WOLFSPEED, INC. 10-Q

Item 1. Financial Statements (Unaudited) Consolidated Balance Sheets as of September 28, 2025 and June 29, 2025 4 Consolidated Statements of Operations for the three months ended September 28, 2025 and September 29, 2024 5 Consolidated Statements of Comprehensive Loss for the three months ended September 28, 2025 and September 29, 2024 6 Consolidated Statements of Shareholders' Equity for the three months ended September 28, 2025 and September 29, 2024 7 Consolidated Statements of Cash Flows for the three months ended September 28, 2025 and September 29, 2024 9 Notes to Unaudited Consolidated Financial Statements 10 3 Table of Conten ts WOLFSPEED, INC. (DEBTOR-IN-POSSESSION) UNAUDITED CONSOLIDATED BALANCE SHEETS (in millions of U.S. Dollars, except share data in thousands) September 28, 2025 June 29, 2025 Assets Current assets: Cash and cash equivalents (includes restricted cash: $ 41 million and $ 0 million, respectively) $ 571.6 $ 467.2 Short-term investments 354.4 488.2 Total cash, cash equivalents and short-term investments 926.0 955.4 Accounts receivable, net 155.6 178.8 Inventories, net 385.5 435.4 Prepaid expenses 75.5 97.2 Investment tax credit receivable 654.0 653.4 Other current assets 118.3 222.0 Total current assets 2,314.9 2,542.2 Property and equipment, net 3,775.8 3,916.5 Intangible assets, net 24.2 23.8 Long-term investment tax credit receivable 181.3 105.0 Other assets 254.9 266.9 Total assets $ 6,551.1 $ 6,854.4 Liabilities and Shareholders' Equity Current liabilities: Accounts payable and accrued expenses $ 196.5 $ 280.2 Contract liabilities and distributor-related reserves 72.9 50.0 Income taxes payable 0.9 0.8 Finance lease liabilities — 0.5 Current maturity on long-term borrowings — 6,538.0 Other current liabilities 29.3 220.5 Total current liabilities 299.6 7,090.0 Long-term liabilities: Finance lease liabilities - long-term — 8.4 Other long-term liabilities 16.6 203.1 Liabilities subject to compromise 7,315.3 — Total liabilities 7,631.5 7,301.5 Commitments and contingencies Shareholders’ equity: Preferred stock, par value $ 0.01 ; 3,000 shares authorized at September 28, 2025 and June 30, 2024; none issued and outstanding — — Common stock, par value $ 0.00125 ; 400,000 shares authorized at September 28, 2025 and June 29, 2025; 156,479 and 155,643 shares issued and outstanding at September 28, 2025 and June 29, 2025, respectively 0.2 0.2 Additional paid-in-capital 4,103.6 4,094.1 Accumulated other comprehensive loss ( 3.0 ) ( 3.8 ) Accumulated deficit ( 5,181.2 ) ( 4,537.6 ) Total shareholders’ equity ( 1,080.4 ) ( 447.1 ) Total liabilities and shareholders’ equity $ 6,551.1 $ 6,854.4 The accompanying notes are an integral part of the consolidated financial statements 4 Table of Conten ts WOLFSPEED, INC. (DEBTOR-IN-POSSESSION) UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS Three months ended (in millions of U.S. Dollars, except share data) September 28, 2025 September 29, 2024 Revenue, net $ 196.8 $ 194.7 Cost of revenue, net 273.9 230.9 Gross (loss) profit ( 77.1 ) ( 36.2 ) Operating expenses: Research and development 31.7 50.9 Sales, general and administrative 37.9 62.2 Factory start-up costs — 19.7 Gain on disposal of property and equipment ( 5.7 ) — Restructuring and other expenses 20.4 61.1 Total operating expense 84.3 193.9 Operating loss ( 161.4 ) ( 230.1 ) Reorganization items, net 503.8 — Interest expense, net of capitalized interest 0.7 64.5 Non-operating income, net ( 22.4 ) ( 12.8 ) Loss before income taxes ( 643.5 ) ( 281.8 ) Income tax (benefit) expense 0.1 0.4 Net loss ($ 643.6 ) ($ 282.2 ) Basic and diluted loss per share Net loss ($ 4.12 ) ($ 2.23 ) Weighted average shares - basic and diluted (in thousands) 156,185 126,733 The accompanying notes are an integral part of the consolidated financial statements 5 Table of Conten ts WOLFSPEED, INC. (DEBTOR-IN-POSSESSION) UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS Three months ended (in millions of U.S. Dollars) September 28, 2025 September 29, 2024 Net loss ($ 643.6 ) ($ 282.2 ) Other comprehensive income (loss): Net unrealized gain on available-for-sale securities 0.8 7.3 Comprehensive loss ( 642.8 ) ( 274.9 ) The accompanying notes are an integral part of the consolidated financial statements 6 Table of Conten ts WOLFSPEED, INC. (DEBTOR-IN-POSSESSION) UNAUDITED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY Common Stock Additional Paid-in Capital Accumulated Deficit Accumulated Other Comprehensive Loss Total Shareholders' Equity (in millions of U.S. Dollars, except share data in thousands) Number of Shares Par Value Balance at June 29, 2025 155,643 $ 0.2 $ 4,094.1 ($ 4,537.6 ) ($ 3.8 ) ($ 447.1 ) Net loss — — — ( 643.6 ) — ( 643.6 ) Unrealized gain on available-for-sale securities — — — — 0.8 0.8 Tax withholding on vested equity awards ( 382 ) — ( 0.6 ) — — ( 0.6 ) Stock-based compensation 1,218 — 10.1 — — 10.1 Balance at September 28, 2025 156,479 $ 0.2 $ 4,103.6 ($ 5,181.2 ) ($ 3.0 ) ($ 1,080.4 ) The accompanying notes are an integral part of the consolidated financial statements 7 Table of Conten ts WOLFSPEED, INC. (DEBTOR-IN-POSSESSION) UNAUDITED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY Common Stock Additional Paid-in Capital Accumulated Deficit Accumulated Other Comprehensive Loss Total Shareholders' Equity (in millions of U.S. Dollars, except share data in thousands) Number of Shares Par Value Balance at June 30, 2024 126,409 $ 0.2 $ 3,821.9 ($ 2,928.4 ) ($ 11.6 ) $ 882.1 Net loss — — — ( 282.2 ) — ( 282.2 ) Unrealized gain on available-for-sale securities — — — — 7.3 7.3 Tax withholding on vested equity awards — — ( 3.6 ) — — ( 3.6 ) Stock-based compensation 479 — 25.3 — — 25.3 Balance at September 29, 2024 126,888 $ 0.2 $ 3,843.6 ($ 3,210.6 ) ($ 4.3 ) $ 628.9 The accompanying notes are an integral part of the consolidated financial statements 8 Table of Conten ts WOLFSPEED, INC. (DEBTOR-IN-POSSESSION) UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS Three months ended (in millions of U.S. Dollars) September 28, 2025 September 29, 2024 Operating activities: Net loss ($ 643.6 ) ($ 282.2 ) Adjustments to reconcile net loss to cash used in operating activities from continuing operations: Non-cash reorganization items 475.7 — Depreciation and amortization 69.3 71.1 Gain on sale of property ( 5.7 ) — Gain on RTP Fab Transfer ( 25.4 ) — Amortization and write-off of deferred financing costs — 6.7 Stock-based compensation 13.6 23.7 Loss on equity investment 10.9 — Inventory write-off 29.0 — Loss on disposal or impairment of property and equipment 0.2 0.6 Amortization of premium on investments, net ( 1.2 ) ( 3.8 ) Realized loss on sale of investments — 0.1 Changes in operating assets and liabilities: Accounts receivable, net 23.2 2.0 Inventories 0.7 ( 25.6 ) Prepaid expenses and other assets 42.2 ( 10.5 ) Accounts payable 22.4 20.2 Accrued salaries and wages and other liabilities ( 28.4 ) 65.1 Contract liabilities and distributor-related reserves 22.8 0.6 Cash provided by (used in) operating activities 5.7 ( 132.0 ) Investing activities: Purchases of property and equipment ( 104.0 ) ( 437.0 ) Purchases of patent and licensing rights ( 1.4 ) ( 1.2 ) Proceeds from sale of property and equipment 13.9 — Proceeds from sale of MACOM shares 92.7 — Purchases of short-term investments ( 83.4 ) ( 56.1 ) Proceeds from maturities of short-term investments 151.8 256.2 Proceeds from sale of short-term investments 67.2 3.1 Reimbursement of capital expenditures from incentives and investment credits 0.1 42.0 Cash provided by (used in) investing activities 136.9 ( 193.0 ) Financing activities: Adequate protection payments on Existing Senior Secured Notes ( 38.4 ) — Tax withholding on vested equity awards ( 0.6 ) ( 3.6 ) Payments on long-term debt borrowings, including finance lease obligations — ( 0.1 ) Incentive-related escrow refunds — 10.0 Commitment fees on long-term incentive agreement — ( 1.5 ) Cash (used in) provided by financing activities ( 39.0 ) 4.8 Effects of foreign exchange changes on cash and cash equivalents 0.8 0.4 Net change in cash, cash equivalents and restricted cash 104.4 ( 319.8 ) Cash, cash equivalents and restricted cash, beginning of period 467.2 1,045.9 Cash, cash equivalents and restricted cash, end of period $ 571.6 $ 726.1 The accompanying notes are an integral part of the consolidated financial statements 9 Table of Conten ts WOLFSPEED, INC. (DEBTOR-IN-POSSESSION) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Note 1 Basis of Presentation and New Accounting Standards 11 Note 2 Discontinued Operations 22 Note 3 Revenue Recognition 23 Note 4 Leases 24 Note 5 Commitments and Contingencies 25 Note 6 Prepackaged Chapter 11 Cases 26 Note 7 Investments 28 Note 8 Fair Value of Financial Instruments 29 Note 9 Goodwill and Intangible Assets 29 Note 10 Long-term Debt 29 Note 11 Loss Per Share 31 Note 12 Stock-Based Compensation 31 Note 13 Income Taxes 31 Note 14 Restructuring 31 Note 15 Subsequent Events 28 10 Table of Conten ts Note 1 – Basis of Presentation and New Accounting Standards Overview Wolfspeed, Inc. (the "Company") is an innovator of wide bandgap semiconductors, focused on silicon carbide materials and devices for power applications. The Company’s product families include silicon carbide materials and power devices targeted for various applications such as electric vehicles, fast charging and renewable energy and storage. Basis of Presentation The consolidated financial statements presented herein have been prepared by the Company and have not been audited. In the opinion of management, all normal and recurring adjustments necessary to fairly state the consolidated financial position, results of operations, comprehensive loss, shareholders' equity and cash flows at September 28, 2025, and for all periods presented, have been made. All intercompany accounts and transactions have been eliminated. The consolidated balance sheet at June 29, 2025 has been derived from the audited financial statements as of that date. Certain prior period amounts in the accompanying consolidated financial statements and notes have been reclassified to conform to the current year's presentation, which include the moving of amounts related to "Long-term receivables" and "Deferred tax assets" to "Other assets," "Deferred tax liabilities" to "Other long-term liabilities," impairments previously presented in "Loss/gain on disposal or impairment," and "Amortization of acquired intangibles" to "Restructuring and other expenses," and to separate "Interest expense, net of capitalized interest" out of "Non-operating income, net." These reclassifications had no effect on previously reported net loss or shareholders’ equity. These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for annual financial statements. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 29, 2025 (the "2025 Form 10-K"). The results of operations for the three months ended September 28, 2025 are not necessarily indicative of the operating results that may be attained for the entire fiscal year ending June 28, 2026 ("fiscal 2026"). Chapter 11 Cases On June 30, 2025 (the “Petition Date”), the Company and its wholly owned subsidiary, Wolfspeed Texas LLC (together with the Company, the “Debtors”), voluntarily filed petitions (the "Chapter 11 Cases") for relief under Chapter 11 of the United States Bankruptcy Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the Southern District of Texas, Houston Division (the “Bankruptcy Court”) to implement a prepackaged Chapter 11 plan of reorganization (the "Plan"). The Chapter 11 Cases were administered jointly under the caption In re Wolfspeed, Inc., et al , case number 25-90163 (CML). The Chapter 11 filings, including the Plan and the Disclosure Statement filed on June 30, 2025, were intended to facilitate a comprehensive balance sheet restructuring pursuant to a Restructuring Support Agreement (the “Restructuring Support Agreement”) executed on June 22, 2025, with key stakeholders, including (i) holders of more than 97 % of the Company’s Senior Secured Notes due 2030 (the "Existing Senior Secured Notes"), (ii) holders of more than 67 % of the Company’s outstanding 1.75 % Convertible Senior Notes due 2026, 0.25 % Convertible Senior Notes due 2028, and 1.875 % Convertible Senior Notes due 2029 (collectively, the “Convertible Notes”), and (iii) Renesas Electronics America Inc. (“Renesas”). Rights Offering On June 22, 2025, the Company entered into a Rights Offering Backstop Commitment Agreement (the “Backstop Commitment Agreement”) with the rights offering backstop parties (the “Backstop Parties”) and the rights offering holdback parties (the “Holdback Parties”) party thereto. Pursuant to the Backstop Commitment Agreement (and subject to the terms and conditions therein), the Company initiated a rights offering on August 14, 2025 as contemplated under the Restructuring Support Agreement for the issuance of the new 2.5 % Convertible Second-Lien Senior Secured Notes due 2031 (the "New 2L Non-Renesas Convertible Notes") in an aggregate principal amount of approximately $ 301.13 million. 60 % percent of the rights offering (“Non-Holdback Rights Offering”) was offered pro rata to all holders of Convertible Notes (the “Subscription Rights”) and the Backstop Parties committed to purchase any unsubscribed portion of the Non-Holdback Rights Offering. The remaining 40 % of the rights offering was reserved for the Holdback Parties that committed to purchasing their respective portions set forth in the Backstop Commitment Agreement. As consideration for the commitments by the Backstop Parties and Holdback Parties, the Backstop Commitment Agreement provided that the Backstop Parties and the Holdback Parties would be issued, additional New 2L Non-Renesas Convertible Notes in an aggregate principal amount of $ 30.25 million (the “Backstop Premium”), allocated ratably. 11 Table of Conten ts The transactions contemplated by the Backstop Commitment Agreement were conditioned upon the satisfaction or waiver of certain conditions, including, among other things, that (i) the Bankruptcy Court had entered an order approving the Backstop Commitment Agreement and the disclosure statement relating to the Plan and confirming the Plan, (ii) the effective date of the Plan having occurred, and (iii) the Restructuring Support Agreement remained in full force and effect. On September 8, 2025 the Court entered the Order (I) Approving the Disclosure Statement, (II) Confirming Joint Prepackaged Chapter 11 Plan of Reorganization of Wolfspeed, Inc. and Its Debtor Affiliate, and (III) Approving Entry into the Backstop Agreement (Docket No. 285) (the “Confirmation Order”) confirming the Plan. Emergence and New Common Stock On September 29, 2025 (the "Effective Date"), the Company emerged from Chapter 11 upon all the conditions to the effectiveness of the Plan being satisfied or waived and the Plan becoming effective. Immediately prior to the Effective Date, there were 156,479,390 shares of the Company's common stock, $ 0.00125 par value per share (the “Old Common Stock”), outstanding. In accordance with the Plan and the Plan of Conversion approved by the Company’s board of directors (the “Plan of Conversion”), at 12:01 am Eastern Time on the Effective Date (the “Conversion Effective Time”), the Company effected a conversion from a North Carolina corporation to a Delaware corporation and, in connection therewith, adopted a new certificate of incorporation, under which the Company is authorized to issue 350,000,000 shares of New Common Stock (as defined below), and new bylaws, each of which became effective at the Conversion Effective Time. After giving effect to the transactions contemplated by the Plan and the Plan of Conversion, on the Effective Date all of the previously issued and outstanding shares of Old Common Stock were cancelled, and existing equity holders received their pro rata share of approximately 1,306,896 shares of common stock, $ 0.00125 par value per share (the “New Common Stock”), of the Delaware corporation. Pursuant to the Plan, the Company issued an aggregate of 25,840,656 shares of New Common Stock (inclusive of the aforementioned shares of New Common Stock issued to existing equity holders, with the remaining shares issued to pre-petition convertible noteholders, in accordance with the Plan). As of the Effective Date, the Company had an aggregate of 25,840,656 shares of New Common Stock issued and outstanding and 73,030,424 shares of New Common Stock reserved for issuance pursuant to the Plan (such reserve, the “Share Reserve”). As set forth in the Plan, if the Regulatory Approvals are received prior to the Regulatory Trigger Deadline (each as defined below), the Company will issue 16,852,372 shares of New Common Stock to Renesas from the Share Reserve and holders of Old Common Stock immediately prior to the Effective Date will receive their pro rata portion of 871,287 shares of New Common Stock from the Share Reserve. If the Regulatory Approvals have not been obtained prior to the Regulatory Trigger Deadline, the Company will issue 871,287 shares of New Common Stock to Renesas from the Share Reserve and no additional shares will be issued to prior holders of Old Common Stock. As set forth in the Plan, "Regulatory Approvals" means (a) Committee on Foreign Investment in the United States ("CFIUS") approval; (b) clearance or approval under antitrust laws in (i) the United States, (ii) Austria, (iii) Germany, (iv) Japan, and (v) European Commission (as applicable); (c) clearance or approval under Italy Foreign Investment Laws; (d) regulatory approvals from any regulatory regimes necessary to consummate the restructuring transactions (for the avoidance of doubt, in relation to the Regulatory Approvals, for Renesas to receive the New 2L Renesas Convertible Notes (as defined below); 16,852,372 shares of New Common Stock the Renesas Warrants; and voting, board seat, and other governance rights in accordance with the Restructuring Support Agreement), that are identified by Renesas and of which the Debtors are notified within thirty ( 30 ) calendar days following the effective date of the Restructuring Support Agreement; and (d) any regulatory approvals from any regulatory regimes necessary to consummate the restructuring transactions that are not identified by Renesas and of which the Debtors are not notified within thirty ( 30 ) calendar days following the effective date of the restructuring Support Agreement. These approvals will be needed prior to the Regulatory Trigger Deadline, which is defined in the Plan as the earlier of (i) a good faith agreement between the Debtors or Reorganized Debtors, which means the Debtors on and after the Effective Date, and Renesas that it is more likely than not that the Regulatory Approvals will not be obtained and (ii) two ( 2 ) years from the Effective Date; provided, if upon two ( 2 ) years from the Effective Date, the Reorganized Debtors and Renesas agree, in good faith, that Regulatory Approval is more likely than not to be obtained prior to three ( 3 ) years from the Effective Date, then upon three ( 3 ) years from the Effective Date. For the avoidance of doubt, to the extent Renesas obtains all Regulatory Approvals prior to the date of the Regulatory Trigger Deadline, the Regulatory Trigger Deadline shall be deemed not to have occurred. All Regulatory Approvals except for CFIUS approval has been obtained. The Company's bankruptcy advisor performed a valuation of the reorganized Company dated as of June 12, 2025. According to the valuation which was included in the Disclosure Statement related to the Plan, the post-emergence estimated enterprise value of the reorganized Company was estimated to be in the range between $ 2,350 million and $ 2,850 million with a mathematical midpoint of $ 2,600 million. The following assumption was made in the valuation of the projected amounts upon emergence; $ 1,500 million of net debt under the Plan, which may differ from the actual amounts of net debt at the Effective Date. 12 Table of Conten ts Renesas Warrant In accordance with the Plan, on the Effective Date, the Company issued a warrant (the “Renesas Warrant”) to Renesas to purchase an aggregate of 4,943,555 shares of New Common Stock, at an exercise price of $ 23.95 per share. Until all Regulatory Approvals have been received, the Renesas Warrant will only be deemed issued for purposes of U.S. federal and applicable state and local income tax purposes and is not exercisable. The Renesas Warrant is exercisable within three years from the Effective Date; provided, that if the Regulatory Trigger Deadline occurs, the expiration date of the Renesas Warrant will be extended by one year . Further, until all Regulatory Approvals have been received, in lieu of shares of New Common Stock receivable upon exercise of the Renesas Warrant, Renesas will have the right to receive cash proceeds from the sale of the shares underlying the Renesas Warrant in accordance with the terms of the Plan and that certain investor rights and disposition agreement between the Company and Renesas. The Renesas Warrant also includes “Black Scholes” protection for two years following the Effective Date. This protective clause requires the Company to pay warrant holders a cash-out value based on the Black-Scholes pricing model if a fundamental transaction, such as a merger or change of control, occurs. Secured Financing On the Effective Date, the Company issued secured financing in an aggregate amount of $ 2.1 billion of par value, consisting of (i) new Senior Secured Notes due 2030 (the "New Senior Secured Notes") in an aggregate principal amount of $ 1.3 billion and a payment from the redemption of $ 277.5 million in principal amount of Existing Senior Secured Notes at 109.875 % of the principal amount being redeemed (paid with the proceeds of the rights offering, described above, and proceeds from the sale of the MACOM Shares (as defined below) previously held by the Company) and certain commitment fees, subject to certain conditions, (ii) 7 %/ 12 % second lien senior secured PIK toggle notes due 2031 (the "New 2L Non-Convertible Notes") in an aggregate principal amount of $ 296.4 million, (iii) new 2.5 % Convertible Second-Lien Senior Secured Notes due 2031 in an aggregate principal amount of $ 203.6 million issued to Renesas (the "New 2L Renesas Convertible Notes") and (iv) New 2L Non-Renesas Convertible Notes in an aggregate principal amount of $ 331.4 million, including the payment of the Backstop Premium of $ 30.25 million under the Backstop Commitment Agreement. New Senior Secured Notes On the Effective Date, the Company entered into that certain Indenture (the “New Senior Secured Notes Indenture”), by and among the Company, Wolfspeed Texas LLC, as subsidiary guarantor (the “Subsidiary Guarantor”), and U.S. Bank Trust Company, National Association, as the trustee (the “Trustee”) and collateral agent (the “Collateral Agent”), pursuant to which, among other things, the Company issued the New Senior Secured Notes. The New Senior Secured Notes bear interest, payable quarterly in arrears on March 23, June 23, September 23, and December 23 of each year, (a) for the period from the Effective Date through and including June 22, 2026, at a rate of 9.875 % per annum (payable in cash), plus 4.00 % per annum (payable in-kind); and (b) for the period commencing on June 23, 2026 and at all times thereafter, (i) if the Interest Rate Step-Down Condition is satisfied as of June 23 of the most recent year, at a rate of 13.875 % per annum (payable in cash) and (ii) if the Interest Rate Step-Down Condition is not satisfied as of June 23 of the most recent year, at a rate of 15.875 % per annum (payable in cash). The Interest Rate Step-Down Condition is met if (a)(i) the Company redeems or repurchases (other than redemptions or repurchases with the proceeds of dispositions) the New Senior Secured Notes, resulting in the aggregate principal amount of New Senior Secured Notes outstanding being less than $ 1,000,000,000 and (ii) the Company receives at least $ 450,000,000 of award disbursements pursuant to governmental grants under the CHIPS and Science Act (the “CHIPS Act”) or (b) as of the most recent June 23rd, the ratio of the outstanding principal amount of the New Senior Secured Notes to EBITDA (as defined in the New Senior Secured Notes Indenture) for the most recently ended four fiscal quarter period for which financial statements have been or are required to have been delivered under the New Senior Secured Notes Indenture is less than or equal to 2.00 :1.00. The New Senior Secured Notes will mature on June 23, 2030. The New Senior Secured Notes Indenture requires the Company to make an offer to repurchase the New Senior Secured Notes with 100 % of the net cash proceeds of certain extraordinary receipts, at a price of 109.875 % plus accrued and unpaid interest upon the first to occur of the following : (i) in the event the Company and/or its subsidiaries receive in excess of $ 200,000,000 of such extraordinary receipts from the Effective Date through June 22, 2026, such offer to repurchase will be required to be in an aggregate principal amount of $ 175,000,000 of the New Senior Secured Notes, (ii) in the event the Company and/or its subsidiaries receive in excess of $ 200,000,000 of such extraordinary receipts from the Effective Date through June 22, 2027, such offer to repurchase will be required to be in an aggregate principal amount of $ 225,000,000 of the New Senior Secured Notes, or (iii) if the Company and/or its Subsidiaries receive less than or equal to $ 200,000,000 of such extraordinary receipts from the Effective Date through June 22, 2027, such offer to repurchase will be required to be in an aggregate principal amount of $ 150,000,000 (such repurchase date, the “Extraordinary Receipts Trigger Date”). 13 Table of Conten ts Further, the Company is required to repurchase the New Senior Secured Notes with 100 % of the net cash proceeds of certain non-ordinary course asset sales and casualty events, subject to the ability to (so long as no default or event of default exists under the Indenture), reinvest the proceeds of casualty events involving certain core assets, at a price equal to the lesser of (a) 111.875 % of the principal amount of the New Senior Secured Notes being repurchased and (b) if such disposition or casualty event occurred (i) on or after June 23, 2026 and prior to the later of June 23, 2027 and the Extraordinary Receipts Trigger Date, 109.875 % of the principal amount of such New Senior Secured Notes, plus accrued and unpaid interest to, but excluding, the applicable redemption (or repurchase) date, (ii) on or after the later of June 23, 2027 and the Extraordinary Receipts Trigger Date and prior to June 23, 2028, 105.000 % of the principal amount of such New Senior Secured Notes, plus accrued and unpaid interest to, but excluding, the applicable redemption (or repurchase) date, (iii) on or after June 23, 2028 and prior to June 23, 2029, 103.000 % of the principal amount of such New Senior Secured Notes, plus accrued and unpaid interest to, but excluding, the applicable redemption (or repurchase) date, and (iv) on or after June 23, 2029, 100 % of the principal amount of such New Senior Secured Notes plus accrued and unpaid interest to, but excluding, the applicable redemption (or repurchase) date (this clause (b), the “Applicable Redemption Price”). The Company is also required to offer to repurchase the New Senior Secured Notes upon a change in control, at a price equal to, (a) if such change of control occurs prior to June 23, 2026, the greater of (i) a customary make-whole redemption price minus 1.00 % of the principal amount of such New Senior Secured Notes and (ii) the Applicable Redemption Price as of June 23, 2026 and (b) if such change of control occurs on or after June 23, 2026, the Applicable Redemption Price at the time such change of control occurs. The Company may redeem the New Senior Secured Notes at any time, subject to, (a) if the redemption occurs prior to June 23, 2026, by paying a customary make-whole premium and (b) if the redemption occurs on or after June 23, 2026, by paying the Applicable Redemption Price. Further, the Company has the right, prior to June 23, 2026, to make an optional redemption of up to 35 % of the New Senior Secured Notes with the proceeds of qualified equity issuances consummated since the Effective Date (provided that the Company has received at least $ 300,000,000 of net proceeds from such equity issuances), at a redemption price equal to 111.875 %. The New Senior Secured Notes Indenture contains certain customary affirmative covenants, negative covenants, and events of default, including a minimum liquidity financial covenant requiring the Company to have an aggregate amount of unrestricted cash and cash equivalents maintained in accounts over which the Collateral Agent has been granted a perfected first lien security interest of at least $ 350,000,000 as of the last day of any calendar month. The obligations of the Company under the New Senior Secured Notes Indenture will be guaranteed by the Company’s material subsidiaries, if any, subject to certain exceptions, and are secured by a pledge (and, with respect to real property, mortgage) of substantially all of the existing and future property and assets of the Company and the guarantors (subject to certain exceptions), including a pledge of the capital stock of the subsidiaries of the Company and the guarantors, subject to certain exceptions. New 2L Renesas Convertible Notes, New 2L Non-Renesas Convertible Notes and New 2L Non-Convertible Notes On the Effective Date, the Company entered into (i) that certain indenture (the “New 2L Renesas Convertible Notes Indenture”), by and among the Company, the Subsidiary Guarantor, and the Trustee and the Collateral Agent in respect of the New 2L Renesas Convertible Notes, (ii) that certain indenture (the “New 2L Non-Renesas Convertible Notes Indenture”), by and among the Company, the Subsidiary Guarantor, the Trustee and the Collateral Agent in respect of the New 2L Non-Renesas Convertible Notes and (iii) that certain indenture (the “New 2L Non-Convertible Notes Indenture” and, together with the New 2L Renesas Convertible Notes Indenture and the New 2L Non-Renesas Convertible Notes Indenture, the “2L Indentures”), by and among the Company, the Subsidiary Guarantor, the Trustee and the Collateral Agent in respect of the New 2L Non-Convertible Notes (together with the New 2L Renesas Convertible Notes and the New 2L Non-Renesas Convertible Notes, collectively, the “2L Notes”). The 2L Notes bear interest, payable semi-annually in arrears on June 15 and September 15 of each year to the holders of record as of June 1 and September 1 of each year. Interest on the New 2L Renesas Convertible Notes and the New 2L Non-Renesas Convertible Notes is required to be paid in cash; interest on the New 2L Non-Convertible Notes is permitted to be paid either in cash or in kind (at the Company’s election), at an interest rate of 7.00 % or 12.00 %, respectively. The 2L Notes mature, in each case, on June 15, 2031. Each of the New 2L Renesas Convertible Notes and New 2L Non-Renesas Convertible Notes (collectively, the “2L Convertible Notes”) are convertible pursuant to the terms of the New 2L Renesas Convertible Notes Indenture and the New 2L Non-Renesas Convertible Notes Indenture, respectively. The New 2L Renesas Convertible Notes are convertible at any time from and after September 29, 2025 until September 29, 2027 (the “Conversion Expiration Date”), provided that the New 2L Renesas Convertible Notes are not convertible until the Renesas Base Distribution Date (as defined in the Plan), and the New 2L Non-Renesas Convertible Notes are convertible at any time from and after September 29, 2025 until the fifth (5th) scheduled trading day immediately preceding the maturity date, in each case, subject to certain limitations and exceptions. The 2L Convertible Notes are convertible into cash, common stock of the Company or a combination thereof, at the Company’s election. The 2L Convertible Notes will be entitled to customary anti-dilutive measures (including adjustments to the 2L Convertible Notes’ conversion rates), as described in each of the indentures governing the 2L Convertible Notes. 14 Table of Conten ts Each of the New 2L Non-Convertible Notes and the New 2L Renesas Convertible Notes are not permitted to be redeemed prior to the date that is two ( 2 ) years following the Effective Date; the New 2L Non-Renesas Convertible Notes are not permitted to be redeemed prior to the date that is three ( 3 ) years following the Effective Date. In the event of an optional redemption by the Company, holders will be entitled to a cash redemption price equal to 100 % of the principal amount of such note redeemed, plus accrued and unpaid interest (any such redemption, an “Optional Redemption”) The Company is required to offer to repurchase the 2L Notes upon a change of control and, in the case of (i) the 2L Convertible Notes, at a cash repurchase price equal to 100 % of the principal amount of such note repurchased, plus accrued and unpaid interest and (ii) the 2L Non-Convertible Notes, at a cash repurchase price equal to 101 % of the principal amount of such note repurchased, plus accrued and unpaid interest. Following the Conversion Expiration Date and upon the occurrence of a change of control, the New 2L Renesas Convertible Notes will be entitled to a cash repurchase price consistent with that of the New 2L Non-Convertible Notes. Holders of the 2L Convertible Notes will be entitled to adjustments to the respective conversion rates with table make-whole in the event of a change of control or an Optional Redemption. Notwithstanding the foregoing (but subject to certain limitations described in the indentures governing the 2L Convertible Notes), holders of the 2L Convertible Notes are permitted to convert their notes (i) in lieu of redemption in the event of an Optional Redemption by the Company or (ii) upon the occurrence of a change of control. The Company is also required, subject to the terms of the New Senior Secured Notes and pursuant to the terms and conditions set forth in the indentures governing the 2L Notes, to make an offer to purchase the 2L Notes, on a pro rata basis, upon the occurrence of certain non-ordinary course asset sales and casualty events (subject to certain reinvestment rights described in the 2L Indentures). The 2L Indentures contain certain customary affirmative covenants, negative covenants, and events of default. The obligations of the Company under the 2L Indentures will be guaranteed by the Company’s material subsidiaries, if any, subject to certain exceptions, and are secured on a second-priority basis by liens on substantially all of the existing and future property and assets of the Company and the guarantors (subject to certain exceptions) that secure the New Senior Secured Notes. Intercreditor Agreements In connection with the Company’s entrance into the New Senior Secured Notes Indenture and the 2L Indentures, the Company, Wolfspeed Texas LLC, as a grantor, and the trustees and the collateral agents under each of the New Senior Secured Notes Indenture and the 2L Indentures entered into the First Lien/Second Lien Intercreditor Agreement, dated as of the September 29, 2025, which sets forth the respective rights on the shared collateral between the noteholders under the New Senior Secured Notes, as first lien creditors, on the one hand, and the noteholders under the 2L Notes, as second lien creditors, on the other hand. Additionally, in connection with the Company’s entrance into the 2L Indentures, the Company, Wolfspeed Texas LLC, as a grantor, and the trustees and the collateral agents under each of the 2L Indentures entered into the Equal Priority Intercreditor Agreement, dated as of September 29, 2025, which sets forth the respective rights on the shared collateral among the noteholders under the 2L Notes. Incentive Compensation Plans Pursuant to the Plan, the Company adopted two equity compensation plans: the 2025 Long-Term Incentive Compensation Plan (the "Long-Term Incentive Plan") and the 2025 Management Incentive Compensation Plan (the "Management Incentive Plan"), which each provide for the grant of options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance stock units, performance units, other awards, or a combination thereof. An aggregate of 4,058,925 shares of New Common Stock have been reserved for issuance under the Long-Term Incentive Plan. The Long-Term Incentive Plan provides for grants to be made under the Long-Term Incentive Plan in fiscal year 2026 and 2027 having an aggregate value, as determined by the Board or the Committee (as defined in the Long-Term Incentive Plan), equal to $ 26.6 million and $ 27.5 million, respectively. An aggregate of 8,117,851 shares of New Common Stock have been reserved for issuance under the Management Incentive Plan. The Management Incentive Plan provides for initial awards under the Management Incentive Plan to be made to executive officers and key employees in accordance with the Restructuring Support Agreement. 15 Table of Conten ts Renesas Contingent Consideration If the Regulatory Approvals have not been obtained prior to the Regulatory Trigger Deadline, Renesas shall be entitled to certain contingent consideration, including $ 15 million in cash (the “Reserve Cash”), $ 15 million in New 2L Non-Convertible Notes (the “Additional New 2L Non-Convertible Notes”), the 871,287 shares of New Common Stock described above, and the right to a one-year extension of the exercise period of the Renesas Warrant as described above (the foregoing, collectively with the Reserve Cash, the Additional New 2L Non-Convertible Notes, the “Contingent Consideration”). If the Regulatory Approvals are obtained prior to the Regulatory Trigger Deadline, Renesas will not be entitled to the Contingent Consideration and $ 10 million of the Reserve Cash shall be remitted to or retained by the Company, $ 5 million of the Reserve Cash will be remitted to the holders of the New Senior Secured Notes (on account of the commitment fee amount), the Additional New 2L Non-Convertible Notes will not be issued, the 871,287 shares of New Common Stock will be distributed to the holders of Old Common Stock immediately prior to the Effective Date, and the term of the Renesas Warrant will not be extended. Investor Rights and Disposition Agreement In accordance with the Plan, on the Effective Date, the Company entered into an Investor Rights and Disposition Agreement (the “Investor Rights Agreement”) with Renesas. The Investor Rights Agreement provides certain investment-related rights, including, among other terms, that Renesas has the right to select one member of the board of directors of Wolfspeed (the “Board”), subject to receipt of the Regulatory Approvals and Renesas holding in excess of 10 % in the aggregate of the New Common Stock. The Investor Rights Agreement also provides that, through January 1 of the year following the receipt of all Regulatory Approvals, (i) Renesas shall not exercise voting rights attached to New Common Stock beneficially owned by Renesas representing more than 9.9 % of the Aggregate Company Voting Power (as defined in the Investor Rights Agreement) (the “Voting Rights Limitation”) and (ii) any conversion or exercise of Securities (as defined in the Investor Rights Agreement) into New Common Stock by Renesas shall be null and void and treated as if never made to the extent that, after giving effect to such conversion or exercise, Renesas would beneficially own New Common Stock representing more than 39.9 % of the Aggregate Company Voting Power immediately after giving effect to such conversion or exercise (the “Beneficial Ownership Limitation” and, together with the Voting Rights Limitation, the “Limitations”). Such Limitations will be automatically renewed for subsequent one-year periods subject to the terms of the Investor Rights Agreement. Notwithstanding the foregoing, Renesas may terminate the Limitations at any time and without regard to any limitation periods set forth in the Investor Rights Agreement if the Company has submitted to its stockholders’ meeting a proposal of (i) any transaction that would lead to a change of control of the Company, (ii) the issuance of any New Common Stock (or instruments convertible or exercisable into New Common Stock), (iii) any amendment to the certificate of incorporation or bylaws that would adversely affect any rights of Renesas and (iv) any other matters that could adversely affect any rights of Renesas. Additionally, prior to the Renesas Base Distribution Date, subject to certain terms and conditions, Renesas has designation rights regarding the disposition of, and right to cash proceeds from the disposition of, the New Common Stock (or the New Common Stock underlying the Securities that Renesas is entitled to receive pursuant to the Plan. Renesas may direct Wolfspeed to sell shares of New Common Stock through a primary registered offering pursuant to the Registration Rights Agreement (as defined below) or sell shares under the ELOC/ATM Program (as defined in the Investor Rights Agreement), and remit the cash proceeds from such sales directly to Renesas, net only of sales agent or underwriter commissions or discounts. Upon remittance of such proceeds to Renesas, Renesas’s entitlement to such Securities will be reduced accordingly. Renesas is not permitted to exercise such designation rights until nineteen (19) weeks after the Effective Date. Registration Rights Agreement In accordance with the Plan, on the Effective Date, Wolfspeed entered into a Registration Rights Agreement (the “Registration Rights Agreement”) with Renesas and certain holders of the New 2L Non-Renesas Convertible Notes (together with Renesas, the “RRA Counterparties”). The Registration Rights Agreement grants the RRA Counterparties certain registration rights in respect of certain “Registrable Securities” (as defined in the Registration Rights Agreement) held by them. Pursuant to the Registration Rights Agreement, Wolfspeed must file a shelf registration statement on Form S-1 or, if available, a registration statement on Form S-3 (a “Shelf Registration Statement”) to register the Registrable Securities held by the RRA Counterparties (i) within 45 days of the Effective Date and (ii) solely with respect to the Registrable Securities held by Renesas, within 45 days of the Renesas Base Distribution Date. Thereafter, an RRA Counterparty holding Registrable Securities registered on an effective Shelf Registration Statement may require the Company to effect an underwritten offering of such RRA Counterparty’s Registrable Securities and file any necessary prospectus supplement or post-effective amendment to the Company’s Shelf Registration Statement as soon as practicable and, in any event, within fifteen business days (in the case of a Shelf Registration Statement on Form S-1) or ten business days (in the case of a Shelf Registration Statement on Form S-3). The RRA Counterparties may also sell Registrable Securities registered under the Shelf Registration Statements in non-underwritten offerings. The Company is required to maintain the effectiveness of any Shelf 16 Table of Conten ts Registration Statement until the Registrable Securities covered by such Shelf Registration Statement are no longer Registrable Securities. Additionally, the RRA Counterparties have customary piggyback registration rights, subject to the limitations set forth in the Registration Rights Agreement. Prior to the receipt of Regulatory Approvals, at any time following the nineteen-week anniversary of the Effective Date, Renesas may require the Company to register the sale of shares of New Common Stock or other securities of the Company on a registration statement on Form S-1 or, if available, a registration statement on Form S-3, to conduct a primary offering of securities, the proceeds of which (after deducting underwriting commissions) will, in accordance with the Investor Rights Agreement, be directed to Renesas in satisfaction of the Company’s obligation to issue shares of New Common Stock to Renesas pursuant to the Plan. The foregoing registration rights are subject to certain conditions and limitations, including customary blackout periods, market conditions, the Company’s right to delay or withdraw a registration statement under certain circumstances and, if an underwritten offering is contemplated, the number of such underwritten offerings to be initiated during a year and the right of underwriters to limit the number of shares to be included in a registration statement. The Company will generally pay all registration expenses in connection with its obligations under the Registration Rights Agreement, regardless of whether a registration statement is filed or becomes effective. The Registration Rights Agreement provides for customary indemnification and contribution provisions. The Registration Rights Agreement will terminate, with respect to each RRA Counterparty, at such time as such RRA Counterparty no longer owns any Registrable Securities, and in full and be of no further effect, at such time as there are no Registrable Securities held by any RRA Counterparties. Debtor-In-Possession The Company has applied Accounting Standards Codification ("ASC") Topic 852: Reorganizations (“ASC 852”) in preparing the unaudited consolidated financial statements. ASC 852 requires the financial statements, for periods subsequent to the commencement of the Chapter 11 Cases, to distinguish transactions and events that are directly associated with the reorganization from the ongoing operations of the business. Accordingly, certain charges incurred during the three months ended September 28, 2025, related to the bankruptcy proceedings, including the write-off of original issue discount and deferred debt issuance costs associated with debt classified as liabilities subject to compromise and professional fees, are recorded as reorganization items, net. In addition, pre-petition Debtor obligations that may be impacted by the Chapter 11 Cases have been classified on the unaudited consolidated balance sheet at September 28, 2025, as liabilities subject to compromise. These liabilities are reported at the allowed amounts by the Bankruptcy Court, even if they may be settled for lesser amounts. See Note 6, "Prepackaged Chapter 11 Cases", for more information regarding reorganization items and liabilities subject to compromise. The Debtors were operating as debtors-in-possession in accordance with the applicable provisions of the Bankruptcy Code as of September 28, 2025. The Bankruptcy Court approved "first day" orders filed by the Debtors that were designed primarily to mitigate the impact of the Chapter 11 Cases on the Company’s operations, customers, and employees. In general, as debtors-in-possession under the Bankruptcy Code, the Debtors were authorized to continue to operate as an ongoing business, but could not engage in transactions outside the ordinary course of business without the prior approval of the Bankruptcy Court. Pursuant to first day orders filed with the Bankruptcy Court, the Bankruptcy Court authorized the Debtors to conduct their business activities in the ordinary course, including, among other things and subject to the terms and conditions of such orders, authorizing the Debtors ability to: (i) retain and compensate professionals used in the ordinary course of business; (ii) pay prepetition wages, salaries, employee benefits and other compensation, (iii) maintain employee benefits programs and pay related obligations; (iv) pay certain prepetition taxes and fees; (v) continue existing cash management system, maintain existing business forms, and continue intercompany transactions (vi) use cash collateral; (vii) continue insurance program and pay all obligations; (viii) honor prepetition obligations to customers and continue customer programs; and (ix) pay prepetition trade claims. Automatic Stay Subject to certain specific exceptions under the Bankruptcy Code, the Bankruptcy Petitions automatically stayed most judicial or administrative actions against the Debtors and efforts by creditors to collect on or otherwise exercise rights or remedies with respect to pre-petition claims. Absent an order from the Bankruptcy Court as summarized above, substantially all of the Debtors' pre-petition liabilities are subject to settlement under the Bankruptcy Code. Since the Effective Date, as a subsequent event, the automatic stay was lifted and previously stayed actions against the Debtors may continue with respect to the Debtors to the extent such claims were not released under the Plan. 17 Table of Conten ts Executory Contracts Subject to certain exceptions, under the Bankruptcy Code, the Debtors could assume, amend or reject certain executory contracts and unexpired leases subject to the approval of the Bankruptcy Court and certain other conditions. Generally, the rejection of an executory contract or unexpired lease was treated as a pre-petition breach of such executory contract or unexpired lease and, subject to certain exceptions, relieved the Debtors from performing their future obligations under such executory contract or unexpired lease but entitled the contract counterparty or lessor to a pre-petition general unsecured claim for damages caused by such deemed breach. Generally, the assumption of an executory contract or unexpired lease required the Debtors to cure existing monetary defaults under such executory contract or unexpired lease and provide adequate assurance of future performance. On the Effective Date, the Debtors assumed all executory contracts and unexpired leases pursuant to the Plan. Potential Claims Pursuant to the Plan, there was no requirement for creditors to file proofs of claim, and all allowed general unsecured claims are required to be paid in full in the ordinary course of business following the Company's emergence from the Chapter 11 Cases. The Debtors received approximately 70 proofs of claims, primarily representing general unsecured claims, for an amount of approximately $ 7.5 million. These claims were reconciled to amounts recorded in the Company's accounting records. Differences in amounts recorded and claims filed by creditors were investigated and resolved, including through the filing of objections with the Bankruptcy Court, where appropriate. The Company was able to ask the Bankruptcy Court to disallow claims that the Company believed were duplicative, were later amended or superseded, were without merit, were overstated or should be disallowed for other reasons. Upon the Effective Date, all proofs of claim were deemed withdrawn and expunged pursuant to the Plan. Reorganization Items, Net The Debtors have incurred and will continue to incur significant costs associated with the reorganization, primarily professional fees and the write-off of original issue discount and deferred debt issuance costs on debt subject to compromise. In accordance with applicable guidance, costs associated with the bankruptcy proceedings have been recorded as reorganization items, net within the Company's accompanying unaudited consolidated statement of operations for the three months ended September 28, 2025. Refer to Note 6, “Prepackaged Chapter 11 Cases.” Financial Statement Classification of Liabilities Subject to Compromise The accompanying unaudited consolidated balance sheet as of September 28, 2025 includes amounts classified as liabilities subject to compromise, which represent liabilities allowed as claims in the Chapter 11 Cases by the Bankruptcy Court. These amounts represent the Debtors’ current estimate of known or potential obligations to be resolved in connection with the Chapter 11 Cases, and may differ from actual future settlement amounts paid. Differences between liabilities estimated and claims filed will be investigated and resolved in connection with the claims resolution process. The Company evaluated and adjusted the amount and classification of its pre-petition liabilities through the Effective Date, as applicable. Liquidity As described above and in Note 15, "Subsequent Events" below, as of the Effective Date, the Company emerged from bankruptcy and continues to operate as a viable going concern. The accompanying unaudited consolidated financial statements have been prepared on the basis that the Company will continue to operate as a going concern, which contemplates that the Company will be able to realize assets and settle liabilities in the normal course of business for twelve months following the date of this filing. Upon emergence from the Chapter 11 Cases, the Company significantly improved its liquidity position through a comprehensive restructuring of its capital structure. As part of the Plan, the Company issued the new debt and equity described under "Restructuring Support Agreement and Chapter 11 Cases" above, which resulted in a reduction of the total debt by approximately 70 % compared to the pre-emergence levels. Summary of Significant Accounting Policies There were no material changes to the Company's significant accounting policies during the three months ended September 28, 2025 compared to the significant accounting policies described in the Company's fiscal 2025 Form 10-K. Segment Information The Company has one reportable segment representing the entity as a whole, aligning with the Company's organizational structure and with the way the Company's chief operating decision maker ("CODM"), who is the Company's Chief Executive Officer, makes operating decisions, allocates resources, and manages the growth and profitability of the Company. 18 Table of Conten ts The CODM uses consolidated net income to measure segment profit or loss, allocate resources and assess performance. Net income is also used to monitor budget versus actual results, forecasted information and in competitive analysis. The CODM regularly reviews income and expense items at the consolidated company (reporting segment) level and uses net income to evaluate whether and how to reinvest profits into the entity’s operations, shareholder return, acquisitions or otherwise. Further, the CODM reviews and utilizes functional expenses (cost of revenues, sales and marketing, research and development, and general and administrative) at the consolidated level to manage the Company’s operations. Other segment items included in consolidated net income are "Restructuring and other expenses", "Interest expense, net of capitalized interest", "Non-operating income, net" and "income tax (benefit) expense". These income and expense items are included on the Consolidated Statements of Operations and in the Company's notes to the Consolidated Financial Statements. The CODM reviews segment assets at the same level or category as presented on the Consolidated Balance Sheet. Financial Statement Details Inventories (in millions of U.S. Dollars) September 28, 2025 June 29, 2025 Raw material $ 139.9 $ 144.5 Work-in-progress 233.7 284.6 Finished goods 11.9 6.3 Inventories, net $ 385.5 $ 435.4 Included in cost of goods sold for the three months ended September 28, 2025, are inventory write-offs of approximately $ 29.0 million. The write-offs reflect an increase in inventory reserves due to obsolete inventory and defective products the Company no longer intends to use. Other Current Assets (in millions of U.S. Dollars) September 28, 2025 June 29, 2025 Reimbursement receivable on long-term incentive agreement $ 33.2 $ 33.1 Assets held for sale (1) 19.3 24.4 MACOM Shares (2) — 102.0 Inventory related to the RF Master Supply Agreement — 15.8 VAT receivables 0.6 9.1 Insurance deposit 4.6 7.4 Accrued interest receivable 4.1 5.4 Receivable on RF Master Supply Agreement — 5.3 Short-term deposit on long-term incentive agreement 1.1 0.8 Short-term spares 28.6 — Other 26.8 18.7 Other current assets $ 118.3 $ 222.0 (1): During the third quarter of fiscal 2025, the Company determined three facilities met the held-for-sale criteria under ASC 360 (as defined below), of which two were sold during the fourth quarter of fiscal 2025. The assets included in each of the disposal groups were measured at the lower of their carrying value or fair value less costs to sell. (2): Refer to Note 2, "Discontinued Operations," and Note 8, "Fair Value of Financial Instruments," to the consolidated financial statements included herein for additional information. 19 Table of Conten ts Assets Held for Sale The Company classifies an asset as held for sale when all of the criteria set forth in the ASC Topic 360: Property, Plant and Equipment ("ASC 360") have been met. The criteria are as follows: (i) management, having the authority to approve the action, commits to a plan to sell the property; (ii) the property is available for immediate sale in its present condition, subject only to terms that are usual and customary; (iii) an active program to locate a buyer and other actions required to complete the plan to sell have been initiated; (iv) the sale of the property is probable and is expected to be completed within one year; (v) the property is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and (vi) actions necessary to complete the plan of sale indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. At the time the Company classifies a property as held for sale, the Company ceases recording depreciation and amortization. A property classified as held for sale is measured and reported at the lower of its carrying amount or its estimated fair value less cost to sell. As of September 28, 2025, the Company recorded $ 19.3 million in assets held for sale included within other current assets on the consolidated balance sheet. The assets held for sale consist of one property including buildings, building improvements and land of idled property located in Durham, North Carolina. The disposal of properties and equipment classified as held for sale does not represent a strategic shift that has (or will have) a major effect on our operations or financial results and therefore does not meet the criteria for classification as discontinued operation. The sale of the assets is expected to occur within the next six months. Investment Tax Credit Receivable The Company is eligible for the Advanced Manufacturing Investment Credit ("AMIC") in connection with ongoing expansion projects. The AMIC is a refundable federal tax credit provided under Internal Revenue Code Section 48D, which was enacted by the United States CHIPS and Science Act of 2022 (the "CHIPS Act"). In fiscal 2025, the Company received $ 189.1 million in cash tax refunds related to its fiscal 2023 and fiscal 2024 federal tax filings, inclusive of $ 2.6 million of interest income. As of September 28, 2025, the Company has recorded a short-term and long-term receivable of $ 654.0 million and $ 181.3 million, respectively, and the Company has reduced property and equipment, net by $ 1,021.8 million as a result of expected proceeds under the AMIC. The One Big Beautiful Bill Act ("OBBBA") resulted in a $ 50.7 million increase to the long-term receivable in the first quarter of fiscal 2026, attributable to the increase of the credit to 35% on qualifying assets placed-in-service after December 31, 2025. Other Assets (in millions of U.S. Dollars) September 28, 2025 June 29, 2025 Right-of-use assets $ 139.4 $ 123.1 Long-term advances to suppliers 72.5 69.8 Long-term deposits 23.8 24.3 Cloud computing assets, net 8.4 10.4 Other 10.8 39.3 Other assets $ 254.9 $ 266.9 Accounts Payable and Accrued Expenses (in millions of U.S. Dollars) September 28, 2025 June 29, 2025 Accounts payable, trade $ 24.3 $ 30.6 Accrued property and equipment 42.3 124.7 Accrued salaries and wages 56.3 79.2 Accrued expenses 73.6 45.7 Accounts payable and accrued expenses $ 196.5 $ 280.2 20 Table of Conten ts Other Current Liabilities (in millions of U.S. Dollars) September 28, 2025 June 29, 2025 Accrued interest $ — $ 90.7 RF Supply Agreement Liabilities (1) — 76.9 Other 29.3 52.9 Other current liabilities $ 29.3 $ 220.5 (1): Refer to Note 2, "Discontinued Operations," to the consolidated financial statements included herein for additional information. Restructuring and Other Expenses Three months ended (in millions of U.S. Dollars) September 28, 2025 September 29, 2024 Restructuring and other exit costs $ 3.7 $ 52.8 Project, transformation and transaction costs 13.8 6.0 Other 2.9 2.3 Restructuring and other expenses $ 20.4 $ 61.1 Accumulated Other Comprehensive Loss, net of taxes Accumulated other comprehensive loss, net of taxes, consisted of $ 3.0 million and $ 3.8 million of net unrealized losses on available-for-sale securities as of September 28, 2025 and June 29, 2025, respectively. Amounts for both periods include a $ 2.4 million loss related to tax on unrealized loss on available-for-sale securities. Non-Operating Income, net Three months ended (in millions of U.S. Dollars) September 28, 2025 September 29, 2024 Interest income ($ 8.9 ) ($ 22.2 ) Gain on RTP fab transfer ( 25.4 ) — Realized loss on MACOM Shares 10.9 — Other, net 1.0 9.4 Non-operating income, net ($ 22.4 ) ($ 12.8 ) Statements of Cash Flows - Supplemental Non-Cash Activities Three months ended (in millions of U.S. Dollars) September 28, 2025 September 29, 2024 Decrease in property, plant and equipment from investment tax credit receivables $ 76.8 $ 81.8 Lease asset and liability additions 19.1 11.0 Lease asset and liability modifications, net ( 0.2 ) 0.2 Lease asset termination ( 0.1 ) — (Decrease) increase in accrued property, plant and equipment ( 82.4 ) 20.2 Recently Adopted Accounting Pronouncements None. 21 Table of Conten ts Accounting Pronouncements Pending Adoption In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-09, Income Taxes (Topic 740): Improvements to Tax Disclosures, which requires disaggregated information about an entity's income tax rate reconciliation as well as information regarding cash taxes paid both in the United States and foreign jurisdictions. The amendments should be applied prospectively, with retrospective application permitted. The amendments are effective for annual periods beginning after December 15, 2024 with early adoption permitted. The Company is currently evaluating the impacts of adopting this guidance on its financial statement disclosures. In November 2024, the FASB issued ASU 2024-03, Income Statement (Topic 220): Disaggregation of Income Statement Expenses, to require additional disclosures of certain amounts included in the expense captions presented on the Statement of Operations as well as disclosures about selling expenses. In January 2025, the FASB issued ASU 2025-01 to clarify the effective date of ASU 2024-03. ASU 2024-03 is effective on a prospective basis, with the option for retrospective application, for annual periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027, and early adoption is permitted. The Company is currently evaluating the impacts of adopting this guidance on its financial statement disclosures. In November 2024, the FASB issued ASU 2024-04, Induced Conversions of Convertible Debt Instruments ("ASU 2024-04"), which enhances guidance in ASC Topic 470, "Debt," to improve consistency and relevance in accounting for induced conversions of convertible debt instruments. Specifically, ASU 2024-04 clarifies the criteria for when settlements should be treated as induced conversions, requiring that inducement offers preserve the form and amount of consideration issuable under original conversion terms. ASU 2024-04 is effective for the Company's fiscal years and interim periods within those fiscal years beginning after December 15, 2025, with early adoption permitted, and may be applied prospectively or retrospectively. The Company is currently evaluating the effect of adopting ASU 2024-04 on its consolidated financial statement disclosures. Recently issued ASUs by the FASB, except for the ones mentioned above, are not expected to have a significant impact on the Company’s consolidated results of operations or financial position. Other accounting standards that have been issued or proposed by the FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its consolidated financial statement disclosures. Note 2 – Discontinued Operations RF Business Divestiture - Recent Events On December 2, 2023 (the "RF Closing"), the Company completed the sale of its Radio Frequency ("RF") product line (the "RF Business") to MACOM Technology Solutions Holdings, Inc. ("MACOM") pursuant to the terms of the previously reported Asset Purchase Agreement (the RF Purchase Agreement). Pursuant to the RF Purchase Agreement, the Company received approximately $ 75 million in cash and 711,528 shares of MACOM common stock (the "MACOM Shares"). In connection with the divestiture of the RF Business (the "RF Business Divestiture"), MACOM was entitled to assume control of the Company’s 100mm gallium nitride ("GaN") wafer fabrication facility in Research Triangle Park, North Carolina (the "RTP Fab") approximately two years following the RF Closing (the "RTP Fab Transfer"). On July 25, 2025, the Company and MACOM completed the RTP Fab Transfer, as contemplated by the RF Purchase Agreement, and MACOM assumed control of the RTP Fab. At such time, the transfer restrictions and risk of forfeiture for the MACOM Shares lapsed and the Master Supply Agreement between the parties (the "RF Master Supply Agreement") terminated pursuant to its terms. Additionally, the Company derecognized assets and liabilities related to the remaining rights and obligations under the RF Master Supply Agreement. In connection with the RTP Fab Transfer, the Company recognized a gain of $ 25.4 million within "Non-operating income, net". In connection with the RTP Fab Transfer, the Long-Term Epi Supply Agreement between the parties commenced. At the time of the divestiture, the Company recorded a liability for the Long-term Epi Supply Agreement of $ 58.0 million, of which $ 55.6 million and $ 58.0 million was outstanding as of September 28, 2025 and June 29, 2025, respectively. The decrease in the balance of the Long-term supply agreement was recognized as revenue in the Consolidated Statement of Operations. The supply agreement liability is recognized in Liabilities subject to compromise as of September 28, 2025, and other current liabilities and other long-term liabilities on the consolidated balance sheet as of June 29, 2025, respectively. On September 8, 2025, the Company completed the sale of the MACOM Shares received in connection with the sale of the RF Business for $ 91.1 million, net of transaction costs, of which approximately $ 30.3 million was withheld in restricted cash, recognized in cash and cash equivalents on the consolidated balance sheet, and the remainder of which was distributed upon emergence from the Chapter 11 Cases, which was a subsequent event. 22 Table of Conten ts Note 3 – Revenue Recognition Contract liabilities and distributor-related reserves were $ 88.5 million as of September 28, 2025 and $ 65.6 million as of June 29, 2025. Contract liabilities are recorded within contract liabilities and distributor-related reserves and other long-term liabilities on the consolidated balance sheets. The increase in these reserves primarily relates to the Company's distributors carrying additional amounts of inventory as of September 28, 2025, due to planned shipments of last-time buys for the Company's 150mm offerings during the first quarter of fiscal 2026. Product Line Revenue The Company's continuing operations sells products from within two product lines: Power Products and silicon carbide and GaN materials ("Materials Products"). Revenue from these two product lines is as follows: Three months ended (in millions of U.S. Dollars) September 28, 2025 September 29, 2024 Power Products $ 131.8 $ 97.1 Materials Products 65.0 97.6 Total $ 196.8 $ 194.7 Geographic Information The Company conducts business in several geographic areas. Revenue is attributed to a particular geographic region based on the shipping address for the products. Disaggregated continuing operations revenue from external customers by geographic area is as follows: Three months ended September 28, 2025 September 29, 2024 (in millions of U.S. Dollars) Revenue % of Revenue Revenue % of Revenue Asia Pacific (1) $ 49.1 24.9 % 16.7 8.6 % Europe 36.3 18.4 % 38.8 19.9 % Hong Kong 26.1 13.3 % 33.6 17.3 % United States 44.9 22.8 % 16.9 8.7 % Singapore 7.6 3.9 % 44.1 22.7 % Japan 13.3 6.8 % 34.1 17.5 % China 17.9 9.1 % 10.4 5.3 % Other 1.6 0.8 % 0.1 — % Total $ 196.8 $ 194.7 (1) Excluding China, Hong Kong, Japan and Singapore 23 Table of Conten ts Note 4 – Leases Balance Sheet Lease assets and liabilities are as follows (in millions of U.S. Dollars): Operating Leases: September 28, 2025 June 29, 2025 Right-of-use asset (1) $ 139.4 $ 123.1 Current lease liability (2) 11.8 9.9 Non-current lease liability (3) 154.7 139.5 Total operating lease liabilities $ 166.5 $ 149.4 Finance Leases: Finance lease assets (4) $ 8.1 $ 8.3 Current portion of finance lease liabilities (5) 0.6 0.5 Finance lease liabilities, less current portion (6) 8.3 8.4 Total finance lease liabilities $ 8.9 $ 8.9 (1) Within other assets on the consolidated balance sheets. (2) Within liabilities subject to compromise and other current liabilities on the consolidated balance sheets as of September 28, 2025 and June 29, 2025, respectively. (3) Within liabilities subject to compromise and other long-term liabilities on the consolidated balance sheets as of September 28, 2025 and June 29, 2025, respectively. (4) Within property and equipment, net on the consolidated balance sheets. (5) Within liabilities subject to compromise and finance lease liabilities on the consolidated balance sheets as of September 28, 2025 and June 29, 2025, respectively. (6) Within liabilities subject to compromise and finance lease liabilities - long term on the consolidated balance sheets as of September 28, 2025 and June 29, 2025, respectively. The Company reclassified $ 10.8 million of current lease liability, $ 154.2 million of non-current lease liability, $ 0.6 million of current portion of the finance lease liabilities and $ 8.3 million of finance lease liabilities to liabilities subject to compromise on the consolidated balance sheets as of September 28, 2025 due to the Company's Chapter 11 Cases. Statement of Operations Three months ended (in millions of U.S. Dollars) September 28, 2025 September 29, 2024 Operating lease expense $ 4.3 $ 3.7 Finance lease amortization 0.2 0.2 Interest expense for finance leases was immaterial for all periods presented. Cash Flows Cash flow information consisted of the following (1) : Three months ended (in millions of U.S. Dollars) September 28, 2025 September 29, 2024 Cash (used in) provided by operating activities from continuing operations: Cash paid for operating leases ($ 4.1 ) ($ 3.4 ) Cash received for tenant allowance on operating lease — 0.3 Cash paid for interest portion of financing leases ( 0.1 ) ( 0.1 ) Cash used in financing activities: Cash paid for principal portion of finance leases ( 0.1 ) ( 0.1 ) (1) See Note 1, "Basis of Presentation and New Accounting Standards," for non-cash activities related to leases. 24 Table of Conten ts Lease Liability Maturities Maturities of operating and finance lease liabilities as of September 28, 2025 were as follows (in millions of U.S. Dollars): Fiscal Year Ending Operating Leases Finance Leases Total June 28, 2026 (remainder of fiscal 2026) $ 14.5 $ 0.6 $ 15.1 June 27, 2027 18.1 0.5 18.6 June 25, 2028 17.7 0.2 17.9 June 24, 2029 17.8 0.2 18.0 June 30, 2030 17.3 0.2 17.5 Thereafter 137.4 13.7 151.1 Total lease payments 222.8 15.4 238.2 Future tenant improvement allowances — — — Imputed lease interest ( 56.3 ) ( 6.5 ) ( 62.8 ) Total lease liabilities $ 166.5 $ 8.9 $ 175.4 Supplemental Disclosures Operating Leases Finance Leases Weighted average remaining lease term (in months) (1) 155 487 Weighted average discount rate (2) 4.61 % 2.64 % (1) Weighted average remaining lease term of finance leases without the 49-year ground lease is 14 months. (2) Weighted average discount rate of finance leases without the 49-year ground lease is 3.88 %. As of September 28, 2025, the Company has entered into an agreement containing operating leases for bulk gas equipment. This arrangement contains approximately $ 13 million of additional right of use liability obligations that have not yet commenced. The Company expects these operating leases will commence in future periods with initial lease terms of 15 years. Note 5 – Commitments and Contingencies Litigation The Company is currently a party to various legal proceedings, including the cases described below. While management presently believes that the ultimate outcome of such proceedings, individually and in the aggregate, will not materially harm the Company’s financial position, cash flows, or overall trends in results of operations, legal proceedings are subject to inherent uncertainties, and unfavorable rulings could occur. On November 15, 2024, the Company and certain of its former executive officers were named as defendants (“Defendants”) in a securities class action lawsuit captioned Gary Zagami v Wolfspeed, Inc., et al., Case No. 6:24-cv-01395, which was filed in the United States District Court for the Northern District of New York. The complaint alleges that Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and Rule 10b-5 promulgated thereunder by making false and/or misleading statements between August 16, 2023 and November 6, 2024 in connection with the operational status, profitability, and growth potential of the Mohawk Valley fabrication facility, among other things. The complaint seeks unspecified compensatory damages and other relief. On January 8, 2025 and January 13, 2025, respectively, two additional lawsuits captioned Maizner v. Wolfspeed, Inc., et al., Case No. 6:25-cv-00046 and Ferreira v. Wolfspeed, Inc., et al., Case No. 6:25-CV-00062 were filed in the United States District Court for the Northern District of New York by shareholders regarding these same matters and naming the same Defendants. On February 24, 2025, the United States District Court for the Northern District of New York consolidated the Zagami, Maizner, and Ferreira actions and appointed co-lead plaintiffs and co-lead counsel. On May 5, 2025, co-lead plaintiffs filed an amended complaint. On June 4, 2025, Defendants filed a motion to transfer the consolidated action to the US. District Court for the Middle District of North Carolina and as of July 22, 2025, briefing on the motion to transfer was complete. Oral arguments were heard on the motion to transfer by the Magistrate Judge virtually on October 23, 2025. The Magistrate Judge will issue his report and recommendation and will give the parties opportunity to object to the ruling. The Magistrate Judge did not give guidance on when he will issue his ruling or recommendation. 25 Table of Conten ts On April 21, 2025, a derivative action was filed by a putative shareholder purportedly on behalf of the Company in the United States District Court for the Middle District of North Carolina against certain former directors and officers of the Company (collectively, “Derivative Action Defendants”) for breach of fiduciary duty, waste, unjust enrichment, aiding and abetting, insider trading, and a violation of Section 14(a) of the Exchange Act. The complaint seeks to implement reforms to the Company’s corporate governance and internal procedures and to recover on behalf of the Company for any liability the Company might incur as a result of the Derivative Action Defendants’ alleged misconduct, as well as declaratory and other monetary relief, including attorneys’ fees and other costs. The derivative action is based substantially on the same facts alleged in the consolidated securities class action described above. Wolfspeed filed its Declaration of Emergence on October 1, 2025. On October 16, 2025, the parties entered a Joint Notice and Stipulation Voluntarily Dismissing the Derivative Action and expect the District Court for the Middle District of North Carolina to issue an order granting the voluntary joint dismissal. The Company intends to vigorously defend against the claims in the above-referenced actions. Supply Commitments and Capacity Deposits From time to time, the Company may enter into agreements with its suppliers which require the Company to commit to a minimum of product purchases or make capacity reservation deposits. In fiscal 2023, the Company entered into an agreement with a supplier which requires a minimum commitment of product purchases on a take-or-pay basis of $ 200.0 million over the life of the contract. During the third quarter of fiscal 2025, the Company amended the agreement to extend the term of the contract through December 2029 and modify the remaining minimum annual purchase commitments. During the three months ended September 28, 2025 and September 29, 2024, the Company purchased $ 4.4 million and $ 6.7 million, respectively, of product under this agreement. As of September 28, 2025, the remaining future product purchases for fiscal years 2026, 2027, 2028 and 2029 are $ 36.9 million, $ 38.0 million, $ 40.0 million and $ 42.0 million, respectively. In addition, the Company will pay quarterly capacity reservation deposits through the second quarter of fiscal 2026. The capacity reservation deposits will total $ 60.0 million and are refundable through credits on future product purchases. As of September 28, 2025, the Company has paid $ 60.0 million in connection with the agreement, which is recognized in prepaid expenses and other long-term assets on the consolidated balance sheet. In fiscal 2024, the Company entered into an agreement with another supplier which requires a minimum commitment of product purchases on a take-or-pay basis of $ 86.4 million over the life of the contract. During the three months ended September 28, 2025 and September 29, 2024, the Company purchased $ 7.2 million, respectively, of product under this agreement which satisfied the minimum future product purchases for the periods. Minimum future product purchase for the remainder of fiscal 2026 and for fiscal 2027 are $ 24.0 million and $ 9.6 million, respectively. The Company will also be required to purchase electricity for its facility in Siler City, North Carolina and Durham, North Carolina under a long-term electricity supply agreement with minimum volume and spend requirements of approximately $ 60.7 million over the next 4 years and approximately $ 24.6 million over the next 8 years, respectively. The Company reviews the terms of all its long-term supply agreements and assesses the need for any accruals for estimated losses on adverse purchase commitments, such as lower of cost or net realizable value adjustments that will not be recovered by future sales prices and the recoverability of assets related to capacity deposits, as necessary. Note 6 - Prepackaged Chapter 11 Cases Liabilities subject to compromise As discussed in Note 1, "Basis of Presentation and New Accounting Standards," from the Petition Date to the Effective Date, the Company operated as a debtor in possession under the Bankruptcy Court. Liabilities subject to compromise on the accompanying unaudited consolidated balance sheet reflect the expected allowed amount of the pre-petition claims that are not fully secured and that have at least a possibility of not being repaid at the full claim amount. Liabilities subject to compromise at September 28, 2025, consisted of the following: 26 Table of Conten ts Three Months Ended (in millions of U.S. Dollars) September 28 2025 Debt $ 7,081.4 Finance lease liabilities 0.6 Other current liabilities 26.0 Finance lease liabilities - long term 8.3 Other long-term liabilities 199.0 Total liabilities subject to compromise $ 7,315.3 Reorganization items, net Reorganization items incurred as a result of the Chapter 11 Cases are presented separately in the accompanying unaudited consolidated statement of operations for the three months ended September 28, 2025, and were as follows: Three Months Ended (in millions of U.S. Dollars) September 28, 2025 Allowed claims adjustments (1) $ 475.7 Professional fees 28.1 Total reorganization items, net $ 503.8 (1) For the three months ended September 28, 2025, the Plan and related disclosure statement were filed with the Bankruptcy Court, which included, among other things, the estimated allowed claims with respect to outstanding debt obligations. As a result, the unsecured and potentially undersecured debt obligations as of September 28, 2025 were adjusted to equal the expected amount of the allowed claim as detailed in the Plan, resulting in an adjustment of approximately $ 437.3 million to Liabilities subject to compromise and a corresponding expense recognized within Reorganization items, net in the Consolidated Statements of Operations. Additionally, adequate protection payments were $ 38.4 million and recognized as a reduction to the carrying amount of the respective Senior Secured Notes. Concurrently, as a result of adjusting to the estimated allowed claim amount for the corresponding debt instruments, a charge was recognized within Reorganization items, net. Please refer to Note 10, "Long-term Debt" for additional information. Professional fees included in reorganization items, net represent fees for post-petition expenses related to the Chapter 11 Cases. As of September 28, 2025, $ 17.6 million of professional fees were unpaid and accrued in accounts payable and accrued expenses on the accompanying unaudited consolidated balance sheet. As of September 28, 2025, approximately $ 10 million of restricted cash was held in a dedicated professional fee funding account, presented within "Cash and cash equivalents" on the Consolidated Balance Sheets. Condensed Combined Debtors Financial Statements With the exception of Wolfspeed Texas, LLC, none of the Company's subsidiaries were debtors under the Chapter 11 Cases. However, condensed combined financial statements of the Debtors are not presented in the notes to the consolidated financial statements as the assets and liabilities, operating results and cash flows of the non-debtor entities included in the consolidated financial statements are insignificant and, therefore, the consolidated financial statements presented herein materially represent the condensed combined financial statements of the debtor entities for all periods presented. Non-debtor entity intercompany balances from/due to the Debtors at the end of the period are not presented as they are insignificant and, therefore, not material to our unaudited condensed combined financial statements. 27 Table of Conten ts Note 7 – Investments (in millions of U.S. Dollars) September 28, 2025 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value U.S. treasury securities $ 146.8 $ 0.1 $ — $ 146.9 Corporate bonds 136.2 0.3 ( 0.9 ) 135.6 Municipal bonds 60.9 0.2 ( 0.2 ) 60.9 Certificates of deposit 5.0 — — 5.0 Commercial paper 6.0 — — 6.0 Total short-term investments $ 354.9 $ 0.6 ($ 1.1 ) $ 354.4 June 29, 2025 (in millions of U.S. Dollars) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value U.S. treasury securities $ 192.0 $ 0.1 $ — $ 192.1 Corporate bonds 196.8 0.3 ( 1.5 ) 195.6 Municipal bonds 79.5 0.2 ( 0.5 ) 79.2 Certificates of deposit 5.0 — — 5.0 Commercial paper 16.3 — — 16.3 Total short-term investments $ 489.6 $ 0.6 ($ 2.0 ) $ 488.2 All short-term investments are classified as available-for-sale. No allowance for credit losses was recorded as of September 28, 2025. The contractual maturities of short-term investments as of September 28, 2025 were as follows: (in millions of U.S. Dollars) Within One Year After One, Within Five Years After Ten Years Total U.S. treasury securities $ 121.4 $ 25.5 $ — $ 146.9 Corporate bonds 103.0 32.6 — 135.6 Municipal bonds 49.7 11.2 — 60.9 Certificates of deposit 5.0 — — 5.0 Commercial paper 6.0 — — 6.0 Total short-term investments $ 285.1 $ 69.3 $ — $ 354.4 28 Table of Conten ts Note 8 – Fair Value of Financial Instruments The Company did not have any financial assets requiring the use of Level 3 inputs as of September 28, 2025. There were no transfers between Level 1 and Level 2 during the fiscal year ended September 28, 2025. The following table sets forth financial instruments carried at fair value within the U.S. GAAP hierarchy: Estimated fair value (in millions of U.S. Dollars) Fair value hierarchy September 28, 2025 June 29, 2025 Assets: Money market funds 1 $ 4.1 $ 61.8 U.S. treasury securities 1 207.3 224.6 MACOM Shares 1 — 102.0 Municipal bonds 2 61.6 79.2 Corporate bonds 2 135.5 196.8 Commercial paper 2 20.0 28.3 Certificates of deposit 2 $ 5.0 $ 5.0 Note 9 – Intangible Assets The following table presents the components of intangible assets, net: September 28, 2025 June 29, 2025 (in millions of U.S. Dollars) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Patent and licensing rights 51.8 ( 27.6 ) 24.2 50.5 ( 26.7 ) 23.8 Total intangible assets $ 51.8 ($ 27.6 ) $ 24.2 $ 50.5 ($ 26.7 ) $ 23.8 Note 10 – Long-term Debt September 28, 2025 (1) June 29, 2025 (2) (in millions of U.S. Dollars) Effective Interest Rate Principal Unamortized Discount Net Principal Unamortized Discount Net 1.75 % Convertible Notes 2.2 % $ — $ — $ — $ 575.0 ($ 2.0 ) $ 573.0 0.25 % Convertible Notes 0.6 % — — — 750.0 ( 7.9 ) 742.1 1.875 % Convertible Notes 2.1 % — — — 1,750.0 ( 20.7 ) 1,729.3 2030 Senior Notes 16.3 % — — — 1,521.2 ( 52.3 ) 1,468.9 CRD Agreement Deposits 6.8 % — — — 2,062.0 ( 37.3 ) 2,024.7 $ — $ — $ — $ 6,658.2 ($ 120.2 ) $ 6,538.0 (1) As of September 28, 2025, amounts previously presented in Current maturity on long-term borrowings were reclassified to liabilities subject to compromise, as further described in the Recent Events section below. (2) Presented in Current maturity on long-term borrowings. 29 Table of Conten ts Recent Events In connection with the Company's Chapter 11 Cases, the $ 1,857.9 million outstanding under the Existing Senior Secured Notes, the $ 576.7 million outstanding under the 1.75 % Convertible Notes due 2026, the $ 750.7 million outstanding under the 0.25 % Convertible Notes due 2028, the $ 1,769.1 million outstanding under the 1.875 % Convertible Notes due 2029 (the "2029 Notes"), and the $ 2,127.0 million outstanding under the CRD Agreement Deposits have been reclassified from Current maturity on long-term borrowings to Liabilities subject to compromise in the accompanying unaudited consolidated balance sheet as of September 28, 2025. As of the Petition Date, the Company ceased making principal and interest payments and ceased accruing interest expense in relation to long-term debt reclassified as liabilities subject to compromise due to the stay issued by the Bankruptcy Court. For the Existing Senior Secured Notes, in accordance with the Cash Collateral Order filed on August 1, 2025, adequate protection payments have generally been recorded as a reduction of the carrying amount of the liability. As of September 28, 2025 all debt obligations classified as liabilities subject to compromise were in default due to the filing of the Chapter 11 Cases. Refer to Note 6, "Prepackaged Chapter 11 Cases," for more information on liabilities subject to compromise and the adequate protection payments. As of June 29, 2025, the Company was in default under its 2029 Notes and the unsecured Customer Refundable Deposit Agreement, dated as of July 5, 2023, with Renesas (as amended to date, the "CRD Agreement"), due to its previously announced decision to enter the 30 -day grace period for the 2029 Notes interest payment due June 2, 2025. Interest Expense The interest expense, net recognized related to the corporate debt holdings and the deposits under the CRD Agreement is as follows: Three months ended (in millions of U.S. Dollars) September 28, 2025 September 29, 2024 Interest expense, net of capitalized interest (1) $ — $ 56.8 Amortization of discount and debt issuance costs, net of capitalized interest — 6.7 Total interest expense, net $ — $ 63.5 (1): Excludes contractual interest of $ 99.7 million for the quarter ended September 28, 2025. The Company capitalizes interest in connection with ongoing capacity expansions. Three months ended (in millions of U.S. Dollars) September 28, 2025 September 29, 2024 Interest expense capitalized $ — $ 15.9 Amortization of discount and debt issuance costs capitalized — 2.0 Total interest expense capitalized $ — $ 17.9 30 Table of Conten ts Note 11 – Loss Per Share The details of the computation of basic and diluted loss per share are as follows: Three months ended (in millions of U.S. Dollars, except share data) September 28, 2025 September 29, 2024 Net loss from continuing operations ($ 643.6 ) ($ 282.2 ) Weighted average shares - basic and diluted (in thousands) 156,185 126,733 Loss per share - basic and diluted: Continuing operations ($ 4.12 ) ($ 2.23 ) Diluted net loss per share is the same as basic net loss per share for the periods presented due to potentially dilutive items being anti-dilutive given the Company's net loss. For the three months ended September 28, 2025, 3.5 million of weighted average shares, were excluded from the calculation of diluted loss per share because their effect would be anti-dilutive. For the three months ended September 29, 2024, 8.4 million of weighted average shares were excluded from the calculation of diluted loss per share because their effect would be anti-dilutive. Note 12 – Stock-Based Compensation Total stock-based compensation expense was classified in the consolidated statements of operations as follows: Three months ended (in millions of U.S. Dollars) September 28, 2025 September 29, 2024 Cost of revenue, net $ 7.8 $ 8.5 Research and development 2.2 3.2 Sales, general and administrative 3.6 12.0 Total stock-based compensation expense $ 13.6 $ 23.7 Stock-based compensation expense may differ from the impact of stock-based compensation to additional paid in capital due to manufacturing related stock-based compensation capitalized within inventory. Note 13 – Income Taxes In general, the variation between the Company's effective income tax rate and the U.S. statutory rate of 21% is primarily due to: (i) changes in the Company’s valuation allowances against deferred tax assets in the U.S., (ii) projected income for the full year derived from international locations with differing tax rates than the U.S. and (iii) projected tax credits generated. The Company assesses all available positive and negative evidence to estimate if sufficient future taxable income will be generated to utilize the existing deferred tax assets by jurisdiction. As of September 28, 2025, the Company has concluded that it is necessary to recognize a full valuation allowance against its U.S. deferred tax assets. Note 14 - Restructuring During the first quarter of fiscal 2025, the Company initiated a headcount reduction and facility closure and consolidation plan intended to optimize its cost structure as the Company accelerates its transition from 150mm to 200mm silicon carbide devices (the "2025 Restructuring Plan"). The 2025 Restructuring Plan is expected to result in a cumulative total headcount reduction of approximately 25 %. As of September 28, 2025, the 2025 Restructuring Plan has resulted in a cumulative total headcount reduction of approximately 23 %, and the remainder is expected to occur over the next three months. 31 Table of Conten ts Including facility closure-related costs, the Company expects to incur approximately $ 450 million to $ 500 million of total costs, including approximately $ 75 million of involuntary and voluntary severance costs, $ 160 million of other closure-related cash costs, and approximately $ 265 million of charges related to long-lived assets and other non-cash costs, including accelerated depreciation and impairments upon abandonment or disposal of machinery and equipment. A summary of the charges recognized in the consolidated statements of operations through the first quarters of fiscal 2026 and fiscal 2025, respectively, resulting from these restructuring activities is shown below: Three months ended Three months ended (in millions of U.S. Dollars) September 28, 2025 September 29, 2024 Accelerated depreciation $ 5.6 $ 11.7 Inventory Reserves 2.5 — Other closure-related costs 10.0 22.6 Total cost of revenue, net $ 18.1 $ 34.3 Impairments on abandoned assets $ 0.1 $ — Severance (1) 0.1 36.5 Accelerated depreciation (2) — 7.1 Contract termination costs 2.3 — Other closure-related costs 1.2 9.2 Other operating expense $ 3.7 $ 52.8 Total $ 21.8 $ 87.1 (1) Employee severance and benefit costs include the early exit program activity (2) Includes net impact of change in salvage value and estimated useful life related to 150mm fab tooling and equipment A summary of the balance sheet activity related to these restructuring activities recognized in accounts payable and accrued expenses in the unaudited consolidated balance sheet as of September 28, 2025 follows: (in millions of U.S. Dollars) As of June 29, 2025 Charges Usage September 28, 2025 Employee severance and benefit costs (1) $ 25.2 $ 0.1 ($ 11.9 ) $ 13.4 Contract termination liability 5.5 2.3 ( 2.0 ) 5.8 Total $ 30.7 $ 2.4 ($ 13.9 ) $ 19.2 (1) Employee severance and benefit costs includes the early exit program activity Note 15 - Subsequent Events Emergence from Bankruptcy As discussed in Note 1, "Basis of Presentation and New Accounting Standards," the Company emerged from chapter 11 on September 29, 2025, when the conditions to the effectiveness of the Plan were satisfied or waived and the Plan became effective. In connection with the Company's emergence from bankruptcy and in accordance with ASC 852, the Company expects to qualify for and adopted fresh start accounting on the Effective Date. The Company expects to qualify for fresh start accounting because (i) the holders of Old Common Stock received less than 50% of the New Common Stock, and (ii) the reorganization value of the assets immediately prior to confirmation of the Plan was less than the post-petition liabilities and allowed claims. In accordance with ASC 852, with the application of fresh start accounting, the Company will allocate the reorganization value to its individual assets and liabilities based on their estimated fair values in conformity with ASC Topic 805, Business Combinations. The reorganization value represents the fair value of the Company's assets after the Effective Date and before considering liabilities. As a result of the application of fresh start accounting and the effects of the implementation of the Plan, the consolidated financial statements after September 29, 2025 will not be comparable with the consolidated financial statements as of or prior to that date. 32 Table of Conten ts Delaware Corporation As discussed in Note 1, "Basis of Presentation and New Accounting Standards," at the Conversion Effective Time, the Company effected a conversion from a North Carolina corporation to a Delaware corporation and, in connection therewith, adopted a new certificate of incorporation, under which the Company is authorized to issue 350,000,000 shares of New Common Stock and 100,000,000 shares of preferred stock, and new bylaws, each of which became effective at the Conversion Effective Time . 33 Table of Conten ts