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 gross profit of $45.3 million, driven by strong demand and constrained memory supply.

• Q2 2026 net sales reached $109.8 million, up 163% year-over-year, and gross profit surged to $22.9 million, a 1,544% increase year-over-year.

• Net income was $1.4 million in Q2 2026, reversing a net loss of $6.1 million in Q2 2025; six-month net income was $10.0 million versus a $15.6 million loss a year ago.

• Significant growth in proprietary product lines, including Lightning DDR5 solutions and ongoing development of next-generation CXL NVvault and MRDIMM technologies.

• Expanded legal actions to defend and enforce patent portfolio, particularly against Samsung and Micron, with multiple ongoing ITC and federal court cases.

Financial highlights

• Q2 2026 revenue reached $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.

• Basic and diluted EPS for six months ended June 27, 2026: $0.03 (2025: $(0.06)).

• Weighted-average shares outstanding (diluted, six months): 356.1 million (2025: 274.1 million).

Outlook and guidance

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

• Continued robust demand anticipated for memory products, with supply constraints projected to persist into next year.