Financial Data and Key Metrics Changes - Q3 revenue was $73 million, a decline of $5 million or 6% quarter over quarter, primarily due to a 12% decrease in thermal barrier revenues to $48.7 million [14] - Gross profit decreased by 18% quarter over quarter to $20.8 million, with gross margin declining from 32.4% to 28.5% [14][15] - Adjusted EBITDA declined by $3.5 million quarter over quarter to $6.3 million in Q3 [15] Business Line Data and Key Metrics Changes - Thermal barrier segment gross margin was 24%, down from 31% in Q2, while energy industrial segment gross margin remained stable at 36% [15] - Energy industrial revenues increased by 7% to $24.3 million, indicating stabilization from recent lows [14] Market Data and Key Metrics Changes - North American EV sales reached record levels in Q3, but GM significantly reduced its EV production rates in October, indicating a shift in market dynamics [7][17] - GM's U.S. market share grew to 16.5%, second only to Tesla, but the company expects to determine natural EV demand early in 2026 [7][22] Company Strategy and Development Direction - The company aims to build a strong, profitable, capital-efficient business while diversifying into adjacent markets such as battery energy storage systems [6][12] - The focus is on leveraging Aerogels technology to expand into new verticals and enhance product offerings with complementary specialty materials [25][26] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenging environment for EV OEMs and anticipates a reset in EV demand, with expectations for growth to resume from a lower base [28] - The energy industrial segment is expected to stabilize and grow, with a strong revenue trajectory anticipated in 2026 [11][28] Other Important Information - The company ended Q3 with $152.4 million in cash and equivalents, indicating a strong net cash position [16] - The company is engaging with lenders for near-term covenant relief due to the revised Q4 outlook [18] Q&A Session Summary Question: EBITDA break-even target - Management discussed the $200 million revenue target for EBITDA break-even, emphasizing the importance of production mix and cost reductions [30][31] Question: Growth in energy industrial segment - Management expressed optimism about growth in the energy industrial segment, projecting a return to higher revenue levels in 2026 [33][34] Question: European OEM award and potential volumes - The new European OEM award is expected to contribute significantly to revenue, with potential volumes projected for 2027 [39] Question: Demand for stationary storage - Management noted increasing demand for stationary storage systems and the company's readiness to meet this demand with existing technology [38] Question: Channel inventories and corrections - Management indicated progress in moving product through distribution channels, with improvements noted compared to earlier in the year [36] Question: CapEx maintenance - Management plans to maintain lower CapEx levels while ensuring efficient operations, with selective investments tied to returns [50]