Netlist Q2 Earnings Call Highlights

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.

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.

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.

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.