Stem (NYSE:STEM) Releases Earnings Results, Beats Expectations By $0.11 EPS

Stem (NYSE:STEM) posted its quarterly earnings data on Wednesday. The company reported ($1.85) EPS for the quarter, topping analysts’ consensus estimates 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 7.1%

Shares of STEM traded up $0.67 during midday trading on Wednesday, hitting $10.17. The stock had a trading volume of 368,549 shares, compared to its average volume of 225,564. Stem has a fifty-two week low of $5.81 and a fifty-two week high of $32.23. The business has a 50-day simple moving average of $15.07 and a two-hundred day simple moving average of $17.17. The firm has a market cap of $85.33 million, a P/E ratio of -0.75 and a beta of 1.30.

Key Stories Impacting Stem

Here are the key news stories impacting Stem this week:

• Positive Sentiment: Stem reported Q4 and full‑year 2025 results, delivering its first‑ever positive Adjusted EBITDA and record margins — a major operational milestone that supports improved profitability expectations. Stem Announces Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Stem’s PowerTrack™ energy management system was selected for 100 MWh of utility‑scale storage projects in Germany, expanding the company’s European footprint and supporting future recurring-software and services revenue. Stem’s PowerTrack EMS Selected for 100 MWh in Germany
• Neutral Sentiment: Several media items use the “STEM” keyword (education events, camps, and scientific stories) that are unrelated to Stem, Inc.’s business and are unlikely to affect the stock materially.
• Negative Sentiment: Company updated FY‑2026 guidance with revenue of $140.0M–$190.0M versus consensus of ~$167.4M; the midpoint is slightly below consensus and EPS guidance was not provided, which introduces uncertainty about near‑term growth and profitability. (Guidance disclosed by the company)
• Negative Sentiment: Insiders have been selling small amounts of stock this week: Matthew Tappin sold 300 shares on Mar 3 and 185 shares on Mar 4 (SEC filing). Saul R. Laureles sold 292 shares on Mar 3 (SEC filing). Insider sales can create short‑term pressure or signal liquidity needs even if dollar amounts are small. Tappin Form 4 Laureles Form 4

Analyst Upgrades and Downgrades

Separately, Weiss Ratings downgraded shares of Stem from a “hold (c-)” rating to a “sell (d+)” rating in a report on Wednesday, February 11th. Four investment analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Stem currently has an average rating of “Reduce” and a consensus target price of $17.60.

Hedge Funds Weigh In On Stem

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. grew its holdings in shares of Stem by 2.2% during the third quarter. Vanguard Group Inc. now owns 395,223 shares of the company’s stock valued at $6,924,000 after buying an additional 8,468 shares in the last quarter. AQR Capital Management LLC boosted its position in Stem by 505.8% during the 1st quarter. AQR Capital Management LLC now owns 1,482,790 shares of the company’s stock worth $519,000 after acquiring an additional 1,238,012 shares during the period. Trexquant Investment LP purchased a new position in Stem during the 4th quarter valued at about $385,000. Mangrove Partners IM LLC acquired a new position in shares of Stem in the 4th quarter valued at about $272,000. Finally, Nomura Holdings Inc. purchased a new stake in shares of Stem in the third quarter worth approximately $267,000. 61.63% of the stock is currently owned by hedge funds and other institutional investors.

About Stem

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.