The earnings show a continued shift toward higher-margin software revenue and cost control, but the overall top-line decline and negative operating cash flow (from +$8.5M to -$8.3M) are concerning.
Price Chart
Executive Summary
Stem reported Q1 2026 revenue of $29M (-11% YoY), but software/services/edge hardware grew 4% and PowerTrack software was up 16%. GAAP gross margin improved to 38% from 32%, and adjusted EBITDA turned positive at $2M versus a -$4.6M loss a year ago. Full-year 2026 guidance was reaffirmed, signaling management's confidence in its software-centric strategy.
Key Financial Metrics
Key Facts
- Revenue down 11% YoY to $29.0M due to reduced battery hardware sales
- Software, services, and edge hardware revenue up 4% YoY to $29.0M
- PowerTrack software revenue up 16% YoY
- GAAP gross margin expanded to 38% from 32%; non-GAAP gross margin hit a record 52%
- Adjusted EBITDA positive $2.0M vs -$4.6M in Q1 2025
- Net loss improved to -$18.9M from -$25.0M
- Full-year 2026 guidance reaffirmed: revenue $140-$190M, adj. EBITDA $10-$15M
- Operating cash flow turned negative to -$8.3M from +$8.5M a year ago
Financial Impact
Mixed: revenue decline of $3.5M YoY but profitability improved with adjusted EBITDA swing of +$6.6M
Risk Factors
- Revenue continued to decline; full-year guidance implies Q1 was seasonally weak but any further deterioration would be negative
- Operating cash flow turned negative, raising liquidity concerns given $36.6M cash on hand
- Exposure to tariff and regulatory uncertainty under OBBB and trade policies
- High stock-based compensation ($2.0M) relative to revenue base
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001758766-26-000043 |
| Document: stem-20260506.htm | 0001758766-26-000043 |
| Document: 0001758766-26-000043-index-headers.html | 0001758766-26-000043 |
| Document: 0001758766-26-000043-index.html | 0001758766-26-000043 |
| Document: 0001758766-26-000043.txt | 0001758766-26-000043 |
| 8-K Data (Synthetic) | 0001758766-26-000043 |
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| Type | Now | ||||
|---|---|---|---|---|---|
Oct 23, 2026 3d ago | 8-K | $3.03 | awaiting T+60 | — | $3.01 (+0.79%) |
Aug 10, 2026 11w ago | 144 | $5.68 | awaiting T+60 | — | $3.01 (−47.01%) |
Jul 29, 2026 12w ago | 144 | $4.95 $3.02 | ▼ −38.99% | ▼ −43.72% | $3.01 (−39.19%) |
Jun 22, 2026 18w ago | 424B5 | $7.63 $4.47 | ▼ −41.42% | ▼ −44.66% | $3.01 (−60.55%) |
Jun 11, 2026 19w ago | EFFECT | $7.57 $5.57 | ▼ −26.42% | ▼ −30.82% | $3.01 (−60.24%) |
Jun 3, 2026 20w ago | 8-K | $9.17 $5.44 | ▼ −40.68% | ▼ −42.56% | $3.01 (−67.18%) |
Jun 2, 2026 20w ago | S-3 | $9.04 $5.70 | ▼ −36.95% | ▼ −39.45% | $3.01 (−66.70%) |
May 6, 2026 24w ago | 8-K | $8.73 $5.62 | ▼ −35.62% | ▼ −39.46% | $3.01 (−65.52%) |
Apr 27, 2026 26w ago | DEFA14A | $11.29 $6.01 | ▼ −46.77% | ▼ −51.54% | $3.01 (−73.34%) |
Mar 4, 2026 33w ago | 8-K | $12.18 $10.15 | ▼ −16.67% | ▼ −27.97% | $3.01 (−75.29%) |
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