Stem, Inc.
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Range $6.75 – $8
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About the company
Stem, Inc. operates internationally as a prominent provider of intelligent, digitally interconnected energy storage networks. The company delivers energy storage systems, which it sources from original equipment manufacturers (OEMs).
- CEO
- Arun Narayanan
- IPO
- 2020
- Employees
- 423
- HQ
- Houston, TX, US
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- Market Cap
- $50.16M
- P/E
- -0.66
- PEG
- 0.00
- P/S
- 0.34
- P/B
- -0.19
- EV/EBITDA
- -67.01
- Div Yield
- 0.00%
- Gross Margin
- 38.21%
- Op Margin
- -30.11%
- Net Margin
- -49.37%
- ROE
- 28.62%
- ROIC
- -24.04%
Latest fiscal year · YoY change
- Revenue
- $156.27M+8.1%
- Gross Profit
- $59.96M+642.2%
- Op Income
- $-55,688,000
- Net Income
- $137.76M+116.1%
- EPS
- $16.52+115.6%
- OCF Growth
- +118.7%
- FCF Growth
- +114.2%
- 52W High
- $32.23
- 52W Low
- $4.92
- 50D MA
- $6.62
- 200D MA
- $11.65
- Beta
- 1.51
- RSI (14)
- 43
- Avg Volume
- 137.90K
Earnings call summaries
Pick a quarter — each call distilled into takeaways, results, and a bull vs bear read.
Stem said Q2 showed its software-centric transformation is taking hold, with record non-GAAP gross margin, a fifth straight quarter of positive adjusted EBITDA, and reaffirmed full-year 2026 guidance.· August 12, 2026
- Q2 revenue was $34 million, down 12% year over year, mainly because battery hardware resale revenue fell to $300,000 from $5 million.
- Non-GAAP gross margin hit a record 55%, while adjusted EBITDA was $6 million, up 63% year over year and positive for the fifth consecutive quarter.
- Operating cash flow improved to breakeven at $0.3 million, and cash and equivalents ended at $38.4 million.
- PowerTrack momentum continued: software revenue rose 11% year over year, PowerTrack ARR increased 13% year over year to $42.8 million, and bookings were up 39% sequentially.
- Management highlighted new EMS bookings in Chile and Hungary, the launch of AIONA, and industry recognition with The smarter E AWARD 2026.
Total revenue for Q2 2026 was $34 million, down 12% year over year from $38 million. GAAP gross margin was 41% versus 33% in Q2 2025, and non-GAAP gross margin reached a record 55% versus 49% a year ago. Adjusted EBITDA was $6 million, up 63% year over year from $4 million, and operating cash flow was positive $0.3 million versus negative $21 million in Q2 2025 and negative $8 million in Q1 2026. Excluding battery hardware resales, revenue from software, services, and edge hardware was $33 million, up 1% year over year. For full-year 2026, Stem reaffirmed revenue guidance of $140 million to $190 million, non-GAAP gross margin of 40% to 50%, adjusted EBITDA of $10 million to $15 million, operating cash flow of $0 to $10 million, and year-end ARR of $65 million to $70 million. Management said battery hardware resale revenue is expected up to $40 million and likely toward the lower end of that range, which should keep gross margin toward the higher end of guidance.
Arun Narayanan framed the quarter as evidence that Stem’s software-centric transformation is working, pointing to record gross margins, positive EBITDA, and breakeven operating cash flow. He emphasized that the company is seeing stronger traction in utility-scale, hybridization, and international deployments, with PowerTrack EMS now booked across six countries and three continents. His tone was confident and focused on execution, while repeatedly stressing disciplined growth into 2027 and beyond.
Brian Musfeldt focused on the mix-driven nature of the quarter, noting that the revenue decline was almost entirely due to lower battery hardware resale revenue of $300,000 versus $5 million a year ago. He highlighted the profitability profile: GAAP gross margin of 41%, non-GAAP gross margin of 55%, adjusted EBITDA margin of 18%, and cash operating expenses down 11% year over year while staying sequentially flat. He also said the company ended with $38.4 million in cash and equivalents, raised about $6 million via ATM sales at an average price of roughly $9.75, and remains on track to the high end of EBITDA guidance because battery resale should ramp in the second half.
Analysts focused on the second-half EBITDA and margin outlook, asking whether the full-year guidance implies a step-down from the strong first half. Management said the main swing factor is battery hardware resale timing, which should increase in the second half and lower margin percentages somewhat, but not because of weakness in software, services, or edge hardware. Questions also centered on policy risk and hybrid-project economics; Arun said recent U.S. policy changes have not impacted their projects, and Erin explained that hybrid deployments can add a second software contract plus services and edge hardware.
The bull case from the call is that Stem is showing durable operating leverage: five straight quarters of positive adjusted EBITDA, record non-GAAP gross margin, and breakeven operating cash flow without cutting investment. PowerTrack software revenue, ARR, bookings, and utility-scale EMS adoption all moved in the right direction, and management described early traction in Latin America, Europe, and AIONA. The company also reiterated guidance and said it is tracking toward the high end of EBITDA and gross margin ranges.
The main bear case is that reported revenue still fell 12% year over year, and the company’s margin and EBITDA profile remains dependent on the timing of battery hardware resale deals. Management acknowledged that higher battery resale in the second half should pull margins and EBITDA down somewhat from first-half levels, even if still within guidance. Investors may also see execution risk in newer initiatives like AIONA, data center opportunities, and international EMS expansion, which management says are still early.
AI summary of the company's earnings call · Paraphrased · Not investment advice
- Free Float
- 96.6%
- Shares Outstanding
- 8.96M
- Float Shares
- 8.66M
of shares held by institutions
80 13F filers
Buy/sell ratio 0.17. Sells can include pre-scheduled 10b5-1 plan sales, not just discretionary selling.
Top institutional holders
Largest 13F positions, with quarter-over-quarter change.
| Holder | Shares | Δ Quarter |
|---|---|---|
| Marshall Wace, Llp | 405.61K | ▲ 114.27K |
| Vanguard Group Inc | 396.38K | ▲ 1.16K |
| Vanguard Capital Management LLC | 361.25K | ▲ 17.44K |
| Blackrock, Inc. | 164.48K | ▲ 29.77K |
| Trexquant Investment LP | 110.64K | ▲ 18.96K |
| Two Sigma Investments, LP | 103.23K | ▼ 72.16K |
| Gsa Capital Partners Llp | 102.32K | ▼ 6.18K |
| Bnp Paribas Arbitrage, Snc | 93.09K | ▲ 40.00K |
| Geode Capital Management, LLC | 93.01K | ▲ 962 |
| Acadian Asset Management LLC | 74.65K | ▲ 64.08K |
| Renaissance Technologies LLC | 66.48K | ▲ 7.91K |
| Bridgeway Capital Management, LLC | 59.60K | ▼ 10.00K |
Held by 34 ETFs
Biggest fund positions in STEM by dollar value.
Recent insider transactions
Who's buying, who's selling, and how much.
| Date | Insider | Type | Shares |
|---|---|---|---|
| Aug 7, 26 | BUZBY DAVID S | other | 7,486 |
| Aug 7, 26 | BUZBY DAVID S | other | 7,486 |
| Aug 7, 26 | Shivram Krishna | other | 7,486 |
| Aug 7, 26 | Shivram Krishna | other | 7,486 |
| Aug 7, 26 | Daley Adam | other | 7,486 |
| Aug 7, 26 | Daley Adam | other | 7,486 |
| Aug 7, 26 | Tammineedi Anil | other | 7,486 |
| Aug 7, 26 | Tammineedi Anil | other | 7,486 |
| Aug 7, 26 | Guruswamy Vasudevan | other | 7,486 |
| Aug 7, 26 | Guruswamy Vasudevan | other | 7,486 |
A “Sell” may be a pre-scheduled 10b5-1 plan sale rather than a discretionary decision — read insider selling with that in mind.
Our STEM coverage
Recent articles, reports, and earnings notes.

Eos Energy Enterprises IPO: What Investors Need to Know
Eos Energy Enterprises Inc. Rt is expected to list on NASDAQ on 2026-07-06, but the price range has not been disclosed. The company is already public under EOSE, so this looks more like a rights offering and capital-markets event than a true IPO. The bull case is long-duration storage demand; the bear case is heavy losses, financing needs, and dilution risk.

Eos Energy Enterprises Rides Long-Duration Storage Demand: What to Watch
Eos Energy Enterprises, Inc. Right is expected to list on NASDAQ on 2026-07-06, but the price range has not been disclosed. The company is already public under NASDAQ: EOSE, so this is best viewed as a capital-markets event rather than a first-time IPO. Bull case: long-duration storage demand is real; bear case: the business is still loss-making and heavily dependent on financing.
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Stem, Inc. (STEM) Q2 2026 Earnings Call Transcript
seekingalpha.com · Aug 13
Stem Q2 Earnings Call Highlights
marketbeat.com · Aug 13
Stem, Inc. (STEM) Reports Q2 Loss, Beats Revenue Estimates
zacks.com · Aug 12
Stem Announces Second Quarter 2026 Results
businesswire.com · Aug 12
Stem's PowerTrack EMS Enables Hybridization of Two Operating Utility-Scale Solar Plants in Hungary
businesswire.com · Aug 12
Stem, Inc. (NYSE:STEM) Receives $11.75 Consensus Price Target from Brokerages
defenseworld.net · Jul 30
Chemical Marketing & Economics honors LyondellBasell CEO Peter Vanacker with STEM Leadership Award for Corporate Reinvention
globenewswire.com · Jul 28
Stem Announces Second Quarter 2026 Earnings Results Conference Call
businesswire.com · Jul 22
Headlines from third-party outlets — TickerSpark isn't affiliated with these sources.