Wolfspeed Q3 in line with guidance
US SiC speciaist Wolfspeed has announced esults for the Q3 of fiscal 2026, with a consolidated revenue of approximately $150m, aligned with midpoint of guidance range.
GAAP gross margin was negative at (27) percent and Non-GAAP gross margin of (21) percent. GAAP net loss was $120m and adjusted EBITDA of ($62)m. Operating cash flow was ($84)m.
The company refinanced approximately $476m of first-lien debt, reducing total debt balance by $97m and annual interest expense by an estimated $62m. It also improved the company’s equity position by more than $400m, primarily from the strategic refinancing and reclassification of Renesas ownership upon CFIUS clearance. It reports $1.2b of cash, cash equivalents and short term investments as of March 29, 2026.
“In the third quarter, we continued to make meaningful progress against our priorities, improving Wolfspeed’s long-term growth trajectory and our financial flexibility to execute our strategic priorities,” said Wolfspeed CEO Robert Feurle.
“We accelerated innovation across the business, launching our next-generation TOLT portfolio, introducing the first commercially available 10 kV SiC power MOSFET, and continuing to advance our 300mm substrate platform. At the same time, we continue to deepen our engagement with a diversified customer base."
“Our third-quarter actions represent another major step in strengthening our balance sheet,” said Wolfspeed CFO Gregor van Issum. “We successfully reduced our highest-cost first-lien debt by 43 percent, decreased the total debt by $97m and thereby reduced the annual interest expense by an estimated $62m. Backed by $1.2b in liquidity and rigorous operational discipline, we are well-positioned to continue to fund our highest-priority initiatives."
Business highlights included continued sequential quarterly growth in AI data centre applications of approximately 30 percent, reflecting a moderate but expanding part of the company's business with meaningful long-term potential. Wolfspeed launched the first commercially available 10 kV SiC power MOSFET for grid modernisation, industrial electrification and AI data centre infrastructure. And it introduced next-gen TOLT portfolio to address growing AI data centre demand.
The company's Durham facilities are now focused on materials production, further increasing earnings potential of the site.
Outlook
The company expects to generate revenue between $140m and $160m for Q4. Operating expenses are forecast to be approximately flat with the Q3 and gross margins to remain negative in Q4.
