Home / Wolfspeed: Restructuring, Earnings Miss, & Financial Outlook

Wolfspeed: Restructuring, Earnings Miss, & Financial Outlook

By: Jasmin Espinas

Updated: September 9, 2025

Published: June 23, 2025

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Wolfspeed, a producer of silicon carbide semiconductors for electric vehicles and power systems, secured court approval for its Chapter 11 restructuring plan this week.

The decision follows months of financial pressure and coincides with a weaker-than-expected Q4 FY2025 earnings report.

Wolfspeed Stock Surges After US Court Approves Restructuring Plan

Wolfspeed’s stock climbed nearly 48% to $1.82 on September 9 after the company announced that a U.S. bankruptcy court confirmed its Chapter 11 reorganization plan.

The ruling allows the semiconductor manufacturer to exit bankruptcy protection within the next several weeks.

As part of the plan, Wolfspeed expects to reduce its total debt burden by about 70%, or $4.6 billion, while cutting annual cash interest expenses by 60%.

The company said these measures will improve liquidity and create room to reinvest in operations.

In a statement on September 8, CEO Robert Feurle said the decision positions the company to finalize its restructuring process quickly and return to a more stable financial footing.

Last August 25, 2025, Wolfspeed posted its Q4 2025 earnings, which missed estimates.

Wolfspeed Files for Bankruptcy as Part of Debt-Reduction Agreement

Wolfspeed confirmed plans to file for bankruptcy in the U.S. on July 1 as part of a restructuring deal with creditors.

Wolfspeed is planning to file for bankruptcy by July 1 with a deal to slash its debt by about $4.6 billion and hand over control to convertible noteholders https://t.co/8PzyxKYr6w

— Bloomberg (@business) June 23, 2025

The agreement, announced on Sunday, June 22, would give the company $275 million in new funding and reduce its debt by roughly $4.6 billion, or nearly 70%.

This deal includes support from Renesas Electronics and several of Wolfspeed’s existing lenders.

In May, Wolfspeed issued a going-concern warning, citing weakening demand and pressure from shifting U.S. trade policy. These conditions compounded earlier cash flow and debt servicing issues.

The company aims to complete the bankruptcy process by the end of Q3 2025 under a prepackaged plan, meaning a restructuring agreement was finalized with creditors before the filing.

Additionally, Wolfspeed said it expects to continue operating without disruption during the process.

As of March, Wolfspeed reported $1.33 billion in cash and $6.5 billion in debt.

A June 18 Bloomberg report indicated that creditors, including Apollo Global Management, are expected to take over the company.

Struggling chipmaker Wolfspeed will be taken over by creditors including Apollo under a proposal that would put it into bankruptcy just long enough to slash billions in debt https://t.co/8O3B8rfvrA

— Bloomberg (@business) June 18, 2025

In 2023, Apollo led a $1.25 billion debt financing round for Wolfspeed, with an option to extend it to $2 billion.

Wolfspeed has also made leadership changes in recent months. It named Robert Feurle CEO in March and brought in David Emerson as COO in May.

Wolfspeed Q3 FY2025 Earnings Misses EPS Estimates, Revenue Slightly Below Forecast

Wolfspeed reported its fiscal Q3 2025 earnings on May 8. The results missed earnings-per-share estimates and showed revenue trailing slightly below expectations.

The company posted $185 million in consolidated revenue, down from $201 million year over year. From this, $78 million came from its Mohawk Valley facility, which contributed $28 million in the same quarter last year.

Meanwhile, the GAAP loss per share widened to $1.86, compared to $1.18 last year. Non-GAAP loss per share reached $0.72, compared to $0.62.

Chairman Tom Werner said the company had made progress on several financial objectives this year, including a $200 million ATM offering, receiving nearly $192 million in tax refunds, and restructuring its business to focus on 200-millimeter silicon carbide.

He also pointed to steps taken toward break-even cash flow and capital alignment.

New CEO Robert Feurle also emphasized Wolfspeed’s production capabilities and technology infrastructure.

He said the company would prioritize execution across power-focused verticals where efficiency and product reliability are critical.

Final Thoughts

Wolfspeed is restructuring under pressure, balancing operational goals with financial constraints.

The recent filings and earnings report show a company trying to reset expectations while holding onto its technical edge in silicon carbide production.

Therefore, what happens for the rest of 2025 will be critical to whether the strategy holds.

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