Stem Reports Q3 Revenue of $38.2 Million, Falling Short of Consensus Estimate of $38.46 Million
Revenue Growth: Stem reported solid revenue growth and positive adjusted EBITDA for the second consecutive quarter in Q3 2025, highlighting the effectiveness of their strategic transformation over the past year.
Operational Performance: The company achieved a 17% year-over-year increase in Annual Recurring Revenue (ARR) and demonstrated strong operating leverage through improved gross margins, indicating enhanced business stability.
Guidance Refinement: Stem is refining its guidance across nearly all metrics, reducing historical volatility and de-risking the lower end of its forecasts, which reflects confidence in its business stability.
AI-Driven Platform: The diversified AI-driven platform is positioned to benefit from rising energy demand, while operational discipline is expected to support the company's path towards profitable growth.
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Stem, Inc. Q4 2025 Earnings Call Highlights
- Significant Revenue Growth: Stem, Inc. reported full-year revenue of $156 million for 2025, reflecting an 8% increase, with over 55% derived from software and services, demonstrating the success of its software-driven transformation and enhancing market competitiveness.
- First Positive Adjusted EBITDA: The company achieved an adjusted EBITDA of $7 million, marking three consecutive quarters of positive results, indicating improved operational efficiency and successful cost control, which lays a solid foundation for future growth.
- International Market Expansion: Stem engaged with German developer Everyray for a 100-megawatt hour project and rolled out the AI assistant PowerTrack Sage, currently in beta testing with over 80 customers, which is expected to further drive market share growth.
- Optimistic 2026 Outlook: Management anticipates 2026 revenue in the range of $140 million to $190 million, with software and services contributing $130 million to $150 million, reflecting confidence in future growth and the effectiveness of strategic planning.
Stem (STEM) Q4 2025 Earnings Call Transcript
Stempress Reports Q4 2025 Financial Results with Strong Revenue Growth
- Significant Revenue Growth: Stempress reported Q4 2025 revenue of $47.2 million, exceeding expectations by $7.81 million, with software, services, and edge hardware revenue reaching $46.5 million, reflecting a robust 62% year-over-year increase that underscores the company's strong market performance and growth potential.
- Improved Profit Margins: GAAP gross profit surged to $23.2 million from a loss of $2.5 million year-over-year, with GAAP gross margin rising to 49%, while non-GAAP gross margin increased from 36% to 45%, indicating significant advancements in cost control and profitability.
- Reduced Net Loss: The company reported a net loss of $16.0 million in Q4 2025, a substantial decrease from $51.1 million in the same quarter last year, reflecting positive changes in operational efficiency and financial health.
- Stable Annual Contract Revenue: The Contracted Annual Recurring Revenue (CARR) for FY25 stood at $67.2 million, down 4% from Q3 but up 4% year-over-year, demonstrating the company's ongoing commitment to maintaining long-term customer relationships and revenue stability.
Stem Scheduled to Announce Q4 Earnings on March 4
- Earnings Announcement Date: Stem is set to release its Q4 earnings report on March 4 after market close, with market participants keenly awaiting the results, which could impact stock performance.
- Earnings Expectations: Analysts have a consensus EPS estimate of -$1.96, indicating ongoing challenges in profitability that may affect investor confidence and stock valuation.
- Revenue Forecast: The consensus revenue estimate stands at $39.39 million, and any deviation from this figure could lead to stock price volatility, with lower revenues potentially dampening market sentiment.
- Historical Performance Insight: Historical earnings data for Stem will provide investors with critical insights into the company's financial health and market performance, aiding in future investment decisions.
Stem (STEM) Price Target Raised by 30.68% to $19.55
Price Target Update: The average one-year price target for Stem (NYSE:STEM) has been revised to $19.55 per share, reflecting a 30.68% increase from the previous estimate of $14.96, with current targets ranging from $17.17 to $24.15.
Fund Sentiment: There are 120 funds reporting positions in Stem, marking a 55.84% increase in ownership over the last quarter, with total shares owned by institutions rising by 32.64% to 2,087K shares.
Bullish Outlook: The put/call ratio for Stem is at 0.17, indicating a bullish sentiment among investors.
Shareholder Activity: Notable increases in share ownership have been reported by firms such as Marshall Wace, Bank of America, and Two Sigma Investments, with significant percentage increases in their portfolio allocations to Stem over the last quarter.
UBS Keeps Neutral Rating on Stem (STEM)
UBS Coverage and Price Forecast: UBS has maintained a Neutral recommendation for Stem (NYSE:STEM) as of October 31, 2025, with an average one-year price target of $14.96/share, indicating an 11.69% downside from its latest closing price of $16.94/share.
Projected Revenue and EPS: Stem's projected annual revenue is expected to reach $1,203 million, reflecting a significant increase of 629.32%, while the projected annual non-GAAP EPS is -0.17.
Fund Sentiment and Ownership: There has been a notable increase in institutional interest in Stem, with 113 funds reporting positions, a 653.33% increase in ownership over the last quarter, and total shares owned by institutions rising by 39,583.27% to 1,724K shares.
Shareholder Holdings: Key shareholders include Vanguard Total Stock Market Index Fund (2.90% ownership), Vanguard Extended Market Index Fund (1.48%), Bank of America (1.27%), Susquehanna International Group (1.20%), and Geode Capital Management (1.02%).
Stem, Inc. Q4 2025 Earnings Call Highlights
- Significant Revenue Growth: Stem, Inc. reported full-year revenue of $156 million for 2025, reflecting an 8% increase, with over 55% derived from software and services, demonstrating the success of its software-driven transformation and enhancing market competitiveness.
- First Positive Adjusted EBITDA: The company achieved an adjusted EBITDA of $7 million, marking three consecutive quarters of positive results, indicating improved operational efficiency and successful cost control, which lays a solid foundation for future growth.
- International Market Expansion: Stem engaged with German developer Everyray for a 100-megawatt hour project and rolled out the AI assistant PowerTrack Sage, currently in beta testing with over 80 customers, which is expected to further drive market share growth.
- Optimistic 2026 Outlook: Management anticipates 2026 revenue in the range of $140 million to $190 million, with software and services contributing $130 million to $150 million, reflecting confidence in future growth and the effectiveness of strategic planning.
Stem (STEM) Q4 2025 Earnings Call Transcript
Stempress Reports Q4 2025 Financial Results with Strong Revenue Growth
- Significant Revenue Growth: Stempress reported Q4 2025 revenue of $47.2 million, exceeding expectations by $7.81 million, with software, services, and edge hardware revenue reaching $46.5 million, reflecting a robust 62% year-over-year increase that underscores the company's strong market performance and growth potential.
- Improved Profit Margins: GAAP gross profit surged to $23.2 million from a loss of $2.5 million year-over-year, with GAAP gross margin rising to 49%, while non-GAAP gross margin increased from 36% to 45%, indicating significant advancements in cost control and profitability.
- Reduced Net Loss: The company reported a net loss of $16.0 million in Q4 2025, a substantial decrease from $51.1 million in the same quarter last year, reflecting positive changes in operational efficiency and financial health.
- Stable Annual Contract Revenue: The Contracted Annual Recurring Revenue (CARR) for FY25 stood at $67.2 million, down 4% from Q3 but up 4% year-over-year, demonstrating the company's ongoing commitment to maintaining long-term customer relationships and revenue stability.
Stem Scheduled to Announce Q4 Earnings on March 4
- Earnings Announcement Date: Stem is set to release its Q4 earnings report on March 4 after market close, with market participants keenly awaiting the results, which could impact stock performance.
- Earnings Expectations: Analysts have a consensus EPS estimate of -$1.96, indicating ongoing challenges in profitability that may affect investor confidence and stock valuation.
- Revenue Forecast: The consensus revenue estimate stands at $39.39 million, and any deviation from this figure could lead to stock price volatility, with lower revenues potentially dampening market sentiment.
- Historical Performance Insight: Historical earnings data for Stem will provide investors with critical insights into the company's financial health and market performance, aiding in future investment decisions.
Stem (STEM) Price Target Raised by 30.68% to $19.55
Price Target Update: The average one-year price target for Stem (NYSE:STEM) has been revised to $19.55 per share, reflecting a 30.68% increase from the previous estimate of $14.96, with current targets ranging from $17.17 to $24.15.
Fund Sentiment: There are 120 funds reporting positions in Stem, marking a 55.84% increase in ownership over the last quarter, with total shares owned by institutions rising by 32.64% to 2,087K shares.
Bullish Outlook: The put/call ratio for Stem is at 0.17, indicating a bullish sentiment among investors.
Shareholder Activity: Notable increases in share ownership have been reported by firms such as Marshall Wace, Bank of America, and Two Sigma Investments, with significant percentage increases in their portfolio allocations to Stem over the last quarter.
UBS Keeps Neutral Rating on Stem (STEM)
UBS Coverage and Price Forecast: UBS has maintained a Neutral recommendation for Stem (NYSE:STEM) as of October 31, 2025, with an average one-year price target of $14.96/share, indicating an 11.69% downside from its latest closing price of $16.94/share.
Projected Revenue and EPS: Stem's projected annual revenue is expected to reach $1,203 million, reflecting a significant increase of 629.32%, while the projected annual non-GAAP EPS is -0.17.
Fund Sentiment and Ownership: There has been a notable increase in institutional interest in Stem, with 113 funds reporting positions, a 653.33% increase in ownership over the last quarter, and total shares owned by institutions rising by 39,583.27% to 1,724K shares.
Shareholder Holdings: Key shareholders include Vanguard Total Stock Market Index Fund (2.90% ownership), Vanguard Extended Market Index Fund (1.48%), Bank of America (1.27%), Susquehanna International Group (1.20%), and Geode Capital Management (1.02%).
