Wolfspeed emerges from bankruptcy with 70% debt cut, but revenue drops 19% as auto demand weakens

Filed May 7, 2026 · Period ending March 29, 2026 · Compared to 10-Q May 9, 2025 · ~2 min read

Key Changes

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  Company emerged from Chapter 11 bankruptcy in September 2025 after reducing debt by $4.6 billion (70%). Fresh start accounting reset all assets and liabilities to fair value, making post-September 2025 financials incomparable to prior periods.

  MD&A: Bankruptcy Emergence verify on EDGAR →
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  Revenue fell 19% year-over-year in Q3 FY2026 as automotive demand declined alongside continued materials weakness. Gross margin deteriorated to negative 26.6% from negative 12.1% a year earlier, driven by $19 million increase in underutilization costs as new capacity came online amid weakening demand.

  MD&A: Revenue & Margins verify on EDGAR →
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  Post-bankruptcy debt structure includes $2.1 billion in new secured notes with minimum liquidity covenants. In March 2026, company raised $476 million through equity and convertible debt to repurchase $476 million of senior notes, reducing annual interest expense by estimated $62 million.

  MD&A: Debt Restructuring verify on EDGAR →