Netlist Reports 28% Revenue Growth to $188.6 Million for Fiscal Year 2025

Netlist, Inc. reported a significant increase in its financial performance for the fiscal year ending December 27, 2025, with net sales reaching $188.6 million, a 28% increase from $147.1 million in the previous year. The company achieved a gross profit of $11.4 million, representing a gross margin of 6%, compared to a gross profit of $2.9 million and a margin of 2% in fiscal 2024. This improvement was primarily driven by increased sales of RDIMM and discrete component products, which rose by $43.2 million, alongside a $4.3 million increase in low-profile memory subsystem sales. However, sales of flash and SSD products decreased by $6 million.

Operating expenses decreased significantly, totaling $37 million in 2025, down from $58.1 million in 2024. This reduction was largely due to a 57% decrease in research and development expenses, which fell to $3.5 million, and a 47% drop in intellectual property legal fees, which amounted to $20.2 million. Selling, general, and administrative expenses increased slightly by 9% to $13.2 million. Despite these reductions, the company reported a net loss of $24.8 million, an improvement from the $53.9 million loss in the prior year.

Strategically, Netlist has focused on strengthening its product offerings and market position. The company has been actively involved in litigation to protect its intellectual property, including ongoing cases against Samsung and Micron, which have resulted in substantial jury awards. In 2025, Netlist secured a $303 million verdict against Samsung for patent infringement, although the collectability of this award remains uncertain due to ongoing appeals. The company also amended its credit agreement with Silicon Valley Bank, extending the maturity date to November 2027, and raised approximately $9.3 million from an equity offering in October 2025.

Operationally, Netlist's customer base remains concentrated, with two customers accounting for approximately 43% of net product sales in 2025. The company reported a total of 72 employees as of the end of the fiscal year. Looking ahead, Netlist anticipates continued demand for its memory products, particularly driven by the adoption of AI technologies, although it acknowledges potential challenges related to supply chain dynamics and the expiration of its supply agreement with SK hynix in April 2026. The company expects to maintain sufficient liquidity to meet its operational needs for at least the next 12 months, supported by cash reserves of $42.1 million and ongoing revenue generation.