Netlist (OTCMKTS:NLST) Releases Earnings Results, Misses Expectations By $0.38 EPS

Netlist (OTCMKTS:NLST) released its earnings results on Tuesday. The semiconductor company reported $0.22 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.60 by ($0.38), Zacks reports. The firm had revenue of $105.10 million during the quarter, compared to analysts’ expectations of $308.60 million. Netlist had a return on equity of 20.86% and a net margin of 0.24%.

Here are the key takeaways from Netlist’s conference call:

• Net sales rose 149% year over year to $105.1 million, including $60.2 million in product sales, up 43%. Operating income was $40.6 million; reported net income of $85.4 million also benefited from a $44 million tax benefit tied primarily to releasing a deferred-tax valuation allowance.
• Netlist expects combined Samsung and Micron license revenue of about $73 million per quarter starting in Q4 2026, or $292 million annually during the agreements’ terms. Management said the deals provide long-term revenue visibility and a benchmark for pursuing other licenses.
• Management expects Q4 operating income and product sales to be substantially higher than in Q3, citing Micron’s recurring license payment, stronger product demand, and initial sales of Samsung-supplied products. The Samsung agreement also gives Netlist the right to purchase up to $300 million annually in DRAM and NAND.
• Operating expenses climbed to $28.3 million from $9 million a year earlier, with intellectual-property legal fees rising to $16.2 million amid Samsung and Micron matters. Netlist expects legal costs to moderate, but plans continued investment in sales, marketing, R&D, and product development.
• Netlist plans to accelerate development of HybriDIMM CXL and low-power MRDIMMs for AI memory and KV-cache applications, while exploring acquisitions and technologies for edge AI. Management described these as growth priorities, but provided no specific timelines or financial targets.

Netlist Stock Performance

OTCMKTS NLST opened at $6.43 on Wednesday. The stock’s 50 day moving average is $5.75 and its 200 day moving average is $3.30. Netlist has a twelve month low of $0.45 and a twelve month high of $7.12.

Wall Street Analyst Weigh In

Separately, Roth Capital reissued a “buy” rating on shares of Netlist in a research note on Wednesday, September 2nd. One analyst has rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $15.00.

About Netlist

Netlist, Inc. develops and supplies memory products and technologies for data-intensive computing. Its offerings include memory modules and memory subsystems used in servers, storage systems and other computing platforms. The company’s products include NVVault and other solutions designed to support data protection and performance in enterprise systems. Netlist also develops memory architectures and holds patents related to memory technology, which it seeks to commercialize through product sales and intellectual-property licensing.