Executive Summary
Wolfspeed reported QQ3 2025 revenue of $185.4 million, but the quarter featured a negative gross profit of $22.5 million and an operating loss of $285.5 million, translating to an EBITDA of -$285.5 million. Net income was also negative at -$285.5 million, with EPS of -$1.86. Year-over-year, revenue declined by 7.6%, while sequential (QoQ) revenue rose 2.7%. The negative gross margin (-12.1%) underscores ongoing cost or mix pressures despite a modest quarterly revenue uptick. Cash burn persisted, with operating cash flow at -$142.1 million and free cash flow at -$364.3 million, contributing to a cash balance of $730.2 million at quarter end. The balance sheet remains heavily levered: long-term debt stands at $4.50 billion, total liabilities are $7.36 billion, and stockholders’ equity is modest at $0.21 billion, leaving a debt ratio of 0.86 and a capitalization structure that implies meaningful refinancing and liquidity considerations ahead. Given the data, Wolfspeed faces near-term profitability headwinds even as strategic opportunities in silicon carbide (SiC) materials and devices could support longer-term growth if margin discipline and cash preservation improve. A more complete assessment of management’s narrative from the earnings call would be essential to gauge trajectory, guidance, and execution plans; the provided dataset contains no transcript quotes for QQ3 2025.
Key Performance Indicators
QoQ: 39.52% | YoY:-201.35%
QoQ: 11.61% | YoY:-168.33%
QoQ: 23.29% | YoY:-91.74%
QoQ: 35.42% | YoY:-57.63%
Key Insights
Revenue: $185.4M (YoY -7.62%, QoQ +2.71%).
Gross Profit: -$22.5M; Gross Margin: -12.14% (YoY -201.35%, QoQ +39.52%).
Operating Income: -$285.5M; Operating Margin: -1540.0% (YoY -168.33%, QoQ +11.61%).
Net Income: -$285.5M; Net Margin: -1540.0% (YoY -91.74%, QoQ +23.29%).
EPS: -$1.86 (YoY -57.63%, QoQ +35.42%).
Cash Flow: Operating Cash Flow -$142.1M; Free Cash Flow -$364.3M; Capex -$222.2M.
Liquidity & Balance Sheet: Cash $730.2M; Total Assets $7.57B; Total Liabilities $7.36B; Equity $0.213B...
Financial Highlights
Revenue: $185.4M (YoY -7.62%, QoQ +2.71%).
Gross Profit: -$22.5M; Gross Margin: -12.14% (YoY -201.35%, QoQ +39.52%).
Operating Income: -$285.5M; Operating Margin: -1540.0% (YoY -168.33%, QoQ +11.61%).
Net Income: -$285.5M; Net Margin: -1540.0% (YoY -91.74%, QoQ +23.29%).
EPS: -$1.86 (YoY -57.63%, QoQ +35.42%).
Cash Flow: Operating Cash Flow -$142.1M; Free Cash Flow -$364.3M; Capex -$222.2M.
Liquidity & Balance Sheet: Cash $730.2M; Total Assets $7.57B; Total Liabilities $7.36B; Equity $0.213B; Long-Term Debt $4.50B; Net Debt $(3.77)B; Debt/Capital ~0.97; Current Ratio 4.64; Quick Ratio 3.90.
Commentary on profitability and leverage suggests significant near-term cash burn and leverage risk, despite potential longer-term growth catalysts in SiC/RF power applications.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
185.40M |
-7.62% |
2.71% |
| Gross Profit |
-22.50M |
-201.35% |
39.52% |
| Operating Income |
-285.50M |
-168.33% |
11.61% |
| Net Income |
-285.50M |
-91.74% |
23.29% |
| EPS |
-1.86 |
-57.63% |
35.42% |
Key Financial Ratios
operatingProfitMargin
-154%
operatingCashFlowPerShare
$-0.92
freeCashFlowPerShare
$-2.35
Management Commentary
Note: Earnings transcript data for QQ3 2025 is not provided in the dataset. As a result, no management quotes or thematic highlights from the call are available within this report. If transcript access is supplied, themes typically expected would include: (i) strategy and product mix shift toward SiC/GaN and high-efficiency power solutions; (ii) progress on capacity expansion, yield, and cost normalization; (iii) market demand signals from EV charging, data centers, RF power, and industrial applications; (iv) capital allocation and liquidity management, including debt reduction or refinancing plans.
Forward Guidance
No explicit forward guidance appears in the provided data for QQ3 2025. The lack of stated targets or ranges limits a formal projection. Investors should watch: (1) trajectory of gross margin and cost structure toward stabilization or improvement; (2) progress in ramping SiC/GaN product lines and franchise margin through higher-value applications; (3) liquidity management and any refinancing initiatives given the high long-term debt load; (4) capex efficiency and any reductions that could flip free cash flow positive. In the absence of management guidance, the path to profitability will hinge on product mix optimization, volume ramp in core SiC devices, and disciplined capital allocation.