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Netlist (NLST)
:NLST
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Netlist
(OTC:NLST)
Rating:47Neutral
Price Target:―
Netlist (NLST) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$193.72M
Dividend YieldN/A
Average Volume (3M)402.15K
Price to Earnings (P/E)―
Beta (1Y)0.85
Revenue Growth112.56%
EPS Growth16.18%
CountryUS
Employees60
SectorTechnology
Sector Strength79
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.03
Shares Outstanding274,803,500
10 Day Avg. Volume288,371
30 Day Avg. Volume402,155
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)-5.65
Price to Sales (P/S)0.00
P/FCF Ratio-4.08
Enterprise Value/Market Cap7.07
Enterprise Value/Revenue2.46
Enterprise Value/Gross Profit394.55
Enterprise Value/Ebitda-6.19
Forecast
1Y Price Target
$2.00Price Target Upside177.78% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
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:May 06, 2025
(Q1-2025)
| % Change Since: -17.24%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Neutral
Netlist reported stable financial performance and significant progress in patent litigation, positioning itself for growth in the AI memory market. However, challenges from tariff uncertainties and consumer demand softness present ongoing risks.Q1-2025 Updates
Positive Updates
Revenue in Line with Expectations
Netlist's revenue for Q1 2025 was $29 million, in line with expectations despite short-term softness in consumer demand.
Operating Expense Reduction
Operating expenses for Q1 2025 declined by 44% compared to the prior year's quarter, mainly due to reductions in IT legal fees.
Significant Financial Flexibility
Netlist ended Q1 2025 with $25.6 million in cash and cash equivalents and a $10 million working capital line of credit, maintaining significant financial flexibility and liquidity.
Patent Litigation Progress
Netlist is progressing through appeals in multiple patent cases, with significant damages awarded in previous judgments, including $303 million and $118 million against Samsung, and $445 million against Micron.
Growth in AI Memory Market
Netlist is positioned to capitalize on the growing demand for AI memory, with plans to introduce high-capacity, high-performance MRDIMM products later in the year.
Negative Updates
Tariff Uncertainty
U.S. tariffs have created disruptions in the memory market, with expected adjustments as tariffs impact the supply chain.
Consumer Demand Softness
There is short-term softness in the consumer demand environment, which affected Q1 2025 revenue.
Pending Legal Uncertainties
Samsung has lost multiple times in court, but the potential for appeal processes to extend up to a year creates ongoing legal uncertainties.
Company Guidance
In the first quarter of 2025, Netlist reported revenue of $29 million, aligning with expectations amidst a challenging consumer demand environment. Operating expenses decreased by 44% from the previous year's quarter, largely due to reduced legal fees. The company ended the quarter with $25.6 million in cash and equivalents, down from $34.6 million at the end of 2024, but maintained financial flexibility with a $10 million working capital line of credit and $74 million available on an equity line of credit. Despite tariff uncertainties impacting the memory market, Netlist remains optimistic about the growing demand for high bandwidth memory (HBM) and DDR5, including MRDIMM products, with plans to launch a new product line later this year. The legal landscape continues to be active, with ongoing litigation involving Samsung and Micron, including a $303 million damages award and multiple appeals in progress.Netlist Financial Statement Overview
Summary
Netlist operates in the volatile semiconductor industry, facing significant profitability and cash flow challenges. Despite recent revenue growth, the company struggles with operational inefficiencies and high financial leverage. Sustained negative margins and cash flows highlight the need for strategic improvements to stabilize financial performance.Income Statement
Netlist has seen fluctuating revenue trends with recent growth, but profitability remains a challenge. The Gross Profit Margin is low at around 2%, and Net Profit Margin is deeply negative due to significant net losses. The EBIT and EBITDA margins are also negative, indicating operational inefficiencies and high expenses relative to revenue.45
Neutral
Balance Sheet
The company's balance sheet reflects high financial leverage with a negative stockholders' equity, indicating more liabilities than assets. The Debt-to-Equity ratio cannot be calculated due to negative equity, and there is a negative Return on Equity due to persistent losses. This suggests potential financial instability and risk.30
Negative
Cash Flow
Netlist's cash flow situation is concerning, with consistently negative Free Cash Flow and Operating Cash Flow. The Free Cash Flow to Net Income ratio is negative due to ongoing losses, indicating cash generation challenges. However, recent financing activities have provided some cash inflow, which is not sustainable long-term.40
Negative
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 140.27M | 147.10M | 69.20M | 161.64M | 142.35M | 47.23M | Gross Profit |
| 3.47M | 2.88M | 2.39M | 11.89M | 48.90M | 6.73M | EBIT |
| -47.61M | -55.23M | -61.76M | -33.50M | 11.38M | -6.84M | EBITDA |
| -47.35M | -54.88M | -60.03M | -32.39M | 12.53M | -6.69M | Net Income Common Stockholders |
| -46.38M | -53.87M | -60.40M | -33.37M | 4.83M | -7.27M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 14.43M | 22.51M | 40.45M | 25.01M | 47.68M | 13.33M | Total Assets |
| 32.42M | 41.84M | 72.80M | 67.32M | 91.18M | 25.27M | Total Debt |
| 2.42M | 1.87M | 5.06M | 7.13M | 9.15M | 20.88M | Net Debt |
| -12.01M | -20.64M | -35.39M | -17.89M | -38.52M | 7.55M | Total Liabilities |
| 46.10M | 47.89M | 49.04M | 40.09M | 37.13M | 27.89M | Stockholders Equity |
| -13.67M | -6.05M | 23.76M | 27.24M | 54.04M | -2.62M |
| Cash Flow | Free Cash Flow | ||||
| -30.41M | -34.66M | -41.60M | -15.46M | 5.49M | -8.18M | Operating Cash Flow |
| -30.44M | -34.59M | -41.60M | -14.99M | 6.01M | -8.13M | Investing Cash Flow |
| -47.00K | -71.00K | 0.00 | -467.00K | -520.00K | -43.00K | Financing Cash Flow |
| 14.93M | 16.42M | 50.84M | 594.00K | 36.47M | 12.99M |
Netlist Technical Analysis
Negative
0.72
Price Trends
0.81
Negative
0.83
Negative
0.93
Negative
Market Momentum
-0.03
Negative
42.17
Neutral
36.88
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NLST, the sentiment is Negative. The current price of 0.72 is below the 20-day moving average (MA) of 0.73, below the 50-day MA of 0.81, and below the 200-day MA of 0.93, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 42.17 is Neutral, neither overbought nor oversold. The STOCH value of 36.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $337.01M | 14.59 | 21.69% | ― | -14.48% | 46.79% | |
73 Outperform | $347.94M | 22.01 | 23.57% | 5.56% | -13.18% | -12.06% | |
62 Neutral | $11.97B | 10.08 | -7.46% | 2.96% | 7.37% | -8.22% | |
61 Neutral | $367.78M | ― | -4.71% | ― | -4.77% | 84.82% | |
57 Neutral | $355.55M | ― | -1369.57% | ― | 14.68% | 20.20% | |
47 Neutral | $193.72M | ― | -608.27% | ― | 112.56% | 16.18% | |
42 Neutral | $238.96M | ― | -375.37% | ― | ― | -10774.57% |
* Technology Sector Average
Performance Comparison
NLST
Netlist
0.72
-0.81
-52.94%
AEHR
Aehr Test Systems
11.32
-0.99
-8.04%
NVEC
NVE
68.52
-0.61
-0.88%
AIP
Arteris
7.94
-0.06
-0.75%
BZAI
Blaize Holdings
2.35
-8.77
-78.87%
XPER
Xperi Inc
7.83
0.21
2.76%
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.