Stem (NYSE:STEM) Posts Quarterly Earnings Results, Beats Estimates By $0.11 EPS

Stem (NYSE:STEM) posted its quarterly earnings results on Wednesday. The company reported ($1.85) earnings per share (EPS) for the quarter, beating the consensus estimate of ($1.96) by $0.11, FiscalAI reports. The firm had revenue of $47.14 million during the quarter, compared to the consensus estimate of $39.05 million.

Here are the key takeaways from Stem’s conference call:

• Stem completed a year-long transformation to a software-centric model in 2025, reporting $156M revenue (up 8% YoY), ARR of $61M (up 16% YoY), its first full-year positive adjusted EBITDA (~$7M), and positive operating cash flow.
• PowerTrack EMS (launched Sept 2025) is gaining traction—today’s Everyray GmbH 100 MWh engagement in Germany and sequential increases in utility-scale bookings position EMS to begin meaningful revenue conversion late 2026 / early 2027.
• The AI assistant PowerTrack Sage completed beta with 80+ customers and will be generally available this month, with a light universal rollout and premium tiers planned to drive adoption and upsell.
• 2026 guidance targets reflect continued profitability and growth: total revenue $140M–$190M (with $130M–$150M from software/services and Edge hardware), non-GAAP gross margins of 40%–50%, adjusted EBITDA $10M–$15M, and ARR $65M–$70M.
• Execution and margin risks remain—a cancelled managed-services customer reduced CAR by $3M and ARR by $1M, backlog was down slightly, and management may opportunistically resell up to $40M of lower‑margin battery hardware, which could pressure gross margins.

Stem Trading Up 21.2%

NYSE STEM opened at $12.18 on Friday. Stem has a 12 month low of $5.81 and a 12 month high of $32.23. The stock has a 50-day simple moving average of $14.87 and a 200 day simple moving average of $17.08. The company has a market capitalization of $102.19 million, a PE ratio of -1.28 and a beta of 1.30.

Stem News Roundup

Here are the key news stories impacting Stem this week:

• Positive Sentiment: Company Q4 & full-year results: Stem reported Q4 revenue and EPS beats and said it achieved its first-ever positive adjusted EBITDA with record gross margins — a key milestone supporting the market’s view of a profitability pivot. Stem Announces Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: European project award: Stem’s PowerTrack™ EMS was selected for 100 MWh of utility-scale energy storage projects in Germany — a meaningful commercial reference that expands the company’s footprint in Europe and supports recurring software/service revenue. Stem’s PowerTrack™ EMS Selected for 100 MWh of Utility-Scale Energy Storage Projects in Germany
• Positive Sentiment: Analyst/coverage tone: Recent pieces and call coverage highlight Stem’s strategic shift from hardware toward higher-margin SaaS and services, framing the company for improving cash flow and a potential valuation re-rating if the trend continues. Stem Inc.: Deciphering the SaaS Pivot and Strategic Realignment
• Neutral Sentiment: Earnings call details & transcript: Management’s Q4 call emphasized the profitability pivot and operational improvements; the transcript provides detail on margin drivers and cadence to positive cash flow but leaves some timing uncertainty. Stem, Inc. (STEM) Q4 2025 Earnings Call Transcript
• Neutral Sentiment: FY‑2026 revenue guidance: Stem issued a wide revenue range (~$140M–$190M) that brackets consensus — this gives management flexibility but leaves near-term visibility ambiguous for investors tracking top‑line execution. Q4 Results / Slide Deck
• Negative Sentiment: Insider selling: Several small insider sales were recently reported (Form 4 filings). While sizes are modest, such activity can concern some investors and warrants monitoring. SEC Form 4 (Insider Sale)

Institutional Trading of Stem

A number of hedge funds have recently modified their holdings of the company. IFP Advisors Inc boosted its stake in Stem by 258.1% during the 3rd quarter. IFP Advisors Inc now owns 1,479 shares of the company’s stock worth $26,000 after acquiring an additional 1,066 shares during the last quarter. Renaissance Technologies LLC acquired a new stake in Stem in the fourth quarter worth $169,000. Wells Fargo & Company MN boosted its position in shares of Stem by 89.2% during the fourth quarter. Wells Fargo & Company MN now owns 11,646 shares of the company’s stock worth $175,000 after purchasing an additional 5,492 shares in the last quarter. Balyasny Asset Management L.P. acquired a new position in shares of Stem in the 4th quarter valued at $177,000. Finally, OMERS ADMINISTRATION Corp acquired a new position in shares of Stem in the 4th quarter valued at $190,000. 61.63% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Separately, Weiss Ratings lowered shares of Stem from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Wednesday, February 11th. Three analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, Stem currently has a consensus rating of “Reduce” and a consensus target price of $20.00.

Stem Company Profile

Stem, Inc is a technology company specializing in AI-driven energy storage and optimization solutions for commercial, industrial and utility customers. The company delivers integrated hardware and software systems that enable clients to manage energy consumption, reduce peak demand charges and provide ancillary services to the power grid. By combining battery storage hardware with advanced machine-learning algorithms, Stem helps organizations align energy usage with cost-saving opportunities while supporting grid reliability and renewable integration.

At the core of Stem’s offering is its Athena software platform, which uses real-time data and predictive analytics to forecast energy needs and automatically dispatch stored energy when it is most valuable.