Netlist Reports 5% Revenue Growth and Improved Net Loss in Q3 2025

Netlist, Inc. reported its financial results for the third quarter of 2025, revealing net sales of $42.2 million, a 5% increase from $40.2 million in the same period last year. The company achieved a gross profit of $1.8 million, up 61% from $1.1 million in the prior year, primarily due to a favorable product sales mix. However, Netlist recorded a net loss of $7.0 million for the quarter, an improvement from a loss of $9.4 million in the third quarter of 2024. For the nine months ending September 27, 2025, net sales remained relatively stable at $112.9 million compared to $112.8 million in the previous year, while the net loss for the period decreased to $22.6 million from $41.2 million.

The company’s financial position showed significant changes compared to the previous fiscal period. As of September 27, 2025, total current assets increased to $54.9 million from $39.8 million, driven by a rise in inventories and accounts receivable. Conversely, total current liabilities rose to $69.4 million from $47.1 million, leading to a stockholders' deficit of $13.3 million, compared to a deficit of $6.0 million at the end of December 2024. The increase in liabilities was attributed to higher accounts payable and accrued payroll expenses.

Strategically, Netlist has made notable advancements, including the approval of the Netlist, Inc. 2025 Equity Incentive Plan and an amendment to its Restated Certificate of Incorporation to increase the number of authorized shares of common stock from 450 million to 675 million. The company also completed two significant equity offerings in June and October 2025, raising approximately $11.3 million and $9.1 million, respectively. These funds are expected to support ongoing operations and product development.

Operationally, Netlist reported a decrease in research and development expenses, which fell by 62% in the third quarter compared to the previous year, largely due to a reduction in employee headcount. The company’s customer base remains concentrated, with three customers accounting for a significant portion of sales. As of September 27, 2025, deferred revenue stood at $27.0 million, reflecting advance payments for orders shipped after the quarter's end. The company continues to rely heavily on its partnership with SK hynix for product supply, which is critical for maintaining revenue levels.

Looking ahead, Netlist's management expressed confidence in its ability to meet cash needs for at least the next 12 months, supported by existing cash balances and anticipated revenues. However, they acknowledged potential risks, including reliance on key customers and suppliers, as well as the impact of ongoing litigation related to intellectual property. The company remains focused on expanding its product offerings and enhancing its market position in the competitive memory and storage solutions sector.