📊 ASPN Key Takeaways
Is Aspen Aerogels Inc. (ASPN) a Good Investment?
Aspen Aerogels exhibits severe operational distress with a -55.0% operating margin and -62.5% net margin, losing $23.7M on just $37.9M in revenue. While the company maintains a strong $173.9M cash position and positive free cash flow, the deteriorating 11.3% gross margin indicates fundamental business model challenges that will eventually erode its financial cushion. The contradiction between negative GAAP profitability and positive operating cash flow suggests reliance on non-cash adjustments that mask ongoing cash burn.
Aspen Aerogels is showing exceptional top-line growth and solid liquidity, but the quality of that growth is weak because profitability remains deeply negative. The business generated positive operating cash flow and ended with strong cash balances, yet massive operating and net losses, negative returns on capital, and negative free cash flow indicate the model still needs substantial margin improvement to become fundamentally attractive.
Aspen Aerogels Inc. Key Strengths (ASPN)
- Strong cash position of $173.9M provides extended runway despite losses
- Excellent liquidity ratios (Current 2.89x, Quick 2.54x) ensure near-term solvency
- Conservative leverage with 0.29x Debt/Equity ratio limits refinancing risk
- Positive free cash flow of $32.8M despite operational losses indicates working capital or non-cash charge benefits
- Revenue growth is extremely strong, indicating meaningful demand expansion or scaling
- Liquidity is healthy with $156.86M in cash, a 3.90x current ratio, and a 3.29x quick ratio
- Leverage is manageable with debt/equity of 0.28x and modest long-term debt relative to equity
ASPN Stock Risks: Aspen Aerogels Inc. Investment Risks
- Catastrophic profitability with -55.0% operating margin and -62.5% net margin indicates structural business model failure
- Dangerously low gross margin of 11.3% suggests weak pricing power, high COGS, or commoditized products facing severe competition
- Negative interest coverage ratio (-26.0x) means operating losses cannot service debt obligations
- Sustained operational losses will inevitably deplete cash reserves; positive FCF may reflect non-recurring items rather than sustainable operations
- Negative ROE (-11.1%) and ROA (-5.8%) indicate the company is destroying shareholder value
- Operating margin of -139.5% and net margin of -143.7% show the company is far from sustainable profitability
- ROE of -165.4% and ROA of -95.8% indicate severe capital inefficiency
- Free cash flow remains negative and interest coverage is deeply negative, limiting financial resilience if losses persist
Key Metrics to Watch
- Gross margin trajectory - critical to assess if pricing/cost structure can improve
- Operating cash flow sustainability - verify if positive OCF is from core operations or working capital timing
- Monthly cash burn rate relative to $173.9M cash position to estimate runway
- Operating margin inflection point - when/if company achieves breakeven operations
- Gross margin and operating margin improvement
- Free cash flow trend and cash burn sustainability
Aspen Aerogels Inc. (ASPN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 86.5% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 2.89x current ratio provides a solid financial cushion.
ASPN Profit Margin, ROE & Profitability Analysis
ASPN vs Materials Sector: How Aspen Aerogels Inc. Compares
How Aspen Aerogels Inc. compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Aspen Aerogels Inc. Stock Overvalued? ASPN Valuation Analysis 2026
Based on fundamental analysis, Aspen Aerogels Inc. has mixed fundamental signals relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Aspen Aerogels Inc. Balance Sheet: ASPN Debt, Cash & Liquidity
ASPN Revenue & Earnings Growth: 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 Revenue Growth, EPS Growth & YoY Performance
ASPN Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $37.9M | -$23.7M | $-0.29 |
| 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 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Aspen Aerogels Inc. Dividends, Buybacks & Capital Allocation
ASPN SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Aspen Aerogels Inc. (CIK: 0001145986)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ASPN
What is the AI rating for ASPN?
Aspen Aerogels Inc. (ASPN) has a Combined AI Grade of C from Claude (C) and ChatGPT (C) with 80% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ASPN's key strengths?
Claude: Strong cash position of $173.9M provides extended runway despite losses. Excellent liquidity ratios (Current 2.89x, Quick 2.54x) ensure near-term solvency. ChatGPT: Revenue growth is extremely strong, indicating meaningful demand expansion or scaling. Liquidity is healthy with $156.86M in cash, a 3.90x current ratio, and a 3.29x quick ratio.
What are the risks of investing in ASPN?
Claude: Catastrophic profitability with -55.0% operating margin and -62.5% net margin indicates structural business model failure. Dangerously low gross margin of 11.3% suggests weak pricing power, high COGS, or commoditized products facing severe competition. ChatGPT: Operating margin of -139.5% and net margin of -143.7% show the company is far from sustainable profitability. ROE of -165.4% and ROA of -95.8% indicate severe capital inefficiency.
What is ASPN's revenue and growth?
Aspen Aerogels Inc. reported revenue of $37.9M.
Does ASPN pay dividends?
Aspen Aerogels Inc. does not currently pay dividends.
Where can I find ASPN SEC filings?
Official SEC filings for Aspen Aerogels Inc. (CIK: 0001145986) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ASPN's EPS?
Aspen Aerogels Inc. has a diluted EPS of $-0.29.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is ASPN's fundamental grade?
Based on our AI fundamental analysis in June 2026, Aspen Aerogels Inc. has a C grade with 80% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is ASPN stock overvalued or undervalued?
Valuation metrics for ASPN: ROE of -11.1% (sector avg: 14%), net margin of -62.5% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is ASPN's AI grade for 2026?
Our dual AI analysis gives Aspen Aerogels Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ASPN's free cash flow?
Aspen Aerogels Inc.'s operating cash flow is $34.1M, with capital expenditures of $1.4M. FCF margin is 86.5%.
How does ASPN compare to other Materials stocks?
Vs Materials sector averages: Net margin -62.5% (avg: 10%), ROE -11.1% (avg: 14%), current ratio 2.89 (avg: 1.6).