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Netlist (NLST)
OTHER OTC:NLST
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Netlist (NLST) AI Stock Analysis

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NLST

Netlist

(OTC:NLST)

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Neutral 56 (OpenAI - Gpt-5.6Sol)
Rating:56Neutral
Price Target:
$5.50
▲(7.42% Upside)
Action:Reiterated
Date:08/21/26
NLST’s score is primarily driven by improving operating performance and low leverage, but is held back by ongoing negative free cash flow and historically volatile profitability. Technically, the stock has strong trend momentum but appears overextended, adding near-term risk. Valuation is a major drawback given the extremely high P/E and no dividend support, while the earnings update and Samsung alliance provide meaningful positive catalysts and reduced uncertainty with a key counterpart.
Positive Factors
Strong Revenue and Gross Profit Growth
The sharp revenue rebound and substantial gross-profit growth indicate stronger product demand and improved commercial execution. If sustained, this higher scale can support operating leverage and strengthen Netlist’s position in enterprise and high-performance memory markets.
Negative Factors
Negative Operating and Free Cash Flow
Persistent cash burn shows that the income-statement recovery has not yet translated into durable cash generation. Continued negative conversion could require external financing, constrain investment, and weaken confidence that recent profitability is sustainable.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue and Gross Profit Growth
The sharp revenue rebound and substantial gross-profit growth indicate stronger product demand and improved commercial execution. If sustained, this higher scale can support operating leverage and strengthen Netlist’s position in enterprise and high-performance memory markets.
Read all positive factors

Netlist (NLST) vs. SPDR S&P 500 ETF (SPY)

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
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
Financial results show a turnaround in progress: TTM revenue rebounded strongly and operating profit turned positive (~7.9% operating margin). Balance sheet leverage is low (modest debt), supporting flexibility. Offsetting these positives, cash generation is weak with materially negative TTM operating and free cash flow (~-$15.5M), and historical margin/equity volatility lowers confidence in durability.
Income Statement
54
Neutral
Balance Sheet
58
Neutral
Cash Flow
34
Negative
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue332.69M188.63M147.10M69.20M161.64M142.35M
Gross Profit54.02M11.44M2.88M2.39M11.89M48.90M
EBITDA26.65M-5.00M-54.88M-18.82M-32.39M12.53M
Net Income789.00K-24.82M-53.87M-60.40M-33.37M4.83M
Balance Sheet
Total Assets73.31M49.48M41.84M72.80M67.32M91.18M
Cash, Cash Equivalents and Short-Term Investments30.66M31.78M22.51M40.45M25.01M47.68M
Total Debt3.59M1.81M2.52M5.06M7.13M9.15M
Total Liabilities50.13M54.68M47.89M49.04M40.09M37.13M
Stockholders Equity23.18M-5.20M-6.05M23.76M27.24M54.04M
Cash Flow
Free Cash Flow-15.57M-14.73M-34.66M-41.60M-15.46M5.49M
Operating Cash Flow-15.52M-14.73M-34.59M-41.60M-14.99M6.01M
Investing Cash Flow-66.00K-42.00K-71.00K0.00-467.00K-520.00K
Financing Cash Flow27.20M22.25M16.42M50.84M594.00K36.47M

Netlist Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5.12
Price Trends
50DMA
3.44
Positive
100DMA
2.95
Positive
200DMA
2.00
Positive
Market Momentum
MACD
0.70
Negative
RSI
68.14
Neutral
STOCH
34.15
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 5.12 is above the 20-day moving average (MA) of 4.52, above the 50-day MA of 3.44, and above the 200-day MA of 2.00, indicating a bullish trend. The MACD of 0.70 indicates Negative momentum. The RSI at 68.14 is Neutral, neither overbought nor oversold. The STOCH value of 34.15 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 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 0 New Risks

Netlist Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
83
Outperform
$516.80M28.8030.53%3.40%24.07%23.86%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
60
Neutral
$307.26M-9.04-7.84%-3.87%-946.99%
57
Neutral
$429.29M-162.75-3.79%20.89%-240.91%
56
Neutral
$1.81B7,200.0020.86%129.21%99.29%
53
Neutral
$195.99M-5.74-31.56%7.68%0.83%
42
Neutral
$273.96M-39.86-17.19%43.23%-34.14%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NLST
Netlist
6.08
5.23
616.98%
NVEC
NVE
107.08
44.25
70.43%
MRAM
Everspin Technologies
17.46
10.89
165.75%
VLN
Valens
1.87
-0.16
-7.88%
XPER
Xperi Inc
6.07
0.03
0.50%
ALMU
Aeluma, Inc.
13.82
-7.56
-35.36%

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&#8217;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.Date of analysis: Aug 21, 2026