Stem Q1 revenue falls on lower battery hardware sales; co reaffirms FY outlook

Stem

06/05/2026 21:54

Overview

US energy software and hardware provider's Q1 revenue fell 11% yr/yr, missing analyst expectations

Software, services, and edge hardware revenue grew 4% yr/yr, driven by PowerTrack software

Company achieved fourth consecutive quarter of positive adjusted EBITDA and reaffirmed full-year guidance

Outlook

Stem expects full-year 2026 revenue of $140-190 mln

Company sees 2026 non-GAAP gross margin at 40%-50%

Stem expects 2026 adjusted EBITDA of $10-15 mln

Result Drivers

HARDWARE SALES DECLINE - Co said overall revenue fell due to significantly reduced battery hardware sales

SOFTWARE GROWTH - Revenue from software, services, and edge hardware rose 4% yr/yr, driven by 16% growth in PowerTrack software revenue

COST REDUCTIONS - Improved gross margins and positive adjusted EBITDA were primarily due to reduced costs and lower operating expenses

Company press release: ID:nBw64ygfDa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Miss
$29 mln
$33.81 mln (3 Analysts)
Q1 Net Income
-$18.90 mln
Q1 Adjusted EBITDA
$2 mln
Q1 Gross Margin
38.00%
Q1 Adjusted Gross Margin
52.00%
Q1 Order Backlog
$23 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the renewable energy equipment & services peer group is "buy."

Wall Street's median 12-month price target for Stem Inc is $14.50, about 37.1% above its May 5 closing price of $10.58

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)