Executive Summary
Wolfspeed’s QQ2 2025 quarter delivered a revenue of $180.5 million, marking a year-over-year decline of 13.4% and a quarter-over-quarter decline of 7.3%. The company posted a substantial net loss of $372.2 million and negative EBITDA of $225.1 million, with operating income of $-323.0 million and a net income margin of -2.06%. Gross profit was negative at $-37.2 million, translating to a gross margin of -20.61%. The quarter was characterized by meaningful operating expense dispersion (R&D $44.4m, SG&A $51.1m, other expenses $190.3m) and an elevated interest burden ($80.5m). Free cash flow amounted to $(598.1) million, and operating cash flow was $(195.1) million. The balance sheet shows a substantial asset base (total assets $7.74B) but a very high debt load (long-term debt $6.57B; total debt $6.58B) relative to equity ($0.373B) and negative near-term profitability. Liquidity remains adequate on a near-term basis (current ratio 3.15; quick ratio 2.47), yet profitability and cash generation remain the dominant overhangs. The market remains exposed to macro cyclicality in semiconductors and the structural transition toward silicon carbide (SiC) power devices, where Wolfspeed holds a leadership position, albeit at significant near-term capital intensity and cost headwinds. The lack of an earnings call transcript in the provided data limits management-specific quote attribution; accordingly, the analysis relies on disclosed financials and the implied commentary from the quarter’s results.
Key Performance Indicators
QoQ: -7.29% | YoY:-13.39%
QoQ: -2.76% | YoY:-233.81%
QoQ: -40.37% | YoY:-290.57%
QoQ: -31.89% | YoY:-157.22%
QoQ: -29.15% | YoY:-150.43%
Key Insights
Revenue: $180.5m; YoY -13.39%, QoQ -7.29%
Gross Profit: $(37.2)m; Gross Margin: -20.61%
Operating Income: $(323.0)m; Margin: -1.79%
EBITDA: $(225.1)m; EBITDA Margin: -1.25%
Net Income: $(372.2)m; Net Margin: -2.06%
EPS: $(2.88); Diluted EPS: $(2.88)
Cash Flows: Operating Cash Flow $(195.1)m; Capex $(403.0)m; Free Cash Flow $(598.1)m
Liquidity & Leverage: Cash & ST Investments $1.404B; Total Debt $6.576B; Equity $0.373B; Current Ratio 3.15; Debt/Equity ~12.0x; Enterprise Value Multiple ne...
Financial Highlights
Revenue: $180.5m; YoY -13.39%, QoQ -7.29%
Gross Profit: $(37.2)m; Gross Margin: -20.61%
Operating Income: $(323.0)m; Margin: -1.79%
EBITDA: $(225.1)m; EBITDA Margin: -1.25%
Net Income: $(372.2)m; Net Margin: -2.06%
EPS: $(2.88); Diluted EPS: $(2.88)
Cash Flows: Operating Cash Flow $(195.1)m; Capex $(403.0)m; Free Cash Flow $(598.1)m
Liquidity & Leverage: Cash & ST Investments $1.404B; Total Debt $6.576B; Equity $0.373B; Current Ratio 3.15; Debt/Equity ~12.0x; Enterprise Value Multiple negative; Net Debt reported as $(3.86)B in the data provided (note: debt and cash balance data appear structurally inconsistent in the source).
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
180.50M |
-13.39% |
-7.29% |
| Gross Profit |
-37.20M |
-233.81% |
-2.76% |
| Operating Income |
-323.00M |
-290.57% |
-40.37% |
| Net Income |
-372.20M |
-157.22% |
-31.89% |
| EPS |
-2.88 |
-150.43% |
-29.15% |
Key Financial Ratios
operatingProfitMargin
-178.9%
operatingCashFlowPerShare
$-1.51
freeCashFlowPerShare
$-4.64
Management Commentary
No earnings call transcript was provided in the data set for QQ2 2025. Consequently, transcript-driven highlights or management quotes could not be extracted. Where available, the analysis focuses on disclosed financials and the implied guidance/ tone from the quarter’s results rather than verbatim call commentary.
Forward Guidance
No explicit forward guidance was embedded in the provided data. Given Wolfspeed’s current profitability challenges and heavy leverage, the near-term guidance would likely hinge on: (a) ramp in SiC power device demand and adoption in EVs, data centers, and industrial power; (b) progress in cost-out initiatives and manufacturing efficiency; (c) working capital optimization and capex discipline to stabilize free cash flow. In the absence of formal guidance, investors should monitor: SiC market growth uptake, utilization of manufacturing capacity, gross margin trajectory, and the company’s ability to monetize its asset base and reduce reliance on high-interest expense. A plausible base case would require sequential margin improvement and cash flow stabilization before meaningful earnings leverage appears.