Stem, Inc. Q2 2026 Earnings Recap

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.