Netlist (NLST) Q2 2026 earnings summary

Executive summary

• Achieved record product revenue and profitability in the first half of 2026, with net sales of $214.7 million and net income of $10.0 million, driven by strong demand, proprietary product growth, and constrained memory supply.

• Q2 2026 net sales reached $109.8 million, up 163% year-over-year, with gross profit of $22.9 million (20.8% margin) and net income of $1.4 million, reversing prior losses.

• Significant legal settlements and new agreements with Samsung, including a $200 million upfront license fee, a five-year supply agreement, and resolution of all pending patent litigations.

• Expanded legal actions to defend and enforce patent portfolio, with DOJ and PTO issuing joint support in key legal matters.

• Continued focus on next-generation AI memory technologies and IP portfolio defense.

Financial highlights

• Q2 2026 revenue was $109.8 million, up 163% year-over-year; first half revenue totaled $214.7 million, a threefold increase from 2025.

• Q2 gross profit was $22.9 million, up 1,544% year-over-year; first half gross profit was $45.3 million, up 1,582% from 2025.

• Q2 operating income was $1.3 million, an $8 million improvement year-over-year.

• Ended Q2 with $40.7 million in cash and equivalents, minimal debt, and strong liquidity from credit facilities.

• Stockholders’ equity improved to $23.2 million from a deficit of $5.2 million at year-end 2025.

Outlook and guidance

• Q3 2026 product revenue expected to be similar to Q2, based on current bookings and shipments.

• Management expects continued robust demand for memory products, supported by AI adoption and new supply agreements.

• Upfront payment of $200 million from Samsung License Agreement anticipated in August 2026.

• Sufficient liquidity is expected for at least the next 12 months, with additional capital available from credit and equity facilities.