Aspen Aerogels, Inc. (ASPN): Business Model Canvas [Dec-2025 Updated]

You're looking to see how Aspen Aerogels, Inc. is actually making money and where the growth is coming from, especially as they navigate that big shift from traditional energy to electric vehicles. Honestly, the Business Model Canvas shows a company balancing high fixed costs from their Northborough manufacturing asset with a clear focus on securing major wins, like the expected $270 million to $280 million in revenue for fiscal 2025, driven by their superior thermal runaway solution, PyroThin®. With $152.4 million in cash as of Q3 2025, they have runway, but the execution on those OEM partnerships is defintely key. Dive into the nine blocks below to see exactly how Aspen Aerogels, Inc. plans to capture this next wave of battery safety demand.

Aspen Aerogels, Inc. (ASPN) - Canvas Business Model: Key Partnerships

Aspen Aerogels, Inc. leverages its Aerogel Technology Platform® through strategic alliances across key high-growth sectors.

Major EV Original Equipment Manufacturers (OEMs) and Automotive Partners

• Key partnerships include General Motors, Toyota, Audi, Scania Volvo Trucks, Stellantis, Porsche, and Mercedes-Benz.
• The EV thermal barrier business revenue reached over $300 million in 2024, up from $7 million in 2021.
• Aspen Aerogels plans to produce over 90 million PyroThin® parts annually.
• General Motors has about 17 nameplates utilizing Aspen Aerogels' products.
• General Motors previously provided a secured lending commitment of $100 million, with a maturity date of March 31, 2025.
• Stellantis has postponed the release of its latest strategic plan until the second quarter of 2026.
• General Motors took a $1.6 billion charge tied to changes in its electric vehicle production strategy.

European OEM and Future Production Contracts

Aspen Aerogels secured a significant contract for its PyroThin® Thermal Barrier from a major European OEM, with the expected start of production slated for 2027. PyroThin cell-to-cell barriers are currently in volume production for major automotive OEMs across North America, Europe, and Asia.

Battery Energy Storage Systems (BESS) and Advanced Energy Storage Alliances

The EV thermal management market, where PyroThin operates, is valued at $22 billion. Aspen Aerogels' carbon aerogel initiative aims to optimize lithium iron phosphate (LFP) batteries by achieving a 10C charging rate. The Energy Industrial segment, which includes products for energy storage, generated revenue of $22.8 million in the second quarter of 2025.

Energy Infrastructure and Industrial Sector Alliances

The Company's Cryogel® and Pyrogel® products are valued by the world's largest energy infrastructure companies. Cryogel Z specifically combines thermal performance, acoustic attenuation, and passive fire protection for LNG facilities.

External Manufacturing Facility (EMF) and Supply Chain Optimization

Aspen Aerogels anticipates achieving its target revenue capacity by 2025 through productivity improvements and external manufacturing support.

Aspen Aerogels, Inc. (ASPN) - Canvas Business Model: Key Activities

You're looking at the core engine of Aspen Aerogels, Inc. (ASPN) right now-what they are actively doing to generate revenue and manage the business as of late 2025. It's a mix of manufacturing execution, strategic cost control, and future-proofing through R&D.

Manufacturing of proprietary aerogel insulation at the Rhode Island facility.

Aspen Aerogels, Inc. is focusing its primary manufacturing efforts on maximizing throughput at the East Providence, Rhode Island facility. This decision followed the halt of construction on the planned second aerogel manufacturing facility in Statesboro, Georgia. The company plans to invest capital to maximize capacity at the Rhode Island plant, utilizing a capital-light and modular capacity plan. Some equipment from the Georgia site is being assessed for relocation to upgrade and expand the existing Rhode Island plant. The external manufacturing facility, which supports the Energy Industrial segment, also has the capability to increase its aerogel production capacity.

Research and development (R&D) for carbon aerogel to enhance lithium-ion battery cells.

The R&D activity centers on the carbon aerogel initiative, specifically designed to boost the performance of lithium-ion battery cells. The goal here is to enable Electric Vehicle (EV) manufacturers to achieve two key outcomes: lower charging times and reduced EV costs. For the third quarter of 2025, Aspen Aerogels, Inc. reported operating expenses for Research and development of approximately $10,621 thousand.

Executing the strategic cost optimization plan to reduce fixed costs.

This is a major operational focus. The strategic cost optimization has resulted in fixed cost reductions of approximately $65 million, according to recent analysis. This aggressive restructuring was intended to lower the revenue threshold required for profitability from $360 million down to $270 million, based on Q1 2025 planning. By the third quarter of 2025, the company reported that adjusted operating expenses had been reduced to a run-rate of $22.6 million. Furthermore, management indicated plans to target further reductions in 2026, aiming for $20-21 million in fixed costs. Capital expenditures also reflect this focus, dropping from $12.9 million in Q2 2025 to $9.1 million in Q3 2025.

Managing and fulfilling long-cycle Energy Industrial project contracts (e.g., Venture Global CP2 LNG).

Aspen Aerogels, Inc. is actively managing its long-cycle contracts, particularly within the Energy Industrial segment, which uses Cryogel® products. A key activity is the fulfillment of supply for Venture Global's CP2 LNG project, with delivery of Cryogel® anticipated in the first half of 2026. This project, for which Venture Global made a Final Investment Decision (FID) on Phase 1 for $15.1 billion, is expected to see in-service dates modeled for 3Q27. The company's long-term target for this segment is to build it into a $200 million business.

Continuous process improvement for gross margin expansion, especially in the Energy Industrial segment.

Process improvement ties directly into margin expansion. The company delivered gross margins of 28.5% in the third quarter of 2025, which represented a four-percentage point decrease quarter-over-quarter. To contrast this with the segment goal, the Energy Industrial business achieved a record gross margin exceeding 40% in the fourth quarter of 2024, with Q4 2024 revenue in that segment reaching $53 million. The overall full-year 2025 revenue guidance was updated to a range between $270 million and $280 million.

• The company secured a PyroThin® Thermal Barrier contract from a major European OEM, with production start targeted for 2027.
• The Q3 2025 Adjusted EBITDA was $6.3 million.
• The full-year 2025 Adjusted EBITDA outlook is projected to be between $7 million and $15 million.
• Cash and equivalents on hand at the end of Q3 2025 totaled $152.4 million.

Aspen Aerogels, Inc. (ASPN) - Canvas Business Model: Key Resources

You're looking at the core assets Aspen Aerogels, Inc. (ASPN) relies on to execute its strategy, especially as the EV market resets. These aren't just line items; they are the competitive moat.

The foundation is the Proprietary Aerogel Technology Platform® and its associated intellectual property. Aspen Aerogels, Inc. is actively defending this moat; for instance, they reached a settlement in January 2025 with AMA S.p.A. and AMA Composites S.r.l. before the Court of Genoa, Italy, to resolve a patent dispute over unauthorized sale of infringing aerogel insulation materials in Europe. This commitment to IP protection secures their advantage in high-margin markets. The technology platform is leveraged across their core segments and into adjacent high-value markets.

The PyroThin® thermal barrier product line is critical, specifically for EV battery safety, as it is engineered to mitigate thermal runaway propagation across battery system architectures. This product line is positioned to meet stringent global safety standards, such as the EU's Battery Regulation (EU) 2023/1542, which creates a tailwind for adoption. Aspen Aerogels, Inc. continues to win design awards, including a recent one from a major European OEM with an expected start of production in 2027.

Liquidity is a key resource for operational flexibility, especially when navigating near-term headwinds like the U.S. EV market reset. Aspen Aerogels, Inc. ended Q3 2025 with cash and equivalents of $152.4 million. This strong balance sheet provides runway for strategic planning.

The physical assets include the single, high-capacity manufacturing asset in Northborough, Massachusetts, which serves as the company's main operational hub housing key departments like engineering and executive leadership. However, it's important to note that Aspen Aerogels, Inc. is maximizing capacity at its existing manufacturing facility in East Providence, Rhode Island, and utilizing external manufacturing, having stopped construction on a planned second facility in Statesboro, Georgia, to pursue a more capital-light path.

The human capital is the highly specialized materials science and engineering talent. As of October 2025, Aspen Aerogels, Inc. employs 450+ professionals worldwide, with the Northborough headquarters serving as the foundation for global operations and housing key engineering departments.

Here's a quick snapshot of some of the key financial and operational figures as of late 2025:

The intellectual property portfolio is actively growing, with several US patents granted in 2025, such as Patent number 12409428 for reinforced aerogel compositions (granted September 9, 2025) and Patent number 12401077 for a battery thermal management member (granted August 26, 2025).

The company's strategy involves leveraging its Aerogel Technology Platform® through partnerships with world-class industry leaders to enter additional high-value markets.

Finance: draft 13-week cash view by Friday.

Aspen Aerogels, Inc. (ASPN) - Canvas Business Model: Value Propositions

PyroThin®: Superior thermal runaway mitigation for EV battery packs.

Aspen Aerogels, Inc. provides cell-to-cell barriers designed to mitigate or stop thermal runaway propagation, which helps battery engineers satisfy and exceed China's GB38031 and the United Nations' ECE/TRANS/180/Add standards. The Thermal Barrier segment, anchored by PyroThin®, generated $48.7 million in revenue for the third quarter of 2025. The company secured a PyroThin® Thermal Barrier contract from a major European OEM with an expected start of production in 2027. This product also performs the mechanical function of a compression pad for battery packs.

Pyrogel®/Cryogel®: Best-in-class thermal insulation for energy efficiency and resource savings.

The Energy Industrial segment, which utilizes Pyrogel® and Cryogel® products for high-performance insulation in energy infrastructure, posted revenues of $24.3 million in the third quarter of 2025, representing a 7% increase quarter-over-quarter. Cryogel® Z supports sub-ambient and cryogenic applications, and the company has an install base of over 1497 km supporting subsea projects. Pyrogel® HPS insulation decreases downtime during inspections because it can be removed and reused, eliminating replacement material costs.

Enabling faster charging and lower EV cost through advanced carbon aerogel materials.

Aspen Aerogels, Inc. offers an extreme-fast-charging (XFC) cathode solution that helps optimize lithium iron phosphate (LFP) batteries by achieving a 10C charging rate. This technology is positioned to support the mass adoption of Si-rich anodes, which can lead to 20-40% range increase in electric vehicles.

Lightweight, thin, and flexible insulation defintely critical for space-constrained applications.

PyroThin® is an ultra-thin, low thermal conductivity aerogel thermal barrier material optimized for resistance during high-temperature events. This material helps increase battery packing density and lower weight while meeting safety requirement goals.

Solutions that support customer objectives around e-mobility and clean energy.

The company's overall strategy is to partner with world-class industry leaders to leverage its Aerogel Technology Platform® into additional high-value markets supporting sustainability and electrification. The full-year 2025 revenue outlook was updated to a range of $270 million to $280 million, with an expected Adjusted EBITDA between $7 million and $15 million.

The company ended the third quarter of 2025 with cash and equivalents of $152.4 million.

• PyroThin® production start for European OEM contract targeted for 2027.
• The company generated $15 million of operating cash flow in the third quarter of 2025.
• The projected net loss for the full year 2025 includes a $287.6 million impairment charge.
• The Thermal Barrier segment revenue decreased 12% quarter-over-quarter in Q3 2025.

Aspen Aerogels, Inc. (ASPN) - Canvas Business Model: Customer Relationships

You're looking at how Aspen Aerogels, Inc. manages its key customer interactions, which is heavily weighted toward deep, embedded relationships rather than transactional sales. This approach is critical given the long qualification cycles for their specialized materials.

Dedicated, long-term strategic partnerships with industry-leading OEMs. Aspen Aerogels, Inc. explicitly states its strategy is to partner with world-class industry leaders to leverage its Aerogel Technology Platform® into additional high-value markets. This is evident in the Thermal Barrier segment, where they have secured multiple OEM design awards. For instance, they have production contracts with General Motors for thermal barriers in next-generation electric vehicles. Furthermore, a PyroThin® contract was awarded from a major European OEM with production start targeted in 2027. This builds on existing commitments, such as the anticipated ramp-up with ACC, serving Stellantis and Mercedes-Benz, in 2026. Also, the company expanded its strategic partnership with BASF, which includes a joint development agreement for next-generation aerogel products.

Direct sales and engineering support for complex, large-scale Energy Industrial projects. The Energy Industrial segment relies on direct engagement to secure and execute large infrastructure contracts. This segment generated $24.3 million in revenue in Q3 2025, maintaining a robust gross margin of 36% in that quarter. Management is targeting this segment to grow into a $200 million long-term business. Support includes engineering services across the project lifecycle, from Concept & Pre-FEED through Commissioning & Start-up, for LNG, Refining & Petrochem, and Subsea projects. Specifically, supplying Cryogel® to Venture Global's CP2 LNG project is expected to contribute $15 million to $20 million in revenue in 2026.

High-touch collaboration on new product design and integration (e.g., next-gen LFP platform). Collaboration is deep, especially in the Battery Materials space. Aspen Aerogels, Inc. is working with 2 large advanced energy storage battery and system technology companies on near-term opportunities. A key example of this high-touch design work is the PyroThin® contract awarded from a leading American OEM for a next-gen Lithium Iron Phosphate (LFP) vehicle platform, with production expected to start in 2028. The advanced LFP aerogel program itself is designed to deliver a 10x improvement in C-rate capability.

Relationship management focused on securing multi-year, high-value contracts. The focus is clearly on locking in future revenue streams, which provides stability against near-term market volatility. The full-year 2025 revenue guidance is set between $270 million and $280 million, with the company ending Q3 2025 with $152.4 million in cash and equivalents. The strategy emphasizes securing these long-term commitments to drive future growth, as seen with the European OEM award targeting a 2027 production start.

Here's a quick look at the segment performance underpinning these relationships as of Q3 2025:

What this estimate hides is that the Thermal Barrier segment revenue of $48.7 million in Q3 2025 was down 12% from Q2 2025, reflecting the EV market reset.

The company's customer engagement structure includes:

• Securing OEM awards with production starts in 2026 and 2027.
• Targeting the Energy Industrial segment to reach $200 million in the long term.
• Engaging with 2 large advanced energy storage companies.
• Leveraging a partnership with BASF for next-generation materials.

Finance: draft 13-week cash view by Friday.

Aspen Aerogels, Inc. (ASPN) - Canvas Business Model: Channels

You're looking at how Aspen Aerogels, Inc. gets its specialized materials-Pyrogel®, Cryogel®, and PyroThin®-into the hands of its customers, and right now, that strategy is heavily focused on direct engagement and supply chain flexibility. The near-term revenue picture for late 2025 shows a company pivoting its channel focus due to market shifts.

For the third quarter of 2025, total revenue came in at $73.0 million, with the company projecting full-year 2025 revenue to land between $270 million and $280 million. The channel mix is clearly split between the EV market and industrial energy.

Direct sales force to global EV manufacturers and battery system integrators.

The direct sales effort targets the Thermal Barrier segment, anchored by the PyroThin® product. This channel is critical, but it's currently navigating a reset in the U.S. EV market. In Q3 2025, Thermal Barrier revenues were $48.7 million, which represented a 12% decrease quarter-over-quarter. Still, the long-term channel pipeline is being built through direct engagement with major players.

Here's the quick math on the direct EV channel development:

The sales team defintely works directly with these end-use customers and engineering firms to push for product qualification and specification acceptance. What this estimate hides is the current sales cycle length for these multi-year design wins.

Direct sales to major energy infrastructure companies for Pyrogel® and Cryogel® products.

The Energy Industrial segment, which uses Pyrogel® and Cryogel® for insulation, shows resilience and relies on direct relationships with the world's largest energy infrastructure companies. This channel delivered $24.3 million in revenue for Q3 2025, marking a 7% increase from the prior quarter. This segment also boasts a higher gross margin at 36% compared to the Thermal Barrier segment's 24% in the same period.

The direct sales focus in this area is locking in large project work:

• Expected subsea project revenue for 2026 is projected between $15 million to $20 million.
• Cryogel® supply is targeted for the Venture Global CP2 LNG project.

The company's overall gross margin for Q3 2025 was 28.5%, showing the impact of the lower-margin EV segment on the blended channel result.

External Manufacturing Facility (EMF) model for localized production and supply chain diversification.

Aspen Aerogels, Inc. is actively using its External Manufacturing Facility (EMF) model, primarily with a partner in China, to manage capacity without the massive capital outlay of its canceled Georgia plant. The company is planning to increase annual production capacity via this Chinese partner by $200 million by 2026. This EMF currently supports the Energy Industrial segment, but capacity is being ramped up for the EV sector as well.

This pivot is significant because the company canceled its planned second manufacturing plant in Statesboro, Georgia, which had conditional Department of Energy loan commitment of $670 million. Instead, Aspen officially opened two assembly plants outside of Monterrey, Mexico, in February 2025, though these are currently managed by a consulting company with an intent to purchase. The company has over 500 employees across its operations as of September 2025.

Direct online presence and technical support for product specification and ordering.

While the primary sales are direct and technical, the overall channel reach is broad. The sales force is responsible for delivering highly technical information and ensuring high-quality customer service, which supports both direct sales and channel partners. The company maintains a sales presence in 17 countries and 8 states in the U.S.A. Furthermore, Aspen relies on an established channel of qualified insulation distributors and contractors spanning more than 30 countries for rapid product delivery and end-user support. Finance: draft 13-week cash view by Friday.

Aspen Aerogels, Inc. (ASPN) - Canvas Business Model: Customer Segments

You're looking at the core customer base for Aspen Aerogels, Inc. as of late 2025, which is clearly split between the high-growth electrification space and the established industrial energy sector. It's a tale of two segments right now, with one facing a near-term reset and the other showing resilience.

Here's a look at the revenue split from the third quarter of 2025, which gives you a concrete view of where the business is landing its sales:

The full-year 2025 revenue guidance reflects the current environment, projected to land between $270 million and $280 million.

Electric Vehicle (EV) Manufacturers (OEMs) in North America and Europe.

• North American demand is currently undergoing a reset, with Q3 Thermal Barrier revenues decreasing 12% quarter-over-quarter to $48.7 million.
• A major European OEM awarded a PyroThin® contract with production expected to start in 2027.
• The ACC program, serving Stellantis and Mercedes-Benz, is anticipated to ramp up in 2026.
• Awarded European EV customer forecasts could generate over $150 million in revenue at full volumes by 2027.
• Another award from a leading American OEM targets a next-generation LFP platform with production expected in 2028.

Large Energy Infrastructure Companies (Oil & Gas, LNG, Petrochemical) requiring cryogenic and high-temperature insulation.

• This segment showed resilience, with Q3 2025 revenue increasing 7% quarter-over-quarter to $24.3 million.
• The Energy Industrial segment posted a robust gross margin of 36% in Q3 2025.
• The company is supplying Cryogel® to the Venture Global CP2 LNG project.
• Subsea project revenue is cited to be between $15 million and $20 million in 2026.

Battery Energy Storage Systems (BESS) providers exploring adjacent market opportunities.

• Aspen Aerogels is actively working with 2 large advanced energy storage battery and system technology companies.
• The focus is on near-term opportunities to supply PyroThin thermal barriers to this market.

Commercial Vehicle OEMs (e.g., Volvo Truck) for heavy-duty EV applications.

• The company secured a PyroThin® design award from Volvo Truck for a commercial vehicle program, announced in February 2025.

Finance: review the 2026 revenue contribution estimates from European OEMs ($10 million to $15 million) against current order book pacing by end of Q4 2025.

Aspen Aerogels, Inc. (ASPN) - Canvas Business Model: Cost Structure

The Cost Structure for Aspen Aerogels, Inc. is heavily influenced by the capital-intensive nature of its proprietary aerogel production and its commitment to technology advancement. You see this reflected in significant non-variable costs.

The company has been aggressively managing its overhead. Management noted specific actions to reduce fixed costs by a total of $35 million as part of its optimization strategy. This effort is aimed at lowering the revenue threshold needed for profitability.

A major component of the fixed cost base is the depreciation and amortization associated with manufacturing capacity. For the full year 2025, the outlook assumes depreciation and amortization of $22.5 million. Furthermore, the Thermal Barrier segment experienced gross margin pressure in Q3 2025, partly due to fixed cost absorption issues.

Maintaining technology leadership requires substantial investment in research and development. Here is a look at the R&D expenditure year-to-date as of late 2025:

Note: The R&D, Sales and Marketing, and G&A figures above are presented as reported in the source, typically in thousands of US dollars.

The Cost of Goods Sold (COGS) is directly tied to production volume and input costs, reflected in the gross margin. For the third quarter of 2025, Aspen Aerogels, Inc. reported a gross margin of 28.5% on revenues of $73.0 million. This resulted in a gross profit of $20.8 million for the quarter.

The company has been working to streamline its ongoing expenses. As a result of cost-reduction initiatives, adjusted operating expenses were reduced to a $22.6 million run-rate in Q3 2025. Management indicated a plan to further reduce this to $20-21 million in 2026.

Significant, non-recurring costs related to strategic shifts are also part of the 2025 cost profile. The full-year 2025 outlook includes planned restructuring and demobilization costs totaling $16.5 million. This follows Q1 2025 restructuring and demobilization costs of $9.8 million.

You should also note the following key cost-related items factored into the full-year 2025 outlook:

• Depreciation and amortization: $22.5 million.
• Stock-based compensation expense: $10.5 million.
• Other expense (net): $11.5 million.
• Impairment of property, plant, and equipment: $287.6 million.

Aspen Aerogels, Inc. (ASPN) - Canvas Business Model: Revenue Streams

You're looking at the revenue streams for Aspen Aerogels, Inc. (ASPN) as of late 2025, and the picture is one of near-term recalibration driven by the EV cycle, but with clear long-term contracts in place. Here's the quick math on where the money is coming from, based on the latest guidance and segment performance.

• - Sales of PyroThin® thermal barriers to the EV market (Thermal Barrier segment).
• - Sales of Cryogel® and Pyrogel® insulation to the Energy Industrial segment.
• - Full-year 2025 revenue guidance is between $270 million and $280 million.
• - Revenue from long-term, high-value contracts with major energy infrastructure projects.
• - Adjusted EBITDA for 2025 is projected to be between $7 million and $15 million.

The business fundamentally relies on two core areas, though the EV-related Thermal Barrier segment has seen near-term softness due to lower U.S. production rates. Still, the underlying technology is securing future revenue through major design wins.

That Q3 2025 segmentation shows the split right before the latest full-year guidance revision. The Energy Industrial segment showed resilience, increasing revenue by 7% quarter-over-quarter, while Thermal Barrier revenue was down 12% sequentially.

For future revenue visibility, you need to look at the contract pipeline. Aspen Aerogels, Inc. secured a significant PyroThin® Thermal Barrier contract from a major European OEM, with production expected to start in 2027. Also, the Energy Industrial side is banking on project activity normalizing, with LNG and Subsea opportunities expected to drive growth in 2026. You can also see a contract for the Volvo Truck commercial vehicle program on the books.

The overall financial expectation for the full fiscal year 2025 reflects these dynamics, with management setting the total revenue target at the $270 million to $280 million range. Correspondingly, the projected Adjusted EBITDA for the full year is set between $7 million and $15 million. Finance: draft 13-week cash view by Friday.