Q3 2025 Stem Inc Earnings Call Transcript
Key Points
- Stem Inc (STEM) reported a 31% year-over-year increase in third-quarter revenue, reaching $38 million.
- The company achieved its second consecutive quarter of positive adjusted EBITDA and generated positive operating cash flow.
- Stem Inc (STEM) launched PowerTrack EMS, expanding its total addressable market and unlocking utility scale and international markets.
- The company's software-centric strategy has reduced business volatility and improved forecasting accuracy.
- Stem Inc (STEM) has maintained strong gross margins, with GAAP gross margins at 35% and non-GAAP gross margins at 47%.
- Project and professional service revenue decreased year-over-year due to a $5 million onetime DevCo revenue in the third quarter of 2024.
- Managed service revenue was down year-over-year due to onetime overperformance in the third quarter of 2024.
- Bookings were $30 million, down slightly versus last quarter, largely due to timing of bookings from low-margin battery hardware resales.
- Operating cash flow, while positive, may face fluctuations due to normal timing differences in customer payment cycles.
- The company faces headwinds from policy uncertainty, impacting the macro environment.
Ladies and gentlemen, greetings, and welcome to the Stem Inc third quarter 2025 results conference call. (Operator Instructions) As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host for today, Erin Reed, Investor Relations Manager.
Please go ahead.
Thank you, operator. This is Erin Reed, Head of Investor Relations at Stem. We welcome you to our third quarter 2025 earnings call. Before we begin, please note that some of the statements we will be making today are forward-looking. These statements involve risks and uncertainties that could cause our results to differ materially from those projected in these statements.
We, therefore, refer you to our latest 10-Q, 10-K, and other SEC filings and supplemental materials, which can be found on our website. Our comments today also include non-GAAP financial measures. Additional details and reconciliations to the most directly comparable GAAP financial measures can be found in our third quarter 2025
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