NLST Netlist, Inc.

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Netlist Missed Expectations

Tuesday, November 10, 2026 · 4:15 PM ET

Netlist (NLST) reported earnings of $0.22 per share on revenue of $105.10 million for the third quarter ended September 2026. The consensus earnings estimate was $0.60 per share on revenue of $308.60 million. The Earnings Whisper number was $0.62 per share. The company missed expectations by 64.52% while revenue grew 148.86% on a year-over-year basis.

Netlist, Inc., is engaged in designing, manufacturing and selling of high performance, logic-based memory subsystems for the global datacenter, storage and high-performance computing markets.

Earnings Whisper Grade
Power Rating
Reported Earnings
$0.22
Earnings Whisper®
$0.62
Consensus Estimate
$0.60
Earnings Surprise
Earnings Growth1,200.0 %
Reported Revenue
$105.10M
Revenue Estimate
$308.60M
Revenue Surprise
Revenue Growth148.9 %

*Reported earnings and revenue figures shown above, and any guidance given, are preliminary and may be updated upon further review.*

Netlist Reports Third Quarter 2026 Results

Net sales rose 149% year over year to $105.1 million and included initial license fees from Samsung

Strengthened balance sheet with cash, cash equivalents and restricted cash rising to $327.7 million at quarter-end

IRVINE, Calif., Nov. 10, 2026 /PRNewswire/ -- Netlist, Inc. (OTCQB: NLST), a leading innovator in advanced memory and storage solutions, today reported financial results for the third quarter ended September 26, 2026.

Netlist, Inc.

Third Quarter 2026 Highlights:

  • Net sales for the third quarter of 2026 were $105.1 million, an increase of 149% compared to the third quarter of 2025
  • License fee revenue of $44.9 million was recognized in the third quarter of 2026 pursuant to the Samsung License Agreement, consisting of amortization of the upfront license fee and the first quarterly license fee.
  • Net product sales for the third quarter of 2026 were $60.2 million, an increase of 43% compared to the third quarter of 2025.
  • Gross margin for the third quarter of 2026 was 65.5%, an increase of over 61 percentage points compared to 4.4% in the third quarter of 2025, primarily reflecting license fee revenue, which has no associated cost of sales, and higher product gross margin.
  • Operating income in the third quarter of 2026 was $40.6 million, which improved from an operating loss of $7.2 million in the third quarter of 2025.
  • Net income for the third quarter of 2026 was of $85.4 million, or $0.22 per diluted share, compared to a net loss of $7.0 million, or $(0.02) per share, in the third quarter of 2025.
  • Cash, cash equivalents and restricted cash rose to $327.7 million at September 26, 2026 from $40.7 million at June 27, 2026, primarily due to the initial cash payment of $200 million and first quarterly payment of $27.5 million by Samsung.

"We are pleased to report our third consecutive quarter of significant year-over-year revenue growth and improved profitability led by both product sales and the recognition of license revenue under our Samsung agreement," said Chief Executive Officer, C.K. Hong.  "Year-over-year product revenue growth was driven by strong demand from customers in AI and data center applications."

"Gross margins improved and was driven by our focus on higher margin opportunities," said Gail Sasaki, Chief Financial Officer. "During the quarter, we substantially strengthened our balance sheet with the initial proceeds from our Samsung agreement and generated operating cash flow of $245 million."

Conference Call Information

C.K. Hong, Chief Executive Officer, and Gail Sasaki, Chief Financial Officer, will host an investor conference call today, November 10, 2026 at 5:00 p.m. Eastern Time to review Netlist's results for the third quarter ended September 26, 2026. The live webcast and archived replay of the call can be accessed for 90 days in the Investors section of Netlist's website at www.netlist.com.

About Netlist

Netlist is a leading innovator in advanced memory and storage solutions. With a rich portfolio of patented technologies, Netlist's inventions are foundational to the advancement of AI computing. To learn more about Netlist, please visit www.netlist.com.

Safe Harbor Statement

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements contained in this news release include, without limitation, statements about Netlist's positioning to capitalize on next generation memory products, expected license revenue under its agreements with Samsung and Micron, and evaluations, implications of future growth or profitability and judgements regarding Netlist's products and intellectual property portfolio. Forward-looking statements are statements other than historical facts and often address future events or Netlist's future performance. They reflect management's present expectations regarding future events and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed in or implied by any forward-looking statements. These risks, uncertainties and other factors include, among others, risks: Netlist may not be able to collect amounts owed to it pursuant to its agreements with Samsung and Micron and the amount of quarterly license fees payable under the revenue-based formula, which may be subject to adjustment; Netlist may suffer adverse outcomes in its litigation with Google or in its various other active proceedings to defend the validity of its patents; related to Netlist's plans for its intellectual property, including its strategies for monetizing, licensing, expanding, and defending its patent portfolio, which efforts may not be successful; that other patent infringement litigation initiated by Netlist, or by others against Netlist, may not be successful or resolve favorably for Netlist, particularly given the costs and unpredictability of any such litigation; associated with Netlist's product sales, including whether and how long the current market and demand for products sold by Netlist will persist or persist as expected and whether Netlist may successfully develop and launch new products that are attractive to the market; whether Netlist will continue to acquire components or products for resale on favorable terms; associated with the competitive landscape of Netlist's industry, general economic, political and market conditions, factory slowdowns and/or shutdowns, and changes in international trade and tariff policies. All forward-looking statements reflect management's present assumptions, expectations and beliefs regarding future events and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed in or implied by any forward-looking statements. These and other risks and uncertainties are described in Netlist's Annual Report on Form 10-K for the fiscal year ended December 27, 2025, filed with the SEC on March 19, 2026, Quarterly Report on Form 10-Q for the quarter ended June 27, 2026, filed with the SEC on August 11, 2026, and the other filings it makes with the U.S. Securities and Exchange Commission from time to time, including any subsequently filed quarterly and current reports. In light of these risks, uncertainties and other factors, these forward-looking statements should not be relied on as predictions of future events. These forward-looking statements represent Netlist's assumptions, expectations and beliefs only as of the date they are made, and except as required by law, Netlist undertakes no obligation to revise or update any forward-looking statements for any reason.

Investor Relations Contacts:

Monica Gould
The Blueshirt Group
monica@blueshirtgroup.com

Mike Smargiassi
The Plunkett Group
NLST@theplunkettgroup.com
(212) 739-6729

Gail M. Sasaki
Netlist, Inc., Chief Financial Officer
gsasaki@netlist.com
(949) 435-0025


NETLIST, INC. AND SUBSIDIARIES


CONDENSED CONSOLIDATED BALANCE SHEETS


(In thousands) (Unaudited)




























September 26,


December 27,





2026


2025



ASSETS



Current assets:









Cash and cash equivalents


$

317,685


$

31,782



Restricted cash



10,000



10,300



Accounts receivable, net



4,969



2,411



Inventories



16,778



3,383



Prepaid expenses and other current assets



11,536



332



Total current assets



360,968



48,208












Property and equipment, net



285



300



Operating lease right-of-use assets



1,154



541



Deferred income taxes



89,088



—



Other assets



38,343



428



Total assets


$

489,838


$

49,477












LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)



Current liabilities:









Accounts payable


$

71,145


$

20,612



Revolving line of credit



—



1,788



Accrued payroll and related liabilities



1,320



852



Deferred revenue



78,405



30,570



Other current liabilities



650



818



Total current liabilities



151,520



54,640



Deferred revenue, noncurrent



179,641



—



Operating lease liabilities



716



23



Other liabilities



17



17



Total liabilities



331,894



54,680












Commitments and contingencies


















Stockholders' equity (deficit):









Preferred stock



—



—



Common stock



379



308



Additional paid-in capital



424,581



357,001



Accumulated deficit



(267,016)



(362,512)



Total stockholders' equity (deficit)



157,944



(5,203)



Total liabilities and stockholders' equity


$

489,838


$

49,477


 

NETLIST, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts) (Unaudited)























Three Months Ended


Nine Months Ended




September 26,


September 27,


September 26,


September 27,




2026


2025


2026


2025











Net product sales


$          60,194


$        42,234


$       274,931


$       112,915


License fee


44,910


—


44,910


—


Net sales


105,104


42,234


319,841


112,915


Cost of sales(1)


36,247


40,396


205,712


108,385


Gross profit


68,857


1,838


114,129


4,530


Operating expenses:










Research and development(1)


1,054


822


3,205


2,548


Intellectual property legal fees


16,211


5,035


41,938


15,542


Selling, general and administrative(1)


11,021


3,131


18,511


9,604


Total operating expenses


28,286


8,988


63,654


27,694


Operating income (loss)


40,571


(7,150)


50,475


(23,164)


Other income, net:










Interest income, net


864


106


945


459


Other income, net


31


34


94


130


Total other income, net


895


140


1,039


589


Income (loss) before income tax benefit


41,466


(7,010)


51,514


(22,575)


Income tax benefit


(43,982)


—


(43,982)


—


Net income (loss)


$          85,448


$         (7,010)


$         95,496


$        (22,575)












Loss per common share:










Basic


$             0.24


$           (0.02)


$             0.29


$            (0.08)


Diluted


$             0.22


$           (0.02)


$             0.26


$            (0.08)


Weighted-average common shares outstanding:










Basic


356,097


292,557


331,046


280,229


Diluted


393,420


292,557


368,377


280,229






















(1) Amounts include stock-based compensation expense as follows:


















Cost of sales


$                  2


$               12


$                49


$                62


Research and development


97


93


378


438


Selling, general and administrative


6,774


655


8,211


2,244


Total stock-based compensation


$           6,873


$             760


$           8,638


$           2,744












 

NETLIST, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands, except per share amounts) (Unaudited)












Nine Months Ended




September 26,


September 27,




2026


2025

Cash flows from operating activities:








Net income (loss)



$

95,496


$

(22,575)

Adjustments to reconcile net income (loss) to net cash provied by (used in) operating

activities:








Depreciation and amortization




216



212

Non-cash lease expense




386



418

Gain on forgiveness of payables




(94)



(630)

Stock-based compensation




8,638



2,744

Deferred income taxes




(89,088)



—

Changes in operating assets and liabilities:








Accounts receivable




(2,558)



(2,483)

Inventories




(13,395)



(14,821)

Prepaid expenses and other assets




154



(11,031)

Accounts payable




17,672



(5,024)

Accrued payroll and related liabilities




468



57

Deferred revenue




227,476



26,934

Other liabilities




(380)



(1,796)

Net cash provided by (used in) operating activities




244,991



(27,995)

Cash flows from investing activities:








Acquisition of property and equipment




(185)



(25)

Net cash used in investing activities




(185)



(25)

Cash flows from financing activities:








Net borrowings (repayments) under line of credit




(1,788)



2,207

Payments on notes payable




(438)



(537)

Proceeds from issuance of common stock, net




1,000



12,571

Proceeds from exercise of stock options and warrants




42,023



75

Payments for taxes related to net share settlement of equity awards




—



(59)

Net cash provided by financing activities




40,797



14,257

Net change in cash, cash equivalents and restricted cash




285,603



(13,763)

Cash, cash equivalents and restricted cash at beginning of period




42,082



34,607

Cash, cash equivalents and restricted cash at end of period



$

327,685


$

20,844









Reconciliation of cash, cash equivalents and restricted cash at end of period:








Cash and cash equivalents



$

317,685


$

10,544

Restricted cash




10,000



10,300

Cash, cash equivalents and restricted cash at end of period



$

327,685


$

20,844

 

 

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SOURCE Netlist, Inc.