterly revenue reached $197 million, surpassing analyst consensus estimates of $192 million. This performance indicates a degree of operational resilience despite the ongoing bankruptcy process.
However, profitability metrics presented a far more challenging story. The adjusted loss per share came in at $0.77, significantly worse than the anticipated range of $0.71 to $0.72. Under GAAP accounting standards, the situation appeared even more severe, with the net loss per share widening dramatically to $4.30.
Negative Margins Highlight Structural Challenges
Operational metrics revealed the fundamental issue facing the business: negative gross margins. This indicates Wolfspeed is spending more on production than it generates through product sales, underscoring the critical need for its current restructuring initiative.
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The company’s transformation is proving more costly than initially projected. Market participants had expected a narrower loss, and the present cost structure has failed to meet with investor approval.
Strategic Restructuring Underway
These financial results arrive as Wolfspeed executes a pre-packaged Chapter 11 bankruptcy filing, a strategic move designed to comprehensively overhaul its capital structure. The ambitious plan targets a reduction of total debt by approximately 70%, representing roughly $4.6 billion.
Concurrently, management aims to slash annual interest payments by 60%. The company provided no forward guidance for upcoming quarters, maintaining complete focus on the court-supervised process. Wolfspeed anticipates concluding the bankruptcy proceedings by the end of the third quarter of 2025, expecting to emerge with a significantly strengthened balance sheet.
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