Netlist (0K6M) AI Stock Analysis

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Netlist

(LSE:0K6M)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Recurring IP MonetizationThe five-year Micron license converts Netlist’s patent portfolio into a substantial recurring payment stream while resolving all pending proceedings between the companies. This improves revenue visibility, validates the commercial value of its memory IP, and can strengthen financial flexibility.

Negative Factors

Negative Cash ConversionPersistent negative operating and free cash flow shows that reported profitability has not yet translated into cash generation. This gap can constrain internally funded growth, increase reliance on financing or capital markets, and weaken confidence that the turnaround is durable.

Netlist (0K6M) vs. iShares MSCI United Kingdom ETF (EWC)

Market Cap: $2.27B
Dividend Yield: ―
Average Volume (3M): 62.65K
Price to Earnings (P/E): 7900.0
Beta (1Y): -0.55
Revenue Growth: 129.21%
EPS Growth: 99.29%
Country: UK
Employees: 69
Sector: Technology
Sector Strength: 61
Industry: Semiconductors

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 sto...

Netlist Earnings Call Summary

Earnings Call Date:Jul 29, 2026(Q2-2026)|% Change Since:159.26%|Next Earnings Date:Nov 09, 2026

Earnings Call SentimentPositive

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.

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 Risk Analysis

Netlist disclosed 43 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

1 New Risk

1.We entered into a Supply Agreement with Samsung Semiconductor with the right to purchase from Samsung Semiconductor for an aggregate of up to $1.5 billion of DRAM and NAND products, subject to certain limitations, and if Samsung Semiconductor breaches or is unable to honor its obligations under the Supply Agreement, our business could be adversely impacted. In addition, the quarterly license fee payments we expect to receive under the Samsung License Agreement are subject to adjustment, reduction, and potential refund obligations, which could reduce the amounts we ultimately retain.Q2, 2026

Netlist Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

GB:0K6M against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NVEC	75Outperform	$375.80M	20.97	30.52%	5.16%	24.06%	29.27%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
XPER	59Neutral	$259.95M	-7.60	-7.84%	―	-3.87%	-946.99%
MRAM	53Neutral	$331.40M	-33.97	-14.09%	―	28.74%	-1527.71%
ALMU	49Neutral	$145.63M	-14.43	-20.50%	―	-4.37%	-118.50%
VLN	47Neutral	$163.50M	-4.84	-31.56%	―	7.68%	0.83%

* Technology Sector Average

Performance Comparison

GB:0K6M and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
GB:0K6M	Netlist	6.30	5.65	876.74%
NVEC	NVE Corporation	77.58	12.25	18.75%
MRAM	Everspin Technologies Inc	13.61	3.15	30.11%
VLN	Valens	1.51	-0.21	-12.21%
XPER	Xperi Inc	5.33	-1.27	-19.24%
ALMU	Aeluma, Inc.	7.54	-8.84	-53.97%

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.

Netlist AI Stock Analysis