The revenue beat signals continued demand for memory products, but the sequential profit collapse and absence of guidance raise caution. Watch Q3 for legal fee trajectory — if litigation costs remain elevated, net income may stay depressed. The stock may react negatively to the profit drop despite the headline revenue growth.
Price Chart
Executive Summary
Netlist reported Q2 2026 revenue of $109.8M (+163% YoY, +22% above $90M consensus), but net income fell sharply to $1.4M from $8.6M in Q1 2026, dragged by a surge in IP legal fees ($16.8M vs $9.0M in Q1). No guidance was provided, leaving the market to weigh strong top-line momentum against deteriorating sequential profitability.
Key Financial Metrics
Key Facts
- Q2 2026 net sales $109.8M, +163% YoY from $41.7M; revenue beat ~$90M consensus by 22%
- Net income $1.4M ($0.00 diluted EPS) vs net loss of $6.1M in Q2 2025, but down 84% sequentially from $8.6M in Q1 2026
- Intellectual property legal fees surged to $16.8M in Q2 from $9.0M in Q1 and $3.5M in the year-ago quarter
- Gross profit $22.9M (20.8% margin) vs $1.4M in Q2 2025; operating income $1.3M vs loss of $6.2M
- Cash and equivalents $30.7M, down from $31.8M at year-end; deferred revenue collapsed to $3.0M from $30.6M
Financial Impact
Revenue beat of ~$19.8M vs consensus, but net income decline of ~$7.2M sequentially creates a mixed picture; legal fees are the primary profit headwind
Risk Factors
- IP litigation costs could remain high and further compress margins
- No forward guidance provided, increasing uncertainty
- OTC listing limits liquidity and institutional coverage
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001104659-26-088464 |
| Document: tm2621423d1_8k.htm | 0001104659-26-088464 |
| Document: 0001104659-26-088464-index-headers.html | 0001104659-26-088464 |
| Document: 0001104659-26-088464-index.html | 0001104659-26-088464 |
| Document: 0001104659-26-088464.txt | 0001104659-26-088464 |
| 8-K Data (Synthetic) | 0001104659-26-088464 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 5, 2026 8w ago | 8-K | $4.05 $5.15 | ▲ +27.16% | ▲ +27.76% | $5.67 (+40.00%) |
Jul 30, 2026 9w ago | 8-K | $2.38 $6.09 | ▲ +155.88% | ▲ +151.92% | $5.67 (+138.24%) |
May 12, 2026 20w ago | 8-K | $3.02 $2.58 | ▼ −14.57% | ▼ −12.84% | $5.67 (+87.75%) |
Apr 22, 2026 23w ago | 144 | $2.10 $2.50 | ▲ +19.05% | ▲ +15.88% | $5.67 (+170.00%) |
Apr 22, 2026 23w ago | Insider Cluster | $2.18 $2.98 | ▲ +36.70% | ▲ +31.74% | $5.67 (+160.09%) |
Mar 16, 2026 28w ago | Insider Cluster | $1.63 $1.78 | ▼ −9.20% | ▼ −1.58% | $5.67 (−247.85%) |
Mar 16, 2026 28w ago | Insider Cluster | $1.60 $1.71 | ▼ −6.88% | ▼ −2.57% | $5.67 (−254.38%) |
US Market Status
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