Aspen Aerogels(ASPN) - 2025 Q2 - Quarterly Results

Second Quarter 2025 Financial Results and Business Highlights This section presents Aspen Aerogels' second quarter 2025 financial results and strategic business developments Q2 2025 Financial Performance Aspen Aerogels reported a significant revenue decline and net loss in Q2 2025, yet achieved sequential improvements in gross margin and Adjusted EBITDA Q2 2025 vs. Q2 2024 Key Financial Metrics | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $78.0 | $117.8 | -33.8% | | Net Income (Loss) | ($9.1) | $16.8 | N/A | | Net (Loss) Income per Share | ($0.11) | $0.22 | N/A | | Adjusted EBITDA | $9.7 | $28.9 | -66.4% | Q2 2025 Quarter-over-Quarter (QoQ) Performance | Metric | Q2 2025 Value (in millions) | QoQ Change | | :--- | :--- | :--- | | Total Revenue | $78.0 | -1% | | - Thermal Barrier Revenue | $55.2 | +13% | | - Energy Industrial Revenue | $22.8 | -24% | | Gross Margin | 32% | +3 percentage points | | Adjusted EBITDA | $9.7 | +98% | - The company ended the second quarter with $167.6 million in cash and cash equivalents[7] Business Developments and Strategy Management focused on organizational streamlining and cost structure improvements in H1 2025, alongside a planned CFO transition to ensure strategic continuity - Management's primary focus in H1 2025 was on streamlining the organization to improve the cost structure and profitability, creating a resilient business framework designed to operate with minimal capital expenditure requirements[5] - CFO Ricardo Rodriguez will step down at the end of Q3 2025, to be succeeded by Grant Thoele, the current Chief of Staff to the CEO and VP of Corporate Strategy and Finance, ensuring a smooth internal transition[6][8] Financial Outlook This section provides Aspen Aerogels' financial projections for the second half and full year 2025, including revenue and Adjusted EBITDA targets Second Half of 2025 Financial Outlook Aspen projects H2 2025 revenue between $140 million and $160 million, with full-year revenue of $297 million to $317 million, anticipating a maintained net cash position H2 2025 and Full Year 2025 Outlook | Metric (in millions) | H2 2025 Outlook | FY 2025 Outlook | | :--- | :--- | :--- | | Revenue | $140 - $160 | $297 - $317 | | Net Income (Loss) | ($7) - $3 | ($317) – ($307) | | Adjusted EBITDA | $20 - $30 | $35 – $45 | | CAPEX* | $10 | $25 | - The company expects to maintain its net cash position through the end of the year, driven by a leaner fixed cost structure and reductions in net working capital[10] - Planned asset sales in Georgia are expected to materially reduce the company's debt over the coming quarters[10] Financial Statements This section provides a detailed overview of Aspen Aerogels' condensed consolidated financial statements, including balance sheets, statements of operations, and cash flow analysis Condensed Consolidated Balance Sheets As of June 30, 2025, total assets decreased to $525.1 million, primarily due to reduced property, plant, and equipment, while total liabilities also declined Balance Sheet Summary (in thousands of US dollars) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $167,622 | $220,882 | | Total current assets | $310,467 | $409,448 | | Property, plant and equipment, net | $156,271 | $459,276 | | Total assets | $525,132 | $895,144 | | Total current liabilities | $78,046 | $110,112 | | Total liabilities | $216,364 | $280,439 | | Total stockholders' equity | $308,768 | $614,705 | Consolidated Statements of Operations The company reported $78.0 million in Q2 2025 revenue and a $9.1 million net loss, with a significant $310.3 million net loss for the first six months due to impairment charges Q2 Statement of Operations Summary (in thousands of US dollars) | Account | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenue | $78,024 | $117,770 | | Gross profit | $25,316 | $51,578 | | Income (loss) from operations | ($5,155) | $19,986 | | Net income (loss) | ($9,056) | $16,818 | Six-Month Statement of Operations Summary (in thousands of US dollars) | Account | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenue | $156,747 | $212,271 | | Gross profit | $48,128 | $86,721 | | Income (loss) from operations | ($304,496) | $22,422 | | Net income (loss) | ($310,305) | $14,983 | Analysis of Cash Flow For the first six months of 2025, the company generated $1.7 million in cash from operating activities, resulting in a net decrease in cash of $53.2 million Six-Month Cash Flow Summary (in thousands of US dollars) | Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash from Operating activities | $1,702 | ($10,906) | | Net cash used in Investing activities | ($25,883) | ($50,690) | | Net cash from (used in) Financing activities | ($29,063) | $13,400 | | Net decrease in cash | ($53,244) | ($48,196) | Reconciliation of Non-GAAP Financial Measures This section provides reconciliations of GAAP net income (loss) to non-GAAP Adjusted EBITDA and Adjusted Net Loss, including forward-looking guidance adjustments Reconciliation of Net Income (Loss) to Adjusted EBITDA and Adjusted Net Loss The company reconciles GAAP net income (loss) to non-GAAP Adjusted EBITDA and Adjusted Net Loss by excluding specific non-core and non-cash charges Reconciliation of Net Income (Loss) to Adjusted EBITDA (in thousands of US dollars) | | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income (loss) | $(9,056) | $16,818 | $(310,305) | $14,983 | | Adjustments | $18,801 | $12,125 | $325,077 | $26,888 | | Adjusted EBITDA | $9,745 | $28,943 | $14,672 | $41,871 | Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) (in thousands of US dollars) | | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net income (loss) | $(9,056) | $16,818 | | Restructuring and demobilization costs | $4,938 | - | | Impairment of property, plant and equipment | $955 | - | | Adjusted Net Income (Loss) | $(3,163) | $16,818 | Reconciliation for Financial Outlook The company provides forward-looking reconciliations of projected GAAP net income (loss) to Adjusted EBITDA for both the second half and full year 2025 H2 2025 Outlook Reconciliation: Net Income (Loss) to Adjusted EBITDA (in thousands of US dollars) | | Low | High | | :--- | :--- | :--- | | Net income (loss) | $(6,500) | $3,500 | | Adjustments (Depreciation, Stock Comp, etc.) | $26,500 | $26,500 | | Adjusted EBITDA | $20,000 | $30,000 | FY 2025 Outlook Reconciliation: Net Loss to Adjusted EBITDA (in thousands of US dollars) | | Low | High | | :--- | :--- | :--- | | Net loss | $(316,805) | $(306,805) | | Adjustments (Depreciation, Impairment, etc.) | $351,477 | $351,477 | | Adjusted EBITDA | $34,672 | $44,672 |