Forensic Analysis · Technology / Software · as of Jun 27, 2026
WOLFSPEED, INC. (WOLF)
A forensic read on WOLFSPEED, INC. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
F · Poor — capital at risk
Forensic grade
Distress
Financial health
-8.0
Altman Z-score
Clean
Earnings quality
5
Forensic signals
96.2%
ROE
$2.4B
Market cap
WOLFSPEED, INC. earns a F (Poor — capital at risk) forensic quality grade, and its Altman Z-score is -8.0, placing it in the Distress zone. 5 forensic signals were flagged in its latest SEC filings, led by accruals ratio.
What the filings flag
+94.1%Accruals ratio.Net operating assets grew +94.1% relative to their average in FY2025 — the accrual component of earnings. Accruals are building sharply — a large slice of profit sits in operating assets, not cash; Richardson/Sloan link high accruals to weaker future returns as they reverse. The cash-flow cross-check agrees: reported earnings ran behind operating cash by -8% of net operating assets.
86d DSOReceivables vs revenue.Days sales outstanding moved from 67 to 86 days FY2024→FY2025 (receivables +21% vs revenue -6%). Receivables are outrunning sales — a flag for aggressive revenue recognition or slipping collections.
-18%Return on invested capital.Return on invested capital is -18% and slipping from -5% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.
+5.9%/yrShare-count dilution.Diluted share count changed +18% over the last 3 years to FY2025 (+5.9%/yr). The count is GROWING — existing holders are being diluted. That's ~5.9% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2022 has been diluted ~18%.
$450MGoodwill impairments.Took $450M of goodwill writedowns across 2 year(s) (FY2019 ($90M), FY2025 ($359M)). Writedowns mean past acquisitions underperformed what was paid for them — worth weighing on capital-allocation skill.
Key fundamentals
Net Margin-212.4%
Free Cash Flow$-1.98B
Latest Revenue$757.6M
Revenue Growth YoY-6.1%
Go deeper — free with an account
The forensic grade and screens above are free — no account needed. An account adds the full interactive deep-dive on WOLFSPEED, INC.:
🔒The written investment read — what the numbers mean, in plain English
🔒Ask anything about WOLF's filings — AI Q&A across the 10-K, 10-Qs & 8-Ks
🔒Interactive valuation — reverse-DCF sliders, Monte Carlo & scenario stress
🔒Calibrated 12-month price forecast, with the math shown