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Stem (STEM) investor relations material
Stem Q4 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Achieved a transformative year in 2025, shifting to a software-centric, operationally disciplined model with best-in-class execution and financial turnaround.
Delivered first-ever full year of positive adjusted EBITDA and net income, with three consecutive quarters of positive adjusted EBITDA.
Generated positive operating cash flow and strengthened cash position, ending 2025 with $48.9 million in cash.
Launched PowerTrack EMS and PowerTrack Sage, expanding product suite and international presence, including a 100MWh deal in Germany.
Net income reached $137.8 million, reversing a net loss of $854.0 million in 2024, driven by a $220 million gain on extinguishment of debt and absence of large impairments.
Financial highlights
Full year 2025 revenue grew 8% year-over-year to $156.3 million; software, services, and edge hardware revenue up 25% to $141.4 million.
Year-end ARR increased 16% year-over-year to $61.1 million.
Achieved record GAAP gross margins of 38% and non-GAAP gross margins of 46% for 2025; Q4 GAAP gross margin at 49%.
Full year adjusted EBITDA was $6.7 million, with three consecutive quarters of positive adjusted EBITDA.
Positive operating cash flow of $6.9 million for 2025; ended year with $48.9 million in cash.
Outlook and guidance
2026 revenue expected in the range of $140–190 million, with $130–150 million from high-margin software, services, and edge hardware.
Non-GAAP gross margins guided at 40–50%; adjusted EBITDA expected at $10–15 million, representing ~85% growth at midpoint.
ARR projected at $65–70 million, about 10% growth at midpoint.
Focused on operational leverage, core business strength, and building for accelerated growth in 2027 and beyond.
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