NASDAQ$WOLF

Wolfspeed Inc · Q2 2025 earnings

Q2 2025 earnings · · After market close · Investor relations

Briefing

Wolfspeed's Q2 2025 financial performance reflected a decrease in revenue compared to the previous year, alongside negative GAAP gross margins, but the company took steps to strengthen its balance sheet and accelerate profitability.

Wolfspeed reported Q2 2025 revenue of $181 million, down from $208 million in Q2 2024. The GAAP gross margin was (21)%, while the non-GAAP gross margin was 2%. The company is taking aggressive steps to accelerate profitability and strengthen the balance sheet.

  • Consolidated revenue was $181 million, compared to $208 million in the second quarter of fiscal 2024.
  • Mohawk Valley Fab contributed $52 million in revenue, compared to $12 million in the prior year.
  • GAAP gross margin was (21)%, compared to 13% in the prior year.
  • Non-GAAP gross margin was 2%, compared to 16% in the prior year.

Headline financials

Total Revenue

$181M

Previous: $208M-13.4%
EPS (adj)

-$0.95

Previous: -$1.15+17.4%
GAAP Gross Margin

-21.0%

No prior period
GAAP Operating Loss Percentage

-179.0%

No prior period
Capital Expenditures

-$839M

Previous: -$1.05B+20.3%
Net Income

-$372M

Previous: -$145M-157.2%
Operating Income

-$323M

Previous: -$98.1M-229.3%
Gross Profit

-$37.2M

Previous: $27.8M-233.8%
R&D Expense

$44.4M

Previous: $45.3M-2.0%
Stock-Based Comp

$20.2M

Previous: $22.4M-9.8%

Revenue & EPS history

Wolfspeed · Revenue · Quarterly

$181M

Q2 2025-13.4%vs Q2 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 its third quarter of fiscal 2025, Wolfspeed targets revenue from continuing operations in a range of $170 million to $200 million. GAAP net loss is targeted at $(295) million to $(270) million, or $(1.89) to $(1.73) per diluted share. Non-GAAP net loss is targeted to be in a range of $(138) million to $(119) million, or $(0.88) to $(0.76) per diluted share.

Tailwinds

  • Revenue target between $170 million and $200 million
  • Factory start-up costs are expected to include approximately $26 million primarily in connection with materials expansion efforts.
  • Cost of revenue, net, is expected to include approximately $31 million of underutilization costs in connection with the Mohawk Valley Fab.
  • The company expects to incur $72 million of restructuring-related costs, of which $35 million will be recognized in cost of revenue, net and the remaining $37 million will be recognized as operating expense.
  • Non-GAAP net loss is targeted to be in a range of $(138) million to $(119) million, or $(0.88) to $(0.76) per diluted share.

Headwinds

  • GAAP net loss is targeted at $(295) million to $(270) million, or $(1.89) to $(1.73) 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.
  • The loss per share includes the impact of issuing approximately 27.8 million shares of common stock under our ATM program.
  • Operating expenses are expected to include approximately $26 million of factory start-up costs primarily in connection with materials expansion efforts.
  • Cost of revenue, net, is expected to include approximately $31 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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