Aspen Aerogels, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue for Q3 2026 was $85.2 million, a 71% increase quarter-over-quarter and 17% increase year-over-year compared to $73.0 million.
• Thermal Barrier segment revenue was $45.3 million, a 54% increase quarter-over-quarter and 7% decrease year-over-year compared to $48.7 million.
• Energy Industrial segment revenue was $39.9 million, a 96% increase quarter-over-quarter and 64% increase year-over-year compared to $24.3 million.
• Net loss was $10.4 million ($0.13 per share), compared to a net loss of $6.3 million ($0.08 per share) in the prior year period.
• Adjusted net income for Q3 2026 was $9.3 million ($0.11 per share), compared to an adjusted net loss of $4.8 million ($0.06 per share) in the prior year period.
• Adjusted EBITDA was $19.8 million (23% margin), a $26.4 million increase quarter-over-quarter and a 215% increase year-over-year compared to $6.3 million.
• Gross margin was 24%, an 18-percentage-point increase quarter-over-quarter.
• Adjusted gross profit was $35.3 million (41% margin), excluding $14.7 million of East Providence incident-related costs in cost of revenue.
• Cash, cash equivalents, and restricted cash ended the quarter at $146.5 million.
• Total liabilities were $209.7 million as of September 30, 2026, compared to $171.2 million as of December 31, 2025.
• Deferred revenue was $25.1 million ($20.2 million current, $4.9 million long-term) as of September 30, 2026, compared to $1.3 million (all current) as of December 31, 2025.
• Long-term debt was $51.1 million as of September 30, 2026, compared to $65.5 million as of December 31, 2025.
• Net cash provided by operating activities for the nine months ended September 30, 2026, was $14.2 million, compared to $16.7 million in the prior year period.

Guidance and Future Outlook:

• Q4 2026 revenue is expected to range between $60 million and $75 million.
• Q4 2026 net loss is expected to range between $8 million and $11 million.
• Q4 2026 net loss per share is expected to range between $0.10 and $0.13.
• Q4 2026 Adjusted EBITDA is expected to range between $5 million and $13 million, excluding estimated $5 million to $10 million of East Providence incident-related costs.
• FY 2026 capital expenditures, excluding costs related to the restoration of the East Providence facility, are expected to be less than $10 million.
• The East Providence facility restoration is on track for completion in the first half of 2027.
• Management anticipates sustained demand across both segments, including increased LNG activity and the first data center infrastructure project.
• European Thermal Barrier business is ramping with seven OEMs across eight programs driving growth into 2027.

Business Segments and Product Lines:

• Energy Industrial segment secured an initial order for a data center infrastructure project with delivery expected in Q4 2026.
• Energy Industrial segment secured a key project award with delivery expected in 2027.
• Thermal Barrier segment generated record European OEM revenue of $8.0 million in Q3 2026.
• The company generated initial battery energy storage system (BESS) revenue from PyroThin® parts supplied to multiple market participants.
• Demand from GM increased during the quarter.

Market and Competitive Landscape:

• The company is expanding into new market opportunities including data center infrastructure and battery energy storage.
• The company serves global megatrends of resource efficiency, e-mobility, and clean energy.
• Management noted robust deliveries in the Energy Industrial segment and growing contributions from European EV customers.

Risks and Challenges:

• Q3 2026 results included $15.1 million of East Providence incident-related costs, including expedited freight, professional fees, and incremental costs of external manufacturing.
• Q3 2026 results included a $4.6 million loss on disposal of property, plant, and equipment, primarily related to write-downs of Statesboro, Georgia manufacturing assets.
• The company is engaged in an insurance claims process regarding East Providence incident-related costs.
• Forward-looking statements note risks related to the ability to return the East Providence facility to full production capacity and meet customer demand.
• Risks include potential operational disruptions, supply chain disruptions, cost inflation, and the right of EV thermal barrier customers to cancel contracts without penalty.
• Actual results may vary materially from the outlook due to factors such as the recovery from East Providence incidents, staged restart of the facility, and general economic conditions.

Management Commentary and Tone:

• Don Young, President and CEO, stated the company delivered a strong third quarter, exceeding the high end of the outlook for both revenue and Adjusted EBITDA.
• Management described the improvement as broad-based, citing robust Energy Industrial deliveries, increased demand from GM, and growing European EV contributions.
• Grant Thoele, CFO and Treasurer, noted the results demonstrated operating leverage and that the strong balance sheet provides a solid foundation for continued growth.
• Management expressed confidence that the business is well-positioned for another solid growth year in 2027 due to secured project work across the Energy Industrial portfolio.

Other Key Points:

• The company is engaged in claims processes under insurance policies for East Providence incident-related costs.
• The company progressed toward restoring robust production capability at the East Providence, Rhode Island facility.
• The press release includes reconciliations of non-GAAP financial measures (Adjusted EBITDA, adjusted net income, adjusted gross profit) to GAAP financial results.
• A conference call to discuss results was held on November 5, 2026, at 8:30 a.m. ET.