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Netlist
(OTC:NLST)
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Rating:50Neutral
Price Target:
$2.50
▲(0.00% Upside)
Action:Reiterated
Date:08/05/26
NLST’s score is held back primarily by weak underlying financial quality (ongoing cash burn and still-thin profitability) and very unattractive valuation (extremely high P/E). Offsetting factors include a notably positive earnings call with strong operational improvements and liquidity, plus a significant positive corporate event (Samsung alliance, cross-license/settlement, supply agreement, and equity purchase). Technicals are broadly neutral and do not materially change the view.
Positive Factors
Strategic alliance with Samsung
A five-year cross-license and supply agreement with Samsung structurally reduces supply risk, provides stable access to DRAM/NAND, and increases IP monetization visibility. Samsung's equity purchase strengthens liquidity and aligns a major supplier/customer for multi-year product roadmaps.
Negative Factors
Persistent negative cash flow
Despite recent revenue gains, materially negative trailing operating and free cash flow show the business still consumes cash to operate. Continued cash burn raises funding and dilution risks if profitability and cash generation do not convert sustainably positive over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strategic alliance with Samsung
A five-year cross-license and supply agreement with Samsung structurally reduces supply risk, provides stable access to DRAM/NAND, and increases IP monetization visibility. Samsung's equity purchase strengthens liquidity and aligns a major supplier/customer for multi-year product roadmaps.
Read all positive factors
Netlist (NLST) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$783.30M
Dividend YieldN/A
Average Volume (3M)881.97K
Price to Earnings (P/E)2937.5
Beta (1Y)0.44
Revenue Growth129.21%
EPS Growth99.29%
CountryUS
Employees72
SectorTechnology
Sector Strength88
IndustryComputer Hardware
Share Statistics
EPS (TTM)<0.01
Shares Outstanding333,317,140
10 Day Avg. Volume771,562
30 Day Avg. Volume881,972
Financial Highlights & Ratios
PEG Ratio0.17
Price to Book (P/B)-50.61
Price to Sales (P/S)1.40
P/FCF Ratio-17.87
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$10.00Price Target Upside300.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.03
Revenue Forecast (FY)$374.90M
Netlist Business Overview & Revenue Model
Company Description
Netlist, Inc. engineers, manufactures, and distributes memory subsystems, catering to the server, high-performance computing, and telecommunications sectors both domestically and internationally. Their product line includes HybriDIMM, an advanced ...
How the Company Makes Money
Netlist primarily makes money through two broad revenue channels: (1) sales of hardware products and (2) monetization of its intellectual property (IP). On the product side, revenue comes from selling specialized memory solutions—such as server-fo...
Netlist Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call conveyed a strongly positive near-term operational and financial performance with very large year-over-year revenue and gross profit gains, improved operating income, solid liquidity, efficient working capital, and advancing proprietary product development. The company also emphasized meaningful progress in expanding and enforcing its IP portfolio. Offsetting these positives are dependence on resale of constrained DRAM supplies, modest absolute operating income relative to revenue, and significant legal and timing uncertainties tied to multi-venue litigation and appeals that could materially affect future results. Overall the highlights outweigh the lowlights given the magnitude of revenue and profit improvements and available liquidity.Positive Updates
Strong Revenue Growth
Second quarter 2026 revenue of $109.8 million, an increase of 163% year-over-year. First half 2026 revenue of $214.7 million, a threefold increase versus the first half of 2025.
Negative Updates
High Reliance on Resale of Tight DRAM Supplies
A meaningful portion of revenue was driven by resale of difficult-to-source DRAM products. This reliance could expose revenue and margins to sourcing changes or normalization of DRAM pricing once supply constraints ease.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Revenue Growth
Second quarter 2026 revenue of $109.8 million, an increase of 163% year-over-year. First half 2026 revenue of $214.7 million, a threefold increase versus the first half of 2025.
Read all positive updates
Company Guidance
Netlist said it does not formally guide but, based on bookings and shipments to date and the visibility available today, currently expects third-quarter product revenue to be similar to second-quarter 2026 product revenue of $109.8 million; that outlook is supported by a strong first half (H1) with revenue of $214.7 million (roughly 3x year‑ago H1) and robust margin and profitability improvement — Q2 gross profit $22.9 million (up 1,544% vs. Q2 2025), H1 gross profit $45.3 million (up 1,582% vs. prior year H1) and Q2 operating income of $1.3 million (an $8.0 million improvement year‑over‑year). The company also noted liquidity and execution metrics that underpin the near‑term outlook: $40.7 million in cash and restricted cash, $10.5 million received from exercised warrants, a $10 million working capital line, ~ $74 million available on its equity line, DSO <3 days, ~10‑day inventory turns and an average cash cycle of ~15 days.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 | 332.69M | 188.63M | 147.10M | 69.20M | 161.64M | 142.35M |
| Gross Profit | 54.02M | 11.44M | 2.88M | 2.39M | 11.89M | 48.90M |
| EBITDA | 9.89M | -5.00M | -54.88M | -60.03M | -32.39M | 12.53M |
| Net Income | 789.00K | -24.82M | -53.87M | -60.40M | -33.37M | 4.83M |
Balance Sheet | ||||||
| Total Assets | 73.31M | 49.48M | 41.84M | 72.80M | 67.32M | 91.18M |
| Cash, Cash Equivalents and Short-Term Investments | 30.66M | 31.78M | 22.51M | 40.45M | 25.01M | 47.68M |
| Total Debt | 3.59M | 1.81M | 2.52M | 5.06M | 7.13M | 9.15M |
| Total Liabilities | 50.13M | 54.68M | 47.89M | 49.04M | 40.09M | 37.13M |
| Stockholders Equity | 23.18M | -5.20M | -6.05M | 23.76M | 27.24M | 54.04M |
Cash Flow | ||||||
| Free Cash Flow | -18.82M | -14.73M | -34.66M | -41.60M | -15.46M | 5.49M |
| Operating Cash Flow | -18.82M | -14.73M | -34.59M | -41.60M | -14.99M | 6.01M |
| Investing Cash Flow | -17.00K | -42.00K | -71.00K | 0.00 | -467.00K | -520.00K |
| Financing Cash Flow | 16.81M | 22.25M | 16.42M | 50.84M | 594.00K | 36.47M |
Netlist Technical Analysis
Positive
2.50
Price Trends
2.74
Negative
2.40
Positive
1.65
Positive
Market Momentum
-0.10
Positive
49.06
Neutral
62.77
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 2.5 is below the 20-day moving average (MA) of 2.56, below the 50-day MA of 2.74, and above the 200-day MA of 1.65, indicating a neutral trend. The MACD of -0.10 indicates Positive momentum. The RSI at 49.06 is Neutral, neither overbought nor oversold. The STOCH value of 62.77 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 |
|---|---|---|---|---|---|---|---|
84 Outperform | $562.42M | 31.26 | 30.53% | 3.40% | 24.07% | 23.86% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $372.17M | -7.79 | -11.02% | ― | -8.30% | -139.29% | |
53 Neutral | $340.69M | 1,210.83 | 0.42% | ― | 15.94% | ― | |
50 Neutral | $783.30M | 2,937.50 | 20.86% | ― | 129.21% | 99.29% | |
48 Neutral | $296.55M | -46.73 | -17.19% | ― | 43.23% | -34.14% | |
46 Neutral | $169.99M | -5.13 | -29.33% | ― | 11.92% | 7.07% |
* Technology Sector Average
NLST
Netlist
2.56
1.89
282.09%
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Netlist Corporate Events
Business Operations and StrategyLegal ProceedingsPrivate Placements and Financing
Netlist Forms Strategic Alliance and Equity Deal with Samsung
Positive
Aug 5, 2026
On August 5, 2026, Netlist announced a five-year strategic alliance with Samsung that includes a patent portfolio cross-license, a memory product supply agreement and a technology cooperation framework. Samsung gains access to Netlist’s full...
Business Operations and StrategyExecutive/Board Changes
Netlist Adopts 2026 Performance-Based Equity Compensation Plan
Neutral
Jul 2, 2026
On July 1, 2026, Netlist, Inc. adopted a new 2026 Performance Equity Plan that authorizes the company to grant stock options, restricted and unrestricted stock awards, and other stock-based incentives to employees, consultants, and directors. The ...
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.