Wolfspeed Q4 Earnings Miss Estimates, Revenues Decline Y/Y

Wolfspeed WOLF reported a fourth-quarter fiscal 2025 non-GAAP loss of 77 cents per share, which missed the Zacks Consensus Estimate by 6.94%. The company reported a loss of 89 cents per share in the year-ago quarter.

Revenues of $197 million decreased 1.8% year over year but surpassed the consensus mark by 4.10%. Mohawk Valley Fab contributed $94.1 million in revenues in the reported quarter.

Power Products accounted for 60.2% of revenues, while Materials Products contributed 39.8%. Power Products’ revenues increased 13.4% year over year to $118.6 million. However, Materials Products’ revenues decreased 18.4% year over year to $78.4 million.

Wolfspeed’s Operating Details

For the fiscal fourth quarter, Wolfspeed reported a negative non-GAAP gross margin of 1%, down from 5.4% reported in the year-ago quarter. Underutilization costs of $23.6 million negatively impacted gross margin in the reported quarter.

Wolfspeed Price, Consensus and EPS Surprise

Wolfspeed price-consensus-eps-surprise-chart | Wolfspeed Quote

In the reported quarter, sales, general, and administrative expenses were $36.1 million (18.3% of total revenues), down 41.4% year over year.

Research & development expenses (19.1% of total revenues) decreased 37.3% year over year to $37.6 million.

The company incurred a non-GAAP operating loss of $119.8 million, wider than the operating loss of $112 million in the year-ago quarter.

WOLF’s Balance Sheet & Cash Flow

On June 29, 2025, WOLF had cash, cash equivalents, and short-term investments of $955.4 million compared with $1.32 billion as of March 30, 2025.

Cash used in operating activities was $242.5 million in the reported quarter compared with $142.1 million in the previous quarter.

The free cash outflow was $454 million compared with the previous quarter’s $167.7 million.

Zacks Rank & Stocks to Consider

Wolfspeed currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Computer and Technology sector are DELL Technologies DELL, Hewlett Packard HPE, and ServiceTitan Inc. TTAN. While Dell Technologies and Service Titan carry a Zacks Rank #2 (Buy), Hewlett-Packard sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Dell Technologies is set to report second-quarter fiscal 2026 results on Aug. 28. DELL’s shares have gained 13.7% year to date.

Hewlett-Packard is slated to report third-quarter fiscal 2025 results on Sept. 3. HPE shares have gained 5.7% year to date.

Service Titan is set to report second-quarter fiscal 2026 results on Sept. 4. TTAN shares have lost 1.1% year to date.

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This article originally published on Zacks Investment Research (zacks.com).

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