Netlist Reports Second Quarter 2026 Results

Rhea-AI Summary

Netlist (OTCQB: NLST) reported strong second quarter 2026 results for the period ended June 27, 2026. Q2 net sales were $109.8 million, up 163% year over year, with gross profit of $22.9 million, up 1,544%. Net income reached $1.4 million, versus a prior-year net loss of $6.1 million.

For the first six months of 2026, net sales were $214.7 million, up 204% from $70.7 million in 2025, and gross profit was $45.3 million, up from $2.7 million. Six-month net income was $10.0 million, or $0.03 per share, compared with a net loss of $15.6 million, or $(0.06) per share, in the prior-year period.

According to Netlist, total assets increased to $73.3 million and stockholders’ equity improved to $23.2 million from a deficit of $(5.2) million at December 27, 2025. Intellectual property legal fees rose to $16.8 million in Q2 and $25.7 million year-to-date.

Positive

• Q2 2026 net sales $109.8 million, up 163% year over year
• Six-month 2026 net sales $214.7 million, up 204% from $70.7 million
• Q2 2026 gross profit $22.9 million vs. $1.4 million in 2025
• Six-month net income $10.0 million vs. $(15.6) million loss prior year
• Stockholders’ equity improved to $23.2 million from $(5.2) million deficit
• Operating income of $1.3 million in Q2 vs. $(6.2) million loss

Negative

• Q2 2026 IP legal fees $16.8 million vs. $3.5 million prior year
• Six-month IP legal fees $25.7 million vs. $10.5 million in 2025
• Accounts payable rose to $41.4 million from $20.6 million
• Inventories increased to $26.9 million from $3.4 million
• Deferred revenue declined to $3.0 million from $30.6 million

Market Context

Earnings-tagged events averaged a -2.14% 24-hour reaction, adding historical context to this quarter...

Analysis

Earnings-tagged events averaged a -2.14% 24-hour reaction, adding historical context to this quarter’s improved results. The record also showed Net Selling insider activity, warranting attention alongside continued profitability.

Key Figures

Q2 net sales: $109.8 million, up 163% Six-month net sales: $214.7 million, up 204% Q2 gross profit: $22.9 million, up 1,544% +5 more

8 metrics

Q2 net sales $109.8 million, up 163% Second quarter 2026 versus second quarter 2025

Six-month net sales $214.7 million, up 204% Six months ended June 27, 2026 versus prior-year period

Q2 gross profit $22.9 million, up 1,544% Second quarter 2026 versus second quarter 2025

Six-month gross profit $45.3 million, up 1,582% Six months ended June 27, 2026 versus prior-year period

Q2 net income $1.4 million versus $(6.1) million net loss Second quarter 2026 versus second quarter 2025

Six-month net income $10.0 million versus $(15.6) million net loss Six months ended June 27, 2026 versus prior-year period

Six-month EPS $0.03 versus $(0.06) Six months ended June 27, 2026 versus prior-year period

Stock-based compensation $1.8 million Six months ended June 27, 2026

Previous Earnings Reports

5 past events · Latest: May 12 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
May 12	Q1 earnings report	Positive	-12.6%	Revenue, gross profit, and net income improved year over year.
Mar 03	FY25 earnings report	Positive	+0.3%	Quarterly and annual sales increased while losses narrowed.
Nov 06	Q3 earnings report	Negative	-2.1%	Quarterly net loss persisted despite higher sales and gross profit.
Aug 07	Q2 earnings report	Negative	+2.1%	Revenue grew, but the company reported a quarterly net loss.
May 06	Q1 earnings report	Negative	+1.6%	Revenue declined and the company reported a quarterly net loss.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Earnings-tagged news averaged a -2.14% 24-hour reaction, with three of five events diverging from the announcement sentiment.

Key Terms

otcqb, stock-based compensation, weighted-average common shares outstanding, stockholders' deficit

4 terms

otcqb financial

"(OTCQB: NLST) today reported financial results"

OTCQB is a tier of the over‑the‑counter (OTC) market where smaller or developing companies list their shares for trading without being on a major stock exchange. Think of it like a well‑kept side street market: companies must meet basic reporting and transparency checks so investors get more information than the lowest OTC tier, but trading is usually less liquid and riskier than on big exchanges. Investors care because OTCQB listings can offer early access to growth stories but come with higher price swings and greater chance of limited resale options.

View in glossary

stock-based compensation financial

"These results include stock-based compensation expense of $1.8 million"

Stock-based compensation is when a company pays employees, directors or consultants with shares or the right to buy shares instead of or in addition to cash. It matters to investors because issuing stock or options spreads ownership thinner (like cutting a pie into more slices), which can reduce each existing share’s claim on profits and can also change reported earnings; investors watch it to assess true cost of running the business and how management is incentivized.

View in glossary

weighted-average common shares outstanding financial

"Weighted-average common shares outstanding:"

Weighted-average common shares outstanding is the average number of a company’s common shares that were available during a reporting period, adjusted for shares issued, repurchased, or converted so the count reflects time-weighted changes. Think of it like averaging how many slices of a pie were on the table over a meal: it makes per-share measures such as earnings per share meaningful and comparable by accounting for changes in the share count, which affects investor ownership and valuation.

stockholders' deficit financial

"Total stockholders' equity (deficit)"

When a company's total liabilities exceed its total assets, the owner's equity becomes negative and is reported as a stockholders' deficit. It shows that, on paper, the business owes more than it owns — like a homeowner whose mortgage balance is larger than the home's market value. Investors watch this because it signals financial strain, higher risk of dilution or default, and can limit a company's ability to pay dividends, borrow, or grow.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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IRVINE, Calif., July 30, 2026 /PRNewswire/ -- Netlist, Inc. (OTCQB: NLST) today reported financial results for the second quarter ended June 27, 2026.

Highlights:

• Net sales for the second quarter of 2026 were $109.8 million, an increase of 163% compared to the second quarter of 2025. Net sales for six months ended June 27, 2026 were $214.7 million, an increase of 204% compared to the same prior year period.
• Gross profit for the second quarter of 2026 was $22.9 million, an increase of 1,544% compared to the second quarter of 2025. Gross profit for six months ended June 27, 2026 was $45.3 million, an increase of 1,582% compared to the same prior year period.
• Net income for the second quarter of 2026 was $1.4 million, compared to net loss of $(6.1) million in the second quarter of 2025. Net income for six months ended June 27, 2026 was $10.0 million, compared to net loss of $(15.6) million in the same prior year period.

"Netlist delivered its second consecutive quarter of significant revenue growth and improved profitability," said Chief Executive Officer, C.K. Hong.  "We continue to drive the development of next generation AI memory technologies and defend our IP portfolio against unauthorized use."

Net sales for the six months ended June 27, 2026 were $214.7 million, compared to net sales of $70.7 million for the six months ended June 28, 2025. Gross profit for the six months ended June 27, 2026 was $45.3 million, compared to a gross profit of $2.7 million for the six months ended June 28, 2025.

Net income for the six months ended June 27, 2026 was $10.0 million, or $0.03 per share, compared to a net loss for the six months ended June 28, 2025 of $(15.6) million, or $(0.06) per share. These results include stock-based compensation expense of $1.8 million and $2.0 million for the six months ended June 27, 2026 and June 28, 2025, respectively.

Conference Call Information
C.K. Hong, Chief Executive Officer, and Gail Sasaki, Chief Financial Officer, will host an investor conference call today, July 30, 2026 at 12:00 p.m. Eastern Time to review Netlist's results for the second quarter ended June 27, 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, 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 the substantial amount in damages previously awarded to it in its litigations (appeals in general could cause a lengthy delay in Netlist's ability to collect damages awards, could overturn the verdicts or reduce the damages awards); Netlist will suffer adverse outcomes in its litigation with Samsung, Micron or 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, 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:
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)
		June 27,			December 27,
		2026			2025
ASSETS
Current assets:
Cash and cash equivalents		$	30,655		$	31,782
Restricted cash			10,000			10,300
Accounts receivable, net			3,149			2,411
Inventories			26,871			3,383
Prepaid expenses and other current assets			734			332
Total current assets			71,409			48,208
Property and equipment, net			222			300
Operating lease right-of-use assets			1,267			541
Other assets			415			428
Total assets		$	73,313		$	49,477
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable		$	41,369		$	20,612
Revolving line of credit			2,627			1,788
Accrued payroll and related liabilities			1,538			852
Deferred revenue			3,023			30,570
Other current liabilities			592			818
Long-term debt due within one year			162			—
Total current liabilities			49,311			54,640
Operating lease liabilities			800			23
Other liabilities			19			17
Total liabilities			50,130			54,680
Commitments and contingencies
Stockholders' deficit:
Preferred stock			—			—
Common stock			335			308
Additional paid-in capital			375,312			357,001
Accumulated deficit			(352,464)			(362,512)
Total stockholders' equity (deficit)			23,183			(5,203)
Total liabilities and stockholders' equity		$	73,313		$	49,477

 

NETLIST, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts) (Unaudited)
		Three  Months Ended					Six  Months Ended
		June 27,			June 28,		June 27,			June 28,
		2026			2025		2026			2025
Net sales		$    109,845			$        41,706		$    214,737			$         70,681
Cost of sales(1)		86,962			40,314		169,465			67,989
Gross profit		22,883			1,392		45,272			2,692
Operating expenses:
Research and development(1)		1,050			833		2,151			1,726
Intellectual property legal fees		16,753			3,480		25,727			10,507
Selling, general and administrative(1)		3,741			3,326		7,490			6,473
Total operating expenses		21,544			7,639		35,368			18,706
Operating income (loss)		1,339			(6,247)		9,904			(16,014)
Other income, net:
Interest income, net		32			133		81			353
Other income, net		32			36		63			96
Total other income, net		64			169		144			449
Income (loss) before provision for income taxes		1,403			(6,078)		10,048			(15,565)
Provision for income taxes		—			—		—			—
Net income (loss)		$       1,403			$        (6,078)		$      10,048			$        (15,565)
Earnings (loss) per common share:
Basic		$         0.00			$          (0.02)		$         0.03			$           (0.06)
Diluted		$         0.00			$          (0.02)		$         0.03			$           (0.06)
Weighted-average common shares outstanding:
Basic		327,594			275,751		318,520			274,065
Diluted		370,752			275,751		356,141			274,065
(1) Amounts include stock-based compensation expense as follows:
Cost of sales		$            32			$              42		$            47			$               50
Research and development		106			137		281			345
Selling, general and administrative		671			834		1,437			1,589
Total stock-based compensation		$          809			$         1,013		$       1,765			$          1,984

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SOURCE Netlist, Inc.

FAQ

How did Netlist (OTCQB: NLST) perform financially in Q2 2026?

Netlist reported Q2 2026 net sales of $109.8 million and net income of $1.4 million. According to Netlist, this compares with $41.7 million in net sales and a net loss of $6.1 million in Q2 2025, reflecting higher gross profit and positive operating income.

What were Netlist’s year-to-date 2026 results compared to 2025 for NLST shareholders?

For the first half of 2026, Netlist reported net sales of $214.7 million and net income of $10.0 million. According to Netlist, this compares with $70.7 million in net sales and a net loss of $15.6 million for the same 2025 period, with gross profit rising to $45.3 million.

How did Netlist’s gross profit and margins change in Q2 2026?

Netlist’s Q2 2026 gross profit was $22.9 million, up from $1.4 million in Q2 2025. According to Netlist, cost of sales was $87.0 million versus $40.3 million, indicating substantially higher gross profit dollars as net sales increased to $109.8 million.

What impacted Netlist’s operating expenses and legal costs in Q2 2026?

Netlist’s Q2 2026 operating expenses totaled $21.5 million, including $16.8 million of intellectual property legal fees. According to Netlist, IP legal fees rose from $3.5 million in Q2 2025, while research and development and SG&A also increased modestly year over year.

How did Netlist’s balance sheet and equity position change by June 27, 2026?

As of June 27, 2026, Netlist reported total assets of $73.3 million and stockholders’ equity of $23.2 million. According to Netlist, this marks an improvement from $49.5 million in assets and a stockholders’ deficit of $(5.2) million at December 27, 2025.

What were Netlist’s earnings per share (EPS) for NLST in the first half of 2026?

Netlist reported basic and diluted EPS of $0.03 for the first six months of 2026. According to Netlist, this compares to a basic and diluted loss per share of $(0.06) for the same period in 2025, reflecting the shift to net profitability.

Did Netlist provide details on stock-based compensation in its Q2 2026 results?

Yes. Netlist reported total stock-based compensation of $0.8 million in Q2 2026 and $1.8 million for the first half. According to Netlist, comparable amounts were $1.0 million for Q2 2025 and $2.0 million for the first six months of 2025.