Core Viewpoint - Aspen Aerogels, Inc. is a technology leader focused on sustainability and electrification solutions, participating in the 38th Annual Roth Conference to engage with investors [1][2]. Company Overview - Aspen Aerogels specializes in aerogel technology that supports resource efficiency, e-mobility, and clean energy initiatives [3]. - The company's PyroThin® products address thermal runaway challenges in the electric vehicle market, while Cryogel® and Pyrogel® products are utilized by major energy infrastructure companies [3]. - Aspen aims to collaborate with industry leaders to expand its Aerogel Technology Platform® into high-value markets [3].

Revenue Performance - Total revenue for the years ended December 31, 2025, 2024, and 2023 was $271.1 million, $452.7 million, and $238.7 million, respectively[30]. - U.S. revenue for the same years was $172.1 million, $258.5 million, and $151.0 million, while international revenue was $99.0 million, $194.2 million, and $87.7 million, respectively[30]. - In 2025, total revenue generated from outside the United States amounted to $99.0 million, representing 37% of total revenue[77]. - In 2025, GM represented 59% of total revenue, making it the only customer contributing 10% or more of revenue for that period[74]. - GM and Distribution accounted for 59% and 9% of total revenue in 2025, respectively, compared to 64% and 6% in 2024, and 41% and 14% in 2023[173]. Product Sales and Market Position - PyroThin thermal barriers sales were $168.9 million in 2025, $306.8 million in 2024, and $110.1 million in 2023, primarily to General Motors[16]. - The company’s aerogel products are used in EV battery systems of major manufacturers like GM and Toyota, indicating a strong foothold in the EV market[79]. - The company has sold over $1.6 billion of insulation products globally, with an installed base of more than 525 million square feet[24]. - The company has established contracts with major EV manufacturers, including GM and Toyota, to supply thermal barrier products for battery systems[47]. - The company anticipates a significant portion of its expected sales in the EV market in 2026 will be to a single customer[175]. Manufacturing and Operational Capacity - The company operates a manufacturing facility in East Providence, Rhode Island, and utilizes external manufacturing capabilities in China to meet demand[28]. - The company has increased manufacturing capacity at its East Providence facility since 2008 to meet rising demand for aerogel products[81]. - The company relies on a single manufacturing facility in East Providence, RI, and third-party external manufacturing facilities in China, which poses risks of operational disruptions affecting business performance[148]. - The company has experienced underutilization of manufacturing lines, leading to increased fixed costs relative to net revenue generated[159]. Financial Performance and Challenges - The company incurred net losses of $389.6 million, $45.8 million, and $13.4 million for the fiscal years ended December 31, 2025, 2024, and 2023, respectively, with an accumulated deficit of $1,049.8 million as of December 31, 2025[117]. - Positive operating cash flows were achieved of $32.9 million for the fiscal year ended December 31, 2025, and $45.5 million for the fiscal year ended December 31, 2024, but negative cash flows of $42.6 million were recorded for the fiscal year ended December 31, 2023[121]. - The company anticipates needing additional capital to support its growth strategy, including ongoing operating expenses and development of its Aerogel Technology Platform, with no assurance of obtaining financing on acceptable terms[118]. - The company is dependent on a limited number of direct customers for the majority of its revenue, and the loss of significant customers could materially harm its business[117]. Research and Development - The company has a portfolio of 400 issued patents and 438 pending patents related to product design, chemistry, and manufacturing technologies[49]. - Research and development expenditures were $16.4 million, $18.1 million, and $13.4 million for the fiscal years ended December 31, 2023, 2024, and 2025, respectively[92]. - The company’s mission in research and development focuses on leveraging its Aerogel Technology Platform to enhance product performance and lower manufacturing costs[91]. Market Trends and Competition - The energy industrial insulation market is expected to grow, driven by overall economic growth and projected increases in energy demand[36]. - The insulation market is highly competitive, dominated by established manufacturers like Johns Mansville and Owens Corning, posing challenges for market share and revenue maintenance[192]. - Increasing competition from companies developing high-performance insulation materials, including aerogel insulation, is expected over the next several years[193]. - The evolving nature of EV technologies may render the company's thermal barrier products obsolete, impacting future demand[140]. Supply Chain and Geopolitical Risks - The company is working to expand the geographic diversity of its supply base for silica precursors to mitigate supply chain risks[88]. - The company faces risks related to geopolitical tensions and regulatory compliance in China, which could adversely affect operations and reputation[156]. - The company is expanding its supplier base globally, including Europe and Asia, to mitigate supply chain risks[183]. Economic and Regulatory Environment - Inflation has led to increased overall cost structure, affecting liquidity, financial condition, and results of operations due to higher interest rates, shipping costs, and labor costs[211]. - Changes in U.S. trade policy and tariffs may materially impact the company's business and financial condition[167]. - The company may face limitations on the use of its net operating loss carryforwards, which could result in a higher effective tax rate and adversely affect its financial condition[123].

Core Insights - Aspen Aerogels is experiencing a transitional phase in the electric vehicle (EV) market, with a significant drop in U.S. EV sales in Q4 2025 and a subsequent ramp-down in production rates by General Motors [5]. - The company anticipates a rebound in energy industrial activity and is focusing on expanding its customer-facing sales and technical service teams globally to scale its energy industrial segment into a $200 million high-margin business [6]. - Aspen is also exploring adjacent markets such as battery energy storage systems (BESS) and building and construction, aiming to leverage existing technology and manufacturing capabilities for growth [7][10]. Energy Industrial Segment - The energy industrial segment generated $102 million in revenue in 2025, primarily from baseload maintenance and limited LNG work, with expectations of approximately 20% growth in 2026 [2][11]. - Aspen's LNG and natural gas infrastructure activity is projected to double in 2026 compared to 2025, driven by pent-up demand from refinery and petrochemical end users [1]. Financial Performance - For Q4 2025, Aspen reported revenue of $41.3 million, with a GAAP net loss of $72.9 million and an adjusted EBITDA of negative $18 million [11]. - The full-year revenue for 2025 was $271.1 million, with a GAAP net loss of $389.6 million, while adjusted EBITDA was $2.9 million [13]. - The company expects Q1 2026 revenue to be between $35 million and $40 million, anticipating it to be the lowest revenue quarter of the year [14]. Strategic Initiatives - Aspen has initiated a strategic review to evaluate options for maximizing long-term shareholder value, focusing on accelerating growth while maintaining operational flexibility [17]. - The company has reduced fixed cash costs by about $75 million annually and aims to lower the adjusted EBITDA breakeven point to $175 million in revenue [16]. Market Trends - In Europe, battery electric vehicles account for over 20% of new vehicle registrations, with Aspen's PyroThin Thermal Barrier products benefiting from favorable structural trends [3]. - The subsea project pipeline is robust, with Aspen expecting strong demand as projects move into deeper waters and tougher environments [2].

Core Viewpoint - Johnson Fistel, PLLP is investigating potential claims on behalf of investors of Aspen Aerogels, Inc. following a significant impairment charge disclosed in its financial results, which may indicate non-compliance with federal securities laws [1][3][4]. Group 1: Financial Disclosure - On February 25, 2026, Aspen Aerogels reported a fourth quarter and full year 2025 financial result, including a $291.2 million impairment charge primarily related to its Statesboro manufacturing facility, reflecting revised expectations regarding future cash flows [3]. - Following the disclosure of the impairment charge, Aspen's shares experienced a significant decline on the same day [3]. Group 2: Legal Investigation - Johnson Fistel is investigating whether Aspen Aerogels complied with federal securities laws in light of the impairment charge and the subsequent impact on its stock price [4]. - Investors who suffered losses from their investment in Aspen stock are encouraged to join the investigation [2][4]. Group 3: Firm Background - Johnson Fistel, PLLP is a nationally recognized shareholder-rights law firm with multiple offices across the United States, representing both individual and institutional investors in securities class action lawsuits [5]. - The firm has been recognized among the Top 10 Plaintiff Law Firms by ISS Securities Class Action Services in 2024, having recovered approximately $90.725 million for clients in cases where it served as lead or co-lead counsel [6].

Core Insights - The company is adjusting to a resetting electric vehicle (EV) market, streamlining operations, and focusing on maximizing shareholder value through strategic reviews and organizational changes [1][4][10] Electric Vehicle Market - U.S. EV sales significantly dropped in Q4 2025, prompting GM to reduce EV production rates, with expectations for a more measured growth in EV demand in 2026 [4] - GM's Cadillac division saw nearly 30% of total sales from EVs in 2025, indicating a commitment to long-term EV success despite current market challenges [4] European Market Dynamics - The European market shows stronger structural drivers for the company's PyroThin thermal barrier segment, with key factors including market penetration and charging infrastructure [5] - The company anticipates significant revenue contributions from Europe starting in 2027, with a projected pipeline of approximately $220 million for 2027 and over $450 million for 2028 [19][20] Energy Industrial Segment Growth - The Energy Industrial segment generated $102 million in revenue for 2025, primarily from maintenance and limited LNG work, with expectations for 20% growth in 2026 driven by subsea projects, LNG activities, and pent-up maintenance demand [6][9][12] - The company aims to scale the Energy Industrial segment to a $200 million high-margin business without requiring additional capital investment [9][10] Financial Performance - Q4 2025 revenue was $41.3 million, with a GAAP net loss of $72.9 million and adjusted EBITDA of negative $18 million, reflecting lower production volumes and increased costs [12][13] - Full-year 2025 revenue totaled $271.1 million, with a GAAP net loss of $389.6 million, while cash and cash equivalents at year-end were approximately $158.6 million [14] Strategic Initiatives - The company is conducting a strategic review to optimize its growth strategy and capital allocation, focusing on maintaining a strong balance sheet and operational progress [10][11][22] - The adjusted EBITDA breakeven level is projected to decline from $270 million in 2025 to approximately $200 million in 2026, with further reductions expected by 2027 [17][18] Future Outlook - For Q1 2026, the company expects total revenue between $35 million and $40 million, with anticipated sequential revenue growth throughout the year supported by increased GM production and European OEM programs [15][16] - The company is exploring opportunities in battery energy storage systems, indicating potential for future revenue growth in this segment [27][45]

Financial Data and Key Metrics Changes - In Q4 2025, revenue was $41.3 million, with a GAAP net loss of $72.9 million and adjusted EBITDA of negative $18 million [15][16] - Full year 2025 revenue totaled $271.1 million, with a GAAP net loss of $389.6 million and adjusted EBITDA of $2.9 million, reflecting a gross margin of 17% [17] - The company ended 2025 with approximately $159 million in cash and a strong net cash position [12][17] Business Line Data and Key Metrics Changes - Revenue from the energy industrial segment in 2025 was $102.2 million, while the thermal barrier segment contributed $168.9 million [17] - The energy industrial segment is expected to grow by 20% in 2026, driven by subsea projects, LNG activities, and pent-up maintenance demand [10][11] Market Data and Key Metrics Changes - In Europe, battery electric vehicles now represent over 20% of new vehicle registrations, with a projected EV penetration of nearly 40% by 2030 [7][23] - The company has secured seven design wins with European OEMs, including a recent award from Volvo Car [8] Company Strategy and Development Direction - The company is undergoing a strategic review to maximize shareholder value and align its growth strategy with capital allocation priorities [14][26] - The focus is on expanding into battery energy storage systems and leveraging existing technology for new market opportunities [11][12][26] Management's Comments on Operating Environment and Future Outlook - Management noted a significant drop in U.S. EV sales in Q4 2025 and anticipates a reset in demand for EVs in the first half of 2026 [5][6] - The company expects to see sequential revenue growth throughout 2026, supported by increased GM production and European OEM programs [19][20] Other Important Information - The company has reduced fixed cash costs by approximately $75 million annually and aims to lower its adjusted EBITDA breakeven to $200 million by the end of 2026 [13][21] - A payment of nearly $38 million from General Motors is expected in March, related to a commercial settlement [12] Q&A Session Summary Question: Clarification on awarded numbers for 2027 and 2028 - The numbers provided for 2027 and 2028 reflect full customer volumes as per customer data [32] Question: Insights on battery storage opportunities - Contributions from energy storage will be in addition to the anticipated 20% growth in the energy industrial segment [35] Question: Interest in stationary storage products - The company is engaged in both large-scale external systems and modular rack-level systems, focusing on safety attributes [40][41] Question: Market share trends in energy industrial - The lack of project work in 2025 was a significant factor in the previous year's performance, but a robust pipeline is expected for 2026 and beyond [46][49] Question: Growth potential in Europe - The company is working with multiple battery cell manufacturers, reducing dependency on any single supplier, which enhances confidence in the European market [52] Question: Adjacent growth opportunities beyond BESS - The company is exploring opportunities in building materials, particularly in Europe, leveraging its thermal performance characteristics [56][58] Question: Strategic review process and timeline - The strategic review is in early stages, focusing on growth acceleration and maintaining optionality for the business [60][62]

Financial Data and Key Metrics Changes - In Q4 2025, total revenue was $41.3 million, with a GAAP net loss of $72.9 million and adjusted EBITDA of negative $18 million [15][16] - For the full year 2025, revenue totaled $271.1 million, with a GAAP net loss of $389.6 million and adjusted EBITDA of $2.9 million, reflecting a gross margin of 17% [17] - The company ended 2025 with approximately $159 million in cash and cash equivalents, indicating strong liquidity [12][17] Business Line Data and Key Metrics Changes - Revenue from the energy industrial segment in 2025 was $102.2 million, while thermal barrier revenue was $168.9 million [17] - The energy industrial segment is expected to grow by 20% in 2026, driven by subsea projects, LNG activities, and pent-up maintenance demand [9][10][11] Market Data and Key Metrics Changes - In Europe, battery electric vehicles now represent over 20% of new vehicle registrations, with a projected EV penetration of nearly 40% by 2030 [7][23] - The company has secured seven design wins with European OEMs, including a recent award from Volvo Car, indicating strong market engagement [8] Company Strategy and Development Direction - The company is undergoing a strategic review to maximize shareholder value, focusing on operational efficiency and capital allocation [14][26] - Plans include scaling the energy industrial segment to a $200 million high-margin business without significant capital investment [11][25] - The company aims to leverage its aerogel technology into adjacent markets, including battery energy storage systems, as part of its long-term growth strategy [12][26] Management's Comments on Operating Environment and Future Outlook - Management noted a significant drop in U.S. EV sales in Q4 2025 and anticipates a reset in the EV market, with a gradual recovery expected [5][6] - The company expects to see sequential revenue growth through 2026, supported by increased GM production and European OEM program contributions [19][20] Other Important Information - The company has reduced fixed cash costs by approximately $75 million annually and aims to lower its adjusted EBITDA breakeven to $175 million of revenue by 2027 [13][21] - A payment of nearly $38 million from General Motors is expected in March, related to a commercial settlement [12] Q&A Session Summary Question: Clarification on awarded numbers for 2027 and 2028 - The numbers provided for 2027 and 2028 reflect full customer volumes as per customer data, with GM expected to remain a significant contributor [32][34] Question: Insights on battery storage opportunities - The company is deep in qualification and bidding for battery storage projects, with anticipated revenue beginning in 2026, separate from the energy industrial growth [35] Question: Market share trends in the energy industrial segment - The lack of project work in 2025 was identified as a key factor for reduced growth, but a robust pipeline for 2026 and beyond is expected to drive recovery [46][49] Question: European market dynamics and battery manufacturers - The company is working with a diverse range of battery cell manufacturers, which provides a more robust outlook for the European market [52] Question: Adjacent growth opportunities beyond battery energy storage - The company is exploring opportunities in building materials, leveraging its thermal performance characteristics, particularly in Europe [56][58] Question: Strategic review process and timeline - The strategic review is in early stages, focusing on growth acceleration and exploring all strategic opportunities while maintaining flexibility [60][62]

Financial Data and Key Metrics Changes - In Q4 2025, revenue was $41.3 million, with a GAAP net loss of $72.9 million and adjusted EBITDA of negative $18 million [14][16] - Full year 2025 revenue totaled $271.1 million, with a GAAP net loss of $389.6 million and adjusted EBITDA of $2.9 million, reflecting a gross margin of 17% [16][14] - The company ended 2025 with approximately $159 million in cash and a strong net cash position [10][19] Business Line Data and Key Metrics Changes - Revenue from the energy industrial segment in 2025 was $102.2 million, while the thermal barrier segment contributed $168.9 million [16] - The energy industrial segment is expected to grow by 20% in 2026, driven by subsea projects, LNG activities, and pent-up maintenance demand [8][9] Market Data and Key Metrics Changes - In Europe, battery electric vehicles now represent over 20% of new vehicle registrations, with a projected EV penetration of nearly 40% by 2030 [5][21] - The company has secured seven design wins with European OEMs, including a recent award from Volvo Car [6][21] Company Strategy and Development Direction - The company is undergoing a strategic review to maximize shareholder value and align its growth strategy with capital allocation priorities [11][24] - The long-term strategy focuses on three pillars: driving structural operating leverage, optimizing capital structure, and accelerating growth through aerogel platform expansion [22][24] Management's Comments on Operating Environment and Future Outlook - Management anticipates a recovery in EV demand as a new baseline is established, with momentum building in the energy business [13] - The company expects Q1 2026 to be the lowest revenue quarter of the year, with sequential growth anticipated throughout 2026 [18][19] Other Important Information - The company has reduced fixed cash costs by approximately $75 million annually and aims to lower the adjusted EBITDA breakeven to $175 million of revenue by 2027 [11][20] - The strategic review is being conducted from a position of financial strength, with a focus on accelerating growth and exploring transformative opportunities [24][60] Q&A Session Summary Question: Clarification on awarded numbers for 2027 and 2028 - The numbers provided for 2027 and 2028 reflect full customer volumes as indicated by customers, with expectations that GM will continue to represent at least half of the business in those years [30][32] Question: Insights on battery storage opportunities - The company is deep in qualification and bidding activities for battery storage, with anticipated revenue beginning in 2026, separate from the core energy industrial growth [33][34] Question: Market share trends in the energy industrial segment - The lack of project work in 2025 was identified as a key factor for the previous year's performance, but a robust pipeline for 2026 and beyond is expected to drive growth [45][46] Question: Interest in military applications - The company is focusing on energy storage applications first, with potential for broader defense market engagement in the future [40] Question: Update on adjacent growth opportunities - The company is exploring opportunities in building materials, particularly in Europe, leveraging its fire safety and thermal performance characteristics [53][56] Question: Strategic review process and timeline - The strategic review is in early stages, aimed at testing assumptions and exploring growth opportunities, with a focus on maintaining flexibility and optionality [58][60]

February 25, 2026 ASPEN AEROGELS Operational momentum supported by a strengthened balance sheet Q4 & FY 2025 FINANCIAL RESULTS CALL Disclaimer on Forward Looking Statements This presentation 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 forwa ...

Financial Performance - Total revenue for Q4 2025 was $41.3 million, a decrease of 66.5% from $123.1 million in Q4 2024[2] - Net loss for Q4 2025 was $72.9 million, compared to a net income of $11.4 million in the prior year period[3] - Full year 2025 total revenue was $271.1 million, down 40.1% from $452.7 million in 2024[5] - Full year net loss was $389.6 million, compared to a net income of $13.4 million in the prior year[6] - Adjusted EBITDA for Q4 2025 was $(18.0) million, a decline from $22.7 million in Q4 2024[4] - Gross profit for the year ended December 31, 2025, was $45,998,000, down from $182,897,000 in 2024, indicating a decrease of about 75%[29] - Adjusted EBITDA for the year ended December 31, 2025, was $2,938,000, a significant drop from $89,916,000 in 2024, representing a decline of about 97%[34] - For the twelve months ended December 31, 2025, the net loss was $389,552 thousand, translating to a loss of $4.73 per share, compared to a net income of $13,375 thousand or $0.17 per share for the same period in 2024[36] - Adjusted net income (loss) for the twelve months ended December 31, 2025, was $(40,500) thousand, or $(0.49) per share, compared to $13,375 thousand or $0.17 per share in 2024[36] Cash and Liabilities - The company ended 2025 with a cash balance of $158.6 million, up from $152.4 million at the end of Q3 2025[8] - Cash and cash equivalents at the end of the period were $158,570,000, down from $221,276,000 at the beginning of the period, indicating a decrease of approximately 28%[32] - Total liabilities as of December 31, 2025, were $171,161,000, compared to $280,439,000 in 2024, reflecting a reduction of about 39%[30] - Total stockholders' equity decreased to $235,518,000 in 2025 from $614,705,000 in 2024, a decline of approximately 62%[30] - The company reported a net cash used in financing activities of $58,129,000 for the year ended December 31, 2025, compared to a net cash provided of $122,018,000 in 2024[32] Expenses and Costs - Operating expenses for the year ended December 31, 2025, totaled $424,226,000, an increase from $128,362,000 in 2024, reflecting a rise of over 230%[30] - Research and development expenses for the year ended December 31, 2025, were $13,416,000, down from $18,050,000 in 2024, a decrease of approximately 26%[29] - The company incurred restructuring and demobilization costs of $17,510 thousand and a loss on disposal of property, plant, and equipment amounting to $18,162 thousand for the twelve months ended December 31, 2025[36] - Impairment of property, plant, and equipment was recorded at $291,164 thousand, with accelerated depreciation of $22,216 thousand for the same period[36] - Depreciation and amortization expenses are projected to be $5,000 thousand for the three months ending March 31, 2026[36] - Stock-based compensation is anticipated to be $2,500 thousand for the same period[36] - Other net expenses are also expected to be $2,500 thousand for the three months ending March 31, 2026[36] Future Projections - Q1 2026 revenue is expected to range between $35 million and $40 million, with a net loss projected between $20 million and $23 million[15] - The company expects to receive approximately $37.6 million from General Motors in Q1 2026 related to a commercial settlement[8] - For the three months ending March 31, 2026, the projected net loss is estimated to be between $(23,000) thousand and $(20,000) thousand[36] - Adjusted EBITDA for the three months ending March 31, 2026, is expected to range from $(13,000) thousand to $(10,000) thousand[36] Strategic Initiatives - Aspen initiated a strategic review to strengthen its long-term competitive positioning, engaging Piper Sandler & Co. as its financial advisor[10] - Aspen was awarded a North Sea subsea pipeline project with expected delivery in Q3 2026, expanding its market presence[14]