Stem Announces Second Quarter 2026 Results
Key Terms
adjusted ebitda financial
non-gaap gross margin financial
scada technical
battery energy storage system technical
Achieved fifth consecutive quarter of positive adjusted EBITDA
PowerTrackTM software revenue up
PowerTrackTM Energy Management System (EMS) recognized as leading, global innovative solution with The smarter E AWARD win
Reaffirming full year 2026 financial and operating guidance
Financial Highlights
-
Revenue of
$33.7 million 12% from$38.4 million -
Software, services, and edge hardware revenue of
$33.4 million 1% from$32.9 million -
GAAP gross profit of
$13.9 million 9% from$12.8 million -
GAAP gross margin of
41% , up from33% in 2Q25 -
Non-GAAP gross profit of
$18.4 million $18.7 million -
Non-GAAP gross margin of
55% , up from49% in 2Q25 -
Net loss of
$14.4 million $202.5 million -
Adjusted EBITDA of
$6.2 million 63% from$3.8 million -
Operating cash flow of
$0.3 million $(21.3) million -
Ended 2Q26 with
$38.4 million $36.6 million
Operating Highlights
-
Bookings of
$36.8 million 39% from$26.5 million -
Contracted backlog of
$27.1 million 18% from$23.0 million -
Storage operating assets under management (“AUM”) of 1.8 gigawatt hours (“GWh”), up
6% sequentially -
Solar operating AUM of 38.3 gigawatts (“GW”), up
2% sequentially -
Contracted annual recurring revenue (“CARR”) of
$69.0 million $67.2 million -
Annual recurring revenue (“ARR”) of
$62.4 million $61.2 million
“The second quarter reflected strong momentum across our core PowerTrack platform and continued expansion of our international footprint,” stated Arun Narayanan, Chief Executive Officer of Stem. “We brought PowerTrack EMS to
“Our second quarter results reflect our continued dedication to driving operating leverage in the business,” stated Brian Musfeldt, Chief Financial Officer of Stem. “Non-GAAP gross margins, adjusted EBITDA, and operating cash flow improved significantly versus the prior year. Because of our consistent performance and expectations for the rest of the year, we are pleased to reaffirm full year 2026 guidance across all metrics.”
| Key Financial Results and Operating Metrics | ||||||||||||||||
($ in millions, unless otherwise noted) |
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|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|||||||||||||
|
|
2026 |
|
|
|
2025 |
|
|
|
2026 |
|
|
|
2025 |
|
|
Key Financial Results |
|
|
|
|
|
|
|
|||||||||
Revenue |
$ |
33.7 |
|
|
$ |
38.4 |
|
|
$ |
62.7 |
|
|
$ |
70.9 |
|
|
GAAP Gross Profit |
$ |
13.9 |
|
|
$ |
12.8 |
|
|
$ |
24.8 |
|
|
$ |
23.3 |
|
|
GAAP Gross Margin (%) |
|
41 |
% |
|
|
33 |
% |
|
|
40 |
% |
|
|
33 |
% |
|
Non-GAAP Gross Profit* |
$ |
18.4 |
|
|
$ |
18.7 |
|
|
$ |
33.6 |
|
|
$ |
33.5 |
|
|
Non-GAAP Gross Margin (%)* |
|
55 |
% |
|
|
49 |
% |
|
|
54 |
% |
|
|
47 |
% |
|
Net Income (Loss) |
$ |
(14.4 |
) |
|
$ |
202.5 |
|
|
$ |
(33.3 |
) |
|
$ |
177.5 |
|
|
Adjusted EBITDA* |
$ |
6.2 |
|
|
$ |
3.8 |
|
|
$ |
8.2 |
|
|
$ |
(0.8 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
Key Operating Metrics |
|
|
|
|
|
|
|
|||||||||
Bookings |
$ |
36.8 |
|
|
$ |
34.3 |
|
|
$ |
63.3 |
|
|
$ |
68.8 |
|
|
Contracted Backlog** |
$ |
27.1 |
|
|
$ |
26.8 |
|
|
$ |
27.1 |
|
|
$ |
26.8 |
|
|
CARR** |
$ |
69.0 |
|
|
$ |
69.2 |
|
|
$ |
69.0 |
|
|
$ |
69.2 |
|
|
ARR** |
$ |
62.4 |
|
|
$ |
58.5 |
|
|
$ |
62.4 |
|
|
$ |
58.5 |
|
|
Solar Operating AUM (in GW)** |
|
38.3 |
|
|
|
32.7 |
|
|
|
38.3 |
|
|
|
32.7 |
|
|
Storage Operating AUM (in GWh)** |
|
1.8 |
|
|
|
1.7 |
|
|
|
1.8 |
|
|
|
1.7 |
|
|
* Non-GAAP financial measures. See the section below titled “Use of Non-GAAP Financial Measures” for details and the section below titled “Reconciliations of Non-GAAP Financial Measures” for reconciliations. |
||||||||||||||||
| ** At period end. | ||||||||||||||||
Second Quarter 2026 Financial and Operating Results
Financial Results
Revenue decreased
GAAP gross profit was
Non-GAAP gross profit was
Net loss was
Adjusted EBITDA was
The Company ended the second quarter with
Operating Results
Bookings were
Contracted backlog was
CARR was
ARR increased
Solar operating AUM increased
The following table provides a summary of contracted backlog at the end of the second quarter of 2026, and includes only hardware and non-recurring services contracts, compared to backlog at the end of the first quarter of 2026 ($ in millions):
End of 1Q26 |
$ |
23.0 |
|
|
Add: Bookings |
|
20.7 |
|
|
Less: Hardware revenue |
|
(15.1 |
) |
|
Project and professional services revenue |
|
(1.2 |
) |
|
Amendments/Cancellations |
|
(0.3 |
) |
|
End of 2Q26 |
$ |
27.1 |
|
Business Updates
-
On August 12, 2026, the Company announced that Solarmarkt Group, together with engineering, procurement, and construction partner Pannonwatt Energetikai Megoldások Zrt., selected Stem's PowerTrack™ EMS as the integrated energy management, power plant control (PPC), and SCADA platform for the hybridization of two operating utility-scale solar plants in
Hungary . The projects are expected to add a 40 MW / 80 MWh battery energy storage system to each of Solarmarkt Group's existing 60 MWp solar facilities. Stem previously supplied the PPC capabilities for the solar assets in 2025 and 2026 using a hybrid-ready PowerTrack architecture. Under the new agreement, the same software and controls foundation are expected to expand across the battery systems at each site, helping to enable solar generation, storage, grid interconnection, and market dispatch to operate through a single integrated solution.
-
On July 1, 2026, the Company announced that its PowerTrack EMS won The smarter E AWARD 2026 in the Smart Integrated Energy category. Organized by Solar Promotion International GmbH and Freiburg Management and Marketing International GmbH, The smarter E AWARD is presented across five industry categories, honoring pioneers of the energy industry driving major innovations across energy storage and smart integrated energy. The Smart Integrated Energy category specifically highlights technologies advancing the integration, management, and performance of clean energy systems. The award was announced during The smarter
E Europe inMunich ,Europe's largest alliance of exhibitions for the energy industry, bringing together Intersolar Europe, eesEurope , Power2DriveEurope , and EM-Power Europe.
- On June 17, 2026, the Company announced the launch of AIONA, Stem’s AI services offering developed in direct response to growing customer and market demand for practical, execution-focused artificial intelligence solutions. AIONA builds on Stem’s deep experience applying AI, data science, optimization, and automation across complex clean energy environments.
-
On May 27, 2026, the Company announced that Copec Flux, the renewable energy subsidiary of Copec S.A., is deploying Stem’s PowerTrack EMS at the Granja Solar project in
Chile . This development expands Stem’sLatin America footprint and represents a meaningful step into the region’s utility-scale hybrid market. The Granja project is an existing 135 MW PV project that Copec is retrofitting with a 420 MWh BESS to create a hybrid solar-plus-storage facility that allows Copec to supply energy to the national energy grid at more valuable times. As part of that expansion, Stem’s PowerTrack EMS is expected to serve as the site’s master control system, providing the controls architecture needed to manage the integrated asset.
-
On May 13, 2026, the Company announced that it entered into a services agreement with Bluesphere Ventures to support its portfolio of standalone battery energy storage projects participating in
New York's Value of Distributed Energy Resources (VDER) program. Under the agreement, Stem is expected to provide revenue modeling, market analysis, and intelligence across Bluesphere Ventures' pipeline of battery storage projects located within Consolidated Edison (ConEd) territory inNew York City .
- On April 30, 2026, the Company announced a co-marketing agreement with Nuvation Energy, a North American provider of battery management and energy control solutions, to jointly promote a fully North American-made BESS control stack. The agreement brings together Stem’s PowerTrack EMS and Unit Controller with Nuvation’s Battery Management System, to create an integrated control layer designed to meet growing demand for secure, compliant, and domestically sourced energy infrastructure.
-
On April 28, 2026, the Company announced it acquired the assets of raicoon GmbH, a
Vienna -based provider of automated fault detection and event management for solar asset performance. The acquisition enhances Stem’s PowerTrack platform by improving how operational data is analyzed and translated into action, helping customers identify, prioritize, and resolve performance issues more quickly across their renewable energy portfolios.
Outlook
The Company is reaffirming its full-year 2026 guidance as follows ($ millions, unless otherwise noted):
|
|
|
Revenue |
|
|
Software, services, & edge hardware |
|
|
Battery hardware resale |
Up to |
|
|
|
|
Non-GAAP Gross Margin (%)* |
|
|
|
|
|
Adjusted EBITDA* |
|
|
|
|
|
Operating Cash Flow |
|
|
|
|
|
Year end ARR** |
|
* See the section below titled “Reconciliations of Non-GAAP Financial Measures” for information regarding why Stem is unable to reconcile non-GAAP Gross Margin and adjusted EBITDA guidance to their most comparable financial measures calculated in accordance with GAAP. |
** See below for definitions. |
Some Factors Affecting our Business and Operations
The Company is subject to risk and exposure from the evolving macroeconomic, regulatory, geopolitical and business environment, including uncertainty regarding the effects of the One Big Beautiful Bill (OBBB) on our business and that of our suppliers and customers, the effects of increased import tariffs and retaliatory trade policies, global inflationary pressures and interest rates, potential economic slowdowns or recessions, government shutdowns, and geopolitical pressures, including the armed conflicts between
Use of Non-GAAP Financial Measures
In addition to financial results determined in accordance with
We use these non-GAAP financial measures for financial and operational decision-making and to evaluate our operating performance and prospects, develop internal budgets and financial goals, and facilitate period-to-period comparisons. Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses and expenditures that may not be indicative of our operating performance, such as stock-based compensation and other non-cash charges, as well as discrete cash charges that are infrequent in nature. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to our historical performance and liquidity as well as comparisons to our competitors’ operating results, to the extent that competitors define these metrics in the same manner that we do. We believe these non-GAAP financial measures are useful to investors both because they (1) allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) are used by investors and analysts to help them analyze the health of our business. Our calculation of these non-GAAP financial measures may differ from similarly titled non-GAAP measures, if any, reported by other companies. In addition, other companies may not publish these or similar measures. These non-GAAP financial measures should be considered in addition to, not as a substitute for, or superior to, other measures of financial performance prepared in accordance with GAAP. For reconciliation of adjusted EBITDA and non-GAAP gross profit and margin to their most comparable GAAP measures, see the section below entitled “Reconciliations of Non-GAAP Financial Measures.”
Definitions of Non-GAAP Financial Measures
We define adjusted EBITDA as net (loss) income attributable to Stem before depreciation and amortization, including amortization of internally developed software, interest expense, further adjusted to exclude stock-based compensation and other income and expense items, including change in fair value of warrant liability, impairment of assets held for sale, and income tax provision or benefit. The expenses and other items that we exclude in our calculation of adjusted EBITDA may differ from the expenses and other items, if any, that other companies exclude when calculating adjusted EBITDA.
We define non-GAAP gross profit as gross profit excluding amortization of capitalized software, and impairments related to decommissioning of end-of-life systems. We define non-GAAP gross margin as non-GAAP gross profit as a percentage of revenue.
See also the section below entitled “Reconciliations of Non-GAAP Financial Measures.”
Conference Call Information
Stem will hold a conference call to discuss this earnings press release and business outlook on Wednesday, August 12, 2026, beginning at 5:00 p.m. Eastern Time. The conference call and accompanying slides may be accessed via a live webcast on a listen-only basis on the Events & Presentations page of the Investor Relations section of the Company’s website at https://investors.stem.com/news-events/ir-calendar. The call can also be accessed live over the telephone by dialing (877) 407-3982, or for international callers, (201) 493-6780 and referencing Stem. An audio replay will be available shortly after the call and can be accessed by dialing (844) 512-2921 or for international callers by dialing (412) 317-6671. The passcode for the replay is 13757930. The replay will be available until September 12, 2026. An archive of the webcast will be available shortly after the call on Stem’s website at https://investors.stem.com for 6 months following the call.
About Stem
Stem (NYSE: STEM) is a global leader reimagining technology to support the energy transition. We turn complexity into clarity and potential into performance.
Stem helps asset owners, operators, and energy stakeholders unlock the full value of their portfolios by enabling the intelligent development, deployment, and operation of clean energy assets. Stem’s integrated software suite, PowerTrack™, is the industry-standard and best-in-class platform for asset monitoring and optimization and is backed by expert professional and managed services, all delivered under one roof. Designed to address complex energy challenges seamlessly, our technology transforms raw data into clear, actionable insights, providing the visibility and intelligence needed to drive performance. With projects across 55 countries, customers have trusted Stem for nearly 20 years to maximize the value of their clean energy investments.
Driven by human and artificial intelligence, Stem is unlocking energy intelligence. Learn more at stem.com.
Forward-Looking Statements
This earnings press release, as well as other statements we make, contains “forward-looking statements” within the meaning of the federal securities laws, which include any statements that are not historical facts. Such statements often contain words such as “expect,” “may,” “can,” “believe,” “predict,” “plan,” “potential,” “projected,” “projections,” “forecast,” “estimate,” “intend,” “anticipate,” “ambition,” “goal,” “target,” “think,” “should,” “could,” “would,” “will,” “hope,” “see,” “likely,” and other similar words. Forward-looking statements address matters that are, to varying degrees, uncertain, such as statements about our financial and operating performance, guidance, targets and other forecasts or expectations regarding, or dependent on, our business outlook and strategy and expectations around our software-centric business; our ability to secure sufficient and timely inventory from suppliers; our ability to meet contracted customer demand; our ability to manage manufacturing or delivery delays; our ability to manage our supply chain and distribution channels; our acquisitions, joint ventures, partnerships and other alliances; forecasts or expectations regarding the energy transition and global climate change; the integration and optimization of energy resources; our business strategies and those of our customers; our ability to retain or upgrade current customers, further penetrate existing markets or expand into new markets; the effects of natural disasters and other events beyond our control; the impacts of the One Big Beautiful Bill Act (“OBBB”) on our business and that of our customers; the direct or indirect effects on our business of macroeconomic factors and geopolitical instability, such as the armed conflicts between Russia and Ukraine and in the Middle East; and our outlook and future results of operations, including revenue, adjusted EBITDA and other metrics. Such forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results or outcomes to differ materially from those expressed or implied by such forward-looking statements, including but not limited to our inability to execute on, and achieve the expected benefits from, our operational and strategic initiatives; including from our cost reduction and restructuring efforts; our inability to successfully execute on our new software-centric strategy; the effects of the OBBB on our business and that of our customers; our inability to secure sufficient and timely inventory from our suppliers, as well as contracted quantities of equipment; our inability to meet contracted customer demand; supply chain interruptions and manufacturing or delivery delays; disruptions in sales, production, service or other business activities; general macroeconomic and business conditions in key regions of the world, including inflationary pressures, general economic slowdown or a recession, high interest rates, changes in monetary policy, changes in trade policies, including tariffs or other trade restrictions or the threat of such actions, government shutdowns, and instability in financial institutions; the direct and indirect effects of widespread health emergencies on our workforce, operations, financial results and cash flows; geopolitical instability, such as the armed conflicts between Russia and Ukraine and in the Middle East; the results of operations and financial condition of our customers and suppliers; pricing pressures; severe weather and seasonal factors; our inability to continue to grow and manage our growth effectively; our inability to attract and retain qualified employees and key personnel; our inability to comply with, and the effect on our business of, evolving legal standards and regulations, including those concerning data protection, consumer privacy, sustainability, and evolving labor standards; risks relating to the development and performance of our software-enabled services; our inability to retain or upgrade current customers, further penetrate existing markets or expand into new markets; the risk that our business, financial condition and results of operations may be adversely affected by other political, economic, business and competitive factors; and other risks and uncertainties discussed in this release and in our most recent Forms 10-K, 10-Q and 8-K filed with or furnished to the SEC. If one or more of these or other risks or uncertainties materialize (or the consequences of any such development changes), or should our underlying assumptions prove incorrect, our actual results or outcomes, or the timing of these results or outcomes, may vary materially from those reflected in our forward-looking statements. Forward-looking statements and other statements in this release regarding our environmental, social, and other sustainability plans and goals are not an indication that these statements are necessarily material to the Company, investors, or other stakeholders, or required to be disclosed in our filings under U.S. securities laws or any other laws or requirements applicable to the Company. Forward-looking statements in this earnings press release are made as of the date of this release, and the Company disclaims any intention or obligation to update publicly or revise such forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.
STEM, INC. |
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CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(UNAUDITED) |
||||||||
(in thousands, except share and per share amounts) |
||||||||
|
June 30, 2026 |
|
December 31, 2025 |
|||||
ASSETS |
|
|
|
|||||
Current assets: |
|
|
|
|||||
Cash and cash equivalents (VIE: |
$ |
38,415 |
|
|
$ |
48,915 |
|
|
Accounts receivable, net of allowances of |
|
33,222 |
|
|
|
38,353 |
|
|
Inventory |
|
6,122 |
|
|
|
4,587 |
|
|
Assets held for sale |
|
1,229 |
|
|
|
— |
|
|
Other current assets (VIE: |
|
10,339 |
|
|
|
8,236 |
|
|
Total current assets |
|
89,327 |
|
|
|
100,091 |
|
|
Energy storage systems, net |
|
33,990 |
|
|
|
43,925 |
|
|
Contract origination costs, net |
|
6,121 |
|
|
|
7,466 |
|
|
Goodwill |
|
2,463 |
|
|
|
— |
|
|
Intangible assets, net |
|
113,045 |
|
|
|
123,028 |
|
|
Operating lease right-of-use assets |
|
10,598 |
|
|
|
9,571 |
|
|
Other noncurrent assets |
|
24,229 |
|
|
|
24,806 |
|
|
Total assets |
$ |
279,773 |
|
|
$ |
308,887 |
|
|
LIABILITIES AND STOCKHOLDERS’ DEFICIT |
|
|
|
|||||
Current liabilities: |
|
|
|
|||||
Accounts payable (VIE: |
$ |
14,468 |
|
|
$ |
10,310 |
|
|
Accrued liabilities |
|
21,796 |
|
|
|
26,875 |
|
|
Accrued payroll |
|
5,552 |
|
|
|
9,131 |
|
|
Financing obligation, current portion |
|
13,151 |
|
|
|
13,792 |
|
|
Deferred revenue, current portion |
|
44,381 |
|
|
|
43,625 |
|
|
Other current liabilities |
|
8,168 |
|
|
|
6,832 |
|
|
Total current liabilities |
|
107,516 |
|
|
|
110,565 |
|
|
Deferred revenue, noncurrent |
|
81,634 |
|
|
|
85,251 |
|
|
Asset retirement obligation |
|
4,385 |
|
|
|
4,349 |
|
|
Convertible notes, noncurrent |
|
184,007 |
|
|
|
183,594 |
|
|
Senior secured notes, noncurrent |
|
135,212 |
|
|
|
128,796 |
|
|
Financing obligation, noncurrent |
|
24,010 |
|
|
|
29,590 |
|
|
Warrant liability |
|
2,207 |
|
|
|
5,121 |
|
|
Lease liabilities, noncurrent |
|
10,070 |
|
|
|
9,860 |
|
|
Other liabilities |
|
729 |
|
|
|
820 |
|
|
Total liabilities |
|
549,770 |
|
|
|
557,946 |
|
|
|
|
|
|
|||||
Stockholders’ deficit: |
|
|
|
|||||
Preferred stock, |
|
— |
|
|
|
— |
|
|
Common stock, |
|
1 |
|
|
|
1 |
|
|
Additional paid-in capital |
|
1,252,624 |
|
|
|
1,239,263 |
|
|
Accumulated other comprehensive (loss) income |
|
(141 |
) |
|
|
41 |
|
|
Accumulated deficit |
|
(1,522,055 |
) |
|
|
(1,488,747 |
) |
|
Total Stem stockholders’ deficit |
|
(269,571 |
) |
|
|
(249,442 |
) |
|
Non-controlling interests |
|
(426 |
) |
|
|
383 |
|
|
Total stockholders’ deficit |
|
(269,997 |
) |
|
|
(249,059 |
) |
|
Total liabilities and stockholders’ deficit |
$ |
279,773 |
|
|
$ |
308,887 |
|
|
STEM, INC. |
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
(UNAUDITED) |
||||||||||||||||
(in thousands, except share and per share amounts) |
||||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
|||||||||||||
|
|
2026 |
|
|
|
2025 |
|
|
|
2026 |
|
|
|
2025 |
|
|
Revenue |
|
|
|
|
|
|
|
|||||||||
Services and other revenue |
$ |
18,618 |
|
|
$ |
20,852 |
|
|
$ |
37,292 |
|
|
$ |
38,573 |
|
|
Hardware revenue |
|
15,036 |
|
|
|
17,522 |
|
|
|
25,362 |
|
|
|
32,313 |
|
|
Total revenue |
|
33,654 |
|
|
|
38,374 |
|
|
|
62,654 |
|
|
|
70,886 |
|
|
Cost of revenue |
|
|
|
|
|
|
|
|||||||||
Cost of services and other |
|
11,559 |
|
|
|
14,262 |
|
|
|
23,503 |
|
|
|
25,675 |
|
|
Cost of hardware |
|
8,208 |
|
|
|
11,312 |
|
|
|
14,405 |
|
|
|
21,873 |
|
|
Total cost of revenue |
|
19,767 |
|
|
|
25,574 |
|
|
|
37,908 |
|
|
|
47,548 |
|
|
Gross profit |
|
13,887 |
|
|
|
12,800 |
|
|
|
24,746 |
|
|
|
23,338 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|||||||||
Sales and marketing |
|
7,437 |
|
|
|
7,250 |
|
|
|
13,954 |
|
|
|
14,042 |
|
|
Research and development |
|
6,459 |
|
|
|
9,993 |
|
|
|
13,034 |
|
|
|
21,321 |
|
|
General and administrative |
|
8,207 |
|
|
|
8,900 |
|
|
|
16,873 |
|
|
|
22,466 |
|
|
(Remeasurement of) impairment of assets held for sale |
|
(545 |
) |
|
|
— |
|
|
|
2,770 |
|
|
|
— |
|
|
Total operating expenses |
|
21,558 |
|
|
|
26,143 |
|
|
|
46,631 |
|
|
|
57,829 |
|
|
Loss from operations |
|
(7,671 |
) |
|
|
(13,343 |
) |
|
|
(21,885 |
) |
|
|
(34,491 |
) |
|
Other (expense) income, net: |
|
|
|
|
|
|
|
|||||||||
Interest expense |
|
(7,510 |
) |
|
|
(4,072 |
) |
|
|
(14,869 |
) |
|
|
(8,362 |
) |
|
Gain on extinguishment of debt |
|
— |
|
|
|
220,047 |
|
|
|
— |
|
|
|
220,047 |
|
|
Change in fair value of warrant liability |
|
503 |
|
|
|
— |
|
|
|
2,914 |
|
|
|
— |
|
|
Other income, net |
|
308 |
|
|
|
374 |
|
|
|
657 |
|
|
|
870 |
|
|
Total other (expense) income, net |
|
(6,699 |
) |
|
|
216,349 |
|
|
|
(11,298 |
) |
|
|
212,555 |
|
|
(Loss) income before provision for income taxes |
|
(14,370 |
) |
|
|
203,006 |
|
|
|
(33,183 |
) |
|
|
178,064 |
|
|
Provision for income taxes |
|
(13 |
) |
|
|
(475 |
) |
|
|
(125 |
) |
|
|
(533 |
) |
|
Net (loss) income |
$ |
(14,383 |
) |
|
$ |
202,531 |
|
|
$ |
(33,308 |
) |
|
$ |
177,531 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Net (loss) income per share attributable to common stockholders, basic |
$ |
(1.58 |
) |
|
$ |
24.31 |
|
|
$ |
(3.78 |
) |
|
$ |
21.48 |
|
|
Net loss per share attributable to common stockholders, diluted |
$ |
(1.58 |
) |
|
$ |
(1.79 |
) |
|
$ |
(3.78 |
) |
|
$ |
(4.54 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
Numerator used to compute net (loss) income per share: |
|
|
|
|
|
|
|
|||||||||
Net (loss) income attributable to Stem common stockholders, basic |
$ |
(14,383 |
) |
|
$ |
202,531 |
|
|
$ |
(33,308 |
) |
|
$ |
177,531 |
|
|
Net loss attributable to Stem common stockholders, diluted |
$ |
(14,383 |
) |
|
$ |
(15,160 |
) |
|
$ |
(33,308 |
) |
|
$ |
(38,205 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
Weighted-average shares used in computing net (loss) income per share to common stockholders, basic |
|
9,110,452 |
|
|
|
8,330,679 |
|
|
|
8,815,386 |
|
|
|
8,263,378 |
|
|
Weighted-average shares used in computing net loss per share to common stockholders, diluted |
|
9,110,452 |
|
|
|
8,481,799 |
|
|
|
8,815,386 |
|
|
|
8,414,498 |
|
|
STEM, INC. |
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(UNAUDITED) |
||||||||
(in thousands) |
||||||||
|
Six Months Ended
|
|||||||
|
|
2026 |
|
|
|
2025 |
|
|
OPERATING ACTIVITIES |
|
|
|
|||||
Net (loss) income |
$ |
(33,308 |
) |
|
$ |
177,531 |
|
|
Adjustments to reconcile net (loss) income to net cash used in operating activities: |
|
|
|
|||||
Depreciation and amortization expense |
|
21,918 |
|
|
|
22,242 |
|
|
Non-cash interest expense, including interest expenses associated with debt issuance costs |
|
737 |
|
|
|
210 |
|
|
Stock-based compensation |
|
3,501 |
|
|
|
5,712 |
|
|
Change in fair value of warrant liability |
|
(2,914 |
) |
|
|
— |
|
|
Non-cash lease expense |
|
1,319 |
|
|
|
1,362 |
|
|
Accretion of asset retirement obligations |
|
123 |
|
|
|
119 |
|
|
Impairment loss of energy storage systems |
|
103 |
|
|
|
1,413 |
|
|
Gain on disposal and abandonment of property, plant and equipment |
|
(112 |
) |
|
|
— |
|
|
Impairment loss of project assets |
|
4 |
|
|
|
966 |
|
|
Impairment of assets held for sale, net |
|
2,770 |
|
|
|
— |
|
|
Provision for credit losses on accounts receivable |
|
17 |
|
|
|
1,547 |
|
|
Gain on extinguishment of debt |
|
— |
|
|
|
(220,047 |
) |
|
Other |
|
(16 |
) |
|
|
53 |
|
|
Changes in operating assets and liabilities: |
|
|
|
|||||
Accounts receivable |
|
5,114 |
|
|
|
14,772 |
|
|
Inventory |
|
(1,535 |
) |
|
|
6,321 |
|
|
Other assets |
|
(1,397 |
) |
|
|
1,715 |
|
|
Contract origination costs, net |
|
(547 |
) |
|
|
(573 |
) |
|
Project assets |
|
(4 |
) |
|
|
(2,202 |
) |
|
Accounts payable |
|
4,083 |
|
|
|
(18,727 |
) |
|
Accrued expenses and other liabilities |
|
(3,339 |
) |
|
|
(1,174 |
) |
|
Deferred revenue |
|
(2,861 |
) |
|
|
(2,793 |
) |
|
Lease liabilities |
|
(1,631 |
) |
|
|
(1,189 |
) |
|
Net cash used in operating activities |
|
(7,975 |
) |
|
|
(12,742 |
) |
|
INVESTING ACTIVITIES |
|
|
|
|||||
Capital expenditures on internally-developed software |
|
(2,555 |
) |
|
|
(4,626 |
) |
|
Purchase of property and equipment |
|
— |
|
|
|
(48 |
) |
|
Net cash used in investing activities |
|
(2,555 |
) |
|
|
(4,674 |
) |
|
FINANCING ACTIVITIES |
|
|
|
|||||
Proceeds from issuances of common stock under at-the-market program, net |
|
5,631 |
|
|
|
— |
|
|
Repayment of financing obligations |
|
(4,701 |
) |
|
|
(8,355 |
) |
|
Proceeds from issuance of senior secured notes |
|
— |
|
|
|
10,000 |
|
|
(Distributions to) contributions from non-controlling interests, net |
|
(809 |
) |
|
|
37 |
|
|
Net cash provided by financing activities |
|
121 |
|
|
|
1,682 |
|
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
(91 |
) |
|
|
225 |
|
|
Net decrease in cash, cash equivalents and restricted cash |
|
(10,500 |
) |
|
|
(15,509 |
) |
|
Cash, cash equivalents and restricted cash, beginning of year |
|
50,701 |
|
|
|
58,085 |
|
|
Cash, cash equivalents and restricted cash, end of period |
$ |
40,201 |
|
|
$ |
42,576 |
|
|
|
|
|
|
|||||
RECONCILIATION OF CASH, CASH EQUIVALENTS, AND RESTRICTED CASH WITHIN THE UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS TO THE AMOUNTS SHOWN IN THE STATEMENTS OF CASH FLOWS ABOVE: |
|
|
|
|||||
Cash and cash equivalents |
$ |
38,415 |
|
|
$ |
40,790 |
|
|
Restricted cash included in other noncurrent assets |
|
1,786 |
|
|
|
1,786 |
|
|
Total cash, cash equivalents, and restricted cash |
$ |
40,201 |
|
|
$ |
42,576 |
|
|
STEM, INC. |
||||||||||||||||
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES |
||||||||||||||||
(UNAUDITED) |
||||||||||||||||
The following table provides a reconciliation of adjusted EBITDA to net loss: |
||||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|||||||||||||
|
|
2026 |
|
|
|
2025 |
|
|
|
2026 |
|
|
|
2025 |
|
|
|
(in thousands) |
|
(in thousands) |
|||||||||||||
Net (loss) income |
$ |
(14,383 |
) |
|
$ |
202,531 |
|
|
$ |
(33,308 |
) |
|
$ |
177,531 |
|
|
Adjusted to exclude the following: |
|
|
|
|
|
|
|
|||||||||
Depreciation and amortization (1) |
|
11,507 |
|
|
|
12,926 |
|
|
|
22,025 |
|
|
|
24,621 |
|
|
Interest expense |
|
7,510 |
|
|
|
4,072 |
|
|
|
14,869 |
|
|
|
8,362 |
|
|
Gain on extinguishment of debt |
|
— |
|
|
|
(220,047 |
) |
|
|
— |
|
|
|
(220,047 |
) |
|
Stock-based compensation |
|
1,454 |
|
|
|
1,395 |
|
|
|
3,501 |
|
|
|
5,712 |
|
|
Change in fair value of warrant liability |
|
(503 |
) |
|
|
— |
|
|
|
(2,914 |
) |
|
|
— |
|
|
Recovery of accounts receivable write-off (2) |
|
— |
|
|
|
(3,500 |
) |
|
|
— |
|
|
|
(3,500 |
) |
|
(Remeasurement of) impairment of assets held for sale |
|
(545 |
) |
|
|
— |
|
|
|
2,770 |
|
|
|
— |
|
|
Provision for income taxes |
|
13 |
|
|
|
475 |
|
|
|
125 |
|
|
|
533 |
|
|
Other expenses (3) |
|
1,173 |
|
|
|
5,965 |
|
|
|
1,158 |
|
|
|
5,978 |
|
|
Adjusted EBITDA |
$ |
6,226 |
|
|
$ |
3,817 |
|
|
$ |
8,226 |
|
|
$ |
(810 |
) |
|
Adjusted EBITDA, as used in the Company's full-year 2026 guidance, is a non-GAAP financial measure that excludes or has otherwise been adjusted for items impacting comparability. The Company is unable to reconcile projected adjusted EBITDA to net loss, its most directly comparable forward-looking GAAP financial measure, without unreasonable effort, because the Company is unable to predict with a reasonable degree of certainty its change in stock-based compensation expense, depreciation and amortization expense, and other items that may affect net loss. The unavailable information could have a significant effect on the Company’s full-year 2026 GAAP financial results. |
||
(1) |
|
Depreciation and amortization reflects depreciation and amortization expense, impairment loss of energy storage systems, and impairment loss of project assets. |
(2) |
|
As previously disclosed, the Company wrote off certain receivables determined to be uncollectible. During the three and six months ended June 30, 2025, the Company recovered |
(3) |
|
Adjusted EBITDA for the three and six months ended June 30, 2026 included other expenses of |
Adjusted EBITDA for the three and six months ended June 30, 2025 included other expenses of |
||
The following table provides a reconciliation of non-GAAP gross profit and margin to GAAP gross profit and margin ($ in millions): |
||||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|||||||||||||
|
|
2026 |
|
|
|
2025 |
|
|
|
2026 |
|
|
|
2025 |
|
|
Revenue |
$ |
33.7 |
|
|
$ |
38.4 |
|
|
$ |
62.7 |
|
|
$ |
70.9 |
|
|
Cost of revenue |
|
(19.8 |
) |
|
|
(25.6 |
) |
|
|
(37.9 |
) |
|
|
(47.6 |
) |
|
GAAP gross profit |
|
13.9 |
|
|
|
12.8 |
|
|
|
24.8 |
|
|
|
23.3 |
|
|
GAAP gross margin (%) |
|
41 |
% |
|
|
33 |
% |
|
|
40 |
% |
|
|
33 |
% |
|
|
|
|
|
|
|
|
|
|||||||||
Adjustments to Gross Margin: |
|
|
|
|
|
|
|
|||||||||
Amortization of capitalized software & developed technology |
|
4.4 |
|
|
|
4.5 |
|
|
|
8.7 |
|
|
|
8.8 |
|
|
Impairments |
|
0.1 |
|
|
|
1.4 |
|
|
|
0.1 |
|
|
|
1.4 |
|
|
Non-GAAP gross profit |
$ |
18.4 |
|
|
$ |
18.7 |
|
|
$ |
33.6 |
|
|
$ |
33.5 |
|
|
Non-GAAP gross margin (%) |
|
55 |
% |
|
|
49 |
% |
|
|
54 |
% |
|
|
47 |
% |
|
Non-GAAP gross margin as used in the Company's full-year 2026 guidance, is a non-GAAP financial measure that excludes or has otherwise been adjusted for items impacting comparability. The Company is unable to reconcile projected non-GAAP gross margin to GAAP gross margin, its most directly comparable forward-looking GAAP financial measure, without unreasonable efforts, because the Company is currently unable to predict with a reasonable degree of certainty its change in amortization of capitalized software, impairments, and other items that may affect GAAP gross margin. The unavailable information could have a significant effect on the Company’s full-year 2026 GAAP financial results. |
Key Definitions:
Item |
Definition |
|
ARR |
Annualized value from operating customer subscription contracts, including solar software, storage software & recurring managed services, and any recurring professional services contracts. |
|
Bookings |
Total value of executed customer purchase orders, as of the end of the relevant period (e.g. quarterly bookings or annual bookings). Customer purchase orders are typically executed three to six months ahead of hardware installation. The booking amount includes (1) hardware revenue, which is typically recognized at delivery of the energy storage hardware system and/or edge device to the customer, and (2) services revenue, which represents total nominal software and services contract value recognized ratably over the contract period. |
|
Battery Hardware Resale Revenue |
Sales of energy storage systems. |
|
CARR |
Annualized value from Stem customer subscription contracts with executed purchase orders signed in the period for systems that are not yet operating, and all operating Stem customer subscription contracts, including solar software, storage software & recurring managed services, and some recurring professional services contracts. |
|
Contracted Backlog |
Total value of hardware and non-recurring services bookings with executed purchase orders in dollars, as reflected on a specific date. Backlog increases as new purchase orders are executed (bookings) and decreases as hardware is delivered and recognized as revenue and as services are provided. |
|
Edge Hardware |
Sales of edge device hardware to aid in the collection of site data and the real-time operation and control of a site. |
|
Operating Cash Flow |
Net cash provided by (used in) operating activities. Does not represent the change in balance sheet cash which will be further impacted by investing and financing activities. |
|
Project and Professional Services Revenue |
Full lifecycle energy services including development and engineering, procurement and integration, performance and operations support, and revenue tied to Development Company investments. |
|
Solar Operating AUM |
Total GW of solar systems in operation. |
|
PowerTrack Software Revenue |
Recurring SaaS revenue from PowerTrack software. |
|
Storage Operating AUM |
Total GWh of energy storage systems in operation. |
|
Managed Services Revenue |
Includes (1) recurring revenue related to the operation and optimization of energy storage and hybrid portfolios managed by Stem and (2) Host Customer recurring and merchant revenues. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20260812145336/en/
Stem Investor Contacts
Erin Reed, Stem
Marc Silverberg, ICR
IR@stem.com
Stem Media Contacts
Tatjana Legans, Stem
press@stem.com
Source: Stem, Inc.