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Dec 31, 2025
Stem Q4 2025 Earnings Report
Stem Q4 2025 Earnings Report
Key Takeaways
Stem achieved its first-ever full year of positive Adjusted EBITDA in 2025, driven by a strategic shift toward a software-centric model. While Q4 revenue declined year-over-year due to reduced battery hardware sales, the company saw significant growth in high-margin software and services revenue and achieved positive operating cash flow for the quarter.
Achieved first-ever full year of positive Adjusted EBITDA ($6.7 million) and positive operating cash flow ($6.9 million).
Software, services, and edge hardware revenue grew 62% year-over-year in Q4 2025 to $46.5 million.
GAAP gross margin improved dramatically to 49% in Q4 2025 from -4% in Q4 2024.
Introduced 2026 guidance targeting approximately 85% Adjusted EBITDA growth and 10% ARR expansion.
Revenue by Segment
Forward Guidance
Stem introduced full year 2026 guidance focusing on continued software-centric growth and significant Adjusted EBITDA expansion.
Positive Outlook
- Targeting Adjusted EBITDA between $10 million and $15 million, representing ~85% growth.
- Expected software, edge hardware, and services revenue of $130 million to $150 million.
- Non-GAAP Gross Margin projected to be between 40% and 50%.
- Targeting year-end ARR of $65 million to $70 million.
- Anticipated positive operating cash flow between $0 and $10 million.
Challenges Ahead
- Uncertainty regarding the effects of the One Big Beautiful Bill (OBBB).
- Potential impact from increased import tariffs and retaliatory trade policies.
- Global inflationary pressures and high interest rates.
- Geopolitical tensions, including wars in Ukraine and the Middle East.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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