Financial Models | Sim Natt

Full Report — Three-Statement Financial Model

Analyst Summary — Wolfspeed, Inc. (NYSE: WOLF)

Wolfspeed's FY2025 financial profile reflects severe liquidity pressure driven by negative operating cash flow, high capex intensity (~$1.3B), full debt reclassification upon Ch.11 filing, and negative shareholders' equity. Despite continued revenue generation (~$758M), the capital structure and cash burn (~$165M/month) created unsustainable refinancing risk which resulted in a Chapter 11 filing on June 30, 2025. Post-restructuring, the company targets ~$4B debt reduction with Renesas as 38.7% anchor shareholder in the company.

Key Performance Indicators — FY2025

Revenue (net)

$757.6M

▼ 6.1% YoY vs $807M FY2024

Gross Profit

($121.6M)

(16.1%) margin first-ever negative GP

EBITDA

($1,077M)

(142%) margin incl. $842M impairment

Free Cash Flow

($1,983M)

(262%) FCF margin 3rd consecutive year

Income Statement & Cash Flow

Revenue & Gross Profit

Annual trend ($M) · Gross profit turned negative FY2025

Revenue Gross Profit

OCF · CapEx · Free Cash Flow

Annual trend ($M) · All metrics deeply negative

OCF CapEx FCF (line)

Gross Margin & EBITDA Margin

Margin compression across FY2023–FY2025

Gross Margin % EBITDA Margin %

Cash & Investments vs. Total Debt

Capital structure deterioration ($M)

Cash & ST Investments Total Debt

Liquidity & Solvency

Cash vs. Debt · Liquidity Runway

Rapid deterioration in available liquidity

FY2023

FY2024

FY2025

Cash & Investments

$2,955M

$2,175M

$955M

Total Debt

$1,207M

$3,190M

$6,759M

Estimated Runway

19.3 mo.

4.2 mo.

2.8 mo. ⚠

Key Ratios — FY2025

All metrics reflect Chapter 11 filing trigger

Current Ratio

0.36x

FY24: 4.51x · Full LT debt reclassified current on Ch.11 trigger

Quick Ratio

0.16x

FY24: 3.49x · Severe near-term liquidity stress

Net Debt

$5.8B

FY23: net cash $1.75B · Full reversal in 2 years

Shareholders' Equity

($447M)

Negative FY25 · Total liabilities exceed total assets