Stem (NYSE:STEM) Announces Earnings Results, Misses Expectations By $0.15 EPS

Stem (NYSE:STEM) posted its quarterly earnings results on Wednesday. The company reported ($2.22) EPS for the quarter, missing the consensus estimate of ($2.07) by ($0.15), FiscalAI reports. The company had revenue of $29.00 million for the quarter, compared to analysts’ expectations 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 Price Performance

NYSE STEM traded up $0.21 on Wednesday, reaching $10.79. The company had a trading volume of 222,792 shares, compared to its average volume of 187,027. The firm has a market capitalization of $91.89 million, a PE ratio of -1.14 and a beta of 1.51. Stem has a 1 year low of $5.93 and a 1 year high of $32.23. The firm has a 50-day moving average of $10.34 and a 200-day moving average of $14.81.

Analyst Upgrades and Downgrades

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

Insiders Place Their Bets

In other Stem news, CEO Arun Narayanan sold 5,145 shares of the company’s stock in a transaction that occurred on Tuesday, March 10th. The stock was sold at an average price of $11.12, for a total value of $57,212.40. Following the completion of the transaction, the chief executive officer owned 12,980 shares in the company, valued at $144,337.60. This represents a 28.39% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. In the last three months, insiders sold 10,366 shares of company stock valued at $114,190. 5.10% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Stem

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

About Stem

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.