Aspen Aerogels(US:ASPN)2025-11-06 22:01Financial Performance - Revenue for the nine months ended September 30, 2025, was $229.8 million, a decrease of $99.8 million, or 30%, from $329.6 million for the same period in 2024[137]. - Net loss for the nine months ended September 30, 2025, was $316.6 million, with a net loss per share of $3.85, compared to a net income of $2.0 million and earnings per share of $0.03 for the same period in 2024[138]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $20.9 million, down from $67.2 million for the same period in 2024[147]. - Total revenue decreased by $44.3 million, or 38%, to $73.0 million for the three months ended September 30, 2025, from $117.3 million in the comparable period in 2024[167]. - Total revenue decreased by $99.8 million, or 30%, to $229.8 million for the nine months ended September 30, 2025, from $329.6 million in the comparable period in 2024[188]. - Gross profit decreased by $66.9 million, or 49%, to $68.9 million for the nine months ended September 30, 2025, from $135.8 million in the comparable period in 2024[198]. Revenue Breakdown - Sales of PyroThin thermal barriers were $306.8 million, $110.1 million, and $55.6 million for the fiscal years 2024, 2023, and 2022, respectively, indicating a decline in thermal barrier revenues in 2025 compared to the prior year[130]. - Thermal barrier revenue decreased by $84.0 million, or 35%, to $152.8 million for the nine months ended September 30, 2025, from $236.8 million in the comparable period in 2024[194]. - Thermal barrier revenue decreased by $41.9 million, or 46%, to $48.7 million for the three months ended September 30, 2025, compared to $90.6 million in the same period in 2024[172]. - Energy industrial revenue decreased by $15.9 million, or 17%, to $76.9 million for the nine months ended September 30, 2025, from $92.8 million in the comparable period in 2024[189]. - Energy industrial revenue decreased by $2.4 million, or 9%, to $24.3 million for the three months ended September 30, 2025, from $26.7 million in the same period in 2024[168]. Cost and Expenses - Total cost of revenue decreased by $33.0 million, or 17%, to $160.8 million for the nine months ended September 30, 2025, from $193.8 million in the comparable period in 2024[195]. - Gross profit decreased by $28.2 million, or 58%, to $20.8 million for the three months ended September 30, 2025, from $49.0 million in the comparable period in 2024[177]. - Manufacturing costs for thermal barriers decreased by $7.0 million due to lower volumes and cost-cutting efforts in 2025[176]. - Research and development expenses decreased by $3.0 million, or 22%, to $10.6 million for the nine months ended September 30, 2025, from $13.6 million in the comparable period in 2024[199]. - Sales and marketing expenses decreased by $5.2 million, or 19%, to $21.9 million for the nine months ended September 30, 2025, from $27.1 million in the comparable period in 2024[201]. - General and administrative expenses decreased by $12.1 million, or 23%, to $40.4 million for the nine months ended September 30, 2025, from $52.5 million in the comparable period in 2024[203]. Cash Flow and Financing - Net cash provided by operating activities increased by $6.8 million to $16.7 million for the nine months ended September 30, 2025, compared to $9.9 million in the comparable period in 2024[220]. - Net cash used in investing activities was $35.0 million for the nine months ended September 30, 2025, compared to $71.5 million in the comparable period in 2024[221]. - Net cash used in financing activities totaled $50.6 million for the nine months ended September 30, 2025, primarily for the repayment of the Revolving Facility and Term Loan Facility[222]. - The cash and cash equivalents balance as of September 30, 2025, was $150.7 million, sufficient to support current operating requirements for at least the next twelve months[216]. - As of September 30, 2025, the company had unrestricted cash and cash equivalents of $150.7 million, primarily for working capital and capital expansion purposes[233]. Restructuring and Costs - Restructuring and demobilization costs amounted to $1.6 million for the three months ended September 30, 2025, due to a restructuring plan initiated in February 2025[184]. - Restructuring and demobilization costs for the nine months ended September 30, 2025, included severance and other personnel costs of $7.3 million[205]. - Impairment of property, plant, and equipment costs increased by $284.9 million, to $287.6 million for the nine months ended September 30, 2025, from $2.7 million in the comparable period in 2024[207]. Market and Strategic Initiatives - The company has entered into multi-year production contracts with several automotive EV OEM customers, including General Motors and Toyota, to supply thermal barriers for their EV battery systems[129]. - The company’s thermal barrier technology aims to enhance battery performance and safety in EVs by impeding thermal runaway in lithium-ion battery systems[128]. - The company is focused on expanding its market presence in the EV sector and believes in the commercial potential of its technology[228]. - The company anticipates future revenues and profit margins from its supply relationships with automotive OEMs in the EV market[228]. - The East Providence facility was converted in 2024 to support the growth of the thermal barrier program, with a flexible supply strategy in place to meet demand[135]. Tax and Regulatory - The company incurred $2.5 million in income tax expense for the nine months ended September 30, 2025, related to its maquiladora operations in Mexico[211]. - Income tax expense increased by $0.3 million, or 122%, to $0.6 million for the three months ended September 30, 2025, from $0.3 million in the comparable period in 2024[187]. Other Financial Considerations - The company does not believe inflation has had a material effect on its results of operations during the periods presented, but acknowledges potential future impacts[236]. - The company is exposed to interest rate fluctuations, but a hypothetical 100 basis point change would not have a material effect on operations[234]. - The company has $1.7 million of restricted cash to support outstanding letters of credit for commercial contracts[235]. - The company evaluates its critical accounting policies and estimates on an ongoing basis, which may impact reported financial results[226]. - Foreign currency transaction losses were $0.2 million for the nine months ended September 30, 2025, compared to $2.3 million for the same period in 2024[237].