Netlist (NLST.US) hinted during its earnings call on Tuesday that it is working to reach memory technology licensing agreements with SK hynix Inc. (SKHY.US) and other memory suppliers, which fueled retail sentiment toward the over-the-counter stock on Stocktwits. The remarks were disclosed alongside quarterly results showing sharp growth in both revenue and profit.
"So there's hynix, Micron, and the third-largest — they are the No. 1 and No. 3 memory makers, Samsung and Micron, sorry. And then hynix. So I think we can infer who the next logical license would be," Netlist CEO C.K. Hong said on the analyst call. He added: "There are other important memory suppliers beyond the top three. We will continue to pursue important parties outside the top three."
Netlist designs and sells specialized memory modules and memory products for servers and data centers, and also holds memory technology patents that it licenses to semiconductor companies. The company's stock trades on the OTCQB tier under OTC Markets Group — a tier for smaller, over-the-counter companies that do not open outside trading.
Netlist said Tuesday that third-quarter net sales rose 149% to $105.1 million, including an initial licensing fee from Samsung. Third-quarter 2026 net income was $85.4 million, or $0.22 per diluted share; a year earlier it posted a net loss of $7 million, or $0.02 per share.
"We are pleased to report our third consecutive quarter of significant year-over-year revenue growth and improved profitability, driven by product sales as well as recognition of licensing revenue under the Samsung agreement," Hong said in the press release.
Netlist recently resolved a series of patent lawsuits. In August of this year, the company reached a settlement with Samsung and signed a new five-year cross-licensing agreement, under which Samsung agreed to pay $239 million upfront, plus quarterly payments of up to $32.9 million (gross).
Netlist's patent litigation with Micron began in 2021, and in one of the cases a 2024 jury awarded Netlist $445 million. The two sides reached a settlement in October 2026 covering all pending disputes, with Micron receiving a five-year license and agreeing to pay $30 million per quarter through the third quarter of 2031, totaling $600 million.
As of press time, NLST was one of the most heavily discussed tickers on Stocktwits, with retail sentiment rising from "bearish" the previous day to "extremely bullish." Year to date, Netlist shares are up 615%.
"From Chuck's attitude toward litigation on this call, what I can hear is that this is very consistent with what Netlist said in its presentation materials about 'entering a new chapter' — and it also aligns with an inevitable Nasdaq uplisting — meaning the focus now is strictly on fundamentals, execution and growth," one trader wrote on Stocktwits.
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