Wolfspeed, Inc. reported its fiscal second-quarter 2025 results, highlighting strategic initiatives aimed at enhancing profitability and strengthening its financial position. The company achieved revenue of $181 million, a decrease from $208 million in the same quarter the previous year. Notably, the Mohawk Valley Fab contributed $52 million to this quarter’s revenue, a significant increase from $12 million in the prior year.
The GAAP gross margin was reported at negative 21%, down from 13% in the previous year, while the non-GAAP gross margin stood at 2%, compared to 16% previously. These figures reflect underutilization costs associated with the commencement of production at the Mohawk Valley Fab.
Executive Chair Thomas Werner emphasized the company’s focus on accelerating the path to operating free cash flow generation, strengthening the balance sheet, and securing cost-effective capital to support growth. He noted the completion of a $200 million at-the-market equity offering, bringing Wolfspeed closer to finalizing CHIPS funding.
Looking ahead, Wolfspeed projects third-quarter fiscal 2025 revenue between $170 million and $200 million. The company anticipates a GAAP net loss ranging from $270 million to $295 million, or $1.73 to $1.89 per diluted share. On a non-GAAP basis, the expected net loss is between $119 million and $138 million, or $0.76 to $0.88 per diluted share. These projections account for the issuance of approximately 27.8 million shares under the ATM program.
In the first quarter of fiscal 2025, Wolfspeed initiated a facility closure and consolidation plan to optimize its cost structure and expedite the transition from 150mm to 200mm silicon carbide devices. The company incurred $188.1 million in restructuring-related costs during the second quarter, with $31.4 million recognized in cost of revenue and $156.7 million as operating expenses. For the upcoming quarter, Wolfspeed expects additional restructuring costs of $72 million, divided between cost of revenue and operating expenses.
Wolfspeed continues to invest in its 200mm greenfield footprint, aiming to produce high-quality materials and devices to meet the growing demand for silicon carbide in high-voltage applications. The company remains committed to leveraging its assets and capabilities to capitalize on long-term opportunities in the industry.
Original – Wolfspeed