olivLaw · US equity research
Stem, Inc. STEM
Services-Computer Integrated Systems Design · SIC 7373 · Vertical: Services-Computer Integrated Systems Design (SIC 7373)
Stem, Inc. provides the PowerTrack software suite and services for clean energy assets, shifting away from battery resales toward a software-centric model. Revenue was 156.3 mn USD in fiscal 2025, and ARR reached 61.2 mn USD at the end of Q1 2026.
At the close of 04 Nov 2026, Stem, Inc. (STEM) stock was 2.88 USD (+21.52% on the day), with market capitalisation 27.7 m USD, beta 2.21, 52-week range 2.22–21.89 USD. Latest reported quarter (Q2 2026): revenue of 33.7 m USD (−12.3% YoY), net income of -14.4 m USD (−107.1% YoY), diluted EPS -1.58 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 40.2
- weak (30–45)
- Bollinger (20, 2)
- 1.94 – 4.45
- in the lower half of the band · %B 0.37 · band width 78.5%
- SMA 50 / 200
- 4.17 / 8.14
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -0.52 / -0.51
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −32.2% | −2.0% | −30.2 pp | — |
| 3 months | −50.3% | −2.2% | −48.2 pp | — |
| 6 months | −73.6% | +4.3% | −77.9 pp | — |
| Year to date | −80.9% | +10.6% | −91.4 pp | — |
| 1 year | −83.7% | +10.5% | −94.2 pp | −33.2% |
| 3 years | −96.1% | +73.7% | −169.7 pp | −6.6% |
| 5 years | −99.4% | +61.7% | −161.1 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 29.3 m | 55.8 m | 32.5 m | 38.4 m | 38.2 m | 47.1 m | 29.0 m | 33.7 m |
| Cost of revenue | 23.1 m | 58.3 m | 22.0 m | 25.6 m | 24.7 m | 24.1 m | 18.1 m | 19.8 m |
| Gross profit | 6.2 m | -2.4 m | 10.5 m | 12.8 m | 13.6 m | 23.0 m | 10.9 m | 13.9 m |
| Research & development | 11.1 m | 10.8 m | 11.3 m | 10.0 m | 6.9 m | 7.1 m | 6.6 m | 6.5 m |
| Operating income | -144.5 m | -47.1 m | -21.1 m | -13.3 m | -12.9 m | -8.3 m | -14.2 m | -7.7 m |
| Depreciation & amortisation | 11.0 m ≈ | 11.8 m | 11.0 m | 11.2 m ≈ | 10.9 m ≈ | 11.8 m | 10.5 m | 11.4 m ≈ |
| Interest expense | 4.5 m | 4.4 m | 4.3 m | 4.1 m | 7.3 m | 8.3 m | 7.4 m | 7.5 m |
| Pre-tax income | -148.2 m | -51.1 m | -24.9 m | 203.0 m | -23.9 m | -15.8 m | -18.8 m | -14.4 m |
| Income tax | 129.0 k | -12.0 k | 58.0 k | 475.0 k | -141.0 k | 144.0 k | 112.0 k | 13.0 k |
| Net income | -148.3 m | -51.1 m | -25.0 m | 202.5 m | -23.8 m | -16.0 m | -18.9 m | -14.4 m |
| Diluted EPS | -18.24 | -6.28 ≈ | -3.05 | -1.79 | -2.84 | -1.86 ≈ | -2.22 | -1.58 |
| Operating cash flow | -9.4 m ≈ | -14.7 m | 8.5 m | -21.3 m ≈ | 11.4 m ≈ | 8.2 m | -8.3 m | 342.0 k ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|
| Revenue | 17.6 m | 36.3 m | 127.4 m | 363.0 m | 461.5 m | 144.6 m | 156.3 m |
| Revenue YoY | unavailable | +106.9% | +250.8% | +185.0% | +27.1% | −68.7% | +8.1% |
| Net income | -59.4 m | -156.1 m | -101.2 m | -124.1 m | -140.4 m | -854.0 m | 137.8 m |
| Net income YoY | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable |
| Diluted EPS | -1.51 | -4.13 | -0.96 | -0.81 | -18.05 | -105.80 | -9.18 |
| Diluted EPS YoY | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable |
| net % | -338.5% | -430.0% | -79.5% | -34.2% | -30.4% | -590.7% | 88.2% |
| Free cash flow | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 48.9 m USD
- Financial debt
- unavailable USD
- Net debt
- unavailable USD
- Equity
- -249.1 m USD
- Total assets
- 308.9 m USD
- Debt / equity
- unavailable
- Current ratio
- 0.91x
- ROE
- unavailable
- ROA
- 36.9%
- FCF margin
- unavailable
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 36.3 m | 127.4 m | 363.0 m | 461.5 m | 144.6 m | 156.3 m | SEC (XBRL)· 05 Mar 2026verified |
| Cost of revenue | 40.2 m | 126.1 m | 329.9 m | 457.9 m | 155.6 m | 96.3 m | SEC (XBRL)· 05 Mar 2026verified |
| Gross profit | -3.9 m | 1.2 m | 33.1 m | 3.7 m | -11.1 m | 60.0 m | SEC (XBRL)· 05 Mar 2026verified |
| Research & development | 15.9 m | 22.7 m | 38.3 m | 56.5 m | 51.3 m | 35.3 m | SEC (XBRL)· 05 Mar 2026verified |
| Operating income | -49.4 m | -83.1 m | -131.1 m | -179.3 m | -839.5 m | -55.7 m | SEC (XBRL)· 05 Mar 2026verified |
| Depreciation & amortisation | 17.7 m | 24.5 m | 45.4 m | 46.3 m | 45.0 m | 44.9 m | SEC (XBRL)· 05 Mar 2026verified |
| EBITDA | -31.7 m ≈ | -58.6 m ≈ | -85.7 m ≈ | -133.0 m ≈ | -794.5 m ≈ | -10.7 m ≈ | SEC (XBRL)· 05 Mar 2026derived |
| Interest expense | 20.8 m | 17.4 m | 10.5 m | 15.0 m | 18.3 m | 23.9 m | SEC (XBRL)· 05 Mar 2026verified |
| Pre-tax income | -156.1 m | -101.2 m | -139.2 m | -140.0 m | -853.7 m | 138.3 m | SEC (XBRL)· 05 Mar 2026verified |
| Income tax | 5.0 k | 0 | -15.2 m | 433.0 k | 332.0 k | 536.0 k | SEC (XBRL)· 05 Mar 2026verified |
| Net income | -156.1 m | -101.2 m | -124.1 m | -140.4 m | -854.0 m | 137.8 m | SEC (XBRL)· 05 Mar 2026verified |
| Diluted EPS | -4.13 | -0.96 | -0.81 | -18.05 | -105.80 | -9.18 | SEC (XBRL)· 05 Mar 2026verified |
| Weighted average diluted shares | 40.1 m | 105.6 m | 153.4 m | 7.8 m | 8.1 m | 8.5 m | SEC (XBRL)· 05 Mar 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 6.9 m | 747.8 m | 87.9 m | 105.4 m | 56.3 m | 48.9 m | SEC (XBRL)· 05 Mar 2026verified |
| Receivables | 13.6 m | 61.7 m | 223.2 m | 302.8 m | 59.3 m | 38.4 m | SEC (XBRL)· 05 Mar 2026verified |
| Inventories | 20.8 m | 22.7 m | 8.4 m | 26.7 m | — | — | SEC (XBRL)· 29 Feb 2024verified |
| Current assets | 49.3 m | 1.0 bn | 532.8 m | 473.0 m | 136.6 m | 100.1 m | SEC (XBRL)· 05 Mar 2026verified |
| Property, plant & equipment, net | 123.7 m | 106.1 m | 90.8 m | 74.4 m | 58.8 m | 43.9 m | SEC (XBRL)· 05 Mar 2026verified |
| Goodwill | 1.7 m | 1.7 m | 546.6 m | 547.2 m | 0 | 0 | SEC (XBRL)· 13 Aug 2026verified |
| Intangibles (excl. goodwill) | 12.1 m | 14.0 m | 162.3 m | 157.1 m | 143.9 m | 123.0 m | SEC (XBRL)· 05 Mar 2026verified |
| Total assets | 205.9 m | 1.2 bn | 1.4 bn | 1.4 bn | 437.4 m | 308.9 m | SEC (XBRL)· 05 Mar 2026verified |
| Accounts payable | 13.7 m | 28.3 m | 83.8 m | 78.3 m | 30.1 m | 10.3 m | SEC (XBRL)· 05 Mar 2026verified |
| Current liabilities | 190.5 m | 88.0 m | 267.0 m | 251.1 m | 128.8 m | 110.6 m | SEC (XBRL)· 05 Mar 2026verified |
| Total liabilities | 383.3 m | 524.0 m | 869.7 m | 930.3 m | 835.2 m | 557.9 m | SEC (XBRL)· 05 Mar 2026verified |
| Equity | -177.4 m | 667.8 m | 552.2 m | 426.7 m | -397.8 m | -249.1 m | SEC (XBRL)· 05 Mar 2026verified |
| Shares outstanding at year end | 0 | — | — | — | — | — | SEC (XBRL)· 04 Mar 2021verified |
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | -33.7 m | -101.3 m | -106.0 m | -207.4 m | -36.7 m | 6.9 m | SEC (XBRL)· 05 Mar 2026verified |
| Investing cash flow | -12.0 m | -185.2 m | -544.4 m | 135.7 m | -3.5 m | -6.6 m | SEC (XBRL)· 05 Mar 2026verified |
| Financing cash flow | 40.3 m | 1.0 bn | -9.3 m | 90.2 m | -8.4 m | -7.6 m | SEC (XBRL)· 05 Mar 2026verified |
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
4 indicators that do not apply to the sector.
Valuation
olivLaw classification
- indicators available: 5 of at least 6
- score weight coverage: 51.1% of at least 60%
- valuation methods computed: 0 of at least 1
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 27.7 m USD
Key indicators
Coverage and freshness
Score by group
51% · Insufficient data
Estimated value range
unavailable — no valuation method could be computed
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
- DCF (discounted cash flow)unavailable · input data missing
- Peers: EV/Salesunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
no valuation method could be computed
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: indicators available: 5 of at least 6; score weight coverage: 51.1% of at least 60%; valuation methods computed: 0 of at least 1
| Factor | Value | Score | Weight used |
|---|---|---|---|
| Gross margin · Quality | 41.5% | 4 (on a fixed band) | 21% |
| EBIT margin · Quality | -29.1% | 41 (vs peers) | 17% |
| FCF margin · Quality | unavailable | unavailable | — |
| Revenue CAGR 3Y · Growth | -24.5% | 0 (on a fixed band) | 33% |
| Revenue growth (YoY) · Growth | 8.1% | 51 (vs peers) | 17% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 0.8x | 2 (on a fixed band) | 13% |
| EV/Sales · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | unavailable | unavailable | — |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial2/100 · 1/2 factors with a value
- Growth17/100 · 2/2 factors with a value
- Quality20/100 · 2/3 factors with a value
- Returns· partialunavailable · 0/1 factors with a value
- Valuation· partialunavailable · 0/2 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
Stem, Inc. (STEM). Latest full fiscal year: 2025; data up to 2026-06-30.
Figures computed from the financial statements: revenue 156.3 m USD in 2025; YoY growth 8.1%; net margin -49.4%.
Valuation cannot be computed from the available data.
Insufficient data for a verdict (indicators available: 5 of at least 6; score weight coverage: 51.1% of at least 60%; valuation methods computed: 0 of at least 1).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
No signal among the computed factors. That is not an absence of risk: factors without data were not assessed, and business risks (margins, inventory, demand) are in the source-based analysis.
What contradicts it
- Gross margin: 41.5%
- Revenue CAGR 3Y: -24.5%
- Current ratio: 0.8x
Not assessed (insufficient data or a ratio without meaning): FCF margin, Net debt / EBITDA, EV/Sales, FCF yield, Shareholder yield (distributions).
Versus the vertical median
Services-Computer Integrated Systems Design (SIC 7373) · same industry (4-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| LDOSLeidos Holdings, Inc. | 16.4 bn | 12.1 | 28.2% | 8.0% | +3.1% | −30% / +26% |
| GDDYGoDaddy Inc. | 14.3 bn | 16.2 | — | 18.6% | +8.3% | −7% / +18% |
| CACICACI International Inc | 14.0 bn | 25.9 | 12.5% | 5.5% | +10.9% | +2% / +97% |
| JKHYJack Henry & Associates, Inc. | 12.6 bn | 25.7 | 24.0% | 19.8% | +7.1% | +3% / +13% |
| IONQIonQ, Inc. | 11.3 bn | — | -60.8% | -553.3% | +201.9% | −40% / +142% |
| OTEXOpen Text Corp | 6.4 bn | 10.3 | 16.2% | 12.3% | +1.5% | −21% / −34% |
| SAICScience Applications International Corporation | 6.3 bn | 17.6 | 25.7% | 5.1% | −2.9% | +75% / +28% |
| WAYWaystar Holding Corp. | 5.7 bn | 42.9 | 3.7% | 10.7% | +16.5% | −20% / unavailable |
| KDKyndryl Holdings, Inc. | 3.7 bn | 46.2 | 7.6% | 0.6% | +0.2% | −35% / −7% |
| AGYSAgilysys, Inc. | 3.5 bn | 78.5 | 13.6% | 12.9% | +15.9% | −0% / +42% |
| NTCTNetscout Systems Inc | 2.8 bn | 23.3 | 7.5% | 13.7% | +4.5% | +42% / +90% |
| AURAurora Innovation, Inc. | 2.6 bn | — | -45.7% | -13,328.6% | unavailable | −3% / +86% |
| PONYPony AI Inc. | 2.1 bn | — | -10.3% | -148.9% | +20.0% | −65% / unavailable |
| OSPNOneSpan Inc. | 872.9 m | 13.2 | 26.8% | 27.5% | +0.0% | +94% / +136% |
| TLSTelos Corporation | 378.2 m | — | -14.9% | -8.1% | +52.2% | −12% / +23% |
| SLPSimulations Plus, Inc. | 374.2 m | 46.7 | 6.2% | 9.9% | +13.1% | unavailable / unavailable |
| SMRTSmartrent, Inc. | 310.4 m | — | -8.4% | -13.0% | −12.9% | −6% / −48% |
| ASURAsure Software, Inc. | 293.6 m | — | -1.9% | — | +24.3% | +22% / +22% |
| VEEAVeea Inc. | 281.2 m | — | — | -2,491.9% | +56.6% | −55% / −98% |
| RBBNRibbon Communications Inc. | 275.9 m | 22.5 | 5.0% | 2.3% | +1.3% | −46% / −28% |
| KDKKodiak AI, Inc. | 220.7 m | — | — | -4,259.6% | −74.6% | −82% / unavailable |
| AIOSAIOS Tech Inc. | 138.9 m | — | -208.9% | -4,359.1% | −98.5% | −87% / −86% |
| MRLNMerlin, Inc. | 91.5 m | — | — | — | unavailable | −92% / unavailable |
| CSPICSP Inc | 75.4 m | — | -1.5% | -1.2% | +6.4% | −35% / −40% |
| HCTIHealthcare Triangle, Inc. | 69.2 m | — | -57.4% | -66.3% | +18.8% | −97% / −100% |
1- and 3-year price returns: for STEM from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 3 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 5 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Stem, Inc. provides the PowerTrack software suite and services for clean energy assets, shifting away from battery resales toward a software-centric model. Revenue was 156.3 mn USD in fiscal 2025, and ARR reached 61.2 mn USD at the end of Q1 2026.
SWOT
Strengths
- The PowerTrack suite is hardware-agnostic and draws on operational data from assets across many countries 1. Non-GAAP gross margin has risen and adjusted EBITDA has been positive for several quarters 3.
- The leadership team brings experience in software, distributed energy and utility programs, supporting product development 1. Strategic partnerships with industry leaders help reduce execution risk 1.
- Growth in PowerTrack ARR and cost discipline offer a steadier base than battery resales 3.
Weaknesses
- Total revenue declined in 2026 as battery sales fell, reducing the volume of the business 23. The company still carries a large accumulated deficit 1.
- Liquidity is limited and operating cash flow was negative in Q1 2026 3. If cash flow does not improve, additional financing could be needed 1.
- Revenue is concentrated in a few significant customers, and losing one large contract could affect results 1.
Opportunities
- Growing demand for distributed storage and optimization software could support PowerTrack expansion into new markets 1. Partnerships and software asset acquisitions may strengthen the offering 3.
- German contracts and a co-marketing deal with a North American BMS provider could open access to new markets 3.
- If managed services and software keep growing, margins could stay elevated 3.
Risks
- Strategy may not deliverhigh
The new strategy may not achieve its expected benefits, and revenue declines could continue if software does not grow enough 1. The company warns that failure could materially affect results 1.
- Limited liquidityhigh
Cash fell to 36.6 mn USD at the end of Q1 2026 and operating cash flow was negative 3. If liquidity does not improve, additional financing could be required 1.
- Dependence on significant customersmedium
A small number of customers generate a material share of revenue, and a delayed or lost contract could significantly reduce revenue 1.
- Tax and regulatory policymedium
Changes to tax credits and FEOC restrictions could reduce demand or raise compliance costs 1.
- Supplier dependencemedium
Concentration among equipment suppliers and their limited capacity could lead to inventory shortages 1.
Investment thesis
What would need to be true (bull case)
- If PowerTrack keeps growing and gross margins stay high, the company could meet its 2026 guidance and reduce its reliance on battery sales 3.
- Its operating base across many countries and distributed asset data could support a strong competitive position in energy software 1.
- Operating efficiency gained in 2025 could keep adjusted EBITDA positive if software demand grows 3.
What would break the thesis
- Total revenue fell in the first half of 2026, and if battery sales are not offset, growth could remain limited 23.
- Low liquidity and negative cash flow could force the company to raise financing on less favorable terms 3.
- Legislative changes and intense competition could pressure margins or reduce demand for the company's services 1.
What to watch
- Software revenue and ARR trajectory against guidanceQ2 2026
- Operating cash flow and cash balanceQ2 2026
- Delivery against adjusted EBITDA and non-GAAP gross margin guidance2026
- Impact of the OBBB act and FEOC rules on customersnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Stem, Inc. presents itself as a global leader reimagining technology for the energy transition, delivering its solutions through the integrated PowerTrack suite covering asset monitoring and optimization for solar, storage and hybrid assets, supported by professional and managed services 1. The company says it operates one of the largest distributed clean energy networks, with 36 GW of solar assets and nearly 2 GWh of storage under management 1. The 2024 strategy change reduced battery resales, which had been the main source of revenue, in favor of software and services 1.
The business model combines software licensing, hardware-agnostic edge devices and project services, serving developers, asset owners, EPC firms and distributors 1. In 2025 Stem cut about 27% of its global workforce to lower operating costs 1. The accumulated deficit stood at 1,488.7 mn USD at the end of fiscal 2025 1.
In Q1 2026, software, services and edge hardware revenue rose 4% year over year and the company reported a fourth consecutive quarter of positive adjusted EBITDA 3. Full-year 2026 guidance was reaffirmed, with revenue between 140 and 190 mn USD 3.
Segments
PowerTrack software
PowerTrack Software, PowerTrack Optimizer and the SCADA, PPC and EMS components form the core of the strategy 1. PowerTrack software revenue grew 16% year over year in Q1 2026, and PowerTrack ARR reached 41.7 mn USD 3.
Market context
The distributed clean energy market is growing as renewable generation costs fall and demand for storage rises from commercial and industrial customers, utilities and grid operators 1. Market development still depends on incentives, and Stem notes the distributed generation industry is nascent with uncertain adoption 1. The OBBB legislation of July 2025 changed clean energy tax credits 1.
The company operates in over 55 countries, but its revenue is concentrated in a few significant customers, so ARR guidance depends on renewing those contracts 13. Stem reported new contracts in Germany in May 2026, indicating expansion into European markets 3.
Trends
- Shift to software and servicestailwind
Exiting battery resales reduced total revenue but lifted margins, which the company links to better results 13. If software keeps growing, margins could sustain profitability.
- US tax policymixed
The OBBB act changed clean energy tax credits, added FEOC restrictions and altered beginning-of-construction rules, and the company says it is still evaluating the impact 1. These changes could affect customer demand.
- Operating efficiencytailwind
The company reported positive adjusted EBITDA in Q1 2026 after lower operating expenses, and non-GAAP gross margin improved 3. This effect depends on keeping cost discipline.
Competitive position
The industry is highly competitive and includes energy monitoring and optimization software providers, storage and edge device makers, hardware integrators, renewable developers, EPC firms and consultancies 1. In managed services, rivals are asset management providers and storage optimizers 1.
Stem argues its edge lies in hardware-agnostic solutions and operational data across many hardware types, geographies and grid service areas 1. Competition depends on safety, performance, costs and the ability to offer a complete solution 1.
- Energy monitoring and optimization software providers
Direct competitors in monitoring and optimization software for clean energy assets 1.
- Edge device and storage OEMs
Companies offering edge hardware or storage systems with their own control solutions, making them rivals on some projects 1.
- Asset management and storage optimizer firms
Rivals in managed services that run fleets of storage systems and dispatch them into markets 1.
- EPC and consulting firms
Design, procurement and construction firms that may offer monitoring or advisory services in competition with the company's professional services 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
Loading the links…
News & filings
In the press
- Key gene preserves lifelong supply of stem cells that make bone healing possible, study suggestsMedical Xpress · 04 Nov 2026 · EN
- From green smoothies to stem‑cell supplements—online 'immune‑boosting' ideas may lead you astrayMedical Xpress · 04 Nov 2026 · EN
- Clearing the way for a transformative stem-cell treatment for Parkinson’s diseaseNature · 04 Nov 2026 · EN
- Stem cells in deep sleep may point to a secret reserve for lifelong blood renewalPhys.org · 02 Nov 2026 · EN
- Human Urine–Derived Induced Pluripotent Stem Cell Membranes Enable Personalized Transdermal Nanotherapy for MelanomaACS Nano · 02 Nov 2026 · EN
- Miltiadis Marinakis STEM Center Dedicated at Massachusetts Maritime AcademyTo Vima International (GR, EN) · 02 Nov 2026 · EN
- First patient undergoes pioneering stem-cell treatment for Parkinson'sMedical Xpress · 30 Oct 2026 · EN
- Pulling the strings: How stem cells in the developing fruit fly brain organize their DNA from outside the nucleusPhys.org · 30 Oct 2026 · EN
- Long-term follow-up tracks benefits and risks of stem cell transplants for severe systemic sclerosisMedical Xpress · 29 Oct 2026 · EN
- Philippines May Use More Tools to Stem Peso Slide, Analysts SayBloomberg Markets · 29 Oct 2026 · EN
- China trial shows gum tissue stem cells help 55% of lifetime diabetes patientsSouth China Morning Post — China · 27 Oct 2026 · EN
- Protests in Europe stem from instability on energy markets — Iranian top diplomatTASS (RU, EN) · 26 Oct 2026 · EN
- Doubling stem cell chromosomes produces heart cells with stronger, faster contractionsMedical Xpress · 25 Oct 2026 · EN
- New marker panel and free web tool help track stem cells as they developPhys.org · 23 Oct 2026 · EN
- Make universities limit ties to China — and fund US STEM students insteadThe Hill · 23 Oct 2026 · EN
- Actor Nick Teo opens up about decision to donate stem cells: 'You could be someone's hope'CNA (Channel NewsAsia) · 23 Oct 2026 · EN
- Japan turns to stem cells as vets struggle with blood shortage for dogsThe Straits Times — Asia · 23 Oct 2026 · EN
- Human neural stem cells found to be susceptible to SARS-CoV-2 variantsMedical Xpress · 22 Oct 2026 · EN
- U.K. exam board science specifications reveal gender gap that may influence girls' STEM choicesPhys.org · 21 Oct 2026 · EN
- Mouse lung stem cells switch identities to help repair damaged airwaysMedical Xpress · 20 Oct 2026 · EN
SEC filings
- Current report23 Oct 2026Delisting notice
- Quarterly report13 Aug 2026
- Current report12 Aug 2026Acquisition or disposition of assets · Regulation FD disclosure · Financial statements and exhibits
- Current report03 Jun 2026Departure or appointment of officers · Shareholder vote · Financial statements and exhibits
- Quarterly report07 May 2026
- Current report06 May 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Proxy statement24 Apr 2026
- Current report17 Mar 2026Item 4.01
- Current report06 Mar 2026Other events
- Annual report05 Mar 2026
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Stem, Inc. · 05 Mar 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Stem, Inc. · 13 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Stem, Inc. · 06 May 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.