Stem Inc
F:5QQ
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Stem Inc
F:5QQ
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Mitsubishi UFJ Financial Group Inc
F:MFZ
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Stem Inc
Stem helps businesses and power producers manage batteries, solar, and other distributed energy assets. Its main product is software that predicts when to store electricity, when to use it, and when to sell power back to the grid. The company also works with customers on battery systems and grid-connected energy projects, which makes it part software company and part energy infrastructure provider. Its main customers are commercial and industrial companies, renewable energy developers, utilities, and property owners that want to lower electricity costs or make energy assets earn more money. Stem makes money by selling software subscriptions, project and system services, and contracts tied to managing customer energy assets over time. In some deals, it also earns fees for helping customers participate in electricity markets and utility programs. What makes Stem different is that it sits at the intersection of energy hardware and software. It does not just install batteries; it helps run them intelligently so they can respond to electricity prices, demand spikes, and grid needs. That gives the company a role as an energy manager for customers that want to turn flexible power assets into an ongoing source of value.
Stem helps businesses and power producers manage batteries, solar, and other distributed energy assets. Its main product is software that predicts when to store electricity, when to use it, and when to sell power back to the grid. The company also works with customers on battery systems and grid-connected energy projects, which makes it part software company and part energy infrastructure provider.
Its main customers are commercial and industrial companies, renewable energy developers, utilities, and property owners that want to lower electricity costs or make energy assets earn more money. Stem makes money by selling software subscriptions, project and system services, and contracts tied to managing customer energy assets over time. In some deals, it also earns fees for helping customers participate in electricity markets and utility programs.
What makes Stem different is that it sits at the intersection of energy hardware and software. It does not just install batteries; it helps run them intelligently so they can respond to electricity prices, demand spikes, and grid needs. That gives the company a role as an energy manager for customers that want to turn flexible power assets into an ongoing source of value.
Profitability: Stem delivered $2 million of adjusted EBITDA, its fourth straight positive quarter and its first ever positive first quarter, showing the cost cuts and margin gains are holding up even in the seasonally weakest period.
Revenue mix: First quarter revenue was $29 million, down 11% year over year because battery hardware resales were absent, while core software, services and edge hardware revenue grew 4%.
Margins: Gross margin was exceptionally strong, with non-GAAP gross margin reaching 52% as the mix skewed toward software and services; management said margins should move toward the middle of the 40% to 50% full-year range as battery hardware returns.
Growth signs: PowerTrack software revenue grew 16% year over year, utility-scale bookings more than doubled quarter over quarter, and the company said the pipeline in utility scale is the strongest it has ever been.
Outlook: Stem reaffirmed full-year 2026 guidance across all metrics, including revenue of $140 million to $190 million, adjusted EBITDA of $10 million to $15 million, and operating cash flow of $0 to $10 million.
Strategic moves: Management highlighted the raicoon acquisition, the rollout of PowerTrack Sage, and the new Nuvation Energy partnership as ways to strengthen the platform and expand into utility scale and international markets.
