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Netlist (NLST)
OTHER OTC:NLST
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Netlist
(OTC:NLST)
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Rating:47Neutral
Price Target:―
Netlist's overall stock score is primarily influenced by its financial performance challenges, including significant profitability and cash flow issues. The company's technical indicators suggest a bearish trend, further weighing down the score. However, the earnings call provided a more positive outlook with strong revenue growth and strategic advancements, slightly elevating the overall score.
Netlist (NLST) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$191.74M
Dividend YieldN/A
Average Volume (3M)1.49M
Price to Earnings (P/E)―
Beta (1Y)0.83
Revenue Growth18.19%
EPS Growth43.04%
CountryUS
Employees60
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.02
Shares Outstanding307,249,360
10 Day Avg. Volume3,028,327
30 Day Avg. Volume1,492,236
Financial Highlights & Ratios
PEG Ratio0.25
Price to Book (P/B)-35.99
Price to Sales (P/S)1.48
P/FCF Ratio-6.28
Enterprise Value/Market Cap0.83
Enterprise Value/Revenue1.10
Enterprise Value/Gross Profit38.97
Enterprise Value/Ebitda-4.13
Forecast
1Y Price Target
$2.00Price Target Upside222.58% 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:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Positive
Netlist's second quarter of 2025 showcased strong revenue growth and significant legal victories, enhancing its financial and market position. However, the company faces supply constraints in DDR4 and ongoing legal appeals which could impact future stability.Q2-2025 Updates
Positive Updates
Significant Revenue Growth
Second quarter revenue increased by 44% sequentially and by 13% year-over-year, driven by strong demand for DDR5 and DDR4 products.
Legal Victories and Patent Strength
Netlist secured a $445 million damages award against Micron and successfully concluded a breach of contract case against Samsung, with $866 million in total damages from three verdicts for patent infringement.
Strategic Financial Positioning
Netlist strengthened its financial position with $29 million in cash and cash equivalents, minimal debt, and a successful $11.7 million direct offering.
Board Expansion
Appointment of two seasoned attorneys, Jun Cho and Blake Welcher, to the Board of Directors to strengthen expertise in product distribution, intellectual property, and licensing.
Negative Updates
DDR4 Supply Constraints
DDR4 supply is constrained due to major suppliers phasing out the product, impacting customers with long product life cycles.
Ongoing Legal Appeals
Micron has filed an appeal against the damages award, and the resolution of this and other legal actions is expected to take several years.
Company Guidance
During the Netlist Second Quarter 2025 Earnings Conference Call, CEO Chuck Hong and CFO Gail Sasaki provided guidance on several key metrics. Second quarter revenue increased by 44% sequentially and 13% year-over-year, reaching $41.7 million, driven by demand for DDR5 and DDR4 products. The company is navigating a transition in the DRAM market from DDR4 to DDR5, with DDR4 supply tightening and prices increasing due to manufacturers phasing it out. Operating expenses decreased by 52% compared to the previous year's quarter, due to reductions in IP legal fees and R&D. Netlist ended Q2 with $29 million in cash and cash equivalents, up from $25.6 million at the end of Q1, and raised $11.7 million through a direct offering. Legal actions secured $445 million in damages from Micron and concluded a breach of contract case against Samsung. Netlist expects third quarter revenue to be similar to the second quarter of 2025.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 | Dec 2019 | Dec 2018 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 145.14M | 147.10M | 69.20M | 161.64M | 26.10M | 33.53M |
| Gross Profit | 4.09M | 2.88M | 2.39M | 11.89M | 2.57M | 2.30M |
| EBITDA | -38.53M | -54.88M | -60.03M | -32.39M | -11.49M | -16.13M |
| Net Income | -37.68M | -53.87M | -60.40M | -33.37M | -12.45M | -17.12M |
Balance Sheet | ||||||
| Total Assets | 41.45M | 41.84M | 72.80M | 67.32M | 22.14M | 24.86M |
| Cash, Cash Equivalents and Short-Term Investments | 18.44M | 22.51M | 40.45M | 25.01M | 8.97M | 14.80M |
| Total Debt | 1.62M | 2.52M | 5.06M | 7.13M | 19.69M | 20.02M |
| Total Liabilities | 48.40M | 47.89M | 49.04M | 40.09M | 30.50M | 30.54M |
| Stockholders Equity | -6.96M | -6.05M | 23.76M | 27.24M | -8.36M | -5.67M |
Cash Flow | ||||||
| Free Cash Flow | -30.25M | -34.66M | -41.60M | -15.46M | -11.57M | -10.64M |
| Operating Cash Flow | -30.29M | -34.59M | -41.60M | -14.99M | -11.48M | -10.57M |
| Investing Cash Flow | -32.00K | -71.00K | 0.00 | -467.00K | -83.00K | -74.00K |
| Financing Cash Flow | 22.96M | 16.42M | 50.84M | 594.00K | 6.63M | 17.77M |
Netlist Technical Analysis
Negative
0.62
Price Trends
0.79
Negative
0.74
Negative
0.79
Negative
Market Momentum
-0.06
Positive
36.86
Neutral
2.97
Positive
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 0.62 is below the 20-day moving average (MA) of 0.74, below the 50-day MA of 0.79, and below the 200-day MA of 0.79, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 36.86 is Neutral, neither overbought nor oversold. The STOCH value of 2.97 is Positive, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $355.77M | 23.95 | 23.09% | 5.46% | -9.22% | -13.57% | |
71 Outperform | $237.34M | 138.03 | 2.76% | ― | -11.27% | -9.20% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | $311.33M | ― | -0.92% | ― | -6.09% | 97.33% | |
53 Neutral | $286.76M | ― | -29.96% | ― | 407.86% | 36.73% | |
47 Neutral | $191.74M | ― | ― | ― | 18.19% | 43.04% | |
42 Neutral | $190.29M | ― | -24.56% | ― | 8.70% | -13.95% |
* Technology Sector Average
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Netlist
0.62
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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.