STEM STEM, INC.
Price Chart
Executive Summary
Stem reported Q1 2026 revenue of $29M (-11% YoY), but software/services/edge hardware grew 4% and PowerTrack software was up 16%. GAAP gross margin improved to 38% from 32%, and adjusted EBITDA turned positive at $2M versus a -$4.6M loss a year ago. Full-year 2026 guidance was reaffirmed, signaling management's confidence in its software-centric strategy.
Key Financial Metrics
Actionable Insight
The earnings show a continued shift toward higher-margin software revenue and cost control, but the overall top-line decline and negative operating cash flow (from +$8.5M to -$8.3M) are concerning. With the stock at a $91M market cap and 0% analyst bullishness, the reaffirmed guidance may provide some support, but the market's historical pessimism (past filings saw significant T+20 declines) suggests caution.
Key Facts
- Revenue down 11% YoY to $29.0M due to reduced battery hardware sales
- Software, services, and edge hardware revenue up 4% YoY to $29.0M
- PowerTrack software revenue up 16% YoY
- GAAP gross margin expanded to 38% from 32%; non-GAAP gross margin hit a record 52%
- Adjusted EBITDA positive $2.0M vs -$4.6M in Q1 2025
- Net loss improved to -$18.9M from -$25.0M
- Full-year 2026 guidance reaffirmed: revenue $140-$190M, adj. EBITDA $10-$15M
- Operating cash flow turned negative to -$8.3M from +$8.5M a year ago
Financial Impact
Mixed: revenue decline of $3.5M YoY but profitability improved with adjusted EBITDA swing of +$6.6M
Risk Factors
- Revenue continued to decline; full-year guidance implies Q1 was seasonally weak but any further deterioration would be negative
- Operating cash flow turned negative, raising liquidity concerns given $36.6M cash on hand
- Exposure to tariff and regulatory uncertainty under OBBB and trade policies
- High stock-based compensation ($2.0M) relative to revenue base
Market Snapshot
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001758766-26-000043 |
| Document: stem-20260506.htm | 0001758766-26-000043 |
| Document: 0001758766-26-000043-index-headers.html | 0001758766-26-000043 |
| Document: 0001758766-26-000043-index.html | 0001758766-26-000043 |
| Document: 0001758766-26-000043.txt | 0001758766-26-000043 |
| 8-K Data (Synthetic) | 0001758766-26-000043 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
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Jun 3, 2026
6d ago
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8-K
| $9.17 $7.70 | ▼ −16.03% | ▼ −13.43% | $7.70 (−16.03%) |
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Jun 2, 2026
7d ago
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S-3
| $9.04 $9.17 | ▲ +1.44% | ▲ +1.04% | $7.70 (−14.82%) |
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May 6, 2026
4w ago
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8-K
| $8.73 $8.73 | · 0.00% | ▼ −0.83% | $7.70 (−11.80%) |
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Apr 27, 2026
6w ago
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DEFA14A
| $11.29 $10.62 | ▼ −5.93% | ▼ −5.45% | $7.70 (−31.80%) |
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Mar 4, 2026
13w ago
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8-K
| $12.18 $12.11 | ▼ −0.57% | ▲ +0.74% | $7.70 (−36.78%) |
US Market Status
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