Aspen Aerogels announced its fourth-quarter and full-year 2025 financial results and provided updates on recent business developments.

Aspen Aerogels, Inc. (NYSE: ASPN) ("Aspen" or the "Company"), a technology leader in sustainability and electrification solutions, today announced financial results for the fourth quarter and full year 2025 and discussed recent business developments.

Fourth Quarter 2025 Results

Total revenue for the fourth quarter of 2025 was $41.3 million, compared to $123.1 million in the prior year period. Thermal barrier segment revenue was $16.1 million, compared to $70.0 million in the prior year period, reflecting a significant reduction in customer demand following changes in regulatory frameworks and incentive programs. Energy Industrial segment revenue was $25.3 million, compared to $53.1 million in the prior year period.

Net loss was $72.9 million, compared to net income of $11.4 million in the prior year period. Results for the fourth quarter of 2025 included restructuring and demobilization costs, loss on disposal of property, plant and equipment, impairment charges, and accelerated depreciation related to reassessed capacity. Excluding these items, adjusted net loss was $27.7 million.

Net loss per share was $0.88, compared to a net income per share of $0.14 in the prior year period. Excluding the items described above, adjusted net loss per share was $0.34.

Adjusted EBITDA was $(18.0) million, compared to $22.7 million in the prior year period.

Full Year 2025 Results

Total revenue for the full year 2025 was $271.1 million, compared to $452.7 million in the prior year. Thermal barrier segment revenue was $168.9 million, compared to $306.8 million in the prior year, reflecting a significant reduction in customer demand following changes in regulatory frameworks and incentive programs. Energy Industrial segment revenue was $102.2 million, compared to $145.9 million in the prior year.

Net loss was $389.6 million, compared to a net income of $13.4 million in the prior year. Results for 2025 included a $291.2 million impairment charge related to the previously planned Statesboro Plant, as well as restructuring and demobilization costs, accelerated depreciation, and loss on disposal of property, plant and equipment. Excluding these items, adjusted net loss was $40.5 million.

Net loss per share was $4.73, compared to a net income per share of $0.17 in the prior year. Excluding the items described above, adjusted net loss per share was $0.49.

Adjusted EBITDA was $2.9 million, compared to $89.9 million in the prior year.

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

Liquidity and Capital Resources

Ended the year with cash, cash equivalents, and restricted cash of $158.6 million, compared to $152.4 million at the end of the third quarter, reflecting disciplined cash management

Generated $16.1 million of cash from operating activities in the fourth quarter of 2025, driven by working capital initiatives

Expect to receive approximately $37.6 million in the first quarter of 2026 from General Motors related to a commercial settlement associated with prior EV capacity adjustments

Executed a non-binding letter of intent for the sale of assets from the demobilized Statesboro, Georgia facility after receiving multiple offers and expect to complete the transaction during 2026

Commercial Developments

Confirmed that the EV customer award announced in the fourth quarter of 2025 relates to Volvo Cars, expanding Aspen's European OEM relationships; anticipating additional awards in 2026

Awarded a North Sea subsea pipeline project with expected delivery in the third quarter of 2026

Strategic Review to Support Long-Term Value Creation

Aspen has initiated a strategic review to evaluate opportunities to strengthen its long-term competitive position. As part of this review, the Company will assess a broad range of potential actions to ensure it is appropriately structured and positioned to execute its priorities and create shareholder value.

The Company has engaged Piper Sandler & Co. as its exclusive financial advisor to assist with the review.

"We have initiated a review to evaluate our commercial growth plans and to optimize our capital structure," said Don Young, President and CEO. "This review is being conducted from a position of financial strength and operational progress. Our focus is clear — to ensure the company's strategy, capital allocation, and asset base are aligned to maximize value creation."

There can be no assurance that this review will result in any transaction or other strategic action. The Company has not established a deadline or timetable for the completion of this review and does not intend to provide updates or to comment on developments related to this review until further disclosure is appropriate or required by law.

Financial Outlook

Aspen issues its financial outlook as follows:

Q1 2026 revenue is expected to range between $35 million and $40 million

Q1 2026 Net loss is expected to range between $20 million and $23 million

Q1 2026 Net loss per share is expected to range between $0.24 and $0.28

Q1 2026 Adjusted EBITDA is expected to range between $(10) million and $(13) million

FY 2026 Capital Expenditures are expected to be less than $10 million

Grant Thoele, Chief Financial Officer and Treasurer, noted, "2025 was a transitional year for Aspen. North American EV production levels decreased in response to evolving regulatory frameworks and end-market demand, while Energy Industrial results were weighted toward maintenance activity, with fewer large project awards. In response, we reduced our fixed cost structure by more than $75 million. Through disciplined cash management, the expected proceeds from our signed GM agreement, and the planned monetization of Statesboro assets, we expect to further strengthen our balance sheet and increase our net cash position. This financial foundation supports our strategic review and enables optionality as we evaluate the best path to position Aspen for long-term growth."

Thoele added, "As we begin 2026, our outlook reflects continued softness in thermal barrier volumes as EV demand finds a floor at lower production levels. From this base, supported by project momentum in our Energy Industrial segment, we expect topline growth going forward, with improving profitability driven by our leaner cost structure and disciplined execution."

The Company's Q1 2026 outlook assumes depreciation and amortization of $5.0 million, stock-based compensation expense of $2.5 million, net interest expense of $2.5 million, and diluted weighted average shares outstanding of 82.7 million for the quarter.

A reconciliation of net loss to non-GAAP Adjusted EBITDA for the 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 2026, including those related to 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 fourth quarter and full year 2025 results and recent business developments will be held Wednesday, February 25, 2026, 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.

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