Netlist (OTCQB: NLST) revenue surges in 2025 as net loss narrows
Rhea-AI Filing Summary
Netlist reported sharply improved results for 2025 while remaining unprofitable. Net sales rose to $75.7 million in the fourth quarter from $34.3 million a year earlier, lifting quarterly gross profit to $6.9 million from $0.3 million.
For the full year, net sales increased to $188.6 million from $147.1 million and gross profit grew to $11.4 million from $2.9 million. The net loss narrowed to $2.2 million in the quarter and $24.8 million for the year, compared with losses of $12.7 million and $53.9 million, helped by lower intellectual property legal fees.
As of December 27, 2025, Netlist held $42.1 million in cash, cash equivalents and restricted cash and total assets of $49.5 million, with a working capital deficit of $6.4 million and stockholders’ deficit of $5.2 million. Management highlighted appellate wins on key patents, expanded enforcement actions around DDR5 and HBM memory technologies, and continued R&D investment in next‑generation products such as MRDIMM and CXL NVDIMM.
Positive
- Stronger revenue and gross profit: Q4 2025 net sales more than doubled to $75.7 million and full-year sales rose to $188.6 million, lifting gross profit to $11.4 million from $2.9 million.
- Losses narrowed materially: Net loss improved to $2.2 million in Q4 and $24.8 million for 2025, versus $12.7 million and $53.9 million in 2024.
- Lower IP legal spend: Intellectual property legal fees declined from $37.96 million in 2024 to $20.23 million in 2025, easing operating pressure.
- IP and technology progress: The company reports appellate wins on patent validity, expanded DDR5/HBM enforcement actions, and continued R&D on MRDIMM and CXL NVDIMM.
Negative
- Continuing losses and deficits: Despite improvement, Netlist still posted a $24.8 million net loss in 2025, with a $6.4 million working capital deficit and $5.2 million stockholders’ deficit as of December 27, 2025.
- High legal cost dependence: Intellectual property legal fees of $20.23 million in 2025 remain a large expense, and forward-looking statements highlight significant risks around ongoing litigation and patent enforcement outcomes.
Insights
Revenue and margins improved in 2025, but Netlist still runs losses and carries deficits.
Netlist delivered strong top-line growth, with Q4 2025 net sales of
Operating losses narrowed significantly as intellectual property legal fees fell from
The balance sheet improved but remains strained, with cash, cash equivalents and restricted cash of
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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Item 2.02. Results of Operations and Financial Condition.
On March 3, 2026, Netlist, Inc. issued a press release announcing its financial results for the full year and fourth quarter ended December 27, 2025. 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 March 3, 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: March 3, 2026 | By: | /s/ Gail M. Sasaki |
| Gail M. Sasaki | ||
| Executive Vice President and Chief Financial Officer | ||
3
Exhibit 99.1
Netlist Reports Full Year and Fourth Quarter 2025 Results
IRVINE, CALIFORNIA, March 3, 2026 - Netlist, Inc. (OTCQB: NLST) today reported financial results for the full year and fourth quarter ended December 27, 2025.
Recent Highlights:
| · | Net sales for fourth quarter of 2025 were $75.7 million, an increase of 79% compared to third quarter of 2025 and an increase of 121% compared to the fourth quarter of 2024. Net sales for full year 2025 were $188.6 million, an increase of 28% compared to last year. |
| · | Gross profit for fourth quarter of 2025 was $6.9 million, an increase of 2,620% compared to the same period last year. Full year gross profit was $11.4 million, an increase of 297% compared to last year. |
| · | Net Loss for the fourth quarter of 2025 improved by 82% compared to the same period last year. Net Loss for the full year improved by 54% compared to the same period last year. |
“Netlist’s improved financial performance in 2025 was driven by the company’s execution in response to rapidly changing market conditions,” said Chief Executive Officer, C.K. Hong. “During the year, Netlist made significant progress across various product and IP initiatives. We secured important appellate wins on the validity of our patents and expanded enforcement actions covering DDR5 and HBM technologies. We continue to invest in R&D programs for next-generation memory technologies including MRDIMM and CXL NVDIMM. We enter 2026 well positioned to capitalize on this progress.”
Net sales for the fourth quarter ended December 27, 2025 were $75.7 million, compared to net sales of $34.3 million for the fourth quarter ended December 28, 2024. Gross profit for the fourth quarter ended December 27, 2025 was $6.9 million, compared to a gross profit of $0.3 million for the fourth quarter ended December 28, 2024.
Net sales for the full year ended December 27, 2025 were $188.6 million, compared to net sales of $147.1 million for the full year ended December 28, 2024. Gross profit for the full year ended December 27, 2025 was $11.4 million, compared to a gross profit of $2.9 million for the full year ended December 28, 2024.
Net loss for the fourth quarter ended December 27, 2025 was ($2.2) million, or ($0.01) per share, compared to a net loss of ($12.7) million in the same prior year period, or ($0.05) per share. These results include stock-based compensation expense of $0.7 million and $0.8 million for the quarters ended December 27, 2025 and December 28, 2024, respectively.
Net loss for the full year ended December 27, 2025 was ($24.8) million, or ($0.09) per share, compared to a net loss in the same prior year period of ($53.9) million, or ($0.21) per share. These results include stock-based compensation expense of $3.4 million and $4.4 million for the full years ended December 27, 2025 and December 28, 2024, respectively.
As of December 27, 2025, cash, cash equivalents and restricted cash were $42.1 million, total assets were $49.5 million, working capital deficit was ($6.4) million, and stockholders’ deficit was ($5.2) million.
Conference Call Information
C.K. Hong, Chief Executive Officer, and Gail Sasaki, Chief Financial Officer, will host an investor conference call today, March 3, 2026 at 12:00 p.m. Eastern Time to review Netlist’s results for the full year and fourth quarter ended December 27, 2025. 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 ability to execute on its strategic initiatives, its positioning to capitalize on market trends, the results of pending litigations and Netlist’s ability to successfully defend its intellectual property. Forward-looking statements are statements other than historical facts and often address future events or Netlist’s future performance and 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 that 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); risks that 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; risks related to Netlist’s plans for its intellectual property, including its strategies for monetizing, licensing, expanding, and defending its patent portfolio; risks associated with patent infringement litigation initiated by Netlist, or by others against Netlist, as well as the costs and unpredictability of any such litigation; risks associated with Netlist’s product sales, including the market and demand for products sold by Netlist and its ability to successfully develop and launch new products that are attractive to the market; the success of product, joint development and licensing partnerships; the competitive landscape of Netlist’s industry; and 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 28, 2024 filed with the SEC on March 28, 2025, 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 particular, you are encouraged to review the Company’s Annual Report on Form 10-K for the fiscal year ended December 27, 2025 that will be filed with the SEC for any revisions or updates to the information in this release. 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)
| December 27, | December 28, | |||||||
| 2025 | 2024 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 31,782 | $ | 22,507 | ||||
| Restricted cash | 10,300 | 12,100 | ||||||
| Accounts receivable, net | 2,411 | 1,671 | ||||||
| Inventories | 3,383 | 2,744 | ||||||
| Prepaid expenses and other current assets | 332 | 733 | ||||||
| Total current assets | 48,208 | 39,755 | ||||||
| Property and equipment, net | 300 | 517 | ||||||
| Operating lease right-of-use assets | 541 | 1,101 | ||||||
| Other assets | 428 | 466 | ||||||
| Total assets | $ | 49,477 | $ | 41,839 | ||||
| LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 20,612 | $ | 42,307 | ||||
| Revolving line of credit | 1,788 | 1,230 | ||||||
| Accrued payroll and related liabilities | 852 | 808 | ||||||
| Deferred revenue | 30,570 | 40 | ||||||
| Other current liabilities | 818 | 2,675 | ||||||
| Total current liabilities | 54,640 | 47,060 | ||||||
| Operating lease liabilities | 23 | 641 | ||||||
| Other liabilities | 17 | 186 | ||||||
| Total liabilities | 54,680 | 47,887 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ deficit: | ||||||||
| Preferred stock | — | — | ||||||
| Common stock | 308 | 273 | ||||||
| Additional paid-in capital | 357,001 | 331,367 | ||||||
| Accumulated deficit | (362,512 | ) | (337,688 | ) | ||||
| Total stockholders’ deficit | (5,203 | ) | (6,048 | ) | ||||
| Total liabilities and stockholders’ deficit | $ | 49,477 | $ | 41,839 | ||||
NETLIST, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts) (Unaudited)
| Three Months Ended | Year Ended | |||||||||||||||
| December 27, | December 28, | December 27, | December 28, | |||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Net sales | $ | 75,715 | $ | 34,275 | $ | 188,630 | $ | 147,103 | ||||||||
| Cost of sales(1) | 68,805 | 34,021 | 177,190 | 144,219 | ||||||||||||
| Gross profit | 6,910 | 254 | 11,440 | 2,884 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development(1) | 948 | 1,077 | 3,496 | 8,064 | ||||||||||||
| Intellectual property legal fees | 4,689 | 9,555 | 20,231 | 37,958 | ||||||||||||
| Selling, general and administrative(1) | 3,619 | 2,737 | 13,223 | 12,090 | ||||||||||||
| Total operating expenses | 9,256 | 13,369 | 36,950 | 58,112 | ||||||||||||
| Operating loss | (2,346 | ) | (13,115 | ) | (25,510 | ) | (55,228 | ) | ||||||||
| Other income, net: | ||||||||||||||||
| Interest income, net | 63 | 252 | 522 | 1,048 | ||||||||||||
| Other income, net | 34 | 149 | 164 | 316 | ||||||||||||
| Total other income, net | 97 | 401 | 686 | 1,364 | ||||||||||||
| Loss before provision for income taxes | (2,249 | ) | (12,714 | ) | (24,824 | ) | (53,864 | ) | ||||||||
| Provision for income taxes | — | — | — | 1 | ||||||||||||
| Net loss | $ | (2,249 | ) | $ | (12,714 | ) | $ | (24,824 | ) | $ | (53,865 | ) | ||||
| Loss per common share: | ||||||||||||||||
| Basic and diluted | $ | (0.01 | ) | $ | (0.05 | ) | $ | (0.09 | ) | $ | (0.21 | ) | ||||
| Weighted-average common shares outstanding: | ||||||||||||||||
| Basic and diluted | 305,865 | 270,089 | 286,638 | 259,904 | ||||||||||||
| (1) Amounts include stock-based compensation expense as follows: | ||||||||||||||||
| Cost of sales | $ | 21 | $ | 17 | $ | 83 | $ | 99 | ||||||||
| Research and development | 114 | 110 | 552 | 908 | ||||||||||||
| Selling, general and administrative | 559 | 677 | 2,803 | 3,429 | ||||||||||||
| Total stock-based compensation | $ | 694 | $ | 804 | $ | 3,438 | $ | 4,436 | ||||||||
FAQ
How did Netlist (NLST) perform financially in Q4 2025?
What were Netlist (NLST) full-year 2025 results?
What is Netlist’s cash and balance sheet position at year-end 2025?
How much did Netlist (NLST) spend on intellectual property legal fees in 2025?
What strategic initiatives did Netlist highlight in its 2025 results?
What risks did Netlist outline related to its 2025 performance and outlook?
Filing Exhibits & Attachments
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