Wolfspeed's Q3 2025: Key Contradictions in EV Demand, Capital Expenditures, and Revenue Growth

EV demand and market growth, capital expenditures and fab transitions, Mohawk Valley's revenue and ramp timeline, EV revenue growth and market conditions are the key contradictions discussed in Wolfspeed's latest 2025Q3 earnings call.



Financial Performance and Liquidity:
- Wolfspeed reported revenue of $185 million for Q3, in line with the guidance midpoint and up 2.2% sequentially.
- The company ended the quarter with over $1.3 billion of cash and liquidity, inclusive of $200 million from an equity offering and $192 million from Section 48D cash tax refunds.
- The improvement in financial performance was driven by strategic restructuring, cost-saving measures, and tax refunds, aimed at improving the company's capital structure and securing its long-term growth plan.

Mohawk Valley Revenue and Expansion:
- Mohawk Valley, Wolfspeed's fabrication facility, contributed $78 million in revenue, up 50% sequentially and over 175% year-over-year.
- The significant revenue growth was a result of continued strong execution at Mohawk Valley and the strategic transition to 200-millimeter products, which are expected to result in lower costs and higher quality wafers.

Shift to 200-Millimeter Products:
- Wolfspeed is transitioning to 200-millimeter products, leading to the closure of its 150-millimeter epitaxy and device facilities in Farmers Branch and Durham, respectively.
- This shift is designed to focus on higher value markets with better quality requirements and to align the company with the most compelling growth areas in the silicon carbide market.

Leadership and Strategic Reorganization:
- Wolfspeed appointed a new CEO, Robert Feurle, who has initiated a strategic reorganization, including the appointment of a new EVP and Chief Operating Officer and a Chief Business Officer.
- The new leadership aims to re-accelerate revenue growth, enhance profitability, and improve operational excellence by streamlining decision-making and facilitating operational excellence.