Stem Q2 revenue misses analyst estimates on lower hardware resales

Stem

12/08/2026 21:14

Overview
U.S. clean energy software firm's Q2 revenue fell 12% yr/yr, missing analyst expectations
Company posted fifth straight quarter of positive adjusted EBITDA, with improved gross margins
Stem reaffirmed full-year 2026 financial and operating guidance

Outlook
Stem reaffirms full-year 2026 revenue guidance of $140 mln to $190 mln
Company expects 2026 non-GAAP gross margin of 40% to 50%
Stem forecasts 2026 adjusted EBITDA of $10 mln to $15 mln

Result Drivers
LOWER HARDWARE REVENUE - Co said revenue decline was mainly due to significantly reduced battery hardware resales and lower managed services revenue
HIGHER-MARGIN SALES MIX - Co attributed improved gross margins to increased higher-margin software, services, and edge hardware sales, and reduced lower-margin battery hardware resale and managed services revenue
SOFTWARE GROWTH - PowerTrack software revenue grew 11% yr/yr, partially offsetting lower managed services revenue

Company press release: ID:nBw6srJ5sa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$33.70 mln
$35.50 mln (3 Analysts)
Q2 Net Loss
 
$14.4 mln
 
Q2 Adjusted EBITDA
 
$6.2 mln
 
Q2 Gross Margin
 
41%
 
Q2 Adjusted Gross Margin
 
55%
 
Q2 Order Backlog
 
$27.1 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 $10.75, about 82.5% above its August 11 closing price of $5.89

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(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.)