ASPEN AEROGELS INC Leases Disclosure
(11) Leases & Sale and Leaseback
The Company leases office, laboratory, warehouse and fabrication space in Massachusetts, Rhode Island and Monterrey, Mexico under operating leases. Under these agreements, the Company is obligated to pay annual rent, real estate taxes, and certain other operating expenses. The Company also leases equipment under operating and finance leases. The Company’s leases expire at various dates through 2034.
Maturities of operating lease liabilities at December 31, 2025 are as follows:
Year |
|
Operating Leases |
|
|
Finance Leases |
|
||
|
|
(In thousands) |
|
|||||
2026 |
|
|
5,912 |
|
|
|
2,177 |
|
2027 |
|
|
5,071 |
|
|
|
2,881 |
|
2028 |
|
|
4,984 |
|
|
|
370 |
|
2029 |
|
|
4,540 |
|
|
|
152 |
|
2030 |
|
|
4,486 |
|
|
|
105 |
|
Thereafter |
|
|
11,108 |
|
|
|
- |
|
Total lease payments |
|
|
36,101 |
|
|
|
5,685 |
|
Less imputed interest |
|
|
(11,718 |
) |
|
|
(673 |
) |
Total lease liabilities |
|
$ |
24,383 |
|
|
$ |
5,012 |
|
The Company incurred operating lease costs of $6.4 million and $5.9 million during the years ended December 31, 2025 and 2024, respectively. Cash payments related to operating lease liabilities were $6.2 million and $5.6 million during the years ended December 31, 2025 and 2024, respectively. At December 31, 2025, the weighted average remaining lease term for operating leases was 6.9 years. At December 31, 2025, the weighted average discount rate for operating leases was 12.1%.
The Company incurred finance lease costs of $1.1 million during the year ended December 31, 2025. Cash payments related to finance lease liabilities were $2.0 million during the year ended December 31, 2025. The Company did not incur any finance lease costs or make any cash payments during the comparable 2024 period. As of December 31, 2025, the weighted average remaining lease term for finance leases was 2.5 years and the weighted average discount rate for finance leases was 10.1%.
Sale and leaseback transaction
In January and September 2024, the Company entered into sale and leaseback arrangements, pursuant to which the Company sold certain equipment to an equipment leasing company for one-time cash payments of $5.0 million and $10.0 million, respectively, leased back such equipment from the leasing company. The transactions were considered as failed sale and leaseback transactions and accordingly, were accounted as financing transactions. The sale proceeds received were accounted for as finance obligations. The monthly lease rents will be paid over the term of three years and will be allocated between interest expense and principal repayment of the financial liability.
The outstanding finance obligation balance as of December 31, 2025 was $9.4 million. Maturities of finance obligations for sale and leaseback at December 31, 2025 are as follows:
Year |
|
Finance Obligation |
|
|
|
|
(In thousands) |
|
|
2026 |
|
|
5,601 |
|
2027 |
|
|
5,279 |
|
Total lease payments |
|
|
10,880 |
|
Less imputed interest |
|
|
(1,484 |
) |
Total lease liabilities |
|
$ |
9,396 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 13, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Mar 7, 2024 | |
| 2022 | Mar 16, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Mar 12, 2021 | |
| 2019 | Mar 6, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.