Stem Stock Earnings Reports

Stem reported Q1 2026 results that the company characterizes as evidence that its 2025 transformation is delivering. Key financials: total revenue was $29M (down 11% YoY due to no battery hardware resales this quarter), core software/services/edge hardware grew ~4% YoY, PowerTrack software revenue grew 16% YoY, non-GAAP gross margin was 52% (record high for a Q1), adjusted EBITDA was $2M (fourth consecutive positive quarter and first positive Q1), operating cash flow was negative $8M (driven by expected Q1 working capital timing and interest), and cash on hand was $37M. Operational metrics: PowerTrack ARR was $61.2M (up slightly sequentially, 2% growth in PowerTrack ARR), bookings were $27M, backlog $23M, CARR $67M. Solar AUM rose to 37.5 GW; storage AUM flat at 1.7 GWh. Management reaffirmed full-year 2026 guidance: revenue $140M–$190M (software/services/edge hardware $130M–$150M plus up to $40M battery resales), non-GAAP gross margin 40%–50%, adjusted EBITDA $10M–$15M, operating cash flow $0–$10M, year-end ARR $65M–$70M. Strategic highlights: acquisition of raicoon to add automated fault detection and event management to PowerTrack, PowerTrack Sage (AI assistant) is live with early daily engagement, PowerTrack EMS bookings (utility-scale) more than doubled quarter-over-quarter with pipeline strength in multiple geographies, expanded European presence (Berlin) and a co-marketing partnership with Nuvation Energy. Management emphasized durable structural cost reductions, AI-driven productivity gains internally (70% of employees using AI tools) and continued focus on converting utility-scale bookings into late-2026/2027 revenue. Risks/notes: near-term revenue seasonality and battery resale timing are material to margin and cash flow outcomes.