Q4 2025 Stem Inc Earnings Call Transcript
Key Points
- Stem Inc (STEM) achieved a full year revenue growth of 8% year over year, reaching $156 million, with over 55% of revenue coming from software and services.
- The company reported a 25% year-over-year growth in software services and edge hardware revenues, totaling $141 million.
- Stem Inc (STEM) achieved its first-ever full year positive adjusted EBITDA of $7 million, marking a significant financial milestone.
- The company expanded its PowerTrack platform, adding 6 gigawatts of solar assets under management, reaching a total of 36 gigawatts.
- Stem Inc (STEM) launched two new products, PowerTrack EMS and PowerTrack Sage, which have been well-received by customers, indicating strong product innovation and market acceptance.
- The company's battery hardware resale revenue decreased significantly, reflecting a strategic de-emphasis on lower margin business.
- Stem Inc (STEM) experienced a decrease in CARR by $3 million sequentially due to lower managed services bookings and the cancellation of a managed service customer agreement.
- The company faces longer sales cycles for its PowerTrack EMS product, which may delay revenue recognition and impact short-term financial performance.
- Despite positive feedback, the full revenue potential of PowerTrack EMS is not expected to be realized until 2027, indicating a longer timeline for significant financial impact.
- Stem Inc (STEM) anticipates a potential increase in battery hardware resale revenue, which could lower overall gross margins due to its lower margin nature.
Greetings. Welcome to Stem's fourth-quarter 2025 results conference call. (Operator Instructions) Please note this conference is being recorded.
I will now turn the conference over to Erin Reed, Head of Investor Relations. Thank you. You may begin.
Thank you, operator. This is Erin Reed, Head of Investor Relations at Stem. We welcome you to our fourth-quarter and full year 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-K and other SEC filings and supplemental materials which can be found on our IR 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 fourth-quarter and full year 2025 earnings release,
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