📊 NLST Key Takeaways
Is NLST a Good Investment? Thesis Analysis
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.
Why Buy 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
NLST Investment Risks to Consider
- 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
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
NLST Financial Metrics
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
NLST Profitability Ratios
NLST vs Technology Sector
How NETLIST INC compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is NLST Overvalued or Undervalued?
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.
NLST Balance Sheet & Liquidity
NLST 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
NLST Quarterly 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.
NLST Capital Allocation
NLST SEC 10-K & 10-Q Filing 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 an AI rating of STRONG SELL with 85% 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.
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.
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 85% 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).