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Netlist
(OTC:NLST)
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Rating:64Neutral
Price Target:
$6.50
▲(26.95% Upside)
Action:Reiterated
Date:10/07/26
The score is driven primarily by improving operating performance and low leverage, supported by strong technical uptrend. However, the overall rating is capped by continued negative operating/free cash flow and an extremely high P/E, while earnings call and corporate events are constructive but still leave execution and profitability-scaling risks.
Positive Factors
Recurring IP Monetization
The Micron agreement converts Netlist’s patent portfolio into a contracted five-year payment stream while resolving all pending proceedings with a major semiconductor company. This improves revenue visibility, validates the commercial value of its memory IP, and can support liquidity and investment in future products.
Negative Factors
Negative Cash Generation
Negative operating and free cash flow remains a fundamental weakness despite the return to accounting profitability. Continued cash burn can constrain internally funded growth, increase reliance on external capital, and weaken the durability of the turnaround unless earnings begin converting into cash.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring IP Monetization
The Micron agreement converts Netlist’s patent portfolio into a contracted five-year payment stream while resolving all pending proceedings with a major semiconductor company. This improves revenue visibility, validates the commercial value of its memory IP, and can support liquidity and investment in future products.
Read all positive factors
Netlist (NLST) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.30B
Dividend YieldN/A
Average Volume (3M)2.38M
Price to Earnings (P/E)7600.0
Beta (1Y)0.93
Revenue Growth129.21%
EPS Growth99.29%
CountryUS
Employees69
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)<0.01
Shares Outstanding378,041,600
10 Day Avg. Volume2,221,862
30 Day Avg. Volume2,378,288
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 Cap0.45
Enterprise Value/Revenue3.10
Enterprise Value/Gross Profit19.09
Enterprise Value/Ebitda38.70
Forecast
1Y Price Target
$15.00Price Target Upside192.97% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.79
Revenue Forecast (FY)$708.10M
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
54
Neutral
Balance Sheet
58
Neutral
Cash Flow
34
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 | 26.65M | -5.00M | -54.88M | -18.82M | -33.03M | 12.15M |
| 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 | -15.57M | -14.73M | -34.66M | -41.60M | -15.46M | 5.49M |
| Operating Cash Flow | -15.52M | -14.73M | -34.59M | -41.60M | -14.99M | 6.01M |
| Investing Cash Flow | -66.00K | -42.00K | -71.00K | 0.00 | -467.00K | -520.00K |
| Financing Cash Flow | 27.20M | 22.25M | 16.42M | 50.84M | 594.00K | 36.47M |
Netlist Technical Analysis
Positive
5.12
Price Trends
5.28
Positive
4.02
Positive
2.78
Positive
Market Momentum
0.36
Negative
56.36
Neutral
51.81
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 below the 20-day moving average (MA) of 5.63, below the 50-day MA of 5.28, and above the 200-day MA of 2.78, indicating a bullish trend. The MACD of 0.36 indicates Negative momentum. The RSI at 56.36 is Neutral, neither overbought nor oversold. The STOCH value of 51.81 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $533.10M | 29.63 | 30.53% | 3.63% | 24.07% | 23.86% | |
64 Neutral | $2.30B | 7,600.00 | 20.86% | ― | 129.21% | 99.29% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $242.88M | -7.10 | -7.84% | 1.27% | -3.87% | -946.99% | |
57 Neutral | $372.07M | -141.22 | -3.79% | ― | 20.89% | -240.91% | |
53 Neutral | $179.74M | -5.32 | -31.56% | ― | 7.68% | 0.83% | |
47 Neutral | $201.26M | -19.94 | -20.50% | ― | -4.37% | -118.50% |
* Technology Sector Average
NLST
Netlist
6.08
5.46
877.49%
NVEC
NVE
110.21
43.11
64.24%
MRAM
Everspin Technologies
15.28
3.90
34.27%
VLN
Valens
1.66
-0.15
-8.29%
XPER
Xperi Inc
4.98
-1.51
-23.27%
ALMU
Aeluma, Inc.
10.42
-7.00
-40.18%
Netlist Corporate Events
Business Operations and StrategyFinancial DisclosuresLegal Proceedings
Netlist Secures $600 Million Micron Patent License Deal
Positive
Oct 6, 2026
On October 6, 2026, Netlist announced that it has entered into patent license and settlement agreements with Micron Technology, resolving all pending legal proceedings between the two companies. Under the agreements, Micron receives a five-year li...
Executive/Board ChangesShareholder Meetings
Netlist Stockholders Approve Board Slate and Auditor
Positive
Sep 21, 2026
On September 18, 2026, Netlist, Inc. held its 2026 Annual Meeting of Stockholders in Irvine, California, with approximately 58.46% of eligible common shares represented in person or by proxy, ensuring a valid quorum for corporate decisions. Shareh...
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...
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.