Netlist, Inc. reported financial results for the third quarter ended September 26, 2026, showing a significant increase in revenue and profitability compared to the prior year. The company announced that net sales for the quarter rose 149% year-over-year to $105.1 million.
Revenue was driven by two main sources. A license fee revenue of $44.9 million was recognized pursuant to the Samsung License Agreement, consisting of the amortization of an upfront fee and the first quarterly payment. Additionally, net product sales were $60.2 million, an increase of 43% compared to the third quarter of 2025.
Financial metrics for the quarter included a gross margin of 65.5%, an increase of over 61 percentage points from the 4.4% margin reported in the prior year. The company reported operating income of $40.6 million, a substantial improvement from an operating loss of $7.2 million in the third quarter of 2025. Net income for the quarter was $85.4 million, or $0.22 per diluted share, compared to a net loss of $7.0 million, or $(0.02) per share, in the prior year.
Netlist also highlighted a strengthened balance sheet. Cash, cash equivalents, and restricted cash totaled $327.7 million at the end of the quarter, up from $40.7 million at the end of the previous quarter. The increase was primarily attributed to an initial cash payment of $200 million and a first quarterly payment of $27.5 million from Samsung.
Netlist’s Chief Executive Officer, C.K. Hong, stated that the results represent the third consecutive quarter of significant year-over-year revenue growth and improved profitability. Chief Financial Officer Gail Sasaki noted the improvement in gross margins and the substantial strengthening of the balance sheet through the Samsung agreement proceeds.
