Stem, Inc.

Stem, Inc. Earnings Recaps

STEM Information Technology 1 recap
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.
Full recap