Stem, Inc.
- Open
- 6.18
- Day high
- 6.33
- Day low
- 6.07
- Prev close
- 6.32
- Volume
- 122K
- Mkt cap
- $56M
- P/E (TTM)
- 0.4
- EPS (TTM)
- $17.35
- P/B
- -0.2
- P/S
- 0.4
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$39K over the last 3 months (0 open-market buys, 4 sales)
- 🏛Institutions reducing (13F)
Stem, Inc. (STEM) is a Technology company listed on NYSE. The stock is down 54% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 4 sales (SEC Form 4). Drillr has 2 published research articles covering STEM.
Stem, Inc. (STEM) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
STEM earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 6, 2026 | $-2.06 | $-1.55 | +24.8% | $29M | -16.2% |
| Mar 4, 2026 | $-1.96 | $-1.85 | +5.6% | $47M | +29.1% |
| Oct 29, 2025 | $-1.85 | $-2.84 | -53.5% | $38M | -12.4% |
| Aug 7, 2025 | $-3.00 | $-3.73 | -24.3% | $38M | -6.5% |
| Apr 29, 2025 | $-4.00 | $-3.00 | +25.0% | $33M | +1.6% |
| Mar 4, 2025 | $-3.20 | $-2.40 | +25.0% | $56M | +16.6% |
| Oct 30, 2024 | $-4.00 | $-4.20 | -5.0% | $29M | -41.3% |
| May 2, 2024 | $-4.00 | $-9.20 | -130.0% | $25M | -55.4% |
| Feb 28, 2024 | $-2.40 | $-4.20 | -75.0% | $167M | -35.2% |
| Nov 2, 2023 | $-3.60 | $-3.40 | +5.6% | $134M | -25.2% |
| Aug 3, 2023 | $-4.60 | $-11.20 | -143.5% | $93M | +1.0% |
| May 4, 2023 | $-4.80 | $-5.80 | -20.8% | $67M | +6.9% |
STEM insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 2, 2026 | Laureles Saul R.officer: Chief Legal Officer | Sell | 675 | $7.85 |
| Jul 2, 2026 | Carlson Michael Jamesofficer: President, Managed Services | Option | 5,000 | $7.81 |
| Jul 2, 2026 | Carlson Michael Jamesofficer: President, Managed Services | Sell | 1,347 | $7.85 |
| Jul 2, 2026 | Carlson Michael Jamesofficer: President, Managed Services | Option | 2,750 | $7.81 |
| Jul 2, 2026 | Tappin Matthewofficer: President, Software Products | Sell | 996 | $7.85 |
| Jul 2, 2026 | Laureles Saul R.officer: Chief Legal Officer | Option | 5,000 | $7.81 |
| Jul 2, 2026 | Tappin Matthewofficer: President, Software Products | Option | 5,000 | $7.81 |
| Jul 2, 2026 | Laureles Saul R.officer: Chief Legal Officer | Option | 2,750 | $7.81 |
| Jul 2, 2026 | Narayanan Arunofficer: Chief Executive Officer | Option | 8,125 | $7.81 |
| Jul 2, 2026 | Tappin Matthewofficer: President, Software Products | Option | 2,750 | $7.81 |
| Jul 2, 2026 | Narayanan Arunofficer: Chief Executive Officer | Sell | 1,996 | $7.85 |
| Jun 4, 2026 | TYSON LAURA Ddirector | Grant | 12,168 | — |
| Jun 4, 2026 | Guruswamy Vasudevandirector | Grant | 12,168 | — |
| Jun 4, 2026 | BUZBY DAVID Sdirector | Grant | 12,168 | — |
| Jun 4, 2026 | Tammineedi Anildirector | Grant | 12,168 | — |
Source: STEM SEC Form 4 filings, latest Jul 2, 2026. For informational purposes only — not investment advice.
See the full STEM insider & 13F page →STEM research & analysis
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Stem, Inc. company profile
Overview
Stem, Inc. (NYSE:STEM) is a San Francisco-based energy storage and software company founded in 2009 that operates as a digitally connected intelligent energy storage network provider. The company went public through a SPAC merger in October 2020. Stem provides artificial intelligence-driven energy storage solutions that help commercial, industrial, and utility customers optimize their energy usage and costs while supporting grid stability. The company has undergone significant strategic restructuring in recent years, shifting from a hardware-focused business model to prioritizing software and services revenue streams.
Business
Stem operates in the rapidly growing energy storage industry, which sits at the intersection of renewable energy deployment and grid modernization. The company's core business revolves around intelligent energy storage systems that help customers manage electricity costs and provide grid services. Athena AI Platform: Stem's flagship offering is Athena, an artificial intelligence platform that controls and optimizes energy storage systems. Athena uses machine learning algorithms to predict energy usage patterns, electricity pricing, and grid conditions to automatically charge and discharge batteries at optimal times. This software can reduce customers' electricity bills by avoiding peak demand charges and can generate revenue by selling energy services back to the grid. PowerTrack Software: This is Stem's solar and energy asset management software that provides monitoring, analytics, and optimization services for solar installations and energy storage systems. PowerTrack has gained significant market share, with 13 of the top 16 commercial and industrial solar asset owners using the platform. The software generates high-margin recurring revenue with gross margins of 70-80%. Energy Storage Hardware: Stem sources battery systems from original equipment manufacturers (OEMs) and integrates them with its software platform. However, the company has been de-emphasizing hardware sales due to low margins and supply chain challenges, instead focusing on software-enabled services. The company operates through four main business segments: Software (highest margin, ~40-50% of revenue), Professional Services, Managed Services, and OEM Hardware (being phased down). Software and services combined represent the majority of Stem's revenue focus, while hardware sales are becoming opportunistic rather than strategic.
Revenue model
Stem generates revenue through multiple complementary business models centered around energy optimization software and services. Software Subscriptions: The primary revenue driver is recurring software subscriptions from the Athena platform and PowerTrack software. Customers pay annual recurring fees for access to AI-driven energy optimization services. This model generates high-margin revenue (70-80% gross margins) and provides predictable cash flows. The company manages over 5.5 gigawatt hours of storage assets and 27.5 gigawatts of solar assets under management. Managed Services: Stem provides ongoing operational services including system monitoring, maintenance, warranty management, and performance optimization. These services generate steady recurring revenue as customers rely on Stem's expertise to maximize their energy storage investments. Professional Services: The company offers system design, engineering, supply chain management, and project development services. While lower margin than software, these services help customers implement energy storage solutions and often lead to long-term software relationships. Hardware Sales: Stem occasionally resells energy storage hardware sourced from OEMs, though this represents a declining portion of revenue due to low margins and supply chain complexities. The company is moving toward an asset-light model focused on software and services. Factors that increase margins include growing software adoption, economies of scale in managed services, and the shift away from low-margin hardware sales. Margin pressures come from competitive pricing in energy storage markets, supply chain cost volatility, and the need for continued R&D investment to maintain technological leadership. The company's margins benefit from the recurring nature of software revenue and the scalability of its AI platform across a growing asset base.
Competitive moat
Stem's competitive moat is moderate and primarily built around its AI technology platform and first-mover advantages in intelligent energy storage optimization. Technology Leadership: Stem's Athena AI platform has accumulated over 31 million runtime hours of operational data, creating a valuable dataset that improves the platform's predictive capabilities. This data advantage becomes more valuable over time as the AI learns from diverse operating conditions across different markets and applications. The company's early entry into AI-driven energy optimization has allowed it to build sophisticated algorithms that competitors must work to match. Market Position: Stem operates the largest storage Virtual Power Plant in North America and has established relationships with major commercial and industrial customers. The PowerTrack software's market penetration (13 of top 16 C&I solar asset owners) demonstrates strong customer adoption and switching costs, as energy management software becomes deeply integrated into customers' operations. Network Effects: As more assets connect to Stem's platform, the AI becomes more effective at optimization, creating value for all participants. The aggregated demand response and grid services become more valuable to utilities as the network grows. However, Stem's moat faces significant challenges. The energy storage industry is highly competitive with well-funded competitors including Tesla, Fluence, and traditional utility companies developing their own software capabilities. The commoditization of battery hardware reduces differentiation, and customers increasingly have multiple vendor options. Large technology companies like Google and Amazon could potentially enter this market with superior AI capabilities and deeper pockets. Additionally, utility companies may develop in-house capabilities or partner with other technology providers, potentially bypassing third-party platforms like Stem's.
Risks & safety
Stem's margin of safety appears concerning from a financial stability perspective, though operational improvements show promise. Liquidity and Solvency: - Cash position of $58.6 million as of Q1 2025, down from previous quarters - Current ratio of 0.92, indicating potential near-term liquidity pressure - Total liabilities of $822 million exceed total assets of $405 million, creating negative book value - Debt-to-equity ratio of -1.29 reflects the negative equity position Cash Flow and Profitability: - Achieved first positive operating cash flow quarter in Q1 2025 ($8.5 million) - Free cash flow turned positive at $4.9 million in Q1 2025 - Still generating significant net losses ($25 million in Q1 2025) - Company expects to reach EBITDA breakeven with guidance of -$10 million to +$5 million for 2025 Valuation Metrics: - Trading at extremely low valuation due to financial distress - Negative P/E ratio due to losses - Price-to-book ratio of -0.14 reflects negative book value Other Considerations: - Implemented 27% workforce reduction expecting $30 million annual cost savings - Management guidance suggests path to profitability through cost reduction and software focus - Significant business model transition risk as company pivots from hardware to software focus
Recent development
Stem has undergone dramatic strategic transformation over the past two years, shifting from a hardware-centric to software-focused business model amid financial challenges. Business Model Pivot: The company restructured into four distinct business units in 2024-2025: Software, Professional Services, Managed Services, and OEM Hardware. Management is de-emphasizing low-margin hardware sales and focusing resources on high-margin software offerings like PowerTrack and Athena AI platform. This strategic shift aims to improve margins and create more predictable recurring revenue streams. Cost Reduction Initiatives: Facing significant losses, Stem implemented aggressive cost-cutting measures including a 27% workforce reduction in early 2025, expecting $30 million in annual cash cost savings. The company reduced run-rate cash operating expenses by over 20% and streamlined corporate structure to improve operational efficiency. Product Development Focus: Stem discontinued development of PowerBidder Pro and Asset Performance Management (APM) to concentrate resources on PowerTrack software, which has achieved strong market penetration. The company is leveraging AI to enhance software development productivity and expanding PowerTrack's capabilities for both solar and storage asset management. Market Expansion: Despite financial constraints, Stem is pursuing international expansion opportunities, particularly in Europe and Japan for solar applications. The company is also targeting utility-scale projects and exploring brownfield opportunities to expand its managed services footprint in existing geographic markets. Leadership Changes: The company experienced significant management turnover with David Buzby serving as Interim CEO and Doran Hole joining as CFO. These leadership changes coincided with the strategic business review and restructuring efforts to position the company for profitability.
STEM company profile · for informational purposes only — not investment advice.
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