Investment Thesis
Aspen Aerogels faces severe profitability challenges despite explosive 3515% revenue growth, with operating and net losses of $378M and $390M respectively indicating fundamental execution problems. The company is burning cash operationally despite massive top-line expansion, suggesting unsustainable cost structure and inability to scale profitably. While strong liquidity and balance sheet provide a runway for restructuring, the deteriorating cash conversion and negative operating leverage present substantial downside risk.
ASPN Strengths
- Extraordinary revenue growth of 3515% YoY demonstrates strong market demand and market opportunity
- Solid balance sheet with $156.9M cash and 0.28x debt-to-equity ratio provides financial flexibility
- Strong liquidity position with 3.90x current ratio and 3.29x quick ratio ensures near-term solvency
ASPN Risks
- Massive operating loss of -$378M with -139.5% operating margin indicates severe operational execution problems and unsustainable cost structure
- Negative free cash flow of -$4.6M despite $32.9M operating cash flow signals poor capital allocation and inability to fund growth organically
- Diluted EPS of -$4.73 shows per-share value destruction, with negative ROE of -165.4% and ROA of -95.8% indicating severe shareholder value erosion
- Scale of losses ($390M net income) approaching 150% of revenue suggests fundamental business model issues, not temporary scaling inefficiencies
Key Metrics to Watch
- Path to operating profitability and timeline to positive operating margin above 5%
- Free cash flow conversion and whether company achieves positive FCF within 2-3 quarters
- Gross margin sustainability and whether operating leverage emerges as revenue scales
ASPN Financial Metrics
ASPN Profitability Ratios
ASPN Balance Sheet & Liquidity
ASPN 5-Year Financial Trend
5-Year Trend Summary: ASPEN AEROGELS INC's revenue has grown significantly by 225% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.66 indicates the company is currently unprofitable.
ASPN Growth Metrics (YoY)
ASPN Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $73.0M | -$1.8M | $0.03 |
| Q2 2025 | $78.0M | -$1.8M | $-0.11 |
| Q1 2025 | $78.7M | -$1.8M | $-0.02 |
| Q3 2024 | $60.8M | -$1.8M | $0.03 |
| Q2 2024 | $48.2M | -$1.8M | $0.19 |
| Q1 2024 | $45.6M | -$1.8M | $-0.02 |
| Q3 2023 | $36.7M | -$13.1M | $-0.19 |
| Q2 2023 | $45.6M | -$15.4M | $-0.22 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
ASPN Capital Allocation
ASPN SEC Filings
Access official SEC EDGAR filings for ASPEN AEROGELS INC (CIK: 0001145986)