Aspen Aerogels, Inc. Reports First Quarter 2025 Financial Results and Recent Business Highlights

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Aspen Aerogels (NYSE: ASPN) reported its Q1 2025 financial results, showing revenue of $78.7 million, a 17% decrease from Q1 2024's $94.5 million. The company recorded a significant net loss of $301.2 million, largely due to a $286.6 million impairment charge related to demobilizing their planned Georgia manufacturing plant and $9.8 million in restructuring costs. Adjusted for these charges, net loss would be $4.8 million. The quarter showed mixed segment performance with Thermal Barrier revenue at $48.9 million (down 25% YoY) and Energy Industrial revenue at $29.8 million (up 3% YoY). The company secured a new PyroThin contract from a leading American OEM for an LFP vehicle platform. For Q2 2025, Aspen projects revenue between $70-80 million and adjusted EBITDA between breakeven and $7 million.

Positive

• Positive operating cash flow of $5.6 million in Q1
• Strong cash position with $192.0 million in cash and equivalents
• New PyroThin contract secured with leading American OEM
• Energy Industrial segment showed 3% YoY growth
• Record-level quoting activity in PyroThin thermal barrier business

Negative

• $301.2 million net loss including $286.6 million impairment charge
• 17% year-over-year revenue decline to $78.7 million
• Thermal Barrier segment revenue decreased 25% YoY
• Gross margins declined eight percentage points YoY to 29%
• Q2 guidance suggests continued challenges with projected net loss

Insights

Financial Analyst

Aspen Aerogels reports revenue decline and major impairment charge while securing new EV contract and maintaining positive cash flow.

Aspen Aerogels' Q1 2025 results reveal significant headwinds with $78.7 million in revenue—a 17% year-over-year decline. The headline $301.2 million net loss primarily stems from a $286.6 million impairment charge related to the canceled Statesboro manufacturing plant, plus $9.8 million in restructuring costs. Excluding these one-time items, the adjusted net loss was $4.8 million.

The performance breakdown shows concerning trends: Thermal Barrier revenue (their EV-focused segment) dropped 25% to $48.9 million, while Energy Industrial revenue grew modestly by 3% to $29.8 million. Gross margins contracted substantially, falling 8 percentage points to 29%.

Despite these challenges, the company maintained operational discipline by generating $5.6 million in operating cash flow and ending the quarter with a robust $192.0 million cash position. This financial cushion provides runway as management recalibrates their growth strategy.

The new PyroThin contract with a leading American OEM represents a positive development, though production isn't expected until 2028—indicating a significant gap before revenue materialization. Management's emphasis on "record-level quoting activity" suggests potential pipeline growth that hasn't yet translated to financial results.

Q2 guidance ($70-80 million revenue and breakeven to $7 million Adjusted EBITDA) indicates continued near-term pressure. The decision to demobilize the planned second manufacturing plant reflects a strategic reset, with management prioritizing cost structure optimization and supply chain flexibility over capacity expansion—a prudent move given current demand dynamics.

Delivered revenues of $78.7 million and operating cash flow of $5.6 million
New PyroThin award with leading American OEM for next-gen prismatic LFP vehicle platform

NORTHBOROUGH, Mass., May 8, 2025 /PRNewswire/ -- Aspen Aerogels, Inc. (NYSE: ASPN) ("Aspen" or the "Company"), a technology leader in sustainability and electrification solutions, today announced financial results for the first quarter of 2025, and discussed recent business developments.

Total revenue for the first quarter of 2025 was $78.7 million, compared to $94.5 million in the first quarter of 2024.

Net loss was $301.2 million, which included a $286.6 million impairment charge in connection with the demobilization of the Company's previously planned second aerogel manufacturing plant in Statesboro, Georgia and $9.8 million of associated restructuring costs, compared to a net loss of $1.8 million in the first quarter of 2024. Adjusting net loss for the impairment and restructuring and demobilization costs would result in a net loss of $4.8 million. Net loss per share was $3.67, compared to a net loss per share of $0.02 in the first quarter of 2024. Adjusting net loss per share for the impairment and restructuring and demobilization costs would result in a net loss per share of $0.06.

Adjusted EBITDA for the first quarter of 2025 was $4.9 million, compared to $12.9 million in the first quarter of 2024.

A reconciliation of GAAP financial results to non-GAAP financial results are provided in the financial schedules that are part of this press release. An explanation of these non-GAAP financial measures are also included below under the heading "Non-GAAP Financial Measures."

Recent Business Highlights & Quarterly Performance

• Company revenues of $78.7 million, a 17% decrease year-over-year (YoY)
  • Thermal Barrier: $48.9 million of revenue, a 25% decrease YoY
  • Energy Industrial: $29.8 million of revenue, a 3% increase YoY
• Delivered gross margins of 29%, an eight-percentage point decrease YoY
• Operating cash flow of $5.6 million in the quarter
• Ended the quarter with cash and equivalents of $192.0 million
• Awarded PyroThin contract from a leading American OEM for a next-gen prismatic lithium iron phosphate (LFP) vehicle platform with an expected start of production in 2028

"We continue to drive the key elements of our strategy by broadening our Thermal Barrier and Energy Industrial commercial activities, fortifying our supply chain, and optimizing our cost structure," commented Don Young, Aspen's President and CEO. "We are encouraged by the record-level quoting activity in our PyroThin thermal barrier business. The newest PyroThin award demonstrates our value in additional electric vehicle ("EV") form factors and chemistries. Meanwhile, our Energy Industrial segment is now equipped with the supply needed to pursue additional geographies and end markets to drive incremental growth. A diversified supply chain and multiple aerogel manufacturing sources provide us with the flexibility to optimally meet customer demands across both business segments. Our recent and continuing actions to reduce fixed costs are an example of an ongoing focus on our financial performance and strong balance sheet."

Q2 2025 Financial Outlook
Aspen's Q2 2025 Outlook is as follows:

• Revenue is expected to range between $70 and $80 million
• Net loss is expected to range between $11 and $4 million
• Net loss per share is expected to range between $0.13 and $0.05
• Adjusted EBITDA is expected to range between breakeven and $7 million
• Capital Expenditures, excluding demobilization costs related to the Statesboro plant project, are expected to be less than $10 million

Ricardo C. Rodriguez, Chief Financial Officer and Treasurer, noted, "We have the right elements in place to focus on execution and drive performance through a broad range of demand outcomes. A strong balance sheet and continuing efforts to reduce our fixed cost base will ensure that we are not only better positioned for profitability and cash flow generation but can also deliver higher proportional upside as the outlook clears up."

The Company's Q2 2025 outlook assumes depreciation and amortization of $6.0 million, stock-based compensation expense of $3.0 million, other expense (net) of $2.0 million, and diluted weighted average shares outstanding of 82.0 million for the full year.

A reconciliation of net loss to non-GAAP Adjusted EBITDA for the Q2 2025 financial outlook is provided in the financial schedules that are part of this press release. An explanation of this non-GAAP financial measure is also included below under the heading "Non-GAAP Financial Measures."

Aspen may incur, among other items, additional charges, realize gains or losses, incur financing costs or interest expense, or experience other events in Q2 2025, including those related to the planned capacity expansion, supply chain disruptions, or further cost inflation, that could cause actual results to vary materially from this outlook. See Special Note Regarding Forward-Looking and Cautionary Statements below.

Conference Call and Webcast Notification
A conference call with Aspen management to discuss first quarter 2025 results and recent business developments will be held Thursday, May 8, 2025 at 8:30 a.m. EST. During the call, management will respond to questions concerning, but not limited to, Aspen's financial performance, business conditions, and financial outlook. Management's discussion and responses could contain information that has not been previously disclosed.

Shareholders and other interested parties may call +1 (404) 975-4839 (domestic) or +1 (929) 526-1599 (international) and reference conference ID "302641" to participate in the conference call. In addition, the conference call and an accompanying slide presentation will be available live as a listen-only webcast hosted at the Investors section of Aspen's website, www.aerogel.com.

Following the live event, an archived version of the webcast will be available on Aspen's website for convenient on-demand replay for at least a year. A copy of this press release is posted in the Investors section on Aspen's website.

Non-GAAP Financial Measures
In addition to providing financial measurements based on generally accepted accounting principles in the United States of America ("GAAP"), Aspen provides additional financial metrics that are not prepared in accordance with GAAP ("non-GAAP"). The non-GAAP financial measures included in this press release are Adjusted EBITDA, adjusted net loss and adjusted net loss per share. Management uses these non-GAAP financial measures, in addition to GAAP financial measures, as a measure of operating performance because the non-GAAP financial measures do not include the impact of items that management does not consider indicative of Aspen's core operating performance. In addition, management uses Adjusted EBITDA (i) for planning purposes, including the preparation of Aspen's annual operating budget, (ii) to allocate resources to enhance the financial performance of its business, and (iii) as a performance measure under its bonus plan.

Management believes that these non-GAAP financial measures reflect Aspen's ongoing business in a manner that allows for meaningful comparisons and analysis of trends in its business, as it excludes expenses and gains not reflective of Aspen's ongoing operating results or that may be infrequent and/or unusual in nature. Management also believes that these non-GAAP financial measures provides useful information to investors in understanding and evaluating Aspen's operating results and future prospects in the same manner as management and in comparing financial results across accounting periods and to those of peer companies. These non-GAAP measures may not be comparable to similarly titled measures presented by other companies.

The non-GAAP financial measures do not replace the presentation of Aspen's GAAP financial results and should only be used as a supplement to, not as a substitute for, Aspen's financial results presented in accordance with GAAP. In this press release, Aspen has provided a reconciliation of Adjusted EBITDA to net income (loss), adjusted net loss to net loss and adjusted net loss per share to net loss per share, in each case the most directly comparable GAAP financial measure. Management strongly encourages investors to review Aspen's financial statements and publicly filed reports in their entirety and not rely on any single financial measure.

About Aspen Aerogels, Inc.
Aspen is a technology leader in sustainability and electrification solutions. The Company's aerogel technology enables its customers and partners to achieve their own objectives around the global megatrends of resource efficiency, e-mobility and clean energy. Aspen's PyroThin® products enable solutions to thermal runaway challenges within the electric vehicle ("EV") market. The Company's carbon aerogel initiative seeks to increase the performance of lithium-ion battery cells to enable EV manufacturers to reduce charging time and the cost of EVs. The Company's Cryogel® and Pyrogel® products are valued by the world's largest energy infrastructure companies. Aspen's strategy is to partner with world-class industry leaders to leverage its Aerogel Technology Platform® into additional high-value markets. Aspen is headquartered in Northborough, Mass. For more information, please visit www.aerogel.com.

Special Note Regarding Forward-Looking and Cautionary Statements
This press release and any related discussion contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties that could cause actual results to be materially different from historical results or from any future results expressed or implied by such forward-looking statements, including statements relating to Aspen's financial outlook for the second quarter of 2025. These statements are not historical facts but rather are based on Aspen's current expectations, estimates and projections regarding Aspen's business, operations and other factors relating thereto, including with respect to Aspen's financial outlook for the second quarter of 2025. Words such as "may," "will," "could," "would," "should," "anticipate," "predict," "potential," "continue," "expects," "intends," "plans," "projects," "believes," "estimates," "outlook," "assumes," "targets," "opportunity," and similar expressions are used to identify these forward-looking statements. Such forward-looking statements include statements regarding, among other things, Aspen's beliefs and expectations about capacity, revenue, revenue capacity, backlog, costs, expenses, profitability, cash flow, gross profit, gross margin, operating margin, net income (loss), Adjusted EBITDA and related increases, decreases, trends or timing, including with respect to Aspen's beliefs and expectations about the EV market and how it may enable a path to profitability; Aspen's target revenue capacity and gross margins; Aspen's efforts to demobilize its previously planned second manufacturing plant in Statesboro, Georgia, and the use of its external manufacturing facility to meet customer demand; current or future trends in the energy, energy infrastructure, chemical and refinery, LNG, sustainable building materials, EV thermal barrier, EV battery materials or other markets and the impact of these trends on Aspen's business; the strength, effectiveness, productivity, costs, profitability or other fundamentals of Aspen's business; beliefs about the role of Aspen's technology and opportunities in the EV market; beliefs about Aspen's ability to provide and deliver products and services to EV customers; beliefs about content per vehicle, revenue, costs, expenses, profitability, investments or cash flow associated with Aspen's EV opportunities, including the EV thermal barrier business; and the performance and market acceptance of Aspen's products. All such forward-looking statements are based on management's present expectations and are subject to certain factors, risks and uncertainties that may cause actual results, outcome of events, timing and performance to differ materially from those expressed or implied by such statements. These risks and uncertainties include, but are not limited to, the following: inability to execute Aspen's growth plan, the right of EV thermal barrier customers to cancel contracts with Aspen at any time and without penalty; any costs, expenses, or investments incurred by Aspen in excess of projections used to develop pricing under the contracts with EV thermal barrier customers; Aspen's inability to create customer or market opportunities for its products; any disruption or inability to achieve expected capacity levels in any of its manufacturing or assembly facilities, including at its external manufacturing facility; any failure to enforce any of Aspen's patents; the general economic conditions and cyclical demands in the markets that Aspen serves; the potential impact of changes in government and economic policies, incentives, and tariffs on Aspen's customers, production, sales, cost structure, competitive landscape and results of operations; and the other risk factors discussed under the heading "Risk Factors" in Aspen's Annual Report on Form 10-K for the year ended December 31, 2024 and filed with the Securities and Exchange Commission ("SEC") on February 27, 2025, as well as any updates to those risk factors filed from time to time in Aspen's subsequent periodic and current reports filed with the SEC. All statements contained in this press release are made only as of the date of this press release. Aspen does not intend to update this information unless required by law.

 

ASPEN AEROGELS, INC. Condensed Consolidated Balance Sheets (Unaudited and in thousands)
		March 31,				December 31,
		2025				2024
		(In thousands)
Assets
Current assets:
Cash and cash equivalents		$	192,039			$	220,882
Restricted cash			394				394
Accounts receivable, net			77,355				109,104
Inventories			56,739				47,551
Prepaid expenses and other current assets			17,359				31,517
Total current assets			343,886				409,448
Property, plant and equipment, net			179,282				459,276
Operating lease right-of-use assets			19,103				20,854
Finance lease right-of-use assets			5,934				—
Other long-term assets			6,771				5,566
Total assets		$	554,976			$	895,144
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable		$	39,931			$	44,361
Accrued expenses			16,681				36,495
Deferred revenue			2,645				2,199
Finance obligation for sale and leaseback transactions			3,929				4,028
Operating lease liabilities			3,339				3,279
Finance lease liabilities			1,408				—
Long term debt - current portion			13,500				19,750
Total current liabilities			81,433				110,112
Revolving line of credit			28,956				42,131
Long term debt			95,416				94,961
Finance obligation for sale and leaseback transactions long-term			8,353				10,087
Operating lease liabilities long-term			22,305				23,148
Finance lease liabilities long-term			3,679				—
Total liabilities			240,142				280,439
Stockholders' equity:
Total stockholders' equity			314,834				614,705
Total liabilities and stockholders' equity		$	554,976			$	895,144

 

ASPEN AEROGELS, INC. Consolidated Statements of Operations (Unaudited and in thousands, except share and per share data)
		Three Months Ended
		March 31,
		2025				2024
		(In thousands, except share and per share data)
Revenue		$	78,723			$	94,501
Cost of revenue			55,911				59,358
Gross profit			22,812				35,143
Operating expenses:
Research and development			4,333				4,489
Sales and marketing			8,384				8,303
General and administrative			13,034				17,213
Restructuring and demobilization costs			9,790				—
Impairment of property, plant and equipment			286,612				2,702
Total operating expenses			322,153				32,707
Income (loss) from operations			(299,341)				2,436
Other income (expense)
Interest expense, convertible note - related party			—				(3,038)
Interest income (expense)			(1,962)				(477)
Other income			1,130				—
Total other expense			(832)				(3,515)
Loss before income tax expense			(300,173)				(1,079)
Income tax expense			(1,076)				(756)
Net loss		$	(301,249)			$	(1,835)
Net loss per share:
Basic and diluted		$	(3.67)			$	(0.02)
Weighted-average common shares outstanding:
Basic and diluted			82,065,676				75,762,893

Analysis of Cash Flow

The following table summarizes our cash flows for the periods indicated.

		Three Months Ended
		March 31
		2025				2024
		(In thousands)
Net cash provided by (used in):
Operating activities		$	5,632			$	(17,749)
Investing activities			(12,998)				(25,863)
Financing activities			(21,477)				5,259
Net decrease in cash			(28,843)				(38,353)
Cash, cash equivalents and restricted cash at beginning of period			221,276				139,971
Cash, cash equivalents and restricted cash at end of period		$	192,433			$	101,618

Reconciliation of Non-GAAP Financial Measures

The following tables present a reconciliation of the non-GAAP financial measure included in this press release to the most directly comparable GAAP measure:

Reconciliation of Adjusted EBITDA to Net loss

We define Adjusted EBITDA as net income (loss) before interest expense, taxes, depreciation, amortization, stock-based compensation expense and other items, which occur from time to time and which we do not believe are indicative of our core operating performance.

For the three months ended March 31, 2025 and 2024:

		Three Months Ended
		March 31,
		2025				2024
		(In thousands)
Net loss		$	(301,249)			$	(1,835)
Depreciation and amortization			5,793				5,786
Stock-based compensation			2,073				4,706
Other expense			832				3,515
Income tax expense			1,076				756
Restructuring and demobilization costs			9,790				-
Impairment of property, plant and equipment			286,612				-
Adjusted EBITDA		$	4,927			$	12,928

For the trailing twelve months ended March 31, 2025 and 2024:

		Last Twelve Months
		March 31,
		2025				2024
		(In thousands)
Net loss		$	(286,039)			$	(30,850)
Depreciation and amortization			22,533				18,400
Stock-based compensation			10,222				13,393
Other expense			9,276				2,235
Loss on extinguishment of debt			27,487				-
Income tax expense			2,034				756
Restructuring and demobilization costs			9,790				-
Impairment of property, plant and equipment			286,612				-
Adjusted EBITDA		$	81,915			$	3,934

Other Information

The following table reconciles net loss and net loss per share to adjusted net loss and adjusted net loss per share for the three months ended March 31, 2025 and 2024:

		Three Months Ended
		March 31, 2025								March 31, 2024
		Amount				Per Share				Amount				Per Share
		(In thousands)								(In thousands)
Net loss		$	(301,249)			$	(3.67)			$	(1,835)			$	(0.02)
Restructuring and demobilization costs			9,790				0.12				—				-
Impairment of property, plant and equipment			286,612				3.49				—				-
Adjusted Net Loss		$	(4,847)			$	(0.06)			$	(1,835)			$	(0.02)

Financial outlook for the three months ending June 30, 2025:

		Three Months Ending
		June 30, 2025
		Low				High
		(In thousands)
Net loss		$	(11,000)			$	(4,000)
Depreciation and amortization			6,000				6,000
Stock-based compensation			3,000				3,000
Other expense, net			2,000				2,000
Adjusted EBITDA		$	—			$	7,000

 

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SOURCE Aspen Aerogels, Inc.

FAQ

What caused ASPN's significant net loss in Q1 2025?

ASPN's Q1 2025 net loss of $301.2 million was primarily due to a $286.6 million impairment charge from demobilizing their planned Georgia manufacturing plant and $9.8 million in restructuring costs. Excluding these charges, net loss would have been $4.8 million.

What is ASPN's revenue guidance for Q2 2025?

Aspen Aerogels expects Q2 2025 revenue to range between $70 million and $80 million, with Adjusted EBITDA between breakeven and $7 million.

How much cash does ASPN have on its balance sheet?

As of Q1 2025, Aspen Aerogels had $192.0 million in cash and equivalents.

What was ASPN's performance in different business segments for Q1 2025?

In Q1 2025, ASPN's Thermal Barrier segment generated $48.9 million in revenue (down 25% YoY), while Energy Industrial segment revenue was $29.8 million (up 3% YoY).

What new contract did ASPN secure in Q1 2025?

ASPN secured a PyroThin contract from a leading American OEM for a next-generation prismatic lithium iron phosphate (LFP) vehicle platform, with production expected to start in 2028.