Slide 1: Wolfspeed FY25 Q2 Earnings
Wolfspeed FY25 Q2 Earnings JANUARY 29, 2025 WOLFSPEED CONFIDENTIAL & PROPRIETARY © 2025 Wolfspeed, Inc. All rights reserved. Wolfspeed® and the Wolfstreak logo are registered trademarks and the Wolfspeed logo is a trademark of Wolfspeed, Inc.
Slide 2: Forward-Looking Statements and Non-GAAP Measures
. FORWARD-LOOKING STATEMENTS AND NON-GAAP MEASURES Note on Forward-Looking Statements The schedules attached to this presentation are an integral part of the presentation. This presentation contains forward-looking statements involving risks and uncertainties, both known and unknown, that may cause
Slide 3: Wolfspeed at a Glance
WOLFSPEED AT A GLANCE Wolfspeed is the world’s only pure-play, vertically integrated silicon carbide company By the Numbers $181 million The JP: world’s largest and only Access to $2.5B of proposed #1 ~$30B FY25 Q2 revenue dedicated 200mm silicon carbide funding to support U.S. capacity Producer of
Slide 4: Key Priorities Anchor Path to Long-Term Growth and Profitability
KEY PRIORITIES ANCHOR PATH TO LONG-TERM GROWTH AND PROFITABILITY Will improve unit economics, deliver substantial annualized cash savings and enhance cash generation capabilities Improve Financial Performance Strengthen Our Balance Sheet Raise Additional Capital • Purpose-built 200mm greenfield • Co
Slide 5: Recent Announcements Support Improved Cash Flow Profile
RECENT ANNOUNCEMENTS SUPPORT IMPROVED CASH FLOW PROFILE Anticipated Cash Inflows from Funding Sources Total Impact Item Anticipated Cash Inflows Up to $750M total CHIPS Act Funding • First disbursement to be 20%-25% of total grant size expected in mid CY25 $750M total over three tranches Debt Financ
Slide 6: Maintaining Our Outlook for Reduced CapEx Levels
MAINTAINING OUR OUTLOOK FOR REDUCED CAPEX LEVELS Lower CapEx levels provide adequate runway for sustained revenue growth while minimizing cash use Significant Reduction in CapEx Expected Key Takeaways Over Next Two Years $2.1B • FY25 CapEx guidance of $1.1B - $1.3B reaffirmed – Midpoint of current C
Slide 7: Significant Progress Made to Simplify 200mm Footprint
SIGNIFICANT PROGRESS MADE TO SIMPLIFY 200MM FOOTPRINT Materials: Wolfspeed HQ - Durham, NC Materials: The JP - Siler City, NC Device Fab: Mohawk Valley - Marcy, NY • Crystal growth and substrate • Crystal growers up and running; • FY25 Q3 MVF Revenue expected to processing continues to generate 200m
Slide 8: Mohawk Valley Update
MOHAWK VALLEY UPDATE Key Takeaways Mohawk Valley Fab Revenue • FY25 Q2 revenue contribution of $52M, up 6% Q/Q $55M - $75M • FY25 Q3 targeted revenue of $65M at the midpoint, representing ~25% Q/Q growth • FY25 Q3 targeted revenue expected to grow $52M $49M substantially with the ramp of previously
Slide 9: Financial Performance – Revenue
FINANCIAL PERFORMANCE – REVENUE1 $209M $201M $201M $195M $181M 108 102 105 97 91 101 99 96 98 90 FY24 Q2 FY24 Q3 FY24 Q4 FY25 Q1 FY25 Q2 Materials Devices Key Takeaways FY25 Q2 Drivers • $181M of revenue slightly above midpoint of guidance • $52M contribution from Mohawk Valley, up 6% Q/Q and more t
Slide 10: FY25 Q3 Guidance
FY25 Q3 GUIDANCE Revenue $170M - $200M Non-GAAP Gross Margin1 (3)% - 7% Non-GAAP OpEx1 $99M – $104M Non-GAAP Net Loss 1 $(138)M - $(119)M Guidance Drivers Upcoming Milestones • $55M - $75M revenue contribution from Mohawk Valley, • Closure of Durham on track to complete by 2H CY25 driven by continue
Slide 11: Appendix
APPENDIX WOLFSPEED CONFIDENTIAL & PROPRIETARY © 2025 Wolfspeed, Inc. All rights reserved. Wolfspeed® and the Wolfstreak logo are registered trademarks and the Wolfspeed logo is a trademark of Wolfspeed, Inc.
Slide 12: Non-GAAP Reconciliation – Gross Margin
NON-GAAP RECONCILIATION – GROSS MARGIN Three months ended December 29, 2024 December 31, 2023 GAAP gross (loss) profit ($37.2) $27.8 GAAP gross margin percentage (21)% 13% Adjustments: Stock-based compensation expense 9.0 6.4 Restructuring and facility closure costs 31.4 — Non-GAAP gross profit $3.2
Slide 13: Non-GAAP Reconciliation – EPS
NON-GAAP RECONCILIATION – EPS1 Three months ended December 29, 2024 December 31, 2023 GAAP net loss from continuing operations ($372.2) ($126.2) Adjustments: Stock-based compensation expense 20.2 22.4 Amortization of acquisition-related intangibles 0.3 0.3 Project, transformation and transaction cos
Slide 14: Non-GAAP Reconciliation – EBITDA and Adjusted EBITDA
NON-GAAP RECONCILIATION – EBITDA AND ADJUSTED EBITDA2 Three months ended December 29, 2024 December 31, 2023 GAAP net loss ($372.2) ($126.2) Reconciling items to EBITDA (Non-GAAP) Income tax expense (0.1) 0.3 Interest expense 63.5 26.1 Depreciation and amortization 66.7 48.6 EBITDA (Non-GAAP) (242.1
Slide 15: Non-GAAP Reconciliation – Gross Margin Outlook
NON-GAAP RECONCILIATION – GROSS MARGIN OUTLOOK Three months ended March 30, 2025 GAAP gross margin from continuing operations outlook range (29)% to (15)% Adjustments: Stock-based compensation expense 6% to 5% Restructuring and facility closure costs 20% to 17% Non-GAAP gross margin from continuing
Slide 16: Non-GAAP Reconciliation – Operating Expenses Outlook
NON-GAAP RECONCILIATION – OPERATING EXPENSES OUTLOOK Three months ended (in millions of U.S. Dollars) March 30, 2025 GAAP operating expenses from continuing operations outlook $155 to $160 Adjustments: Stock-based compensation expense (12) Project, transformation and transaction costs (7) Restructur
Slide 17: Non-GAAP Reconciliation – Net Loss Outlook
NON-GAAP RECONCILIATION – NET LOSS OUTLOOK Three months ended (in millions of U.S. Dollars) March 30, 2025 GAAP net loss from continuing operations outlook range ($295) to ($270) Adjustments: Stock-based compensation expense 22 Restructuring and facility closure costs 72 Amortization of discount and
Slide 18: Glossary of Terms
GLOSSARY OF TERMS Design-Ins: Design-Ins are customer commitments to purchase our products and are one of the factors we use to forecast long-term demand and future revenue. To meet the qualification of a Design-In, the customer provides us with documentation (e.g., a letter of intent, statement of
Slide 19: Let's Reimagine a More Sustainable World. Together.
LET’S REIMAGINE A MORE SUSTAINABLE WORLD. TOGETHER. WOLFSPEED CONFIDENTIAL © 2024 Wolfspeed, & PROPRIETARY Inc. All © 2025 rights reserved. Wolfspeed,and Wolfspeed® Inc. All therights reserved.logo Wolfstreak Wolfspeed® and the Wolfstreak are registered trademarks logoand are the registered trademar