Aspen Aerogels Shares Plummet 6.09% as Earnings Downgrades and Deteriorating Revenue Trends Spur Sell-Off

The share price fell to its lowest level since April 2019 today, with an intraday decline of 4.87%. The stock has now dropped 6.09% over two trading days, marking its weakest performance in nearly six years. Weakness has accelerated amid a series of bearish developments, including downgraded earnings forecasts and deteriorating revenue trends.

Analysts at Seaport Res Ptn slashed their FY2025 EPS estimate for Aspen Aerogels from a loss of $0.06 to $0.35 per share, far below the consensus of $0.17. Q3 2025 results underscored the concern, with the company posting a $0.06 loss per share and $73.02 million in revenue—a 37.8% annual decline. Management also revised FY2025 guidance to a loss range of $4.15 to $4.05 per share, reflecting prolonged operational challenges. Seaport further projected continued negative earnings through FY2026, with a tentative rebound to $0.22 in FY2027.

Declining EV production in North America, a key market for the company’s aerogel insulation products, has exacerbated the downturn. Aspen Aerogels cut FY2025 revenue guidance to $270–$280 million, down from $297–$317 million previously, while narrowing its EBITDA outlook to $7–$15 million. Analyst downgrades followed, including a “strong sell” from Zacks Research and a reduced price target from Barclays to $4.00. Despite some optimism from Canaccord Genuity, which cited “healthy liquidity,” insider selling by CEO Donald Young and mixed institutional investor activity have further dented confidence. The stock’s beta of 2.85 highlights its heightened volatility, amplifying sensitivity to earnings misses and macroeconomic headwinds.