Netlist (NLST) posts 262% Q1 2026 sales jump and turns profitable
Rhea-AI Filing Summary
Netlist, Inc. reported a sharp turnaround for the first quarter ended March 28, 2026. Net sales were $104.9 million, up 262% from $29.0 million a year earlier. Gross profit rose to $22.4 million, a 1,622% increase from $1.3 million.
The company posted net income of $8.6 million, or $0.03 per share, compared with a net loss of $9.5 million, or $(0.03) per share, in the first quarter of 2025. Management cited strong demand for its memory products tied to AI technologies such as DDR5 and HBM.
On the balance sheet as of March 28, 2026, total assets were $87.6 million versus $49.5 million at December 27, 2025. Total stockholders’ equity improved to $10.4 million from a deficit of $(5.2) million. The quarter included $1.0 million of stock‑based compensation expense.
Positive
- Q1 2026 revenue and profit inflection: Net sales rose 262% year over year to $104.9 million, gross profit increased 1,622% to $22.4 million, and net income reached $8.6 million versus a $9.5 million loss in Q1 2025, marking a substantial operational turnaround.
- Balance sheet improvement: Total stockholders’ equity moved from a deficit of $(5.2) million at December 27, 2025 to positive $10.4 million at March 28, 2026, reflecting improved financial position alongside higher assets and deferred revenue.
Negative
- None.
Insights
Netlist delivered a major revenue surge and returned to profitability in Q1 2026.
Netlist posted Q1 2026 net sales of $104.9 million, up 262% year over year, with gross profit jumping to $22.4 million. This lifted operating income to $8.6 million from a prior operating loss, reflecting higher volume and improved margins on its memory products.
Net income reached $8.6 million, or $0.03 per share, versus a net loss of $9.5 million in Q1 2025. Intellectual property legal fees remained sizable at $9.0 million, and stock‑based compensation was $1.0 million, indicating ongoing legal and compensation costs alongside stronger operations.
The balance sheet strengthened, with total assets at $87.6 million and stockholders’ equity improving to $10.4 million from a deficit as of December 27, 2025. Deferred revenue rose to $44.5 million, which suggests a larger base of contracted business to be recognized in future periods under the current reporting framework.
8-K Event Classification
Key Figures
Key Terms
Deferred revenue financial
Stock-based compensation financial
Intellectual property legal fees financial
Operating income (loss) financial
Earnings Snapshot
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 2.02. Results of Operations and Financial Condition.
On May 12, 2026, Netlist, Inc. issued a press release announcing its financial results for the first quarter ended March 28, 2026. A copy of the press release is furnished as Exhibit 99.1 to this report.
The information in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit | ||
| Number | Description | |
| 99.1 | Press Release of Netlist, Inc., dated May 12, 2026. | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
2
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| NETLIST, INC. | ||
| Date: May 12, 2026 | By: | /s/ Gail M. Sasaki |
| Gail M. Sasaki | ||
| Executive Vice President and Chief Financial Officer | ||
3
Exhibit 99.1
Netlist Reports First Quarter 2026 Results
IRVINE, CALIFORNIA, May 12, 2026 - Netlist, Inc. (OTCQB: NLST) today reported financial results for the first quarter ended March 28, 2026.
Highlights:
| · | Net sales for first quarter of 2026 were $104.9 million, an increase of 262% compared to the first quarter of 2025. | |
| · | Gross profit for first quarter of 2026 was $22.4 million, an increase of 1,622% compared to the first quarter of 2025. | |
| · | Net income for the first quarter of 2026 was $8.6 million, compared to net loss of $9.5 million in the first quarter of 2025. |
“Netlist delivered strong first quarter results, with significant growth in both revenue and profitability driven by robust demand for our memory products,” said Chief Executive Officer, C.K. Hong. “We remain well positioned to capitalize on AI memory technologies - DDR5 and HBM - through our products and IP assets.”
Net sales for the first quarter ended March 28, 2026 were $104.9 million, compared to net sales of $29.0 million for the first quarter ended March 29, 2025 and $75.7 million for the fourth quarter ended December 27, 2025. Gross profit for the first quarter ended March 28, 2026 was $22.4 million, compared to a gross profit of $1.3 million for the first quarter ended March 29, 2025 and $6.9 million for the fourth quarter ended December 27, 2025.
Net income for the first quarter ended March 28, 2026 was $8.6 million, or $0.03 per share, compared to a net loss of $(9.5) million, or $(0.03) per share, for the first quarter ended March 29, 2025 and a net loss of $(2.2) million, or $(0.01) per share, for the fourth quarter ended December 27, 2025. These results include stock-based compensation expense of $1.0 million, $1.0 million, and $0.7 million for the quarters ended March 28, 2026, March 29, 2025, and December 27, 2025, respectively.
Conference Call Information
C.K. Hong, Chief Executive Officer, and Gail Sasaki, Chief Financial Officer, will host an investor conference call today, May 12, 2026 at 12:00 p.m. Eastern Time to review Netlist’s results for the first quarter ended March 28, 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 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) |
| March 28, | December 27, | |||||||
| 2026 | 2025 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 17,005 | $ | 31,782 | ||||
| Restricted cash | 10,000 | 10,300 | ||||||
| Accounts receivable, net | 3,012 | 2,411 | ||||||
| Inventories | 41,243 | 3,383 | ||||||
| Prepaid expenses and other current assets | 14,277 | 332 | ||||||
| Total current assets | 85,537 | 48,208 | ||||||
| Property and equipment, net | 237 | 300 | ||||||
| Operating lease right-of-use assets | 1,408 | 541 | ||||||
| Other assets | 422 | 428 | ||||||
| Total assets | $ | 87,604 | $ | 49,477 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 27,053 | $ | 20,612 | ||||
| Revolving line of credit | 2,603 | 1,788 | ||||||
| Accrued payroll and related liabilities | 1,147 | 852 | ||||||
| Deferred revenue | 44,464 | 30,570 | ||||||
| Other current liabilities | 673 | 818 | ||||||
| Long-term debt due within one year | 322 | — | ||||||
| Total current liabilities | 76,262 | 54,640 | ||||||
| Operating lease liabilities | 882 | 23 | ||||||
| Other liabilities | 16 | 17 | ||||||
| Total liabilities | 77,160 | 54,680 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' deficit: | ||||||||
| Preferred stock | — | — | ||||||
| Common stock | 319 | 308 | ||||||
| Additional paid-in capital | 363,992 | 357,001 | ||||||
| Accumulated deficit | (353,867 | ) | (362,512 | ) | ||||
| Total stockholders' equity (deficit) | 10,444 | (5,203 | ) | |||||
| Total liabilities and stockholders' equity | $ | 87,604 | $ | 49,477 | ||||
| NETLIST, INC. AND SUBSIDIARIES |
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
| (In thousands, except per share amounts) (Unaudited) |
| Three Months Ended | ||||||||
| March 28, | March 29, | |||||||
| 2026 | 2025 | |||||||
| Net sales | $ | 104,892 | $ | 28,975 | ||||
| Cost of sales(1) | 82,503 | 27,675 | ||||||
| Gross profit | 22,389 | 1,300 | ||||||
| Operating expenses: | ||||||||
| Research and development(1) | 1,101 | 893 | ||||||
| Intellectual property legal fees | 8,974 | 7,027 | ||||||
| Selling, general and administrative(1) | 3,749 | 3,147 | ||||||
| Total operating expenses | 13,824 | 11,067 | ||||||
| Operating income (loss) | 8,565 | (9,767 | ) | |||||
| Other income, net: | ||||||||
| Interest income, net | 49 | 220 | ||||||
| Other income, net | 31 | 60 | ||||||
| Total other income, net | 80 | 280 | ||||||
| Income (loss) before provision for income taxes | 8,645 | (9,487 | ) | |||||
| Provision for income taxes | — | — | ||||||
| Net income (loss) | $ | 8,645 | $ | (9,487 | ) | |||
| Earnings (loss) per common share: | ||||||||
| Basic | $ | 0.03 | $ | (0.03 | ) | |||
| Diluted | $ | 0.03 | $ | (0.03 | ) | |||
| Weighted-average common shares outstanding: | ||||||||
| Basic | 309,445 | 272,379 | ||||||
| Diluted | 340,811 | 272,379 | ||||||
| (1) Amounts include stock-based compensation expense as follows: |
| Cost of sales | $ | 15 | $ | 8 | ||||
| Research and development | 175 | 208 | ||||||
| Selling, general and administrative | 766 | 755 | ||||||
| Total stock-based compensation | $ | 956 | $ | 971 |