Netlist’s Q3 sales jump 149% as Samsung license fees lift results
Netlist reported third-quarter sales of $105.1 million, up 149% year over year, as its results included license fee revenue from Samsung. The advanced memory and storage company also reported $85.4 million in net income and a sharp increase in cash, cash equivalents and restricted cash.
- Third-quarter net sales rose 149% year over year to $105.1 million.
- Samsung-related license fee revenue contributed $44.9 million.
- Net income reached $85.4 million, or $0.22 per diluted share.
- Cash, cash equivalents and restricted cash rose to $327.7 million.
- Net product sales increased 43% to $60.2 million.
Samsung agreement drives a surge in revenue
Netlist said net sales for the quarter ended September 26, 2026, reached $105.1 million, compared with the third quarter of 2025. The figure included $44.9 million in license fee revenue recognized under the Samsung License Agreement.
According to Netlist, that license fee revenue consisted of amortization of the upfront license fee and the first quarterly license fee. Net product sales were $60.2 million, an increase of 43% compared with the same quarter a year earlier.
Chief Executive Officer C.K. Hong said the company had recorded its third consecutive quarter of significant year-over-year revenue growth and improved profitability. He attributed product revenue growth to demand from customers in AI and data center applications.
Profitability improves alongside higher margins
Netlist reported a gross margin of 65.5% in the third quarter, compared with 4.4% in the third quarter of 2025. The company said the increase primarily reflected license fee revenue, which has no associated cost of sales, as well as higher product gross margin.
Operating income was $40.6 million, compared with an operating loss of $7.2 million in the year-earlier quarter. Net income was $85.4 million, or $0.22 per diluted share, compared with a net loss of $7.0 million, or $(0.02) per share, in the third quarter of 2025.
Chief Financial Officer Gail Sasaki said gross margins improved because of the company’s focus on higher margin opportunities. Netlist’s release also reported $245 million in operating cash flow during the quarter.
Cash position strengthens after Samsung payments
Cash, cash equivalents and restricted cash stood at $327.7 million on September 26, 2026, up from $40.7 million on June 27, 2026. Netlist said the increase was primarily due to Samsung’s initial cash payment of $200 million and first quarterly payment of $27.5 million.
The company’s balance sheet listed $317.685 million in cash and cash equivalents and $10 million in restricted cash at September 26. Total assets were $489.838 million, while total stockholders’ equity was $157.944 million, compared with a deficit of $5.203 million at December 27, 2025.
Netlist said C.K. Hong and Gail Sasaki would host an investor conference call on November 10, 2026, at 5:00 p.m. Eastern Time. The live webcast and archived replay will be available through the Investors section of Netlist’s website for 90 days.
The company cautioned that its forward-looking statements involve risks and uncertainties, including the collection of amounts owed under its Samsung and Micron agreements, adjustments to quarterly license fees, patent litigation outcomes, product demand, competition and broader economic and market conditions. The reported results show the immediate effect of Samsung-related payments and license revenue, while Netlist said future outcomes remain subject to those risks.
PR Newswire: Netlist Reports Third Quarter 2026 Results
