Wolfspeed reported QQ1 2026 revenue of $196.8 million, up 9.03% year over year but flat quarter over quarter (-0.1%). The quarter delivered a substantial gross loss of $77.1 million, with a negative gross margin of -39.18%, contributing to an operating loss of $22.4 million and a net loss of $643.6 million. The delta between operating performance and net results is dominated by a large non-operating charge: total other income and expenses of -$621.1 million, which drives a negative pre-tax result and an annualized impression of impairment-related headwinds. EBITDA stood at -$572.8 million, and diluted EPS was -$4.12. Cash flow remained modestly positive from operations at $5.7 million, but free cash flow remained negative at -$98.3 million, reflecting ongoing capital intensity and working capital dynamics. The balance sheet shows a highly leveraged position with total assets of $6.55 billion against total liabilities of $7.63 billion and stockholders’ equity of -$1.08 billion, underscored by long-term debt of $7.32 billion and net debt of $6.74 billion. The company closed the period with $571.6 million in cash and cash equivalents and a quick ratio around 3.6x, implying liquidity headroom despite negative equity. In the near term, the key questions for investors center on: (1) the durability of demand for Wolfspeed’s SiC/GaN offerings in EV, grid, and industrial applications; (2) the trajectory toward profitability and deleveraging; and (3) any normalization of non-operating charges that have weighted on reported earnings. While the growth outlook for silicon carbide and GaN remains favorable globally, the QQ1 2026 results highlight meaningful near-term profitability and leverage risks that require close monitoring of operating leverage, cost control, and financing flexibility.