📊 WOLF Key Takeaways
Is Wolfspeed, Inc.. (WOLF) a Good Investment?
Wolfspeed faces severe structural profitability challenges with negative gross margins (-46.5%), indicating losses at the core manufacturing level. The company is burning cash operationally (-$42.6M) and cannot cover interest expenses from operations despite $1B in cash, while carrying $2B in debt with a 3.13x leverage ratio. The absence of insider buying and persistent losses across all metrics indicate fundamental business model stress requiring dramatic operational restructuring.
Why Buy Wolfspeed, Inc.. Stock? WOLF Key Strengths
- Strong liquidity position with $1.0B cash and 6.50x current ratio providing runway for restructuring
- Operates in strategically important semiconductor segments (GaN, SiC, RF components) with long-term market tailwinds
- Continued CapEx investment despite losses suggests management belief in future recovery potential
WOLF Stock Risks: Wolfspeed, Inc.. Investment Risks
- Negative gross margins (-46.5%) indicate structural production or pricing issues, not just operating inefficiency
- Negative free cash flow of -$72.6M with ~14 quarters of cash runway before reserves depleted at current burn rate
- High leverage (3.13x Debt/Equity) combined with negative interest coverage (-0.9x) threatens financial stability during extended downturn
- Zero insider trading activity in 90 days signals lack of management confidence in recovery
- Potential for dilutive equity raise or debt restructuring if losses continue
Key Metrics to Watch
- Gross margin trajectory - must achieve positive territory to validate business model recovery
- Operating cash flow and free cash flow - critical to monitor cash depletion rate
- Debt reduction plans or refinancing success - leverage ratio must improve
- Manufacturing capacity utilization rates and revenue per employee trends
- Insider buying activity - potential leading indicator of management confidence in turnaround
Wolfspeed, Inc.. (WOLF) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 6.50x current ratio provides a solid financial cushion.
WOLF Profit Margin, ROE & Profitability Analysis
WOLF vs Technology Sector: How Wolfspeed, Inc.. Compares
How Wolfspeed, Inc.. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Wolfspeed, Inc.. Stock Overvalued? WOLF Valuation Analysis 2026
Based on fundamental analysis, Wolfspeed, Inc.. shows some fundamental concerns relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Wolfspeed, Inc.. Balance Sheet: WOLF Debt, Cash & Liquidity
WOLF Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Wolfspeed, Inc..'s revenue has grown significantly by 50% over the 5-year period, indicating strong business expansion. The most recent EPS of $-2.65 indicates the company is currently unprofitable.
WOLF Revenue Growth, EPS Growth & YoY Performance
WOLF Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | N/A | -$150.6M | $2.22 |
| Q1 2026 | $194.7M | -$282.2M | $-2.23 |
| Q3 2025 | $185.4M | -$144.7M | $-1.18 |
| Q2 2025 | $180.5M | N/A | $-1.15 |
| Q1 2025 | $194.7M | N/A | $-2.23 |
| Q3 2024 | $192.6M | -$26.2M | $-0.80 |
| Q2 2024 | $173.8M | -$26.2M | $-0.73 |
| Q1 2024 | $189.4M | -$26.2M | $-0.21 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Wolfspeed, Inc.. Dividends, Buybacks & Capital Allocation
WOLF SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Wolfspeed, Inc.. (CIK: 0000895419)
📋 Recent SEC Filings
❓ Frequently Asked Questions about WOLF
What is the AI rating for WOLF?
Wolfspeed, Inc.. (WOLF) has an AI rating of STRONG SELL with 92% confidence, based on fundamental analysis of SEC EDGAR filings.
What are WOLF's key strengths?
Claude: Strong liquidity position with $1.0B cash and 6.50x current ratio providing runway for restructuring. Operates in strategically important semiconductor segments (GaN, SiC, RF components) with long-term market tailwinds.
What are the risks of investing in WOLF?
Claude: Negative gross margins (-46.5%) indicate structural production or pricing issues, not just operating inefficiency. Negative free cash flow of -$72.6M with ~14 quarters of cash runway before reserves depleted at current burn rate.
What is WOLF's revenue and growth?
Wolfspeed, Inc.. reported revenue of $168.5M.
Does WOLF pay dividends?
Wolfspeed, Inc.. does not currently pay dividends.
Where can I find WOLF SEC filings?
Official SEC filings for Wolfspeed, Inc.. (CIK: 0000895419) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is WOLF's EPS?
Wolfspeed, Inc.. has a diluted EPS of $-5.78.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is WOLF a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Wolfspeed, Inc.. has a STRONG SELL rating with 92% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is WOLF stock overvalued or undervalued?
Valuation metrics for WOLF: ROE of -24.0% (sector avg: 22%), net margin of -89.4% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy WOLF stock in 2026?
Our dual AI analysis gives Wolfspeed, Inc.. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is WOLF's free cash flow?
Wolfspeed, Inc..'s operating cash flow is $-42.6M, with capital expenditures of $30.0M. FCF margin is -43.1%.
How does WOLF compare to other Technology stocks?
Vs Technology sector averages: Net margin -89.4% (avg: 18%), ROE -24.0% (avg: 22%), current ratio 6.50 (avg: 2.5).
Is Wolfspeed, Inc.. carrying too much debt?
WOLF has a debt-to-equity ratio of 3.13x, which is above the Technology sector average of 0.5x. However, the current ratio of 6.50 suggests adequate short-term liquidity.