Netlist, Inc. filed its Form 10-Q for the quarterly period ended September 26, 2026, reporting a swing to profitability driven by a $44.9 million license fee and a $43.982 million income tax benefit recognized in the third quarter.

Key Highlights

  • Nine-month net income of $95,496 thousand: compared to a net loss of $22,575 thousand in the same period of the prior year, according to the filing.
  • Third-quarter license fee of $44,910 thousand: recognized in Q3 2026, with no comparable license fee recorded in Q3 2025, the filing disclosed.
  • Income tax benefit of $43,982 thousand: recorded in the three and nine months ended September 26, 2026, with no such benefit in the prior-year periods, per the filing.
  • Cash and cash equivalents of $317,685 thousand: as of September 26, 2026, up from $31,782 thousand as of December 27, 2025, the filing stated.
  • Total stockholders' equity of $157,944 thousand: as of September 26, 2026, compared to a deficit of $5,203 thousand as of December 27, 2025, according to the filing.
  • Shares outstanding of 388,041,589: as of November 5, 2026, the filing reported.
  • Intellectual property legal fees of $41,938 thousand: for the nine months ended September 26, 2026, up from $15,542 thousand in the prior-year period, the filing disclosed.

Netlist Q3 2026: License Fee and Tax Benefit Drive Turnaround

According to the filing, Netlist, Inc. reported net sales of $105,104 thousand for the three months ended September 26, 2026, compared to $42,234 thousand in the three months ended September 27, 2025. The increase was driven in part by a $44,910 thousand license fee recognized in the quarter, alongside net product sales of $60,194 thousand. For the nine-month period, net sales reached $319,841 thousand versus $112,915 thousand in the comparable prior-year period, the filing stated.

The company disclosed gross profit of $68,857 thousand for the third quarter of 2026, compared to $1,838 thousand in the third quarter of 2025. Operating income for the quarter was reported as $40,571 thousand, against an operating loss of $7,150 thousand in the prior-year period. The filing noted that intellectual property legal fees totaled $16,211 thousand for the three months ended September 26, 2026, up from $5,035 thousand in the same period of 2025, and $41,938 thousand for the nine-month period, up from $15,542 thousand. Selling, general and administrative expenses were $11,021 thousand for the quarter, compared to $3,131 thousand in the prior year.

The filing reported that an income tax benefit of $43,982 thousand was recorded in Q3 2026, contributing to net income of $85,448 thousand for the quarter. The company's balance sheet as of September 26, 2026 reflected total assets of $489,838 thousand, including deferred income taxes of $89,088 thousand and deferred revenue, noncurrent of $179,641 thousand, both of which had no balances as of December 27, 2025. The accumulated deficit narrowed to $267,016 thousand from $362,512 thousand at the prior fiscal year-end. The filing noted that the company had no securities registered under Section 12(b) of the Act, and no exchange or ticker symbol was listed on the cover page of the filing.

What Was Disclosed

Netlist filed its quarterly report for the period ended September 26, 2026, disclosing a nine-month net income of $95,496 thousand, a substantial license fee, a large income tax benefit, significant growth in cash, and a shift from stockholders' deficit to positive equity.