📊 NLST Key Takeaways
Is Netlist Inc. (NLST) a Good Investment?
Netlist exhibits severe financial distress with negative stockholders equity of -5.2M, indicating technical insolvency despite 28% revenue growth. The company is burning cash operationally (-14.7M) with an unsustainably low gross margin of 6.1%, revealing fundamental structural profitability challenges that cannot support long-term viability.
Despite strong top-line growth, profitability remains poor with very thin gross margins and sustained operating losses. Liquidity is strained (current ratio <1) and equity is negative, pointing to financial fragility and potential need for external financing. Until margins expand and operating cash flow turns positive, fundamentals are unfavorable.
Why Buy Netlist Inc. Stock? NLST Key Strengths
- Revenue growth of 28.2% YoY demonstrates top-line expansion
- Maintains substantial cash position of 31.8M providing near-term runway
- Net loss improving 2.3% YoY and diluted EPS improving 57.1% suggesting slight operational progress
- Strong revenue growth (+28% YoY)
- Cash balance of $31.8M with negligible long-term debt
- Capital-light model (minimal capex)
NLST Stock Risks: Netlist Inc. Investment Risks
- Negative stockholders equity of -5.2M indicates balance sheet insolvency and erosion of shareholder value
- Operating cash flow negative at -14.7M with free cash flow of -14.8M despite growing revenue demonstrates business model failure to generate cash
- Critically low gross margin of 6.1% reveals severe cost structure or pricing power issues unsustainable for semiconductor operations
- Current ratio of 0.88x signals working capital stress and potential liquidity crisis within 12 months
- Operating losses of -25.5M on 188.6M revenue indicate business unit economics are fundamentally broken
- Negative equity and sub-1.0 current ratio indicate liquidity stress
- Persistent operating losses and negative operating cash flow
- Very low gross margin (6.1%) leaves little buffer against pricing pressure
Key Metrics to Watch
- Gross margin trend and recovery path to industry-normal 30%+ levels
- Operating cash flow return to positive and timeline to cash breakeven
- Cash burn rate and remaining months of runway at current operating losses
- Gross margin (%)
- Operating cash flow (TTM)
Netlist Inc. (NLST) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
NLST Profit Margin, ROE & Profitability Analysis
NLST vs Technology Sector: How Netlist Inc. Compares
How Netlist Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Netlist Inc. Stock Overvalued? NLST Valuation Analysis 2026
Based on fundamental analysis, Netlist Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Netlist Inc. Balance Sheet: NLST Debt, Cash & Liquidity
NLST Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Netlist Inc.'s revenue has grown significantly by 33% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.21 indicates the company is currently unprofitable.
NLST Revenue Growth, EPS Growth & YoY Performance
NLST Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $40.2M | -$6.1M | $-0.02 |
| Q2 2025 | $36.8M | -$6.1M | $-0.02 |
| Q1 2025 | $29.0M | -$9.5M | $-0.03 |
| Q3 2024 | $16.7M | -$9.4M | $-0.04 |
| Q2 2024 | $10.0M | -$14.0M | $-0.06 |
| Q1 2024 | $9.0M | -$15.8M | $-0.07 |
| Q3 2023 | $16.7M | -$5.0M | $-0.04 |
| Q2 2023 | $10.0M | -$5.0M | $-0.02 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Netlist Inc. Dividends, Buybacks & Capital Allocation
NLST SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Netlist Inc. (CIK: 0001282631)
📋 Recent SEC Filings
❓ Frequently Asked Questions about NLST
What is the AI rating for NLST?
Netlist Inc. (NLST) has a Combined AI Rating of STRONG SELL from Claude (STRONG SELL) and ChatGPT (STRONG SELL) with 82% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are NLST's key strengths?
Claude: Revenue growth of 28.2% YoY demonstrates top-line expansion. Maintains substantial cash position of 31.8M providing near-term runway. ChatGPT: Strong revenue growth (+28% YoY). Cash balance of $31.8M with negligible long-term debt.
What are the risks of investing in NLST?
Claude: Negative stockholders equity of -5.2M indicates balance sheet insolvency and erosion of shareholder value. Operating cash flow negative at -14.7M with free cash flow of -14.8M despite growing revenue demonstrates business model failure to generate cash. ChatGPT: Negative equity and sub-1.0 current ratio indicate liquidity stress. Persistent operating losses and negative operating cash flow.
What is NLST's revenue and growth?
Netlist Inc. reported revenue of $188.6M.
Does NLST pay dividends?
Netlist Inc. does not currently pay dividends.
Where can I find NLST SEC filings?
Official SEC filings for Netlist Inc. (CIK: 0001282631) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is NLST's EPS?
Netlist Inc. has a diluted EPS of $-0.09.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is NLST a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Netlist Inc. has a STRONG SELL rating with 82% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is NLST stock overvalued or undervalued?
Valuation metrics for NLST: ROE of N/A (sector avg: 22%), net margin of -13.2% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy NLST stock in 2026?
Our dual AI analysis gives Netlist Inc. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is NLST's free cash flow?
Netlist Inc.'s operating cash flow is $-14.7M, with capital expenditures of $42.0K. FCF margin is -7.8%.
How does NLST compare to other Technology stocks?
Vs Technology sector averages: Net margin -13.2% (avg: 18%), ROE N/A (avg: 22%), current ratio 0.88 (avg: 2.5).