Netlist OTCMKTS: NLST reported second-quarter revenue of $109.8 million, up 163% from the second quarter of 2025, as demand for difficult-to-source DRAM products and the company’s memory product portfolio supported growth.
Chief Executive Officer Chuck Hong said first-half revenue exceeded $200 million and product gross margins topped $45 million. He attributed the performance to robust demand, sales and operations execution, and generally constrained memory-product supply conditions that analysts expect to continue through next year.
For the first six months of 2026, Netlist reported revenue of $214.7 million, a threefold increase from the same period of 2025. Second-quarter gross profit rose 1,544% year over year to $22.9 million, while first-half gross profit reached $45.3 million, according to Chief Financial Officer Gail Sasaki.
Revenue outlook and liquidity
Netlist said it does not formally provide guidance, but Sasaki said current bookings and shipments indicate third-quarter product revenue is expected to be similar to the second quarter, subject to the company’s present visibility.
Operating income was $1.3 million in the second quarter, representing an $8 million improvement from the prior-year quarter. Sasaki said operating expenses continued to reflect investments in research and development, intellectual-property initiatives and selling, general and administrative activities intended to support revenue growth.
The company ended the quarter with $40.7 million in cash, cash equivalents and restricted cash, as well as minimal debt. During the quarter, Netlist received $10.5 million from the cash exercise of outstanding warrants. Sasaki said the company also had a $10 million working-capital line of credit and about $74 million available under its equity line of credit.
Netlist’s days sales outstanding remained below three days, while inventory turned in an average of 10 days between quarters, producing an average cash cycle of about 15 days, Sasaki said.
Memory products and development programs
Hong said a substantial portion of quarterly revenue came from reselling difficult-to-source DRAM products. He also pointed to growth in Netlist’s own product portfolio, including its Lightning lineup of overclocked, low-latency DDR5 RDIMM and UDIMM products.
During the question-and-answer session, Hong said the Lightning product line was in production and shipping and was generating “probably” double-digit millions of dollars in revenue. He said Netlist is also progressing with other branded products but did not provide a revenue breakdown between resale activity and its internally developed products.
Netlist’s next-generation CXL NVvault product is sampling with system-on-chip vendors, hyperscalers and major original equipment manufacturers for future hardware platforms, Hong said. The company is partnering with the CXL Consortium and Storage Networking Industry Association on industry education and technical efforts, with plans to discuss those efforts at CXL Mini DevCon 2026 in Santa Clara.
The company also continues development of MRDIMM and low-power MRDIMM technologies designed to address bandwidth limits of conventional DDR5 RDIMMs. Hong said Netlist holds more than a dozen patents related to MRDIMM technology.
Asked about its ability to source memory products in a constrained market, Hong cited Netlist’s 25-year industry presence, global sourcing network and supply agreement with SK hynix. He said the company continues to receive supply support from SK hynix for DDR4 and DDR5 products.
Samsung litigation and ITC proceedings
Hong provided updates on several patent disputes involving Samsung. Netlist announced expanded legal actions in June involving recently issued patents that the company says cover high-bandwidth memory, DDR5 RDIMMs and MRDIMMs.
In July, the U.S. International Trade Commission instituted Netlist’s second case against Samsung and named customers Google, Nvidia, Supermicro and Broadcom. Hong said the investigation has been assigned to an administrative law judge and Netlist expects a procedural schedule in August, including dates for a Markman hearing and evidentiary hearing.
In Netlist’s first ITC case against Samsung, the company is asserting six patents that it says read on DDR5 memory modules and high-bandwidth memory. The Markman hearing occurred in April, discovery closed July 8, and the evidentiary hearing is scheduled to begin in late November.
Hong said a favorable ITC ruling could block imports of infringing Samsung products and result in cease-and-desist orders affecting named customers. He said Netlist believes it has a strong position in the first ITC case, though the ultimate outcome remains subject to the adjudication process.
He also said cases in the Eastern District of Texas involving the same patents are stayed after the ITC institutes proceedings. Netlist has additional cases involving Samsung in the Eastern District of Texas, the ITC and the District of Delaware, he said.
Appeals involving Samsung and Micron
Netlist is awaiting a Federal Circuit decision in Samsung’s appeal of a 2023 Eastern District of Texas jury verdict that awarded Netlist $303 million for Samsung’s willful infringement of five Netlist patents. Oral arguments took place in March, according to Hong.
The company is also awaiting a hearing before the Ninth Circuit in its breach-of-contract case against Samsung, where appellate briefing has concluded. Hong said Netlist expects that hearing in coming months.
Separately, Federal Circuit oral arguments in Micron’s appeal of a 2024 Eastern District of Texas verdict awarding Netlist $445 million are scheduled for Sept. 9. Netlist’s appeals related to inter partes reviews of the asserted patents are scheduled to be heard the same day.
Hong said Netlist continues to engage with government officials regarding patent-reform proposals, including RESTORE, PREVAIL and PERA, and cited prior Department of Justice statements of interest that he said supported Netlist’s positions in matters involving Samsung.
About Netlist (OTCMKTS:NLST)
Netlist, Inc is a technology company specializing in the design and development of high-performance memory and storage subsystems for enterprise and data center applications. The company's product portfolio encompasses advanced memory modules, nonvolatile memory express (NVMe) solid-state drives and intelligent memory expansion systems. These solutions are engineered to boost memory density, bandwidth and overall system performance in hyperscale, cloud computing and high-performance computing environments.
Headquartered in Irvine, California, Netlist serves customers across the Americas and Asia through a combination of direct sales and channel distribution partners.
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