Stem, Inc. Earnings Recaps
Q2 2026
Aug 14, 2026
Stem’s shares rose 5.9% after the earnings release, reflecting investor approval of the company’s margin expansion, ongoing adjusted EBITDA improvement, and accelerating commercial momentum in key platforms and new markets.
Key takeaways
- Record non-GAAP gross margins maintained in Q2, trending towards the high end of the 40% to 50% guidance range, driven by higher-margin software, services, and edge hardware revenue mix.
- Adjusted EBITDA reached $6 million in Q2, a 63% increase year-over-year and more than double Q1 2026, with first half adjusted EBITDA positive at $8 million versus a negative $1 million in first half 2025.
- Operating cash flow broke even at $0.3 million this quarter, improving $9 million sequentially and $22 million year-over-year, indicating improved operational efficiency and cash generation.
- PowerTrack platform ARR grew 3% sequentially with approximately 0.8 gigawatts of new solar assets under management; continued product enhancements and integration of automated fault detection technology underway.
- Expansion progress marked by significant EMS bookings in Latin America and Europe, including utility-scale hybrid battery projects, alongside external industry recognition with The smarter E AWARD 2026 in Smart Integrated Energy category.
Q1 2026
May 9, 2026
Shares of Stem Inc. dropped 16.0% following earnings as cautious outlook on hardware margin pressure and limited revenue growth weighed on investor sentiment despite sustained operational efficiency.
Key takeaways
- First quarter non-GAAP gross margin remained strong at 52%, driven by a hardware-light revenue mix (no battery resales).
- Management anticipates gross margin compression toward mid-point of 40%-50% as battery hardware sales resume later in the year.
- Adjusted EBITDA was $2 million, marking the fourth consecutive positive quarter and first positive EBITDA in Q1 historically.
- Operating cash flow was negative $8 million due to seasonal working capital timing and scheduled interest payments.
- PowerTrack ARR grew 2%, and 1.5 GW of solar assets were added, but growth momentum appears modest given the size of the installed base.