Wolfspeed took in $149.6m last quarter and spent $186.4m making what it sold, and it has told investors to expect another quarter below cost

Minus 25 percent.

That is Wolfspeed's GAAP gross margin for the three months to 28 June, and every other number in the quarter hangs off it. Revenue was $149.6m. Cost of revenue was $186.4m, so the silicon carbide the company shipped cost about a quarter more than it fetched, and the gross loss came to $36.8m. A year earlier, when the same business was still inside the predecessor company, revenue was $197.0m and the gross margin was minus 13 percent, which means the shortfall widened at the same time as the top line fell by 24 percent.

Then comes the part that is not history. For the first quarter of fiscal 2027 the company expects revenue between $140m and $160m, non-GAAP operating expenses between $62m and $66m, and non-GAAP gross margin to remain negative. That last clause is the disclosure. A company that tells the market in advance it expects to sell below cost for another three months is doing something more useful than one that waits to be found out, and the guidance range brackets the quarter just reported rather than sitting above it.

What the release put first

The bullets lead on artificial intelligence. Wolfspeed says data centre revenue more than doubled year over year across fiscal 2026 and rose roughly 20 percent sequentially in the fourth quarter, and its own bullet calls that market a "moderate but growing opportunity". No dollar figure is attached anywhere in the release. A growth rate with no base under it is not a number a reader can use.

The balance sheet is not last year's

Wolfspeed left Chapter 11 on 29 September 2025 and qualified for fresh-start accounting, so the statements carry an explicit warning that successor figures are not comparable with predecessor ones. One line shows why. At 29 June 2025 the balance sheet carried $6,538.0m of borrowings in current maturities, because a company in default classifies its debt as current. At 28 June 2026 there is $931.0m of long-term debt and $756.5m of convertible notes net, against $1,088.6m of cash, cash equivalents and short-term investments. Total liabilities fell from $7,301.5m to $2,074.7m, and shareholders' equity moved from a deficit of $447.1m to a positive $930.2m.

Chief financial officer Gregor van Issum said holders of $46m of the convertible notes converted into equity voluntarily during the quarter.

The loss, and the share count

Operating loss was $115.4m, against $581.6m a year earlier, when the predecessor wrote off $359.2m of goodwill and booked $122.8m of restructuring. Net loss was $145.4m, or $2.81 a share. That per-share figure rests on 51.8 million weighted average shares against 155.6 million a year earlier, which is the other thing the restructuring changed. The net loss fell by about four fifths. The loss per share fell by about a third, because the share count it is divided into fell by two thirds at the same time.

Property and equipment, net, now stands at $691.4m. A year earlier the predecessor balance sheet showed $3,916.5m. Fair value accounting, not a sale, did most of that.