Stem (NYSE:STEM) Releases Earnings Results, Misses Estimates By $0.15 EPS

Stem (NYSE:STEM) posted its quarterly earnings data on Wednesday. The company reported ($2.22) EPS for the quarter, missing analysts’ consensus estimates of ($2.07) by ($0.15), FiscalAI reports. The firm had revenue of $29.00 million for 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 Stock Performance

NYSE:STEM traded up $0.21 during mid-day trading on Wednesday, hitting $10.79. The stock had a trading volume of 222,792 shares, compared to its average volume of 109,465. Stem has a twelve month low of $5.93 and a twelve month high of $32.23. The stock has a market cap of $91.89 million, a price-to-earnings ratio of -1.14 and a beta of 1.51. The company’s 50 day simple moving average is $10.35 and its 200 day simple moving average is $14.71.

Analyst Ratings Changes

A number of equities analysts have recently commented on STEM shares. UBS Group restated a “neutral” rating and set a $12.00 price objective (down from $18.00) on shares of Stem in a research note on Tuesday, March 10th. Wall Street Zen downgraded shares of Stem from a “hold” rating to a “sell” rating in a research note on Saturday, March 7th. Susquehanna reduced their price objective on shares of Stem from $21.00 to $10.00 and set a “neutral” rating for the company in a research note on Thursday, April 9th. Finally, Weiss Ratings downgraded shares of Stem from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Wednesday, April 29th. Three analysts have rated the stock with a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of “Reduce” and an average price target of $15.75.

Insider Transactions at Stem

In related news, CEO Arun Narayanan sold 5,145 shares of the firm’s stock in a transaction dated Tuesday, March 10th. The shares were sold at an average price of $11.12, for a total value of $57,212.40. Following the completion of the sale, the chief executive officer directly owned 12,980 shares in the company, valued at approximately $144,337.60. This trade represents a 28.39% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. In the last three months, insiders have sold 10,366 shares of company stock valued at $114,190. Company insiders own 5.10% of the company’s stock.

Institutional Investors Weigh In On Stem

Several hedge funds have recently bought and sold shares of the company. IFP Advisors Inc lifted its stake in Stem by 258.1% in the 3rd quarter. IFP Advisors Inc now owns 1,479 shares of the company’s stock valued at $26,000 after purchasing an additional 1,066 shares during the last quarter. Virtu Financial LLC lifted its stake in Stem by 11.0% in the 3rd quarter. Virtu Financial LLC now owns 12,856 shares of the company’s stock valued at $225,000 after purchasing an additional 1,279 shares during the last quarter. Geode Capital Management LLC lifted its stake in Stem by 2.1% in the 4th quarter. Geode Capital Management LLC now owns 88,246 shares of the company’s stock valued at $1,329,000 after purchasing an additional 1,821 shares during the last quarter. Wells Fargo & Company MN lifted its stake in Stem by 89.2% in the 4th quarter. Wells Fargo & Company MN now owns 11,646 shares of the company’s stock valued at $175,000 after purchasing an additional 5,492 shares during the last quarter. Finally, Vanguard Group Inc. lifted its stake in Stem by 2.2% in the 3rd quarter. Vanguard Group Inc. now owns 395,223 shares of the company’s stock valued at $6,924,000 after purchasing an additional 8,468 shares during the last quarter. 61.63% of the stock is currently owned by institutional investors and hedge funds.

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.