NASDAQ$WOLF

Wolfspeed Inc · Q1 2025 earnings

Q1 2025 earnings · · Investor relations

Briefing

Wolfspeed's Q1 2025 financial results were reported, highlighting actions to solidify the capital structure and simplify the business to enhance profitability.

Wolfspeed reported a slight decrease in revenue to $194.7 million compared to $197.4 million in the first quarter of fiscal 2024. The company is focusing on streamlining its business to a 200mm pure-play, which is expected to yield $200 million in cash savings. They have also secured access to an additional $2.5 billion in liquidity.

  • Consolidated revenue was approximately $195 million, with Mohawk Valley Fab contributing approximately $49 million.
  • Power device design-ins reached $1.5 billion.
  • GAAP gross margin was approximately (19)%, impacted by underutilization costs at the Mohawk Valley Fab.
  • Ended the quarter with approximately $1.7 billion in cash and investments.

Headline financials

Total Revenue

$195M

Previous: $197M-1.4%
EPS

-$2.23

Previous: -$0.53-320.8%
Capital Expenditures

-$437M

Previous: -$442M+1.1%
Free Cash Flow

-$719M

Previous: -$838M+14.1%
Net Income

-$282M

Previous: -$396M+28.7%
Operating Income

-$230M

Previous: -$94.9M-142.5%
Gross Profit

-$36.2M

Previous: $24.7M-246.6%
Cash & Equivalents

$726M

Previous: $1.76B-58.8%
Total Assets

$7.86B

Previous: $7.31B+7.5%
R&D Expense

$50.9M

No prior period
Stock-Based Comp

$23.7M

Previous: $19.7M+20.3%

Revenue & EPS history

Wolfspeed · Revenue · Quarterly

$195M

Q1 2025-1.4%vs Q1 2024
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Revenue by segment

Wolfspeed · $197M total across 2 segments · Q1 2024

  • Power Products
    $101M
  • Materials Products
    $96.2M

Forward guidance

For the second quarter of fiscal 2025, Wolfspeed anticipates revenue to be in the range of $160 million to $200 million. GAAP net loss is projected to be between $401 million and $362 million, or $3.14 to $2.84 per diluted share. Non-GAAP net loss is expected to range from $145 million to $114 million, or $1.14 to $0.89 per diluted share.

Tailwinds

  • Revenue from continuing operations is targeted in a range of $160 million to $200 million.
  • Factory start-up costs primarily in connection with materials expansion efforts of approximately $23 million.
  • Cost of revenue, net, is expected to include approximately $35 million of underutilization costs in connection with the Mohawk Valley Fab.
  • Non-GAAP net loss is targeted to be in a range of $145 million to $114 million, or $1.14 to $0.89 per diluted share.
  • The GAAP and non-GAAP targets do not include any estimated change in the fair value of the shares of common stock of MACOM Technology Solutions Holdings, Inc.

Headwinds

  • GAAP net loss is targeted at $401 million to $362 million, or $3.14 to $2.84 per diluted share.
  • The company expects to incur $174 million of restructuring-related costs, of which $34 million will be recognized in cost of revenue, net.
  • The remaining $140 million will be recognized as operating expense.
  • Operating expenses are expected to include approximately $23 million of factory start-up costs.
  • Cost of revenue, net, is expected to include approximately $35 million of underutilization costs in connection with the Mohawk Valley Fab.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 2 quarterly earnings reports

Historical avg

-2.8%

Avg return

Earnings day

+2.7%

Avg return

5 days after

+21.6%

Avg return

30 days after

41%

28 / 68 earnings

Positive

+29.7%

Q1 2022

Best reaction

-35.3%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+3.2%+38.6%
Q2 2026-9.7%-8.1%-3.7%
Q1 2026-7.9%-14.1%+9.0%
Q4 2025+0.0%-5.8%+59.4%
Q3 2025-26.2%
Q2 2025+1.5%
Q1 2025-35.3%
Q4 2024-2.6%
Q3 2024-12.8%
Q2 2024-17.2%
Q1 2024+17.9%
Q4 2023-19.0%
Q3 2023-18.3%
Q2 2023-5.5%
Q1 2023-17.2%
Q4 2022+27.5%
Q3 2022-9.6%
Q2 2022+0.6%
Q1 2022+29.7%
Q4 2021-10.4%
Q3 2021-15.5%
Q2 2021-1.8%
Q1 2021-7.0%
Q4 2020-12.5%
Q3 2020+4.1%
Q2 2020-10.5%
Q1 2020-1.2%
Q4 2019-15.9%
Q3 2019+0.2%
Q2 2019+5.0%
Q1 2019+12.7%
Q4 2018-8.0%
Q3 2018-2.8%
Q2 2018-1.9%
Q1 2018+16.7%
Q4 2017-1.6%
Q3 2017-10.8%
Q2 2017+4.9%
Q1 2017-9.6%
Q4 2016-16.6%
Q3 2016+7.5%
Q2 2016+9.0%
Q1 2016-6.0%
Q4 2015+2.9%
Q3 2015-7.8%
Q2 2015+9.6%
Q1 2015-17.1%
Q4 2014-9.8%
Q3 2014-11.3%
Q2 2014+7.7%
Q1 2014-15.8%
Q4 2013-21.3%
Q3 2013+1.7%
Q2 2013+21.0%
Q1 2013+13.6%
Q4 2012+5.3%
Q3 2012+3.1%
Q2 2012+2.3%
Q1 2012-0.4%
Q4 2009-4.7%
Q4 2011-4.7%
Q3 2011+0.5%
Q3 2010+0.5%
Q2 2011-3.1%
Q2 2010-3.1%
Q4 2010+4.8%
Q1 2010+4.8%
Q1 2011+4.8%

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