Netlist Reports Third Quarter 2026 Results

Net sales rose 149% year over year to $105.1 million and included initial license fees from Samsung

Strengthened balance sheet with cash, cash equivalents and restricted cash rising to $327.7 million at quarter-end

, /PRNewswire/ -- Netlist, Inc. (OTCQB: NLST ), a leading innovator in advanced memory and storage solutions, today reported financial results for the third quarter ended September 26, 2026.

Third Quarter 2026 Highlights:

Net sales for the third quarter of 2026 were $105.1 million, an increase of 149% compared to the third quarter of 2025

License fee revenue of $44.9 million was recognized in the third quarter of 2026 pursuant to the Samsung License Agreement, consisting of amortization of the upfront license fee and the first quarterly license fee.

Net product sales for the third quarter of 2026 were $60.2 million, an increase of 43% compared to the third quarter of 2025.

Gross margin for the third quarter of 2026 was 65.5%, an increase of over 61 percentage points compared to 4.4% in the third quarter of 2025, primarily reflecting license fee revenue, which has no associated cost of sales, and higher product gross margin.

Operating income in the third quarter of 2026 was $40.6 million, which improved from an operating loss of $7.2 million in the third quarter of 2025.

Net income for the third quarter of 2026 was of $85.4 million, or $0.22 per diluted share, compared to a net loss of $7.0 million, or $(0.02) per share, in the third quarter of 2025.

Cash, cash equivalents and restricted cash rose to $327.7 million at September 26, 2026 from $40.7 million at June 27, 2026, primarily due to the initial cash payment of $200 million and first quarterly payment of $27.5 million by Samsung.

"We are pleased to report our third consecutive quarter of significant year-over-year revenue growth and improved profitability led by both product sales and the recognition of license revenue under our Samsung agreement," said Chief Executive Officer, C.K. Hong. "Year-over-year product revenue growth was driven by strong demand from customers in AI and data center applications."

"Gross margins improved and was driven by our focus on higher margin opportunities," said Gail Sasaki, Chief Financial Officer. "During the quarter, we substantially strengthened our balance sheet with the initial proceeds from our Samsung agreement and generated operating cash flow of $245 million."

Conference Call Information

C.K. Hong, Chief Executive Officer, and Gail Sasaki, Chief Financial Officer, will host an investor conference call today, November 10, 2026 at 5:00 p.m. Eastern Time to review Netlist's results for the third quarter ended September 26, 2026. The live webcast and archived replay of the call can be accessed for 90 days in the Investors section of Netlist's website at www.netlist.com .

About Netlist

Netlist is a leading innovator in advanced memory and storage solutions. With a rich portfolio of patented technologies, Netlist's inventions are foundational to the advancement of AI computing. To learn more about Netlist, please visit www.netlist.com .

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