Netlist (NLST) investor relations material

Executive summary

• Q3 2025 net sales reached $42.2 million, up from $40.2 million in Q3 2024, with gross profit rising to $1.8 million and net loss improving to $7.0 million from $9.4 million year-over-year.

• Progress made on product and IP initiatives, including new legal action against Samsung at the ITC and strengthened cash position.

• The company focuses on advanced memory and storage solutions, with a significant portion of sales from resales of third-party products, especially SK hynix.

• Lightning DDR5 DEM and other innovative products are being qualified by major OEMs and system integrators, with expected revenue contributions next year.

• Operations are primarily funded through equity and debt issuances, including recent offerings and a revolving credit facility.

Financial highlights

• Q3 2025 revenue was $42.2 million, with gross margin rising to 4% from 3% year-over-year and net loss declining 25% to $7.0 million.

• Operating expense declined 17% year-over-year and 38% for the nine-month period.

• For the nine months ended September 27, 2025, net sales were $112.9 million, with net loss improving to $22.6 million from $41.2 million.

• Ended Q3 with $20.8 million in cash and equivalents, down from $29 million in Q2.

• Gross profit for the nine months was $4.5 million, up from $2.6 million year-over-year.

Outlook and guidance

• Q4 2025 revenue expected to be slightly higher than Q3, based on current bookings and shipping visibility.

• Lightning product line anticipated to reach double-digit percentage of overall revenues in 2026 as qualifications complete.

• Management believes current cash balances, anticipated revenues, and available credit will meet cash needs for at least the next 12 months.

• The company faces uncertainty regarding the renewal of its supply agreement with SK hynix, expiring in April 2026.

• Strong positioning to capitalize on next-generation memory transitions, leveraging new patents covering DDR5 and HBM.