Wolfspeed 2025 Q4 Earnings Deepened Losses Despite Steady Revenue

Wolfspeed (WOLF) reported its fiscal 2025 Q4 earnings on August 25, 2025. The results showed a slight revenue decline, while net losses widened significantly, falling short of expectations. The company provided no new quantitative guidance, and its forward-looking statements centered on restructuring progress rather than near-term financial metrics.

Revenue
Wolfspeed's total revenue for Q4 2025 fell 1.8% year-over-year to $197 million. Power Products remained the company’s largest revenue contributor, posting $118.60 million, while Materials Products generated $78.40 million. Together, these segments accounted for the full revenue figure, indicating a modest but stable performance despite the year-over-year contraction.

Earnings/Net Income
The company’s financial condition deteriorated further, with a net loss of $669.30 million in Q4 2025, a 282.7% increase from $174.90 million in the prior year period. On a per-share basis, losses widened to $4.30, up from $1.39, representing a 209.4% increase in the loss per share. This performance indicates a continued struggle to achieve profitability.

Price Action
The stock of Wolfspeed has experienced a steep decline in recent weeks. Shares dropped 25.84% month-to-date and 4.35% on the most recent trading day, reflecting investor concerns over the company’s financial performance.

Post-Earnings Price Action Review
A 30-day investment strategy of buying Wolfspeed shares following its earnings report yielded an abysmal return of -98.25%, significantly underperforming the benchmark by 155.57%. The trade was marked by no maximum drawdown and a Sharpe ratio of -0.48, underscoring the high volatility and risk associated with the stock. This outcome emphasizes the importance of robust risk management strategies for investors.

CEO Commentary
CEO Robert Feurle expressed confidence in Wolfspeed’s long-term potential, citing the company’s vertically integrated operations, recent leadership additions, and robust intellectual property as key strengths. He emphasized the strategic importance of silicon carbide technology and highlighted the court’s approval of the Plan of Reorganization as a critical next step in emerging from Chapter 11 with a stronger financial structure.

Guidance
Wolfspeed did not provide specific near-term revenue, margin, or earnings guidance. Instead, the company focused on its path to restructuring and long-term industry leadership in silicon carbide technology. The CEO indicated optimism about the reorganization process and its potential to position the company for future growth.

Additional News
Over the past three weeks, Wolfspeed has seen no major M&A activity. However, leadership changes have been a notable development, with key additions to the executive team reinforcing the company’s strategic direction. There have been no recent dividend announcements or share repurchase programs, as the company remains focused on restructuring efforts. Other news has centered on Wolfspeed’s progress in silicon carbide technology and its broader market positioning, with no significant developments reported outside of leadership changes.