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Netlist (NLST)
OTHER OTC:NLST
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Netlist
(OTC:NLST)
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Rating:49Neutral
Price Target:
$1.00
▼(-15.25% Downside)
Action:ReiteratedDate:01/18/26
The score is held down primarily by weak financial quality (thin margins, continued losses, negative free cash flow, and negative equity). Technicals are supportive but overbought, while valuation is constrained by losses. The latest earnings call adds a modest uplift from improving cost control and an optimistic demand/product outlook, tempered by ongoing legal and execution risks.
Positive Factors
Revenue Growth
The significant revenue growth indicates strong market demand for Netlist's products and suggests successful execution of its business strategy, positioning the company for continued expansion in the memory market.
Product Innovation
New product introductions in high-growth areas like AI memory markets demonstrate Netlist's commitment to innovation and its ability to capitalize on emerging technology trends, enhancing its competitive position.
Intellectual Property Strength
Expanding the patent portfolio strengthens Netlist's IP position, providing a competitive edge and potential revenue through licensing, while protecting its innovations from competitors.
Negative Factors
Profitability Challenges
Persistent profitability issues indicate operational inefficiencies and high costs, which could hinder long-term financial stability and limit the company's ability to reinvest in growth opportunities.
High Financial Leverage
High financial leverage and negative equity suggest potential financial instability, which could restrict Netlist's ability to secure additional financing and impact its long-term operational flexibility.
Cash Flow Issues
Ongoing cash flow challenges highlight difficulties in generating sufficient cash from operations, which could affect Netlist's ability to fund its growth initiatives and meet financial obligations.
Netlist (NLST) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$361.33M
Dividend YieldN/A
Average Volume (3M)757.16K
Price to Earnings (P/E)―
Beta (1Y)0.47
Revenue Growth0.64%
EPS Growth39.90%
CountryUS
Employees60
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.02
Shares Outstanding307,249,360
10 Day Avg. Volume761,374
30 Day Avg. Volume757,161
Financial Highlights & Ratios
PEG Ratio0.24
Price to Book (P/B)-34.40
Price to Sales (P/S)1.41
P/FCF Ratio-6.00
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue2.46
Enterprise Value/Gross Profit75.62
Enterprise Value/Ebitda-12.57
Forecast
1Y Price Target
$2.00Price Target Upside69.49% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.04
Revenue Forecast (FY)$166.00M
Netlist Business Overview & Revenue Model
Company DescriptionNetlist, 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 dynamic random-access memory (DRAM) and NAND flash in a plug-and-play module delivering terabyte storage capacities operating at nanosecond memory speeds. The company also provides nonvolatile (NV) memory products, such as NVvault DDR4 NVDIMM that provides data acceleration and protection in a joint electron device engineering council standard DDR4 interface; and specialty DIMMs and embedded flash products for use in data center and industrial applications. It resells component products, including solid state drive (SSDs), NAND flash, and DRAM products to storage customers, appliance customers, system builders, and cloud and datacenter customers; and sells component inventory to distributors and other users of memory integrated circuits. The company markets and sells its products through a direct sales force and a network of independent sales representatives. Netlist, Inc. was incorporated in 2000 and is headquartered in Irvine, California.
How the Company Makes MoneyNetlist generates revenue through the sale of its advanced memory subsystem products, which include a variety of high-performance memory modules designed for servers, workstations, and other computing systems. The company's business model is centered around leveraging its intellectual property and proprietary technologies to create differentiated products that meet the needs of its customers. Key revenue streams include direct sales of memory products to original equipment manufacturers (OEMs) and other technology companies. Additionally, Netlist engages in licensing agreements for its patented technologies, which can provide a significant source of income through royalty payments. The company may also benefit from strategic partnerships and collaborations that help expand its market reach and enhance its product offerings.
Netlist Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 03, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive financial performance and product innovation against the backdrop of ongoing legal challenges with Samsung. Netlist is showing growth and strength in its market positioning but faces significant legal and operational hurdles.Q3-2025 Updates
Positive Updates
Strong Revenue Performance
Revenue for Q3 2025 was $42.2 million, reflecting solid demand from OEM and resale customers. Expected to slightly increase in Q4 2025.
Operating Expense and Net Loss Improvement
Operating expenses declined by 17% compared to the prior year's quarter and by 38% on a 9-month basis. Net loss improved by 25% compared to the prior year's quarter and by 45% for the 9-month period.
Cash Position and Financial Flexibility
Netlist ended Q3 2025 with $20.8 million in cash and cash equivalents. Raised $10 million through a direct offering and has approximately $74 million available on the equity line of credit.
Product Innovation and Market Positioning
Netlist is well-positioned in the memory market with innovative IP and custom memory solutions such as Lightning DDR5 DIMM for servers and CXL-based solutions like CXL NVDIMM and low-power MRDIMM.
Negative Updates
Ongoing Legal Disputes with Samsung
Netlist has several ongoing legal actions against Samsung for willful patent infringement, with a combined total damages awarded of $866 million. Samsung continues unauthorized use of Netlist's IP.
Impact of Federal Government Shutdown
The ITC process against Samsung was affected by the federal government shutdown, impacting the timeline for resolution.
Company Guidance
During the Netlist Third Quarter 2025 Earnings Conference Call, the company provided an optimistic outlook for future growth, driven by market dynamics and strategic initiatives. Netlist highlighted the ongoing memory market shortage, expected to persist until 2027, with AI-related demand significantly increasing DRAM and NAND pricing. The company is well-positioned to leverage these trends with innovative products like the Lightning DDR5 DIMM, aimed at high-performance markets such as quantitative trading. Netlist anticipates these products will contribute significantly to revenue in the coming year, with some qualifications by major OEMs and integrators expected to complete by year-end. The company also discussed active legal proceedings to defend its intellectual property, including recent actions against Samsung, Google, and Supermicro at the ITC, and multiple successful jury verdicts yielding $866 million in damages over patent infringements. Financially, Netlist reported Q3 2025 revenue of $42.2 million, a 25% reduction in quarterly net loss year-over-year, and strong liquidity with $20.8 million in cash and cash equivalents, buttressed by a recent $10 million direct offering and available credit lines.Netlist Financial Statement Overview
Summary
Overall fundamentals remain weak despite some improvement: structurally unprofitable with very thin gross margin (~3%), ongoing net losses, deeply negative operating/free cash flow (about -$37M TTM), and negative stockholders’ equity. Low absolute debt (~$3.6M) helps reduce leverage risk but does not offset profitability and cash-burn constraints.Income Statement
TTM (Trailing-Twelve-Months) revenue is essentially flat versus 2024, but the business remains structurally unprofitable with very thin gross profit (~3% gross margin) and a sizable net loss (about -24% net margin). Losses have narrowed meaningfully versus 2023 and improved versus 2024 (net loss down from roughly -37% margin in 2024), showing better cost control/operating leverage, but profitability is still far from breakeven and margins remain volatile (notably stronger in 2021, followed by multi-year deterioration).28
Negative
Balance Sheet
Leverage is low in absolute dollars (TTM debt of ~$3.6M), which reduces financial risk, but the capital structure is strained: stockholders’ equity is negative in TTM and 2024, implying accumulated losses have eroded the equity base and limiting balance-sheet flexibility. Total assets have increased versus 2024, yet the negative equity position remains a key weakness despite modest debt levels.33
Negative
Cash Flow
Cash generation is weak: TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are both deeply negative (about -$37M), reflecting ongoing cash burn. While free cash flow improved versus 2023 and is slightly worse than 2024, the company is still not self-funding operations, and cash flow performance remains heavily dependent on reversing operating losses rather than working-capital timing.22
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 147.19M | 147.10M | 69.20M | 161.64M | 142.35M | 47.23M |
| Gross Profit | 4.78M | 2.88M | 2.39M | 11.89M | 48.90M | 6.73M |
| EBITDA | -28.79M | -54.88M | -60.03M | -32.39M | 12.53M | -6.59M |
| Net Income | -35.29M | -53.87M | -60.40M | -33.37M | 4.83M | -7.27M |
Balance Sheet | ||||||
| Total Assets | 56.34M | 41.84M | 72.80M | 67.32M | 91.18M | 25.27M |
| Cash, Cash Equivalents and Short-Term Investments | 10.54M | 22.51M | 40.45M | 25.01M | 47.68M | 13.33M |
| Total Debt | 3.62M | 2.52M | 5.06M | 7.13M | 9.15M | 20.88M |
| Total Liabilities | 69.64M | 47.89M | 49.04M | 40.09M | 37.13M | 27.89M |
| Stockholders Equity | -13.29M | -6.05M | 23.76M | 27.24M | 54.04M | -2.62M |
Cash Flow | ||||||
| Free Cash Flow | -37.08M | -34.66M | -41.60M | -15.46M | 5.49M | -8.18M |
| Operating Cash Flow | -37.08M | -34.59M | -41.60M | -14.99M | 6.01M | -8.13M |
| Investing Cash Flow | -7.00K | -71.00K | 0.00 | -467.00K | -520.00K | -43.00K |
| Financing Cash Flow | 28.18M | 16.42M | 50.84M | 594.00K | 36.47M | 12.99M |
Netlist Technical Analysis
Positive
1.18
Price Trends
1.03
Positive
0.84
Positive
0.80
Positive
Market Momentum
0.03
Negative
57.56
Neutral
78.29
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 1.18 is above the 20-day moving average (MA) of 1.10, above the 50-day MA of 1.03, and above the 200-day MA of 0.80, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 57.56 is Neutral, neither overbought nor oversold. The STOCH value of 78.29 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 46 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $334.15M | 23.60 | 23.36% | 6.28% | -9.48% | -14.28% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $249.75M | 36.89 | 1.74% | ― | -10.74% | ― | |
57 Neutral | $253.02M | -457.20 | -0.91% | ― | -0.41% | -134.49% | |
51 Neutral | $320.38M | -117.02 | -13.80% | ― | 307.44% | 14.77% | |
49 Neutral | $361.33M | -9.18 | ― | ― | 0.64% | 39.90% | |
48 Neutral | $156.62M | -5.03 | -25.50% | ― | 7.53% | -15.00% |
* Technology Sector Average
NLST
Netlist
1.20
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81.34%
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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.