REVENUEIn line
EPSMiss -14.7%
Actuals vs. estimates
| Metric | Actual | Consensus | Surprise |
|---|---|---|---|
| RevenueConsolidated revenue (headline, approximate) | $150.0M | $150.0M | In line |
| EPS(GAAP diluted) | $(2.81) | $(2.45) | ▼ Miss -14.7% |
Revenue — API Ninjas actual does not reconcile with a unique Quartr consolidated revenue
EPS — API Ninjas actual does not reconcile with a unique Quartr EPS basis
Verdict
- Revenue of approximately $150m landed exactly on the API Ninjas estimate, but the diluted loss per share of $(2.81) missed the $(2.45) estimate by 14.7%.
- Revenue of $149.6m is down 24.1% from $197.0m a year ago, so hitting the guidance midpoint still means a quarter of contraction.
- GAAP gross margin of (25)% is 12 points worse than the (13)% a year ago -- Wolfspeed is selling less and losing more on each dollar.
- The Q1 fiscal 2027 guide of $140m-$160m brackets the quarter just reported and explicitly expects non-GAAP gross margin to stay negative.
Key metrics
| Metric | Reported | Prior year | Change |
|---|---|---|---|
| Revenue, net | $149.6m | $197.0m | -24.1% |
| GAAP gross margin | (25)% | (13)% | -1,200bps |
| GAAP net loss | $145.4m loss | $669.3m loss | -78.3% |
| Adjusted EBITDA (non-GAAP) | -$62m | — | — |
| Operating cash flow | -$54m | — | — |
| Cash, cash equivalents and short-term investments | $1.1bn | — | — |
Guidance changes
| Item | New guidance | Prior guidance |
|---|---|---|
| Q1 fiscal 2027 revenue | $140 million to $160 million | — |
| Q1 fiscal 2027 non-GAAP gross margin | expected to remain negative | — |
| Q1 fiscal 2027 non-GAAP operating expenses | $62 million to $66 million | — |
Quality of earnings
- Fresh-start accounting on emergence from Chapter 11 on September 29, 2025 restated assets and liabilities at fair value, so Successor and Predecessor periods are not comparable.
- The $(2.81) loss per share is struck on 51,799 thousand diluted shares against 155,631 thousand a year ago; the 78% smaller net loss becomes a similar per-share loss on the post-emergence count.
- The reported quarter also carries $15.9m of restructuring and other expenses and a $2.5m gain on disposal of property and equipment.
Gotchas & watch items
- Operating cash flow of $(54)m against $1.1bn of cash and short-term investments implies roughly five years of runway only if the burn does not widen.
- AI data center revenue more than doubled year over year but is not sized in the release, so its share of the $149.6m base is undisclosed.
- Interest expense of $39.8m in the quarter is more than a quarter of revenue, even after $46m of convertible notes converted to equity.