Stem, Inc. Q1 2026 Earnings Recap

STEM Q1 2026 May 9, 2026

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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.

Earnings Per Share Beat

$-1.55 vs $-2.06 est.

+24.8% surprise

Revenue Miss

29000000 vs 34608500 est.

-16.2% surprise

Market Reaction

1-Day +0.0%

5-Day +1.97%

30-Day +6.11%

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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.

This summary was generated by AI from the official earnings call transcript and is provided for informational purposes only. It does not constitute financial advice. For the complete transcript and financial data, visit STEM on AllInvestView.