Revenue has contracted 25.5% from $200.7M in 2024Q4 to $149.6M in 2026Q4, with gross margins remaining negative at -26.6% in 2026Q3, reflecting severe underutilization and start-up costs at Mohawk Valley.
Wolfspeed Inc. (WOLF) annual income statement — 30-year revenue, gross profit & net income history
| Metric | TTM | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 | Jun'18 | Jun'17 | Jun'16 | Jun'15 | Jun'14 | Jun'13 | Jun'12 | Jun'11 | Jun'10 | Jun'09 | Jun'08 | Jun'07 | Jun'06 | Jun'05 | Jun'04 | Jun'03 | Jun'02 | Jun'01 | Jun'00 | Jun'99 | Jun'98 | Jun'97 | Jun'96 |
|---|
| Sales/Revenue | 665.1M | 757.6M | 807.2M | 758.5M | 572.1M | 525.6M | 470.7M | 1.08B | 924.9M | 1.47B | 1.62B | 1.66B | 1.65B | 1.39B | 1.16B | 987.62M | 867.29M | 567.25M | 493.3M | 394.12M | 422.95M | 384.46M | 307.36M | 229.82M | 155.43M | 177.23M | 108.56M | 60.1M | 42.5M | 29M | 17M |
| Revenue Growth % | -12.21% | -6.14% | 6.42% | 32.58% | 8.85% | 11.66% | -56.42% | 16.77% | -37.21% | -8.88% | -2.55% | 0.69% | 18.88% | 19% | 17.93% | 13.87% | 52.89% | 14.99% | 25.16% | -6.82% | 10.01% | 25.08% | - | 47.86% | -12.3% | 63.25% | 80.64% | 41.41% | 46.55% | 70.59% | 53.15% |
| Cost of Goods Sold | 520.7M | 879.2M | 729.8M | 515.6M | 364M | 375.5M | 326.7M | 704.6M | 624.7M | 1.03B | 1.14B | 1.16B | 1.05B | 892.01M | 781.47M | 562.62M | 468.36M | 371.6M | 344.6M | 264.32M | 222.06M | 173.04M | 161.42M | 130.65M | 92.08M | 89.7M | 41.74M | 26.4M | 23.6M | 15.6M | 12.4M |
| COGS % of Revenue | - | 116.05% | 90.41% | 67.98% | 63.63% | 71.44% | 69.41% | 65.24% | 67.54% | 70.19% | 70.42% | 70.13% | 63.93% | 64.36% | 67.1% | 56.97% | 54% | 65.51% | 69.86% | 67.07% | 52.5% | 45.01% | 52.52% | 56.85% | 59.24% | 50.61% | 38.45% | 43.93% | 55.53% | 53.79% | 72.94% |
| Gross Profit | 207.35M | -121.6M | 77.4M | 242.9M | 208.1M | 150.1M | 144M | 375.4M | 300.2M | 439.1M | 478.21M | 495.55M | 594.26M | 493.97M | 383.19M | 425M | 398.93M | 195.66M | 148.7M | 129.8M | 200.89M | 211.42M | 145.94M | 99.17M | 63.36M | 87.53M | 66.82M | 33.7M | 18.9M | 13.4M | 4.6M |
| Gross Margin % | 31.18% | -16.05% | 9.59% | 32.02% | 36.37% | 28.56% | 30.59% | 34.76% | 32.46% | 29.81% | 29.58% | 29.87% | 36.07% | 35.64% | 32.9% | 43.03% | 46% | 34.49% | 30.14% | 32.93% | 47.5% | 54.99% | 47.48% | 43.15% | 40.76% | 49.39% | 61.55% | 56.07% | 44.47% | 46.21% | 27.06% |
| Gross Profit Growth % | - | -257.11% | -68.14% | 16.72% | 38.64% | 4.24% | -61.64% | 25.05% | -31.63% | -8.18% | -3.5% | -16.61% | 20.3% | 28.91% | -9.84% | 6.54% | 103.89% | 31.58% | 14.56% | -35.39% | -4.98% | 44.86% | - | 56.52% | -27.61% | 30.98% | 98.29% | 78.31% | 41.04% | 191.3% | 15% |
| Operating Expenses | 258.56M | 1.21B | 522.7M | 554.7M | 411.2M | 362.2M | 335.8M | 359.9M | 298.3M | 467.75M | 468.42M | 479.5M | 454.1M | 394M | 340.45M | 254.34M | 197.01M | 158.29M | 135.45M | 111.94M | 99.63M | 71.44M | 65.58M | 59.5M | 157.63M | 35.69M | 30.07M | 16M | 10.3M | 9.6M | 5.1M |
| OpEx % of Revenue | - | 159.4% | 64.75% | 73.13% | 71.88% | 68.91% | 71.34% | 33.32% | 32.25% | 31.75% | 28.98% | 28.9% | 27.56% | 28.43% | 29.23% | 25.75% | 22.72% | 27.9% | 27.46% | 28.4% | 23.56% | 18.58% | 21.34% | 25.89% | 101.41% | 20.14% | 27.7% | 26.62% | 24.24% | 33.1% | 30% |
| Selling, General & Admin | 141.6M | 246.3M | 246.4M | 214.3M | 183M | 181.6M | 181.7M | 200.7M | 166.5M | 277.18M | 279.71M | 287.46M | 268.46M | 236.58M | 197.09M | 139.3M | 115.6M | 86.93M | 76.61M | 53.1M | 44.76M | 31.48M | 29.07M | 26.33M | 25.62M | 18.11M | 11.09M | 6.1M | 4.1M | 4.3M | 2.9M |
| SG&A % of Revenue | - | 32.51% | 30.53% | 28.25% | 31.99% | 34.55% | 38.6% | 18.58% | 18% | 18.82% | 17.3% | 17.33% | 16.29% | 17.07% | 16.92% | 14.11% | 13.33% | 15.32% | 15.53% | 13.47% | 10.58% | 8.19% | 9.46% | 11.46% | 16.48% | 10.22% | 10.22% | 10.15% | 9.65% | 14.83% | 17.06% |
| Research & Development | 111.7M | 175.1M | 201.9M | 165.7M | 142.6M | 177.8M | 152M | 157.9M | 127.3M | 158.55M | 168.85M | 182.8M | 181.38M | 155.89M | 143.36M | 115.03M | 81.41M | 71.36M | 58.85M | 58.84M | 54.87M | 39.96M | 36.51M | 31.2M | 28.03M | 12.98M | 7.05M | 4.4M | 1.8M | 1.8M | 400K |
| R&D % of Revenue | - | 23.11% | 25.01% | 21.85% | 24.93% | 33.83% | 32.29% | 14.62% | 13.76% | 10.76% | 10.44% | 11.02% | 11.01% | 11.25% | 12.31% | 11.65% | 9.39% | 12.58% | 11.93% | 14.93% | 12.97% | 10.39% | 11.88% | 13.58% | 18.03% | 7.32% | 6.5% | 7.32% | 4.24% | 6.21% | 2.35% |
| Other Operating Expenses | 1000K | 786.2M | 74.4M | 174.7M | 85.6M | 2.8M | 2.1M | 1.3M | 4.5M | 32.02M | 19.87M | 9.24M | 4.26M | 1.53M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.97M | 103.99M | 4.6M | 11.93M | 5.5M | 4.4M | 3.5M | 1.8M |
| Operating Income | 251.96M | -1.33B | -445.3M | -311.8M | -203.1M | -212.1M | -191.8M | 15.5M | 1.9M | -28.65M | 9.79M | 16.04M | 140.16M | 99.97M | 42.74M | 170.66M | 201.92M | 37.37M | 13.25M | 17.86M | 101.26M | 139.97M | 80.36M | 39.67M | -94.27M | 34.44M | 36.75M | 17.7M | 8.6M | 3.8M | -500K |
| Operating Margin % | 37.88% | -175.45% | -55.17% | -41.11% | -35.5% | -40.35% | -40.75% | 1.44% | 0.21% | -1.95% | 0.61% | 0.97% | 8.51% | 7.21% | 3.67% | 17.28% | 23.28% | 6.59% | 2.69% | 4.53% | 23.94% | 36.41% | 26.15% | 17.26% | -60.65% | 19.43% | 33.85% | 29.45% | 20.24% | 13.1% | -2.94% |
| Operating Income Growth % | - | -198.5% | -42.82% | -53.52% | 4.24% | -10.58% | -1337.42% | 715.79% | 106.63% | -392.81% | -39.01% | -88.55% | 40.21% | 133.9% | -74.96% | -15.48% | 440.38% | 182.07% | -25.81% | -82.37% | -27.66% | 74.17% | - | 142.08% | -373.77% | -6.3% | 107.63% | 105.81% | 126.32% | 860% | -66.67% |
| EBITDA | -376.6M | -1.08B | -264.3M | -166.2M | -91.6M | -91.2M | -94.7M | 137.9M | 113.5M | 121.86M | 168.93M | 188.33M | 299.94M | 253.27M | 185.45M | 279.26M | 292.34M | 133.93M | 112.53M | 102.52M | 175.62M | 209.69M | 135.93M | 84.58M | -54.11M | 61.66M | 48.68M | 23.2M | 13M | 7.3M | 1.3M |
| EBITDA Margin % | -56.62% | -142.17% | -32.74% | -21.91% | -16.01% | -17.35% | -20.12% | 12.77% | 12.27% | 8.27% | 10.45% | 11.35% | 18.2% | 18.27% | 15.92% | 28.28% | 33.71% | 23.61% | 22.81% | 26.01% | 41.52% | 54.54% | 44.22% | 36.8% | -34.81% | 34.79% | 44.84% | 38.6% | 30.59% | 25.17% | 7.65% |
| EBITDA Growth % | 53.39% | -307.53% | -59.03% | -81.44% | -0.44% | 3.7% | -168.67% | 21.5% | -6.86% | -27.87% | -10.3% | -37.21% | 18.43% | 36.57% | -33.59% | -4.47% | 118.28% | 19.02% | 9.76% | -41.62% | -16.25% | 54.26% | - | 256.3% | -187.76% | 26.67% | 109.82% | 78.46% | 78.08% | 461.54% | 8.33% |
| D&A (Non-Cash Add-back) | 137.6M | 252.1M | 181M | 145.6M | 111.5M | 120.9M | 97.1M | 122.4M | 111.6M | 150.51M | 159.15M | 172.29M | 159.77M | 153.3M | 142.71M | 108.61M | 90.42M | 96.56M | 99.28M | 84.67M | 74.36M | 69.72M | 55.56M | 44.91M | 40.16M | 27.22M | 11.93M | 5.5M | 4.4M | 3.5M | 1.8M |
| EBIT | -802.3M | -1.3B | -326.2M | -217.2M | -216.8M | -294.8M | -191.8M | 15.5M | 1.9M | -28.65M | 9.79M | 16.04M | 140.16M | 99.97M | 42.74M | 170.66M | 201.92M | 37.37M | 13.25M | 17.86M | 101.26M | 145.22M | 0 | 45.16M | -94.27M | 51.84M | 36.75M | 16.1M | 8.1M | 3.8M | -2.1M |
| Net Interest Income | -92.3M | -247.6M | -111.3M | 15.6M | -13.8M | -35.3M | -18.6M | -12M | 1.8M | 3.7M | 4.47M | 9.09M | 11.93M | 7.88M | 7.46M | 8.53M | 7.4M | 8.8M | 14.53M | 14.98M | 12.89M | 5.39M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 18.5M | 67.6M | 135M | 58.2M | 11.3M | 10.1M | 16.3M | 0 | 1.8M | 3.7M | 4.47M | 9.09M | 11.93M | 7.88M | 7.46M | 8.53M | 7.4M | 8.8M | 14.53M | 14.98M | 12.89M | 5.39M | 3.73M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 150.6M | 315.2M | 246.3M | 42.6M | 25.1M | 45.4M | 34.9M | 12M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 1.04B | -289.7M | -127.2M | 52M | -38.8M | -128.1M | -13.8M | -60.7M | -19.5M | 23.99M | -33.29M | -98.95M | 7.41M | 7.59M | 4.91M | 7.57M | 3.55M | 2.3M | 27.8M | 33.26M | 11.1M | 5.24M | 3.23M | 2.49M | -36.14M | 15.75M | 10.06M | -100K | 200K | -100K | 900K |
| Pretax Income | 1.29B | -1.62B | -572.5M | -259.8M | -241.9M | -340.2M | -205.6M | -45.2M | -17.6M | -4.66M | -23.51M | -82.9M | 147.57M | 107.56M | 47.65M | 178.23M | 205.47M | 39.67M | 41.05M | 51.11M | 112.36M | 145.22M | 83.59M | 47.16M | -130.41M | 50.19M | 46.81M | 17.6M | 8.9M | 3.7M | 400K |
| Pretax Margin % | 194.31% | -213.69% | -70.92% | -34.25% | -42.28% | -64.73% | -43.68% | -4.19% | -1.9% | -0.32% | -1.45% | -5% | 8.96% | 7.76% | 4.09% | 18.05% | 23.69% | 6.99% | 8.32% | 12.97% | 26.57% | 37.77% | 27.2% | 20.52% | -83.9% | 28.32% | 43.11% | 29.28% | 20.94% | 12.76% | 2.35% |
| Income Tax | -893K | -9.7M | 1.1M | 700K | 8.2M | 1.1M | -8M | 12.7M | -1.2M | 93.45M | -1.97M | -18.85M | 23.38M | 20.63M | 3.23M | 31.73M | 53.18M | 9.02M | 9.24M | 918K | 32.4M | 38.65M | 25.63M | 12.26M | -28.69M | 22.34M | 16.29M | 4.9M | 2.6M | 200K | -800K |
| Effective Tax Rate % | -0.07% | 0.6% | -0.19% | -0.27% | -3.39% | -0.32% | 3.89% | -28.1% | 6.82% | -2003.73% | 8.38% | 22.74% | 15.84% | 19.18% | 6.79% | 17.8% | 25.88% | 22.73% | 22.5% | 1.8% | 28.84% | 26.62% | 30.66% | 26% | 22% | 44.52% | 34.79% | 27.84% | 29.21% | 5.41% | -200% |
| Net Income | -1.06B | -1.61B | -864.2M | -329.9M | -200.9M | -523.9M | -191.7M | -308.9M | -280M | -98.12M | -21.54M | -64.05M | 124.19M | 86.92M | 44.41M | 146.5M | 152.29M | 30.32M | 33.44M | 57.33M | 76.67M | 91.14M | 57.96M | 34.9M | -101.72M | 27.84M | 30.52M | 12.7M | 6.3M | 3.5M | 300K |
| Net Margin % | -159.3% | -212.41% | -107.06% | -43.49% | -35.12% | -99.68% | -40.73% | -28.6% | -30.27% | -6.66% | -1.33% | -3.86% | 7.54% | 6.27% | 3.81% | 14.83% | 17.56% | 5.35% | 6.78% | 14.55% | 18.13% | 23.71% | 18.86% | 15.19% | -65.44% | 15.71% | 28.11% | 21.13% | 14.82% | 12.07% | 1.76% |
| Net Income Growth % | 34.16% | -86.21% | -161.96% | -64.21% | 61.65% | -173.29% | 37.94% | -10.32% | -185.37% | -355.6% | 66.38% | -151.57% | 42.87% | 95.72% | -69.68% | -3.8% | 402.19% | -9.31% | -41.68% | -25.22% | -15.88% | 57.25% | - | 134.31% | -465.35% | -8.77% | 140.31% | 101.59% | 80% | 1066.67% | - |
| Net Income (Continuing) | -914.1M | -1.61B | -573.6M | -260.5M | -250.1M | -341.3M | -197.6M | -57.9M | -16.4M | -98.12M | -21.54M | -64.05M | 124.19M | 86.92M | 44.41M | 146.5M | 152.29M | 30.65M | 31.81M | 50.19M | 79.96M | 106.56M | 57.96M | 34.9M | -101.72M | 27.84M | 30.52M | 12.4M | 6.2M | 3.5M | 200K |
| Discontinued Operations | 0 | 0 | -290.6M | -69.4M | 49.2M | -181.2M | 7M | -251M | -263.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -325K | 1.63M | 7.14M | -3.29M | -15.42M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 6.1M | 5M | 5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -2.05 | -34.17 | -20.64 | -7.95 | -5.01 | -13.98 | -5.34 | -8.94 | -8.43 | -3.00 | -0.63 | -1.71 | 3.03 | 2.22 | 1.17 | 3.99 | 4.35 | 1.02 | 1.14 | 2.16 | 2.94 | 3.54 | 2.31 | 0.58 | -1.40 | 0.37 | 0.44 | 0.21 | 0.12 | 0.07 | 0.01 |
| EPS Growth % | 42.58% | -65.55% | -159.62% | -58.68% | 64.16% | -161.8% | 40.27% | -6.05% | -181% | -376.19% | 63.16% | -156.44% | 36.49% | 89.74% | -70.68% | -8.28% | 326.47% | -10.53% | -47.22% | -26.53% | -16.95% | 53.25% | - | 141.43% | -478.38% | -15.91% | 109.52% | 75% | 71.43% | - | - |
| EPS (Basic) | - | -34.17 | -20.64 | -7.95 | -5.01 | -13.98 | -5.34 | -8.94 | -8.43 | -3.00 | -0.63 | -1.71 | 3.09 | 2.25 | 1.17 | 4.05 | 4.47 | 1.05 | 1.17 | 2.19 | 3.03 | 3.66 | 2.34 | 0.60 | -1.40 | 0.39 | 0.47 | 0.22 | 0.12 | 0.07 | 0.01 |
| Diluted Shares Outstanding | 517.99M | 47.2M | 41.98M | 41.54M | 40.12M | 37.52M | 36.05M | 34.59M | 33.24M | 32.89M | 34M | 37.75M | 41.05M | 39.4M | 38.49M | 36.75M | 34.97M | 29.75M | 29.42M | 26.55M | 26.12M | 25.78M | 25.3M | 75.3M | 72.72M | 75.73M | 70.43M | 60.86M | 53.97M | 50M | 40M |
| Basic Shares Outstanding | 517.99M | 47.2M | 41.98M | 41.54M | 40.12M | 37.52M | 36.05M | 34.59M | 33.24M | 32.89M | 34M | 37.75M | 40.29M | 38.95M | 38.31M | 36.25M | 34.19M | 29.48M | 28.85M | 26.24M | 25.47M | 25.05M | 24.72M | 73.2M | 72.72M | 72.24M | 65.93M | 58.03M | 51.45M | 50M | 40M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying WOLF stock.
For fiscal year 2025, Wolfspeed Inc. (WOLF) reported total revenue of $757.6M. This represents a 4356.5% increase compared to $17.0M in 1996.
Wolfspeed Inc. (WOLF) reported a net loss of $1.61B for the fiscal year ending 2025.
Wolfspeed Inc. (WOLF) reported an operating income of $-1329.2M, resulting in an operating profit margin of -175.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Wolfspeed Inc. (WOLF) generated $-121.6M in gross profit for the year, representing a gross profit margin of -16.1%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
200mm yield ramp uncertainty
Metrics are mathematically derived from official filings.
Revenue Slide Mirrors EV Demand Softness
Wolfspeed's revenue contracted from $200.7M in 2024Q4 to $149.6M in 2026Q4, a 25.5% decline over eight quarters, reflecting weakening EV demand and customer push-outs, as reported in quarterly filings.
The sequential decline from $196.8M in 2026Q1 to $149.6M in 2026Q4 represents a 24% drop in just three quarters, suggesting the slowdown is accelerating rather than stabilizing. While management's guidance of $140M-$160M implies a near-term floor, the absence of growth catalysts in the automotive segment leaves the trajectory dependent on the nascent AI data center opportunity, which has yet to appear meaningfully in reported revenue.
Negative Gross Margin Signals Fab Ramp Pain
Gross margin deteriorated from 11.1% in 2024Q3 to -46.5% in 2026Q2, with the latest quarter at 2.7%, indicating severe underutilization and start-up costs at Mohawk Valley, per financial statements.
The swing from positive gross margin in 2024 to deeply negative figures in 2025 and early 2026 reflects the burden of fixed depreciation and underutilization charges as the 200mm fab ramps. The 2026Q4 gross margin of 2.7% appears to be a temporary recovery, but it remains far below the 30%+ levels typical of profitable peers like ON Semiconductor, implying that Wolfspeed's cost structure is still fundamentally misaligned with its current revenue base.
Operating Losses Outpace Revenue Decline
Operating margin worsened from -42.9% in 2024Q3 to -94.0% in 2026Q2, with operating losses exceeding $150M quarterly, indicating that fixed costs are not flexing down with revenue, based on reported figures.
The operating loss of $158.4M in 2026Q2 against revenue of $168.5M shows that the company is spending nearly as much on operations as it generates in sales, a clear sign of negative operating leverage. R&D and SG&A combined have remained relatively stable at $50-90M per quarter, but the collapse in gross profit has magnified their impact, suggesting that any margin recovery must come from utilization gains rather than cost cuts.
Net Losses Masked by One-Time Charges
Net income swung from -$148.9M in 2024Q3 to -$643.6M in 2026Q1, with EPS of -$12.36, reflecting impairment and restructuring charges that obscure the underlying operational burn, as disclosed in financial statements.
The 2026Q1 net loss of $643.6M is nearly four times the operating loss of $161.4M, indicating significant non-operating charges such as asset impairments or debt-related write-downs. Stock-based compensation has been inconsistent, ranging from $0 to $18.8M per quarter, which complicates comparisons of reported EPS and suggests that adjusted figures may not fully capture the cash cost of employee compensation.
COGS Swells as Utilization Stalls
COGS rose to $273.9M in 2026Q1 against revenue of $196.8M, a 139% cost-to-revenue ratio, highlighting the fixed-cost burden of underutilized fabs, per quarterly income statement data.
The cost of goods sold has consistently exceeded revenue since 2025Q1, with the gap peaking at $77.1M in 2026Q1. This suggests that the company is absorbing depreciation and start-up costs without corresponding production output, a pattern that may persist until Mohawk Valley reaches higher utilization. The slight improvement in 2026Q4, where COGS fell to $190.2M, hints at some cost discipline, but the absolute level remains unsustainable at current revenue.
2025Q4 Marks Structural Margin Break
The 2025Q4 quarter saw operating income plunge to -$581.6M, a 295% operating margin, driven by a $91.9M SG&A spike and impairment charges, representing a clear inflection point in the company's cost structure.
This quarter stands out as the moment when Wolfspeed's financial deterioration became acute, with SG&A nearly doubling from the prior quarter to $91.9M, likely reflecting restructuring or legal costs. The subsequent quarters have not recovered to pre-2025Q4 levels, suggesting that the company has entered a new, more capital-intensive phase of its lifecycle where losses are structural rather than cyclical.
Yield Ceiling Could Cap Margin Recovery
Despite management's guidance of $140M-$160M revenue, the sustained negative gross margins of -16.1% in 2026Q3 suggest that 200mm yield improvements may be plateauing, challenging the path to profitability, per recent earnings reports.
Short-sellers would argue that the market is pricing in a successful 200mm ramp that has yet to materialize in the income statement, with gross margins still deeply negative after multiple quarters of operation. The rapid capacity expansion by Chinese SiC competitors could commoditize the materials segment, eroding Wolfspeed's historical margin advantage before it achieves scale. Furthermore, the reliance on debt financing for Siler City raises refinancing risk if capital markets tighten, potentially forcing dilutive equity raises that would further pressure the stock.