Executive Summary
Wolfspeed reported a challenging QQ1 2025, posting revenue of $194.7 million and continuing negative profitability metrics as the company scales its silicon carbide (SiC) and GaN device manufacturing. Gross profit was negative at -$36.2 million, yielding a gross margin of -18.6%. Operating income reached -$230.1 million and net income was -$282.2 million, with an EPS of -$2.23. EBITDA totaled -$146.2 million, underscoring the early-stage nature of capacity ramp and the high fixed-cost burden associated with expanding production for a rapidly growing addressable market. The quarter also featured substantial capital expenditure and a cash burn profile, with CFO of -$132.0 million and free cash flow of -$570.2 million, driven by -$438.2 million of capital expenditure as Wolfspeed continues to invest in its manufacturing base. The balance sheet remains highly levered, with total debt of $6.18 billion and net debt of $5.45 billion, a debt ratio of 0.786, and an interest-coverage gap (negative) at -3.57x. Near-term profitability hinges on meaningful revenue growth and/or significant cost discipline and working-capital optimization as the company scales operations in a capital-intensive market. Management commentary (where available) was not provided in the data; no earnings-call transcript was supplied for direct quotes.
Key Performance Indicators
QoQ: -1 745.45% | YoY:-246.56%
QoQ: -92.71% | YoY:-142.47%
QoQ: -61.35% | YoY:28.68%
QoQ: -60.43% | YoY:29.43%
Key Insights
Revenue: $194.7M (YoY -1.37%, QoQ -2.99%)
Gross Profit: -$36.2M; Gross Margin: -18.6%
EBITDA: -$146.2M; EBITDA Margin: -75.1%
Operating Income: -$230.1M; Operating Margin: -1.18%
Net Income: -$282.2M; Net Margin: -1.45%
EPS: -$2.23; Shares: 126.733M (weighted avg)
Cash Flow: CFO -$132.0M; Capex -$438.2M; Free Cash Flow -$570.2M
Cash/Investments: $1,687.6M; Cash End: $726.1M
Balance Sheet: Total Assets $7.858B; Total Liabilities $7.229B; Equity $628.9M
Debt: Total Debt $6.179B; Net Debt $5.453B; ...
Financial Highlights
Revenue: $194.7M (YoY -1.37%, QoQ -2.99%)
Gross Profit: -$36.2M; Gross Margin: -18.6%
EBITDA: -$146.2M; EBITDA Margin: -75.1%
Operating Income: -$230.1M; Operating Margin: -1.18%
Net Income: -$282.2M; Net Margin: -1.45%
EPS: -$2.23; Shares: 126.733M (weighted avg)
Cash Flow: CFO -$132.0M; Capex -$438.2M; Free Cash Flow -$570.2M
Cash/Investments: $1,687.6M; Cash End: $726.1M
Balance Sheet: Total Assets $7.858B; Total Liabilities $7.229B; Equity $628.9M
Debt: Total Debt $6.179B; Net Debt $5.453B; Debt/Capitalization ~0.908; Interest Coverage (est.) = -3.57x
Working Capital: DSO 82.7 days; Inventory Days 182.4; CCC ~236.4 days
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
194.70M |
-1.37% |
-2.99% |
| Gross Profit |
-36.20M |
-246.56% |
-1 745.45% |
| Operating Income |
-230.10M |
-142.47% |
-92.71% |
| Net Income |
-282.20M |
28.68% |
-61.35% |
| EPS |
-2.23 |
29.43% |
-60.43% |
Key Financial Ratios
operatingProfitMargin
-118.2%
operatingCashFlowPerShare
$-1.04
freeCashFlowPerShare
$-4.49
Management Commentary
No earnings call transcript was provided in the data. As a result, management quotes and thematic quotes by executives are not available for inclusion in this section.
Forward Guidance
No explicit forward guidance was included in the QQ1 2025 data provided. Given Wolfspeed’s ongoing capacity expansion in SiC/GaN devices and the secular tailwinds in EVs, energy efficiency, and industrial power markets, the potential catalysts for improvement include higher-volume ramp, stabilizing ASPs, and continued technology leadership in SiC devices. However, the near-term path to profitability remains highly variable due to a) the magnitude of capex, b) ramp execution and utilization of new fabs, and c) continued competitive pricing pressure in a fast-evolving semiconductor segment. Investors should monitor: (1) quarterly revenue trajectory and mix between SiC power devices, RF, and GaN offerings, (2) gross margin stabilization as capacity scales and yields improve, (3) operating expenses and SG&A discipline, and (4) the ability to reduce net debt or secure refinancing to lower carrying costs.