NETLIST INC (NLST): Results of Operations and Financial Condition
NETLIST INC (NLST) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Netlist Reports Second Quarter 2026 Results IRVINE, CALIFORNIA , July 30, 2026 - Netlist, Inc. (OTCQB: NLST) today reported financial results for the second quarter ended June 27, 2026. Highlights: · Net sales for the second quarter of 2026 were $109.8 million, an in
How this was made
The 30-second read
Why it matters
The filing provides fresh quarterly financials (revenue, gross profit, net income) and updated balance-sheet items (cash, inventories, accounts payable, debt), which can change near-term valuation and risk perception.
Market read
For NLST, the headline trading driver is the magnitude of YoY sales and gross-profit growth plus the swing to net income, disclosed in a primary filing today.
What to watch
The release emphasizes defending an IP portfolio and ongoing litigation risk; traders may haircut the sustainability of revenue growth until monetization/collection timelines are clearer.
Netlist Reports Second Quarter 2026 Results
Second-quarter net sales increased 163% year over year to $109.8 million, gross profit increased 1,544% to $22.9 million, and the company reported net income of $1.4 million versus a net loss of $(6.1) million.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, three months ended June 27, 2026GAAP | $ 109,845 (In thousands) | – | 163% |
| Cost of sales, three months ended June 27, 2026GAAP | 86,962 (In thousands) | – | – |
| Gross profit, three months ended June 27, 2026GAAP | 22,883 (In thousands) | – | 1,544% |
| Research and development, three months ended June 27, 2026GAAP | 1,050 (In thousands) | – | – |
| Intellectual property legal fees, three months ended June 27, 2026GAAP | 16,753 (In thousands) | – | – |
| Selling, general and administrative, three months ended June 27, 2026GAAP | 3,741 (In thousands) | – | – |
| Total operating expenses, three months ended June 27, 2026GAAP | 21,544 (In thousands) | – | – |
| Operating income (loss), three months ended June 27, 2026GAAP | 1,339 (In thousands) | – | – |
| Interest income, net, three months ended June 27, 2026GAAP | 32 (In thousands) | – | – |
| Other income, net, three months ended June 27, 2026GAAP | 32 (In thousands) | – | – |
| Total other income, net, three months ended June 27, 2026GAAP | 64 (In thousands) | – | – |
| Income (loss) before provision for income taxes, three months ended June 27, 2026GAAP | 1,403 (In thousands) | – | – |
| Provision for income taxes, three months ended June 27, 2026GAAP | — (In thousands) | – | – |
| Net income (loss), three months ended June 27, 2026GAAP | $ 1,403 (In thousands) | – | – |
| Basic earnings (loss) per common share, three months ended June 27, 2026GAAP | $ 0.00 | – | – |
| Diluted earnings (loss) per common share, three months ended June 27, 2026GAAP | $ 0.00 | – | – |
| Weighted-average common shares outstanding, basic, three months ended June 27, 2026GAAP | 327,594 | – | – |
| Weighted-average common shares outstanding, diluted, three months ended June 27, 2026GAAP | 370,752 | – | – |
| Total stock-based compensation, three months ended June 27, 2026GAAP | $ 809 (In thousands) | – | – |
| Net sales, six months ended June 27, 2026GAAP | $ 214,737 (In thousands) | – | 204% |
| Gross profit, six months ended June 27, 2026GAAP | 45,272 (In thousands) | – | 1,582% |
| Total operating expenses, six months ended June 27, 2026GAAP | 35,368 (In thousands) | – | – |
| Operating income (loss), six months ended June 27, 2026GAAP | 9,904 (In thousands) | – | – |
| Net income (loss), six months ended June 27, 2026GAAP | $ 10,048 (In thousands) | – | – |
| Basic earnings (loss) per common share, six months ended June 27, 2026GAAP | $ 0.03 | – | – |
| Diluted earnings (loss) per common share, six months ended June 27, 2026GAAP | $ 0.03 | – | – |
| Total stock-based compensation, six months ended June 27, 2026GAAP | $ 1,765 (In thousands) | – | – |
What drove it
- Net sales for the second quarter of 2026 were $109.8 million, an increase of 163% compared to the second quarter of 2025.
- Gross profit for the second quarter of 2026 was $22.9 million, an increase of 1,544% compared to the second quarter of 2025.
- Netlist stated that it continues to drive the development of next generation AI memory technologies and defend its IP portfolio against unauthorized use.
- Six-month net sales were $214.7 million, compared to net sales of $70.7 million for the six months ended June 28, 2025.
Concerns
- Intellectual property legal fees were 16,753 (In thousands) for the three months ended June 27, 2026, compared with 3,480 (In thousands) for the three months ended June 28, 2025.
- Accounts payable were $ 41,369 (In thousands) as of June 27, 2026, compared with $ 20,612 (In thousands) as of December 27, 2025.
- The filing identifies risks involving collections of damages awards, litigation outcomes with Samsung, Micron and Google, demand persistence, component acquisition terms, competitive conditions, and trade and tariff policies.
What to watch
- Whether the current market and demand for products sold by Netlist persists as expected.
- Progress in development and launch of new products that are attractive to the market.
- Outcomes and costs of patent litigation and other proceedings involving Netlist's intellectual property portfolio.
- Whether Netlist continues to acquire components or products for resale on favorable terms.
- Any future financial outlook, as no forward guidance was provided in this release.
Balance sheet and cash flow
- Cash and cash equivalents: $ 30,655 (In thousands) as of June 27, 2026; $ 31,782 (In thousands) as of December 27, 2025.
- Restricted cash: 10,000 (In thousands) as of June 27, 2026; 10,300 (In thousands) as of December 27, 2025.
- Accounts receivable, net: 3,149 (In thousands) as of June 27, 2026; 2,411 (In thousands) as of December 27, 2025.
- Inventories: 26,871 (In thousands) as of June 27, 2026; 3,383 (In thousands) as of December 27, 2025.
- Accounts payable: $ 41,369 (In thousands) as of June 27, 2026; $ 20,612 (In thousands) as of December 27, 2025.
- Revolving line of credit: 2,627 (In thousands) as of June 27, 2026; 1,788 (In thousands) as of December 27, 2025.
- Long-term debt due within one year: 162 (In thousands) as of June 27, 2026; — (In thousands) as of December 27, 2025.
- Total current assets: 71,409 (In thousands) as of June 27, 2026; 48,208 (In thousands) as of December 27, 2025.
- Total assets: $ 73,313 (In thousands) as of June 27, 2026; $ 49,477 (In thousands) as of December 27, 2025.
- Total liabilities: 50,130 (In thousands) as of June 27, 2026; 54,680 (In thousands) as of December 27, 2025.
- Total stockholders' equity (deficit): 23,183 (In thousands) as of June 27, 2026; (5,203) (In thousands) as of December 27, 2025.
Analysis
Netlist reported a sharply improved second quarter ended June 27, 2026. Net sales were $109.8 million, up 163% from the second quarter of 2025, while gross profit was $22.9 million, up 1,544%. The company recorded operating income of 1,339 (In thousands), compared with an operating loss of (6,247) (In thousands) in the prior-year quarter, and net income was $1.4 million compared with a net loss of $(6.1) million.
The first-half result also shifted to profitability. Six-month net sales were $214.7 million, an increase of 204% compared with the same prior-year period, and gross profit was $45.3 million, an increase of 1,582%. Six-month operating income was 9,904 (In thousands), compared with an operating loss of (16,014) (In thousands), while six-month net income was $10.0 million, or $0.03 per share, compared with a net loss of $(15.6) million, or $(0.06) per share.
Legal spending tied to intellectual property remained a major operating expense. Intellectual property legal fees were 16,753 (In thousands) in the second quarter and 25,727 (In thousands) for the first six months of 2026. Netlist's stated operating focus is next generation AI memory technologies and defense of its IP portfolio, while its risk disclosures emphasize the uncertainty, potential costs, and collection timing associated with litigation.
The balance sheet showed cash and cash equivalents of $ 30,655 (In thousands) at June 27, 2026, alongside inventories of 26,871 (In thousands) and accounts payable of $ 41,369 (In thousands). Total stockholders' equity was 23,183 (In thousands), compared with stockholders' deficit of (5,203) (In thousands) at December 27, 2025. The release provided no revenue, margin, expense, tax-rate, or other financial guidance, and reported no capital-return activity or cash-flow results.
Management, verbatim
Netlist delivered its second consecutive quarter of significant revenue growth and improved profitability.
C.K. Hong, Chief Executive Officer
We continue to drive the development of next generation AI memory technologies and defend our IP portfolio against unauthorized use.
C.K. Hong, Chief Executive Officer
Not in the filing
stated, not guessed- Forward financial guidance.
- Prior-period outlook for comparison.
- Gross margin.
- Quarter-over-quarter comparisons for reported financial metrics.
- Revenue by operating segment.
- Operating cash flow.
- Free cash flow.
- Capital expenditures.
- Share repurchases.
- Dividends.
- Non-GAAP financial measures.
- A statement of cash flows.
- Capital-return activity.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is Netlist’s SEC Form 8-K (Item 2.02) reporting second-quarter 2026 results for the period ended June 27, 2026, with an investor call scheduled the same day.
Ticker impact
Netlist reported Q2 2026 net sales of $109.8M (+163% YoY) and swung to net income of $1.4M from a $6.1M loss.
Near-term bias to the upside on earnings-momentum, but traders may discount sustainability given working-capital build (inventories, payables) and ongoing IP litigation risk language.
This is a primary quarterly results filing with multiple hard datapoints (sales, gross profit, net income) and updated condensed balance sheet figures, which typically drive immediate repricing for small caps.
Market effects
Signals improving demand or monetization for advanced memory/storage tied to AI, though company-specific and not a broad sector print.
Limited, as the disclosure is company-specific with no stated regional macro linkage.
Modest, relevant mainly to AI memory/IP monetization narratives rather than global supply-chain shocks.
Counterpoint
The profitability improvement may be partly offset by working-capital strain (inventories up sharply, accounts payable elevated), so cash conversion and margin durability are key risks.
Key entities
- companyNetlist, Inc.
OTCQB-listed memory and storage technology company reporting Q2 2026 results and balance-sheet updates.
- executiveC.K. Hong
Chief Executive Officer quoted on revenue growth and improved profitability.
- executiveGail Sasaki
Chief Financial Officer listed for the investor conference call.
