Stem (NYSE:STEM) Issues Earnings Results

07 May 2026, 13:40 by Teresa Graham · The Cerbat Gem

Stem (NYSE:STEM – Get Free Report) released its quarterly earnings data on Wednesday. The company reported ($2.22) earnings per share for the quarter, missing analysts’ consensus estimates of ($2.07) by ($0.15), FiscalAI reports. The business had revenue of $29.00 million during the quarter, compared to the consensus estimate of $34.61 million.

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

Profitability traction: Stem reported $2M adjusted EBITDA, its fourth consecutive positive quarter and the first-ever positive result in a seasonally weak Q1, and the company reaffirmed full-year guidance.
Margins and cost discipline: Non-GAAP gross/growth margin expanded to ~52% (PowerTrack margins ~75%), while cash operating expenses were down ~30% YoY and ~10% sequentially, aided by AI-driven productivity gains.
PowerTrack product momentum and tuck-in acquisition: PowerTrack software revenue grew 16% YoY, ARR rose modestly, the AI assistant PowerTrack Sage is live with early engagement, and Stem acquired raicoon to add automated fault detection and alert prioritization to the platform.
Utility-scale expansion: Utility-scale bookings more than doubled QoQ, the EMS pipeline is the strongest the company has seen (including multi-site hybrid wins in Europe), and a co-marketing partnership with Nuvation targets North American BESS demand.
Near-term cash dynamics: Operating cash flow was negative $8M in Q1 due to working-capital timing (ending cash was $37M), and management expects cash generation to improve later in 2026 but reaffirmed a modest full-year operating cash flow target of $0–$10M.

Stem Trading Down 21.6%

STEM traded down $2.36 during mid-day trading on Thursday, hitting $8.56. 420,475 shares of the stock were exchanged, compared to its average volume of 190,658. The firm’s fifty day moving average is $10.35 and its two-hundred day moving average is $14.71. Stem has a 1-year low of $5.93 and a 1-year high of $32.23. The company has a market cap of $72.89 million, a PE ratio of -0.90 and a beta of 1.51.

Analyst Ratings Changes

A number of equities analysts have weighed in on the company. Weiss Ratings lowered Stem from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Wednesday, April 29th. Susquehanna reduced their target price on Stem from $21.00 to $10.00 and set a “neutral” rating on the stock in a research report on Thursday, April 9th. Roth Mkm restated a “neutral” rating and issued a $11.00 target price on shares of Stem in a research report on Thursday. Wall Street Zen downgraded Stem from a “hold” rating to a “sell” rating in a research report on Saturday, March 7th. Finally, UBS Group restated a “neutral” rating and issued a $12.00 target price (down from $18.00) on shares of Stem in a research report on Tuesday, March 10th. Three research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Reduce” and a consensus target price of $12.75.

Check Out Our Latest Stock Analysis on Stem

Insider Transactions at Stem

In related news, CEO Arun Narayanan sold 5,145 shares of the stock in a transaction dated Tuesday, March 10th. The stock was sold at an average price of $11.12, for a total transaction of $57,212.40. Following the transaction, the chief executive officer owned 12,980 shares of the company’s stock, valued at approximately $144,337.60. This represents a 28.39% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Over the last quarter, insiders sold 10,366 shares of company stock worth $114,190. 5.10% of the stock is currently owned by corporate insiders.

Institutional Trading of Stem

Large investors have recently made changes to their positions in the company. AQR Capital Management LLC raised its holdings in Stem by 505.8% in the first quarter. AQR Capital Management LLC now owns 1,482,790 shares of the company’s stock valued at $519,000 after acquiring an additional 1,238,012 shares in the last quarter. Bank of America Corp DE raised its holdings in Stem by 104.0% in the third quarter. Bank of America Corp DE now owns 217,871 shares of the company’s stock valued at $3,817,000 after acquiring an additional 111,068 shares in the last quarter. Two Sigma Investments LP raised its holdings in Stem by 461.9% in the third quarter. Two Sigma Investments LP now owns 94,045 shares of the company’s stock valued at $1,648,000 after acquiring an additional 77,307 shares in the last quarter. Bridgeway Capital Management LLC raised its holdings in Stem by 346.2% in the fourth quarter. Bridgeway Capital Management LLC now owns 69,600 shares of the company’s stock valued at $1,047,000 after acquiring an additional 54,000 shares in the last quarter. Finally, Jump Financial LLC acquired a new stake in Stem in the fourth quarter valued at approximately $534,000. 61.63% of the stock is currently owned by hedge funds and other institutional investors.

Stem Company Profile

(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.