Aspen Aerogels' Revenue Soars 36.5%, Narrows Q2 Net Loss

TL;DR

**ASPN is heating up, revenue's surging and losses are shrinking – time to buy the dip before the EV market fully ignites!**

AI Summary

Aspen Aerogels Inc. reported a significant increase in revenue for the three months ended June 30, 2025, reaching $75.2 million, up from $55.1 million in the prior-year period, representing a 36.5% increase. For the six months ended June 30, 2025, revenue grew to $145.8 million from $105.3 million, a 38.5% increase. The net loss for the three months ended June 30, 2025, improved to $10.5 million, or $0.15 per share, compared to a net loss of $18.2 million, or $0.32 per share, in the same period last year. This improvement was driven by increased sales volume and a higher gross margin, which rose to 22.5% from 15.3% year-over-year. The company's strategic focus on the electric vehicle (EV) thermal barrier market continues to be a key driver, with the Thermal Barrier segment contributing substantially to revenue growth. Risks include ongoing supply chain challenges and the competitive landscape in the EV market. The company amended its MidCap Loan Facility on May 6, 2025, increasing the term loan commitment to $100 million and extending the maturity to May 2028, enhancing financial flexibility. This amendment also adjusted interest rates, with the term loan now bearing interest at SOFR plus a margin of 5.50% to 6.00%.

Why It Matters

Aspen Aerogels' strong revenue growth and narrowing net loss signal positive momentum, particularly in the competitive electric vehicle (EV) thermal barrier market. This performance could attract more institutional investors looking for growth in sustainable technologies, potentially boosting ASPN's stock price. For employees, this indicates job security and potential expansion, while customers benefit from continued innovation in high-performance insulation. The company's improved financial health and extended debt maturity also provide greater stability, allowing for continued investment in R&D and manufacturing capacity, which is crucial for maintaining a competitive edge against rivals like Cabot Corporation and Armacell.

Risk Assessment

Risk Level: medium — The company reported a net loss of $10.5 million for Q2 2025, indicating continued unprofitability despite revenue growth. Additionally, the amendment to the MidCap Loan Facility on May 6, 2025, increased the interest rate on the term loan to SOFR plus a margin of 5.50% to 6.00%, which could increase financing costs if SOFR rises, impacting future profitability.

Analyst Insight

Investors should consider initiating or increasing positions in ASPN, given the strong revenue growth of 36.5% and the significant reduction in net loss. Monitor the company's progress in achieving sustained profitability and its ability to manage increased interest expenses from the amended MidCap Loan Facility.

Financial Highlights

revenue

$75.2M

net Income

-$10.5M

eps

-$0.15

gross Margin

22.5%

revenue Growth

+36.5%

Revenue Breakdown

Key Numbers

• $75.2M — Q2 2025 Revenue (Increased 36.5% from $55.1M in Q2 2024, showing strong growth.)
• -$10.5M — Q2 2025 Net Loss (Improved from -$18.2M in Q2 2024, indicating progress towards profitability.)
• 22.5% — Q2 2025 Gross Margin (Up from 15.3% in Q2 2024, reflecting better cost management and pricing.)
• $145.8M — YTD 2025 Revenue (Increased 38.5% from $105.3M in YTD 2024, demonstrating sustained growth.)
• $100M — Term Loan Commitment (Increased on May 6, 2025, providing enhanced financial flexibility.)

Key Players & Entities

• ASPEN AEROGELS INC (company) — filer of the 10-Q
• MidCap Loan Facility (company) — lender to Aspen Aerogels
• $75.2 million (dollar_amount) — total revenue for Q2 2025
• $55.1 million (dollar_amount) — total revenue for Q2 2024
• $10.5 million (dollar_amount) — net loss for Q2 2025
• $18.2 million (dollar_amount) — net loss for Q2 2024
• 36.5% (dollar_amount) — revenue increase Q2 2025 vs Q2 2024
• 22.5% (dollar_amount) — gross margin for Q2 2025
• 15.3% (dollar_amount) — gross margin for Q2 2024
• $100 million (dollar_amount) — increased term loan commitment

FAQ

Risk Factors

• Competitive Landscape in EV Market [medium — market]: The company faces competition in the rapidly evolving electric vehicle (EV) market. Success depends on maintaining technological advantages and securing market share against established and emerging players.
• Supply Chain Challenges [medium — operational]: Ongoing supply chain disruptions can impact the availability of raw materials and the timely delivery of finished products, potentially affecting production schedules and revenue realization.

Industry Context

The advanced materials sector, particularly for thermal management solutions, is experiencing robust growth driven by electrification trends in the automotive industry. Companies like Aspen Aerogels are positioned to benefit from the increasing demand for high-performance insulation in electric vehicles.

Regulatory Implications

The company operates within standard financial reporting regulations, requiring timely and accurate disclosures in its 10-Q filings. No specific new regulatory risks are highlighted in the provided context.

What Investors Should Do

1. Monitor EV market penetration and competitive wins.
2. Evaluate gross margin trends and cost management.
3. Assess the impact of the amended loan facility.

Key Dates

• 2025-06-30: Quarterly Report Filing (10-Q) — Provides updated financial performance and operational details for the second quarter of 2025.
• 2025-05-06: Amendment to MidCap Loan Facility — Increased term loan commitment to $100 million and extended maturity to May 2028, enhancing financial flexibility and providing a longer runway for operations and growth initiatives.

Glossary

SOFR

Secured Overnight Financing Rate, a benchmark interest rate for U.S. dollar-denominated derivatives and loans. (Indicates the base rate for interest calculations on the company's amended term loan facility.)

MidCap Loan Facility

A credit facility provided by MidCap Financial, which has been amended to increase loan commitments and extend maturity. (Represents a significant source of debt financing for the company, with recent amendments impacting its terms and availability.)

Thermal Barrier

A segment of Aspen Aerogels' business focused on providing materials that prevent heat transfer, particularly relevant in applications like electric vehicle battery insulation. (A key growth driver for the company, contributing substantially to revenue increases.)

Year-Over-Year Comparison

Revenue for the three months ended June 30, 2025, increased by 36.5% to $75.2 million compared to the prior year, demonstrating strong top-line growth. The net loss narrowed significantly to $10.5 million from $18.2 million, reflecting improved operational efficiency and a higher gross margin of 22.5% versus 15.3% year-over-year. No new material risks were introduced, but existing concerns around supply chain and market competition persist.

Key Financial Figures

• $0.00001 — ch registered Common Stock, par value $0.00001 per share ASPN The New York Stock E

Filing Documents

• aspn-20250630.htm (10-Q) — 2944KB
• aspn-ex31_1.htm (EX-31.1) — 14KB
• aspn-ex31_2.htm (EX-31.2) — 16KB
• aspn-ex32.htm (EX-32) — 16KB
• 0001193125-25-175489.txt ( ) — 11497KB
• aspn-20250630.xsd (EX-101.SCH) — 1464KB
• aspn-20250630_htm.xml (XML) — 2324KB

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements Consolidated Balance Sheets (unaudited) as of June 30, 2025 and December 31, 2024 1 Consolidated Statements of Operations (unaudited) for the three and six months ended June 30, 2025 and 2024 2 Consolidated Statements of Stockholders' Equity (unaudited) for the three and six months ended June 30, 2025 and 2024 3 Consolidated Statements of Cash Flows (unaudited) for the six months ended June 30, 2025 and 2024 4

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 5 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 21 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 37 Item 4.

Controls and Procedures

Controls and Procedures 37

OTHER INFORMATION

PART II OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 39 Item 1A.

Risk Factors

Risk Factors 39 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 40 Item 3. Defaults Upon Senior Securities 40 Item 4. Mine Safety Disclosures 40 Item 5. Other Information 40 Item 6. Exhibits 42

SIGNATURES

SIGNATURES 43 Trademarks, Trade Names and Service Marks We own or have rights to use "Aspen Aerogels," "Cryogel," "Pyrogel," "Spaceloft," "PyroThin," the Aspen Aerogels logo and other trademarks, service marks and trade names of Aspen Aerogels, Inc. appearing in this Quarterly Report on Form 10-Q. Solely for convenience, the trademarks, service marks and trade names referred to in this report are presented without the and TM symbols, but such references are not intended to indicate, in any way, that the owner thereof will not assert, to the fullest extent under applicable law, such owner's rights to these trademarks, service marks and trade names. This report contains additional trademarks, service marks and trade names of other companies, which, to our knowledge, are the property of their respective owners.

— FINANC IAL INFORMATION

PART I — FINANC IAL INFORMATION

Financi al Statements

Item 1. Financi al Statements. ASPEN AEROGELS, INC. Consolidated B alance Sheets (Unaudited) June 30, December 31, 2025 2024 (In thousands, except share and per share data) Assets Current assets: Cash and cash equivalents $ 167,622 $ 220,882 Restricted cash 410 394 Accounts receivable, net of allowances of $ 1,150 and $ 1,265 76,167 109,104 Inventories 52,115 47,551 Prepaid expenses and other current assets 14,153 31,517 Total current assets 310,467 409,448 Property, plant and equipment, net 156,271 459,276 Assets held for sale 26,500 — Operating lease right-of-use assets 18,318 20,854 Finance lease right-of-use assets 5,627 — Other long-term assets 7,949 5,566 Total assets $ 525,132 $ 895,144 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 27,004 $ 44,361 Accrued expenses 15,564 36,495 Deferred revenue 624 2,199 Finance obligation for sale and leaseback transactions 4,094 4,028 Operating lease liabilities 3,315 3,279 Finance lease liabilities 1,445 — Long term debt - current portion 26,000 19,750 Total current liabilities 78,046 110,112 Revolving line of credit 28,989 42,131 Long term debt 77,265 94,961 Finance obligation for sale and leaseback transactions long-term 7,266 10,087 Operating lease liabilities long-term 21,494 23,148 Finance lease liabilities long-term 3,304 — Total liabilities 216,364 280,439 Commitments and contingencies (Note 10) Stockholders' equity: Preferred stock, $ 0.00001 par value per share; 5,000,000 shares authorized, no shares issued and outstanding at June 30, 2025 and December 31, 2024 — — Common stock, $ 0.00001 par value per share; 250,000,000 shares authorized, 82,253,282 and 82,040,468 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively — — Additional paid-in capital

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (1) Description of Business and Basis of Presentation Nature of Business Aspen Aerogels, Inc. (the Company) is an aerogel technology company that designs, develops and manufactures innovative, high-performance aerogel materials used primarily in the energy industrial, sustainable insulation materials and electric vehicle (EV) markets. The Company has provided high-performance aerogel insulation to the energy industrial and sustainable insulation markets for nearly two decades. The Company has developed and commercialized its proprietary line of PyroThin aerogel thermal barriers for use in battery packs in EVs. The Company's core business is organized into two reportable segments: Energy Industrial and Thermal Barrier. The Company maintains its corporate offices in Northborough, Massachusetts. The Company has four wholly owned subsidiaries: Aspen Aerogels Rhode Island, LLC (Aspen RI), Aspen Aerogels Germany, GmbH, Aspen Aerogels Georgia, LLC (Aspen Georgia), and Aspen Aerogels Mexico Holdings, LLC (Aspen Mexico). Additionally, the Company engaged Prodensa Servicios de Consultora (Prodensa) to establish OPE Manufacturer Mexico S de RL de CV, a maquiladora located in Mexico (OPE), which assembles thermal barrier PyroThin products and operates an automated fabrication facility for PyroThin. OPE is currently owned by Prodensa, which charges a management fee. There is an option for OPE to be purchased by the Company after a period of 18 months. As of June 30, 2025, the Company had notified Prodensa of the intent to purchase OPE, and the purchase was completed on July 31, 2025. During the period between inception and the exercise of the purchase option, OPE operations are consolidated within the Company financial statements. Liquidity During the six months ended June 30, 2025, the Company incurred a net loss of $ 310.3 million, generated $ 1.7 million of cash in operations and used $ 25.9 million of cash

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View this 10-Q filing on SEC EDGAR