Netlist, Inc.

Second quarter revenue was $109.8 million, an increase of 163% versus Q2 2025. Gross profit was $22.9 million, up 1,544% year over year, and operating income was $1.3 million, an improvement of $8 million versus the prior-year quarter. For the first six months of 2026, revenue was $214.7 million, a threefold increase from the same period in 2025, and gross profit was $45.3 million, up 1,582% year over year. Netlist ended Q2 with $40.7 million of cash and cash equivalents and restricted cash, minimal debt, $10.5 million from warrant exercises, a $10 million working capital line of credit, and about $74 million available on its equity line. Management said it currently expects third-quarter product revenue to be similar to Q2 2026.

Chuck Hong framed the quarter as a continuation of strong execution, driven by robust demand, constrained memory supply, and improving profitability. He emphasized that Netlist is seeing traction in its own products, including Lightning DDR5 RDIMM/UDIMM solutions, while CXL NVvault is sampling with SoC vendors, hyperscalers, and OEMs. His tone was confident and combative on IP, pointing to new and ongoing legal actions against Samsung, progress in the Micron case, and broader advocacy for patent reform and stronger enforcement.

Gail Sasaki focused on the financial strength of the quarter, citing $109.8 million of Q2 revenue, $22.9 million of gross profit, and $1.3 million of operating income. She noted first-half revenue of $214.7 million and first-half gross profit of $45.3 million, both sharply higher than the prior year. On liquidity, she said Netlist ended with $40.7 million in cash and restricted cash, minimal debt, $10.5 million from warrant exercises, and additional borrowing/funding capacity through a $10 million working capital line and roughly $74 million available on the equity line. She also highlighted a very tight cash cycle, with DSO under 3 days, inventory turns averaging 10 days, and an average 15-day cash cycle.

Analysts asked about the status of the hynix license renewal and broader renewal discussions; Chuck said Netlist regularly discusses licenses and potential licenses and is making good progress, but gave no specifics because the discussions are privileged. On litigation, he said the Samsung ITC and court matters are connected through overlapping patents, with some district court cases stayed once the ITC institutes proceedings. He also said Netlist’s branded products are now in production, with the Lightning and other Netlist products in the “double digits millions” of revenue, and that supply remains manageable because of the company’s long industry relationships and continued support from hynix.