Netlist (NLST)
OTHER OTC:NLST
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Netlist
(OTC:NLST)
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Rating:65Neutral
Price Target:
$3.00
▲(68.54% Upside)
Action:Reiterated
Date:05/14/26
The score is driven by strong technical momentum and a positive earnings-call backdrop (record growth and improved profitability), partially offset by below-average underlying financial quality due to ongoing cash burn and still-inconsistent profitability. Valuation is reasonable but not a major support without a dividend.
Positive Factors
Revenue Growth Momentum
Sustained top-line acceleration reflects strong end-market demand and scale benefits. Higher revenue improves ability to invest in product development and IP monetization, supports margin leverage as proprietary mix grows, and reduces breakeven risk over the medium term.
Negative Factors
Weak Cash Generation
Persistent negative operating and free cash flow indicate structural cash burn. This necessitates ongoing external funding or equity dilution to sustain operations and R&D, limiting financial flexibility and increasing vulnerability if top-line momentum slows or margins compress.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth Momentum
Sustained top-line acceleration reflects strong end-market demand and scale benefits. Higher revenue improves ability to invest in product development and IP monetization, supports margin leverage as proprietary mix grows, and reduces breakeven risk over the medium term.
Read all positive factors
Netlist (NLST) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$893.29M
Dividend YieldN/A
Average Volume (3M)3.06M
Price to Earnings (P/E)15.7
Beta (1Y)0.44
Revenue Growth88.60%
EPS Growth84.49%
CountryUS
Employees60
SectorTechnology
Sector Strength88
IndustryComputer Hardware
Share Statistics
EPS (TTM)-0.02
Shares Outstanding333,317,140
10 Day Avg. Volume5,711,054
30 Day Avg. Volume3,058,634
Financial Highlights & Ratios
PEG Ratio0.18
Price to Book (P/B)-50.61
Price to Sales (P/S)1.40
P/FCF Ratio-17.87
Enterprise Value/Market Cap1.07
Enterprise Value/Revenue3.62
Enterprise Value/Gross Profit29.41
Enterprise Value/Ebitda506.76
Forecast
1Y Price Target
$5.00Price Target Upside180.90% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)$322.10M
Netlist Business Overview & Revenue Model
Company Description
Netlist, Inc. designs, manufactures, and markets memory subsystems for the server, high-performance computing, and communications markets in the United States and internationally. It offers HybriDIMM, a storage class memory product, which unifies ...
How the Company Makes Money
Netlist generates revenue primarily through two channels: (1) product revenue from the sale of memory and storage-related hardware (e.g., server memory modules and specialized memory solutions sold to customers in markets such as data centers and ...
Netlist Earnings Call Summary
Earnings Call Date:May 12, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call was overall positive: management reported record revenue (+262% YoY), a substantial improvement in operating income (+$18M YoY), improved working capital metrics, tangible product momentum (DDR5 Lightning ramp, CXL NVvault sampling, MRDIMM development) and multiple IP/legal validations. Key risks remain, including a high resale revenue mix (~80% resale), ongoing litigation with uncertain outcomes, market supply timing that could extend to 2029, and potential deceleration in pricing momentum. On balance the favorable financial results, product progress and IP wins outweigh the risks communicated in the call.Positive Updates
Record Quarterly Revenue and Strong YoY Growth
Revenue of $104.9 million in Q1 FY2026, an increase of 262% year-over-year, driven by tight memory supply, accelerating demand and rising DRAM prices.
Negative Updates
High Proportion of Resale Revenue
Approximately 80% of revenue came from resale products versus under 20% from Netlist's own products, indicating reliance on third-party inventory rather than a majority of revenues from proprietary solutions.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Quarterly Revenue and Strong YoY Growth
Revenue of $104.9 million in Q1 FY2026, an increase of 262% year-over-year, driven by tight memory supply, accelerating demand and rising DRAM prices.
Read all positive updates
Company Guidance
Netlist’s call outlined a strong Q1 FY2026 performance and near‑term outlook with concrete metrics: Q1 revenue of $104.9M (up 262% YoY) and operating income of $8.6M (an $18M improvement YoY); revenue mix roughly 80% resale and just under 20% Netlist products; subsequent to quarter end $10.5M received from warrant exercises and estimated cash, cash equivalents and restricted cash of $37.5M as of May 8, 2026; financial flexibility including a $10M working‑capital line and ~ $74M available on the equity line; days sales outstanding improved by 3.5 days YoY and the cash conversion cycle is ~16 days (well below 30); company commentary also noted industry expectations that DRAM pricing will rise through the rest of the year (at a slower pace than recent quarters), that supply constraints may persist until new fab capacity comes online next year with meaningful relief potentially delayed until 2029, and that key ITC proceedings are moving toward a fall trial—no explicit forward quarter revenue or EPS guidance was given.Netlist Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
41
Neutral
Cash Flow
22
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 264.55M | 188.63M | 147.10M | 69.20M | 161.64M | 142.35M |
| Gross Profit | 32.53M | 11.44M | 2.88M | 2.39M | 11.89M | 48.90M |
| EBITDA | 1.89M | -5.00M | -54.88M | -60.03M | -32.39M | 12.53M |
| Net Income | -6.69M | -24.82M | -53.87M | -60.40M | -33.37M | 4.83M |
Balance Sheet | ||||||
| Total Assets | 87.60M | 49.48M | 41.84M | 72.80M | 67.32M | 91.18M |
| Cash, Cash Equivalents and Short-Term Investments | 17.00M | 31.78M | 22.51M | 40.45M | 25.01M | 47.68M |
| Total Debt | 3.81M | 1.81M | 2.52M | 5.06M | 7.13M | 9.15M |
| Total Liabilities | 77.16M | 54.68M | 47.89M | 49.04M | 40.09M | 37.13M |
| Stockholders Equity | 10.44M | -5.20M | -6.05M | 23.76M | 27.24M | 54.04M |
Cash Flow | ||||||
| Free Cash Flow | -26.50M | -14.73M | -34.66M | -41.60M | -15.46M | 5.49M |
| Operating Cash Flow | -26.49M | -14.73M | -34.59M | -41.60M | -14.99M | 6.01M |
| Investing Cash Flow | -29.00K | -42.00K | -71.00K | 0.00 | -467.00K | -520.00K |
| Financing Cash Flow | 27.94M | 22.25M | 16.42M | 50.84M | 594.00K | 36.47M |
Netlist Technical Analysis
Positive
1.78
Price Trends
2.09
Positive
1.61
Positive
1.17
Positive
Market Momentum
0.21
Positive
58.46
Neutral
39.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NLST, the sentiment is Positive. The current price of 1.78 is below the 20-day moving average (MA) of 2.71, below the 50-day MA of 2.09, and above the 200-day MA of 1.17, indicating a bullish trend. The MACD of 0.21 indicates Positive momentum. The RSI at 58.46 is Neutral, neither overbought nor oversold. The STOCH value of 39.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NLST.
Netlist Risk Analysis
Netlist disclosed 42 risk factors in its most recent earnings report. Netlist reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Netlist Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $423.54M | 20.85 | 25.61% | 6.28% | 1.76% | 0.85% | |
69 Neutral | $760.87M | -171.77 | 0.42% | ― | 15.94% | ― | |
67 Neutral | $364.45M | -19.59 | -3.41% | ― | -8.30% | -139.29% | |
65 Neutral | $893.29M | 15.66 | 178.35% | ― | 88.60% | 84.49% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
51 Neutral | $426.70M | -31.55 | -17.19% | ― | 43.23% | -34.14% | |
48 Neutral | $322.20M | -3.58 | -29.33% | ― | 11.92% | 7.07% |
* Technology Sector Average
NLST
Netlist
2.90
2.17
296.58%
NVEC
NVE
91.25
23.50
34.68%
MRAM
Everspin Technologies
33.68
27.53
447.64%
VLN
Valens
3.22
0.97
43.11%
XPER
Xperi Inc
7.75
-0.14
-1.77%
ALMU
Aeluma, Inc.
22.64
8.24
57.22%
Netlist Corporate Events
Business Operations and Strategy
Netlist Extends Corporate Headquarters Lease in Irvine
Positive
Mar 9, 2026
On March 4, 2026, Netlist, Inc. renewed its lease for its corporate headquarters at 111 Academy, Suite 100, in Irvine, California, with landlord University Research Park LLC. The amendment extends the lease term through December 31, 2029, with no ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.