Aspen Aerogels (ASPN) investor relations material

Executive summary

• Q1 2026 revenue was $37.9 million, down sharply year-over-year due to lower demand in the Thermal Barrier segment, regulatory changes, and operational disruptions at the East Providence facility, which suffered an explosion in April; a staged restart is expected in May and no serious injuries were reported.

• Net loss improved to $23.7 million from $301.2 million in Q1 2025, with net loss per share at $0.29 versus $3.67; gross profit was $4.3 million, reflecting lower volumes and higher costs.

• Strategic review reaffirmed focus on scaling Energy Industrial, diversifying PyroThin Thermal Barriers, and expanding into adjacent markets.

• Expanded external manufacturing to support both business segments and secured a second subsea pipeline award for Q3 2026; record European thermal barrier revenue achieved.

• North American EV production is stabilizing as inventory clears, while BESS qualifications advance.

Financial highlights

• Q1 2026 revenue was $37.9 million, down 8% quarter-over-quarter and 52% year-over-year; Energy Industrial contributed $21.6 million, Thermal Barrier $16.3 million.

• Gross profit was $4.3 million (11% margin); segment gross margin: 15% for Energy Industrial, 6% for Thermal Barrier.

• GAAP net loss was $23.7 million, improved from $72.9 million loss last quarter and $301.2 million in Q1 2025.

• Adjusted EBITDA was negative $12.7 million, a 29% sequential improvement but down from $4.9 million in Q1 2025.

• Cash and equivalents at Q1 end: $175.6 million; operating cash flow was $34.1 million, aided by a $37.6 million GM settlement recognized over two years.

Outlook and guidance

• Q2 2026 revenue expected between $40 million and $48 million, with net loss projected between $14 million and $20 million and adjusted EBITDA between $(4) million and $(10) million.

• Sequential revenue growth anticipated through 2026, with Energy Industrial targeting 20% growth and full-year CAPEX expected to be less than $10 million.

• EBITDA break-even targeted at $200 million annual revenue run-rate in H2 2026 and $175 million in 2027.

• Thermal Barrier revenue is expected to continue declining in 2026 due to lower OEM production and EV adoption rates.

• Anticipates ending 2026 with a strong net cash position and reduced capital expenditures.