Aspen Aerogels, Inc. — Second Quarter 2026 Earnings Summary

Financial Performance

• Total revenue for Q2 2026 was $49.8 million, a 32% increase quarter-over-quarter but a 36% decrease compared to $78.0 million in the prior year period.
• Thermal Barrier segment revenue was $29.5 million, up 81% quarter-over-quarter but down from $55.2 million in the prior year period, reflecting changes to North American EV regulatory frameworks.
• Energy Industrial segment revenue was $20.4 million, down from $22.8 million in the prior year period.
• Net loss was $23.3 million ($0.28 per share), compared to a net loss of $9.1 million ($0.11 per share) in the prior year period.
• Adjusted net loss was $17.9 million ($0.22 per share), compared to an adjusted net loss of $3.2 million ($0.04 per share) in the prior year period.
• Adjusted EBITDA was $(6.6) million, compared to $9.7 million in the prior year period.
• Q2 2026 results included an $8.9 million loss on property damage from the April 2026 East Providence incident, offset by an $8.9 million insurance recovery receivable recognized in other income.
• Q2 2026 results included $5.3 million of incident-related costs (expedited freight, professional fees) for which the company plans to submit insurance claims.
• Cash, cash equivalents, and restricted cash ended the quarter at $153.4 million.
• Deferred revenue increased to $35.3 million ($25.5 million current, $9.7 million long-term) from $1.3 million at the end of 2025.
• Total liabilities increased to $200.5 million from $171.2 million at the end of 2025; total stockholders' equity decreased to $192.5 million from $235.5 million.
• Long-term debt decreased to $56.9 million from $65.5 million at the end of 2025.

Guidance and Future Outlook

• Q3 2026 revenue is expected to range between $65 million and $80 million.
• Q3 2026 net loss is expected to range between $6 million and $9 million ($0.07 to $0.11 per share).
• Q3 2026 Adjusted EBITDA is expected to range between $7 million and $15 million.
• The Q3 Adjusted EBITDA range excludes an estimated $5 million to $10 million of costs related to the East Providence incident.
• FY 2026 capital expenditures, excluding East Providence restoration costs, are expected to be less than $10 million.
• European Thermal Barrier 2026 revenue outlook was raised to $20 million to $30 million.
• Management expects sustained, profitable growth in 2027 and beyond, driven by accelerating Energy Industrial project activity, stabilizing North American Thermal Barrier demand, and the European Thermal Barrier revenue ramp.

Business Segments and Product Lines

• Thermal Barrier revenue growth was driven by stabilizing North American program volumes and continued European OEM revenue momentum.
• The company secured a PyroThin® award from Jaguar Land Rover for two next-generation vehicle architectures, with start of production expected in 2027.
• The company initiated a staged restart of its East Providence, Rhode Island manufacturing facility and maintained customer supply through existing inventory, external manufacturing, and limited internal production.
• The company continues to actively market the Statesboro, Georgia manufacturing assets for sale after a previously disclosed non-binding letter of intent expired without a definitive agreement.

Market and Competitive Landscape

• North American EV regulatory framework changes and incentive programs negatively impacted prior year Thermal Barrier segment performance.
• European OEM revenue momentum continues to support the Thermal Barrier segment.
• The company leverages its Aerogel Technology Platform® to partner with industry leaders in sustainability, electrification, e-mobility, and clean energy markets.

Risks and Challenges

• Actual results may vary materially from the outlook due to the staged restart of the East Providence facility, operational disruptions, supply chain disruptions, or further cost inflation.
• EV thermal barrier customers retain the right to cancel contracts at any time without penalty.
• Costs or investments incurred in excess of projections used to develop pricing under EV thermal barrier contracts could impact profitability.
• The company faces risks related to the ability to enforce patents, achieve expected capacity levels, and general economic conditions.

Management Commentary and Tone

• President and CEO Don Young stated the quarter demonstrated the "resilience of our team and the durability of our business" as they managed through the East Providence incident.
• CFO Grant Thoele noted the third-quarter outlook represents a "meaningful improvement in financial performance" despite elevated incident costs, emphasizing a focus on disciplined cost management and rebuilding earnings power.
• Management expressed confidence that current drivers position the company for sustained, profitable growth in 2027 and beyond.

Analyst Questions and Answers

• No specific analyst questions and answers were included in the press release text provided.

Other Key Points

• The $8.9 million insurance recovery receivable from the East Providence property damage is expected to be collected in the third quarter of 2026.
• The company expects to submit claims under business interruption insurance for the $5.3 million in incident-related costs.
• The Q3 2026 outlook assumes depreciation and amortization of $5.0 million, stock-based compensation of $3.0 million, net interest expense of $3.0 million, and diluted weighted average shares outstanding of 83.0 million.
• The Adjusted EBITDA range does not assume any business interruption insurance recoveries related to the East Providence incident.