Wolfspeed reported a second-quarter EPS of -$6.11, missing consensus estimates of -$0.73 by more than eightfold. This dramatic variance underscores ongoing struggles to achieve operating leverage since emerging from Chapter 11. GAAP net loss totaled $151 million, while non-GAAP adjusted EBITDA came in at -$82 million. Revenue of $168.5 million narrowly trailed forecasted levels, pointing to persistent margin pressure driven by underutilization costs of $48 million and a $23 million hit from inventory fair-value step-ups under fresh-start accounting.

Despite overall softness, the AI data center business delivered a 50% quarter-over-quarter revenue surge, marking it as one of the fastest-growing areas within Wolfspeed’s portfolio. That performance reflects winning design-wins and expanding production at the Mohawk Valley fab, where revenue reached $76 million this quarter. Management highlighted that AI infrastructure demand will remain a strategic focus as it seeks to diversify beyond traditional power and RF applications in electric vehicles and industrial markets.

Wolfspeed secured approximately $700 million in Section 48D cash tax refunds and deployed $175 million to retire long-term debt, lowering interest expense and enhancing financial flexibility. At quarter end, the company held $1.3 billion in cash, cash equivalents and short-term investments, supporting a current ratio of 7.73. Annualized operating expense reductions of $200 million and a 90% cut in capital expenditures year-over-year have further improved cash flow, positioning Wolfspeed to execute its technology roadmap in silicon carbide and gallium nitride materials.