In the preparation of an improved adhesive composition, an epoxy-based prepolymer is obtained by the reaction of one or more epoxy resins with amino-terminated polyethers and/or carboxyl-terminated butadiene-nitrile rubbers. In one embodiment of the invention, both a solid epoxy resin and a liquid epoxy resin, each of which is a diglycidyl ether of a polyphenol such as bisphenol A, are used. The epoxy-based prepolymer is mixed with an acrylate-terminated urethane resin (preferably, one based on a polyol having a number average molecular weight of at least about 400) and a heat-activated latent curing agent to make an adhesive composition which can be pumpable at room temperature. Curable adhesives capable of expansion to about 100% with high impact resistance after curing may be obtained by inclusion of expanding agents such as expandable microspheres.