Stem (NYSE:STEM) Announces Earnings Results

05 Mar 2026, 00:18 by Mitch Edgeman · The Markets Daily

Stem (NYSE:STEM – Get Free Report) posted its earnings results on Wednesday. The company reported ($1.85) earnings per share (EPS) for the quarter, topping 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 7.1%

Shares of NYSE STEM traded up $0.67 during midday trading on Wednesday, hitting $10.17. The company’s stock had a trading volume of 368,549 shares, compared to its average volume of 225,564. The stock has a fifty day moving average price of $15.07 and a 200 day moving average price of $17.17. The firm has a market capitalization of $85.33 million, a price-to-earnings ratio of -0.75 and a beta of 1.30. Stem has a one year low of $5.81 and a one year high of $32.23.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. AQR Capital Management LLC raised its holdings in shares of Stem by 505.8% during the 1st quarter. AQR Capital Management LLC now owns 1,482,790 shares of the company’s stock valued at $519,000 after buying an additional 1,238,012 shares in the last quarter. Bank of America Corp DE raised its stake in shares of Stem by 104.0% during the third quarter. Bank of America Corp DE now owns 217,871 shares of the company’s stock worth $3,817,000 after acquiring an additional 111,068 shares in the last quarter. Two Sigma Investments LP lifted its holdings in shares of Stem by 461.9% in the 3rd quarter. Two Sigma Investments LP now owns 94,045 shares of the company’s stock worth $1,648,000 after acquiring an additional 77,307 shares during the last quarter. Bridgeway Capital Management LLC boosted its stake in shares of Stem by 346.2% in the 4th quarter. Bridgeway Capital Management LLC now owns 69,600 shares of the company’s stock valued at $1,047,000 after purchasing an additional 54,000 shares in the last quarter. Finally, Jump Financial LLC purchased a new stake in shares of Stem in the 4th quarter valued at $534,000. Institutional investors own 61.63% of the company’s stock.

Trending Headlines about 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

Analysts Set New Price Targets

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

Check Out Our Latest Analysis on STEM

About Stem

(Get Free Report)

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.