STEM

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributes record non-GAAP gross margins to a deliberate revenue mix shift toward software, services, and edge hardware, while minimizing lower-margin battery hardware resales. Operational leverage was driven by disciplined cost management and the integration of AI to maintain flat sequential cash operating expenses despite ongoing growth investments. The company reached a financial inflection point with operating cash flow hitting breakeven, representing a $22 million year-over-year improvement. Strategic positioning in the utility-scale market is accelerating, evidenced by a 39% sequential increase in bookings and expansion into Latin American and European markets. The acquisition of raicoon is being integrated into the PowerTrack platform to enhance automated fault detection and event management capabilities. Management is leveraging a 'build-or-buy' framework to expand platform capabilities, focusing on high-value daily workflows for asset managers and operators. The launch of AIONA marks a strategic pivot toward offering AI-driven consulting services to help existing customers identify operational efficiency gains. Full-year 2026 guidance was reaffirmed, with management expecting to trend toward the high end of the 40% to 50% non-GAAP gross margin range due to lower battery hardware resale volume. Adjusted EBITDA is projected to reach the high end of the $10 million to $15 million range, supported by continued operational discipline and software growth. Operating cash flow is expected to improve throughout the second half of the year, driven by seasonal increases in billings and revenue. Growth in 2027 is predicated on further penetration of the utility-scale market both domestically and internationally, specifically targeting Chile and Colombia. Management anticipates battery hardware resale revenue will be weighted toward the second half of the year, which will likely cause a slight downward normalization of gross margin percentages. The company entered the Latin American market via the Granja Solar Project in Chile, validating the commercial model for hybrid utility-scale EMS deployments. Stem utilized its at-the-market (ATM) equity program to raise approximately $6 million at an average price of $9.75 for general corporate purposes. The Everyray project in Germany successfully transitioned to live status, marking a key milestone for international PowerTrack EMS deployment. Management noted that recent U.S. policy changes regarding imported inverters and solar module tariffs have not yet impacted their C&I or utility-scale project pipelines. Management explained that the 22% year-over-year growth in edge hardware is a natural result of shifting toward larger utility-scale projects. These larger projects require a higher configuration of edge hardware compared to smaller C&I deployments. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Arun Narayanan stated that the company has not seen any impact from recent FCC rulings or Section 232 tariffs on current projects. The company's geographic diversification across three continents provides a natural hedge against U.S.-specific policy shifts. Brian Musfeldt noted that while the first half delivered $8 million in EBITDA, the second half will see a higher mix of lower-margin battery hardware resales. Despite the mix shift, the company is tracking toward the higher end of its $10 million to $15 million EBITDA guidance range. Hybridization allows Stem to layer multiple software contracts on a single site, such as adding PowerTrack EMS to an existing PowerTrack PPC customer. These deals increase total ARR and pull through additional edge hardware and professional services revenue. Management cited the $9 million sequential improvement in OCF from Q1 to Q2 as evidence of the upward trend. Confidence is supported by the expectation that billings and revenue will follow historical seasonal patterns, peaking in the second half of the year.

Interested in Stem, Inc.? Here are five stocks we like better. Profitability improved significantly: Adjusted EBITDA rose 63% year over year to $6 million, marking Stem’s fifth consecutive positive quarter, while operating cash flow turned positive at $300,000. Record non-GAAP gross margin reached 55% as software and edge hardware contributed more to the revenue mix. Core business growth offset lower battery resales: Total revenue fell 12% to $34 million largely because battery hardware resale revenue dropped sharply, but PowerTrack software revenue increased 11% and edge-hardware revenue rose 22%. Bookings climbed 39% sequentially to $37 million, with PowerTrack ARR up 13% year over year. International expansion is accelerating: Stem secured utility-scale PowerTrack EMS projects in Chile and Hungary, expanding bookings across six countries and three continents. The company reaffirmed its 2026 guidance and said it is tracking toward the high end of its $10 million–$15 million adjusted EBITDA outlook. It May Be Time to Reassess the Risk and Reward of Innovation Stocks Stem (NYSE:STEM) reported second-quarter results that highlighted continued profitability progress, higher software and edge-hardware revenue, and expanding utility-scale energy-management-system deployments internationally. The company reaffirmed its full-year 2026 guidance, while management said it is tracking toward the high end of its adjusted EBITDA range. Chief Executive Officer Arun Narayanan said the quarter marked Stem’s fifth consecutive period of positive adjusted EBITDA and its second consecutive quarter of record non-GAAP gross margin. He attributed the performance to the company’s software-centric transformation, a revenue mix weighted toward software services and edge hardware, and continued cost discipline. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be “Halfway through 2026, I am pleased to see evidence of this transformation in the results,” Narayanan said. Total second-quarter revenue was $34 million, down 12% from $38 million a year earlier. Chief Financial Officer Brian Musfeldt said nearly all of the decline reflected lower battery hardware resale revenue, which fell to $300,000 from $5 million in the second quarter of 2025. → Nebius’ Q2 Beat Shows the AI Bottleneck Is Capacity, Not Demand Excluding battery hardware resales, software services and edge-hardware revenue totaled $33 million, up 1% year over year. PowerTrack software revenue increased 11% to $11 million, while edge-hardware revenue rose 22% to $15 million. Project and professional-services revenue was $2 million, down 6%, while managed-service revenue fell 34% to $6 million compared with an unusually strong prior-year quarter in which Stem brought about 100 megawatt-hours online in a single quarter. GAAP gross margin rose to 41% from 33% a year earlier, while non-GAAP gross margin reached a record 55%, compared with 49% in the prior-year period. Management said the increase was driven by the greater contribution from higher-margin software services and edge hardware and reduced exposure to lower-margin battery hardware resale activity. → Apple’s Next iPhone Could Test How Much Pricing Power Is Left Musfeldt said battery hardware resales are expected to rise in the second half, which should reduce the overall gross-margin percentage but increase gross-margin dollars. The company expects PowerTrack margins to remain around 75% and edge-hardware margins to remain in a range of 45% to 47%, according to Musfeldt. Adjusted EBITDA was $6 million, or an 18% margin, up 63% from $4 million in the second quarter of 2025 and more than double the first-quarter result. For the first half of 2026, adjusted EBITDA was $8 million, compared with a $1 million loss in the first half of 2025. Cash operating expenses were sequentially flat and down 11% from a year earlier, the company said. Narayanan said Stem has maintained expense discipline while using artificial intelligence to drive efficiency. Operating cash flow turned positive at $300,000 in the second quarter, improving from negative $8 million in the first quarter and negative $21 million in the second quarter of 2025. Stem ended the quarter with $38.4 million in cash and cash equivalents, up from $36.6 million at the end of the first quarter. During the quarter, the company raised approximately $6 million through its at-the-market equity sales program at an average stock price of roughly $9.75, Musfeldt said. The proceeds were designated for general corporate purposes. Bookings reached $37 million, up 39% sequentially from $27 million in the first quarter and about 7% from $34 million a year earlier. Contracted backlog increased 18% sequentially to $27 million, while contracted annual recurring revenue, or CAR, increased 3% to $69 million. Annual recurring revenue increased 2% sequentially to $62.4 million. PowerTrack ARR rose 3% sequentially and 13% year over year to $42.8 million, while managed-services ARR was roughly flat at $19.6 million. Solar operating assets under management increased 2% sequentially to 38.3 gigawatts, and storage operating assets under management rose 6% to 1.8 gigawatt-hours. Narayanan said Stem added approximately 0.8 gigawatts of solar assets under management during the quarter. The company also continued integrating raicoon, the automated fault-detection and event-management technology it acquired in April, into the PowerTrack platform. Stem expects to provide a more substantive update on that integration during its third-quarter call. Internationally, Stem brought PowerTrack EMS to Latin America through the Granja Solar project in Chile. The platform will serve as the primary control system for a 420-megawatt-hour battery storage system being added to an existing 135-megawatt solar facility. The company also secured a project in Hungary, where Solarmarkt Group and EPC partner Pannonwatt selected PowerTrack EMS as an integrated energy-management, power-plant-control and SCADA platform for two 80-megawatt-hour battery systems at two existing 60-megawatt solar sites. Commercial operation of the fully hybridized assets is expected in fall 2026. PowerTrack EMS now has bookings across six countries and three continents, management said. Stem’s Everyray project in Germany, announced in March, is now live. The company also said PowerTrack EMS received The smarter E AWARD 2026 in the Smart Integrated Energy category. Stem reaffirmed its full-year 2026 outlook, including total revenue of $140 million to $190 million. Software services and edge-hardware revenue is expected to be $130 million to $150 million, while battery hardware resale revenue is projected at up to $40 million and is expected to be concentrated in the second half. Total revenue: $140 million to $190 million Software services and edge-hardware revenue: $130 million to $150 million Non-GAAP gross margin: 40% to 50% Adjusted EBITDA: $10 million to $15 million Operating cash flow: $0 to $10 million Year-end ARR: $65 million to $70 million Musfeldt said Stem expects to trend toward the lower end of its battery hardware resale outlook, which should support results near the upper end of the company’s non-GAAP gross-margin range. He also said the company is tracking toward the high end of its adjusted EBITDA guidance. Looking beyond 2026, Narayanan said Stem is focused on utility-scale growth in the U.S. and international markets through PowerTrack EMS, PowerTrack SCADA and PowerTrack PPC offerings. He said the company sees particular opportunities in Latin America, including Chile and Colombia, as well as in Europe through its Berlin office. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Stem Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Achieved fifth consecutive quarter of positive adjusted EBITDA PowerTrackTM software revenue up 11% YoY PowerTrackTM Energy Management System (EMS) recognized as leading, global innovative solution with The smarter E AWARD win Reaffirming full year 2026 financial and operating guidance HOUSTON, August 12, 2026--(BUSINESS WIRE)--Stem, Inc. ("Stem," "we" or the "Company") (NYSE: STEM), a global leader in AI-enabled clean energy software and services, today announced its results for the quarter ended June 30, 2026. Financial Highlights Revenue of $33.7 million, down 12% from $38.4 million in 2Q25 Software, services, and edge hardware revenue of $33.4 million, up 1% from $32.9 million in 2Q25 GAAP gross profit of $13.9 million, up 9% from $12.8 million in 2Q25 GAAP gross margin of 41%, up from 33% in 2Q25 Non-GAAP gross profit of $18.4 million, down from $18.7 million in 2Q25 Non-GAAP gross margin of 55%, up from 49% in 2Q25 Net loss of $14.4 million versus net income of $202.5 million in 2Q25 Adjusted EBITDA of $6.2 million up 63% from $3.8 million in 2Q25 Operating cash flow of $0.3 million versus $(21.3) million in 2Q25 Ended 2Q26 with $38.4 million in cash and cash equivalents versus $36.6 million in 1Q26 Operating Highlights Bookings of $36.8 million, up 39% from $26.5 million in 1Q26 Contracted backlog of $27.1 million, up 18% from $23.0 million at the end of 1Q26 Storage operating assets under management ("AUM") of 1.8 gigawatt hours ("GWh"), up 6% sequentially Solar operating AUM of 38.3 gigawatts ("GW"), up 2% sequentially Contracted annual recurring revenue ("CARR") of $69.0 million, up from $67.2 million at the end of 1Q26 Annual recurring revenue ("ARR") of $62.4 million, up from $61.2 million at the end of 1Q26 "The second quarter reflected strong momentum across our core PowerTrack platform and continued expansion of our international footprint," stated Arun Narayanan, Chief Executive Officer of Stem. "We brought PowerTrack EMS to Latin America this quarter with the Granja Solar project in Chile, where our software will serve as the control system for a 135 MW solar facility being retrofitted with a 420 megawatt-hour battery storage system – a strong proof point for the kind of hybrid, utility-scale project that validates the commercial prospects of our EMS offering. Our products were also recognized internationally, with PowerTrack EMS receiving ‘The smarter E AWARD 2026’ in Europe for the Smart Integrated Energy category, an honor given to industry pioneers driving major innovations across energy storage and smart integrated energy, and a prestigious recognition for the clean energy industry. Alongside this sustained commercial progress, we are continuing to execute with discipline, delivering our fifth consecutive quarter of positive adjusted EBITDA and record non-GAAP gross margins. We remain focused on driving operating leverage, strengthening our core platform, and building the foundation for accelerated growth in 2027 and beyond." "Our second quarter results reflect our continued dedication to driving operating leverage in the business," stated Brian Musfeldt, Chief Financial Officer of Stem. "Non-GAAP gross margins, adjusted EBITDA, and operating cash flow improved significantly versus the prior year. Because of our consistent performance and expectations for the rest of the year, we are pleased to reaffirm full year 2026 guidance across all metrics." Second Quarter 2026 Financial and Operating Results Financial Results Revenue decreased 12% year-over-year to $33.7 million, versus $38.4 million in the second quarter of 2025, driven by significantly reduced battery hardware resales and lower managed services revenue. Revenue from software, services, and edge hardware was $33.4 million for the second quarter of 2026, up 1% from $32.9 million for the second quarter of 2025, driven by 11% year-over-year growth in PowerTrack software revenue, partially offset by lower managed services revenue. GAAP gross profit was $13.9 million, or 41%, versus $12.8 million, or 33%, in the second quarter of 2025. The year-over-year increase in GAAP gross profit ($) and GAAP gross margin (%) was driven by reduced costs, increased higher-margin software, services, and edge hardware sales, and reduced lower-margin battery hardware resale and managed services revenue. Non-GAAP gross profit was $18.4 million, or 55%, versus $18.7 million, or 49%, in the second quarter of 2025. The year-over-year decrease in non-GAAP gross profit ($) was driven by significantly decreased lower-margin battery hardware resales and managed services revenue. The year-over-year increase in non-GAAP gross margin (%) reflects increased higher-margin software, services, and edge hardware sales, along with reduced lower-margin battery hardware resale revenue. Net loss was $14.4 million versus the second quarter of 2025 net income of $202.5 million. The year-over-year decrease was primarily due to a one-time gain on extinguishment of debt in the second quarter of 2025, which was partially offset by increased GAAP gross profit and lower operating expenses in the second quarter of 2026. Adjusted EBITDA was $6.2 million, up 63% compared to $3.8 million in the second quarter of 2025. The year-over-year improvement was primarily driven by a higher mix of high-margin software and services revenue combined with lower operating expenses. The Company ended the second quarter with $38.4 million in cash and cash equivalents, versus $36.6 million reported at the end of the first quarter of 2026. Operating Results Bookings were $36.8 million in the second quarter of 2026, up 39% from $26.5 million in the first quarter of 2026. Contracted backlog was $27.1 million at the end of the second quarter of 2026, up 18% from $23.0 million at the end of the first quarter of 2026. CARR was $69.0 million at the end of the second quarter of 2026, up 3% from $67.2 million at the end of the first quarter of 2026. ARR increased 2% to $62.4 million at the end of the second quarter of 2026 from $61.2 million at the end of the first quarter of 2026. PowerTrack ARR increased 3% sequentially to $42.8 million in the second quarter of 2026 from $41.7 million at the end of the first quarter of 2026. Managed services ARR increased slightly to $19.6 million from $19.5 million at the end of the first quarter of 2026. Solar operating AUM increased 2% sequentially to 38.3 GW for the second quarter of 2026. Storage operating AUM increased 6% sequentially to 1.8 GWh for the quarter. The following table provides a summary of contracted backlog at the end of the second quarter of 2026, and includes only hardware and non-recurring services contracts, compared to backlog at the end of the first quarter of 2026 ($ in millions): Business Updates On August 12, 2026, the Company announced that Solarmarkt Group, together with engineering, procurement, and construction partner Pannonwatt Energetikai Megoldások Zrt., selected Stem's PowerTrack™ EMS as the integrated energy management, power plant control (PPC), and SCADA platform for the hybridization of two operating utility-scale solar plants in Hungary. The projects are expected to add a 40 MW / 80 MWh battery energy storage system to each of Solarmarkt Group's existing 60 MWp solar facilities. Stem previously supplied the PPC capabilities for the solar assets in 2025 and 2026 using a hybrid-ready PowerTrack architecture. Under the new agreement, the same software and controls foundation are expected to expand across the battery systems at each site, helping to enable solar generation, storage, grid interconnection, and market dispatch to operate through a single integrated solution. On July 1, 2026, the Company announced that its PowerTrack EMS won The smarter E AWARD 2026 in the Smart Integrated Energy category. Organized by Solar Promotion International GmbH and Freiburg Management and Marketing International GmbH, The smarter E AWARD is presented across five industry categories, honoring pioneers of the energy industry driving major innovations across energy storage and smart integrated energy. The Smart Integrated Energy category specifically highlights technologies advancing the integration, management, and performance of clean energy systems. The award was announced during The smarter E Europe in Munich, Europe's largest alliance of exhibitions for the energy industry, bringing together Intersolar Europe, ees Europe, Power2Drive Europe, and EM-Power Europe. On June 17, 2026, the Company announced the launch of AIONA, Stem’s AI services offering developed in direct response to growing customer and market demand for practical, execution-focused artificial intelligence solutions. AIONA builds on Stem’s deep experience applying AI, data science, optimization, and automation across complex clean energy environments. On May 27, 2026, the Company announced that Copec Flux, the renewable energy subsidiary of Copec S.A., is deploying Stem’s PowerTrack EMS at the Granja Solar project in Chile. This development expands Stem’s Latin America footprint and represents a meaningful step into the region’s utility-scale hybrid market. The Granja project is an existing 135 MW PV project that Copec is retrofitting with a 420 MWh BESS to create a hybrid solar-plus-storage facility that allows Copec to supply energy to the national energy grid at more valuable times. As part of that expansion, Stem’s PowerTrack EMS is expected to serve as the site’s master control system, providing the controls architecture needed to manage the integrated asset. On May 13, 2026, the Company announced that it entered into a services agreement with Bluesphere Ventures to support its portfolio of standalone battery energy storage projects participating in New York's Value of Distributed Energy Resources (VDER) program. Under the agreement, Stem is expected to provide revenue modeling, market analysis, and intelligence across Bluesphere Ventures' pipeline of battery storage projects located within Consolidated Edison (ConEd) territory in New York City. On April 30, 2026, the Company announced a co-marketing agreement with Nuvation Energy, a North American provider of battery management and energy control solutions, to jointly promote a fully North American-made BESS control stack. The agreement brings together Stem’s PowerTrack EMS and Unit Controller with Nuvation’s Battery Management System, to create an integrated control layer designed to meet growing demand for secure, compliant, and domestically sourced energy infrastructure. On April 28, 2026, the Company announced it acquired the assets of raicoon GmbH, a Vienna-based provider of automated fault detection and event management for solar asset performance. The acquisition enhances Stem’s PowerTrack platform by improving how operational data is analyzed and translated into action, helping customers identify, prioritize, and resolve performance issues more quickly across their renewable energy portfolios. Outlook The Company is reaffirming its full-year 2026 guidance as follows ($ millions, unless otherwise noted): Some Factors Affecting our Business and Operations The Company is subject to risk and exposure from the evolving macroeconomic, regulatory, geopolitical and business environment, including uncertainty regarding the effects of the One Big Beautiful Bill (OBBB) on our business and that of our suppliers and customers, the effects of increased import tariffs and retaliatory trade policies, global inflationary pressures and interest rates, potential economic slowdowns or recessions, government shutdowns, and geopolitical pressures, including the armed conflicts between Russia and Ukraine and in the Middle East, as well as tensions between China and the United States, and uncertainty around other current and future trade policies and other regulations. We regularly monitor and attempt to mitigate the direct and indirect effects of these circumstances on our business and financial results, although there is no guarantee of the extent to which we will be successful in these efforts. Use of Non-GAAP Financial Measures In addition to financial results determined in accordance with U.S. generally accepted accounting principles ("GAAP"), this earnings press release contains the following non-GAAP financial measures: adjusted EBITDA, non-GAAP gross profit and non-GAAP gross margin. We use these non-GAAP financial measures for financial and operational decision-making and to evaluate our operating performance and prospects, develop internal budgets and financial goals, and facilitate period-to-period comparisons. Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses and expenditures that may not be indicative of our operating performance, such as stock-based compensation and other non-cash charges, as well as discrete cash charges that are infrequent in nature. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to our historical performance and liquidity as well as comparisons to our competitors’ operating results, to the extent that competitors define these metrics in the same manner that we do. We believe these non-GAAP financial measures are useful to investors both because they (1) allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) are used by investors and analysts to help them analyze the health of our business. Our calculation of these non-GAAP financial measures may differ from similarly titled non-GAAP measures, if any, reported by other companies. In addition, other companies may not publish these or similar measures. These non-GAAP financial measures should be considered in addition to, not as a substitute for, or superior to, other measures of financial performance prepared in accordance with GAAP. For reconciliation of adjusted EBITDA and non-GAAP gross profit and margin to their most comparable GAAP measures, see the section below entitled "Reconciliations of Non-GAAP Financial Measures." Definitions of Non-GAAP Financial Measures We define adjusted EBITDA as net (loss) income attributable to Stem before depreciation and amortization, including amortization of internally developed software, interest expense, further adjusted to exclude stock-based compensation and other income and expense items, including change in fair value of warrant liability, impairment of assets held for sale, and income tax provision or benefit. The expenses and other items that we exclude in our calculation of adjusted EBITDA may differ from the expenses and other items, if any, that other companies exclude when calculating adjusted EBITDA. We define non-GAAP gross profit as gross profit excluding amortization of capitalized software, and impairments related to decommissioning of end-of-life systems. We define non-GAAP gross margin as non-GAAP gross profit as a percentage of revenue. See also the section below entitled "Reconciliations of Non-GAAP Financial Measures." Conference Call Information Stem will hold a conference call to discuss this earnings press release and business outlook on Wednesday, August 12, 2026, beginning at 5:00 p.m. Eastern Time. The conference call and accompanying slides may be accessed via a live webcast on a listen-only basis on the Events & Presentations page of the Investor Relations section of the Company’s website at https://investors.stem.com/news-events/ir-calendar. The call can also be accessed live over the telephone by dialing (877) 407-3982, or for international callers, (201) 493-6780 and referencing Stem. An audio replay will be available shortly after the call and can be accessed by dialing (844) 512-2921 or for international callers by dialing (412) 317-6671. The passcode for the replay is 13757930. The replay will be available until September 12, 2026. An archive of the webcast will be available shortly after the call on Stem’s website at https://investors.stem.com for 6 months following the call. About Stem Stem (NYSE: STEM) is a global leader reimagining technology to support the energy transition. We turn complexity into clarity and potential into performance. Stem helps asset owners, operators, and energy stakeholders unlock the full value of their portfolios by enabling the intelligent development, deployment, and operation of clean energy assets. Stem’s integrated software suite, PowerTrack™, is the industry-standard and best-in-class platform for asset monitoring and optimization and is backed by expert professional and managed services, all delivered under one roof. Designed to address complex energy challenges seamlessly, our technology transforms raw data into clear, actionable insights, providing the visibility and intelligence needed to drive performance. With projects across 55 countries, customers have trusted Stem for nearly 20 years to maximize the value of their clean energy investments. Driven by human and artificial intelligence, Stem is unlocking energy intelligence. Learn more at stem.com. Forward-Looking Statements This earnings press release, as well as other statements we make, contains "forward-looking statements" within the meaning of the federal securities laws, which include any statements that are not historical facts. Such statements often contain words such as "expect," "may," "can," "believe," "predict," "plan," "potential," "projected," "projections," "forecast," "estimate," "intend," "anticipate," "ambition," "goal," "target," "think," "should," "could," "would," "will," "hope," "see," "likely," and other similar words. Forward-looking statements address matters that are, to varying degrees, uncertain, such as statements about our financial and operating performance, guidance, targets and other forecasts or expectations regarding, or dependent on, our business outlook and strategy and expectations around our software-centric business; our ability to secure sufficient and timely inventory from suppliers; our ability to meet contracted customer demand; our ability to manage manufacturing or delivery delays; our ability to manage our supply chain and distribution channels; our acquisitions, joint ventures, partnerships and other alliances; forecasts or expectations regarding the energy transition and global climate change; the integration and optimization of energy resources; our business strategies and those of our customers; our ability to retain or upgrade current customers, further penetrate existing markets or expand into new markets; the effects of natural disasters and other events beyond our control; the impacts of the One Big Beautiful Bill Act ("OBBB") on our business and that of our customers; the direct or indirect effects on our business of macroeconomic factors and geopolitical instability, such as the armed conflicts between Russia and Ukraine and in the Middle East; and our outlook and future results of operations, including revenue, adjusted EBITDA and other metrics. Such forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results or outcomes to differ materially from those expressed or implied by such forward-looking statements, including but not limited to our inability to execute on, and achieve the expected benefits from, our operational and strategic initiatives; including from our cost reduction and restructuring efforts; our inability to successfully execute on our new software-centric strategy; the effects of the OBBB on our business and that of our customers; our inability to secure sufficient and timely inventory from our suppliers, as well as contracted quantities of equipment; our inability to meet contracted customer demand; supply chain interruptions and manufacturing or delivery delays; disruptions in sales, production, service or other business activities; general macroeconomic and business conditions in key regions of the world, including inflationary pressures, general economic slowdown or a recession, high interest rates, changes in monetary policy, changes in trade policies, including tariffs or other trade restrictions or the threat of such actions, government shutdowns, and instability in financial institutions; the direct and indirect effects of widespread health emergencies on our workforce, operations, financial results and cash flows; geopolitical instability, such as the armed conflicts between Russia and Ukraine and in the Middle East; the results of operations and financial condition of our customers and suppliers; pricing pressures; severe weather and seasonal factors; our inability to continue to grow and manage our growth effectively; our inability to attract and retain qualified employees and key personnel; our inability to comply with, and the effect on our business of, evolving legal standards and regulations, including those concerning data protection, consumer privacy, sustainability, and evolving labor standards; risks relating to the development and performance of our software-enabled services; our inability to retain or upgrade current customers, further penetrate existing markets or expand into new markets; the risk that our business, financial condition and results of operations may be adversely affected by other political, economic, business and competitive factors; and other risks and uncertainties discussed in this release and in our most recent Forms 10-K, 10-Q and 8-K filed with or furnished to the SEC. If one or more of these or other risks or uncertainties materialize (or the consequences of any such development changes), or should our underlying assumptions prove incorrect, our actual results or outcomes, or the timing of these results or outcomes, may vary materially from those reflected in our forward-looking statements. Forward-looking statements and other statements in this release regarding our environmental, social, and other sustainability plans and goals are not an indication that these statements are necessarily material to the Company, investors, or other stakeholders, or required to be disclosed in our filings under U.S. securities laws or any other laws or requirements applicable to the Company. Forward-looking statements in this earnings press release are made as of the date of this release, and the Company disclaims any intention or obligation to update publicly or revise such forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. Key Definitions: View source version on businesswire.com: https://www.businesswire.com/news/home/20260812145336/en/ Contacts Stem Investor Contacts Erin Reed, StemMarc Silverberg, [email protected] Stem Media Contacts Tatjana Legans, [email protected]

Cerence (CRNC) came out with quarterly earnings of $0.15 per share, beating the Zacks Consensus Estimate of $0.13 per share. This compares to earnings of $0.09 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +15.39%. A quarter ago, it was expected that this automotive artificial intelligence developer would post earnings of $0.21 per share when it actually produced earnings of $0.15, delivering a surprise of -28.57%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Cerence, which belongs to the Zacks Computers - IT Services industry, posted revenues of $69.59 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.94%. This compares to year-ago revenues of $62.24 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Cerence shares have lost about 13.8% since the beginning of the year versus the S&P 500's gain of 12.8%. While Cerence has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Cerence was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.22 on $69.49 million in revenues for the coming quarter and $0.63 on $318.38 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computers - IT Services is currently in the bottom 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Stem, Inc. (STEM), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 12. This company is expected to post quarterly loss of $1.76 per share in its upcoming report, which represents a year-over-year change of +52.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Stem, Inc.'s revenues are expected to be $31.6 million, down 17.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cerence Inc. (CRNC) : Free Stock Analysis Report Stem, Inc. (STEM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

DXC Technology Company. (DXC) came out with quarterly earnings of $0.4 per share, missing the Zacks Consensus Estimate of $0.42 per share. This compares to earnings of $0.68 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -4.76%. A quarter ago, it was expected that this company would post earnings of $0.74 per share when it actually produced earnings of $0.77, delivering a surprise of +4.05%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. DXC Technology, which belongs to the Zacks Computers - IT Services industry, posted revenues of $3 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.46%. This compares to year-ago revenues of $3.16 billion. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. DXC Technology shares have lost about 19.7% since the beginning of the year versus the S&P 500's gain of 6.9%. While DXC Technology has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for DXC Technology was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.73 on $3.04 billion in revenues for the coming quarter and $2.61 on $12.19 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computers - IT Services is currently in the top 34% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Stem, Inc. (STEM), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 12. This company is expected to post quarterly loss of $1.76 per share in its upcoming report, which represents a year-over-year change of +52.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Stem, Inc.'s revenues are expected to be $31.6 million, down 17.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report DXC Technology Company. (DXC) : Free Stock Analysis Report Stem, Inc. (STEM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

HOUSTON, July 22, 2026--(BUSINESS WIRE)--Stem, Inc. ("Stem," "we," or the "Company") (NYSE: STEM), a global leader in AI-enabled clean energy software and services, today announced it will hold a conference call on Wednesday, August 12, 2026, to discuss its financial results for the quarter ended June 30, 2026. The conference call is scheduled to begin at 5:00 p.m. Eastern Time. A press release regarding the results will be issued at approximately 4:05 p.m. Eastern Time. The conference call may be accessed via a live webcast on a listen-only basis at https://investors.stem.com/news-events/ir-calendar. The call can also be accessed live over the telephone by dialing (877) 407-3982, or for international callers (201) 493-6780, and referencing Stem. A replay will be available shortly after the call and can be accessed by dialing (844) 512-2921, or for international callers, (412) 317-6671. The passcode for the replay is 13757930. The replay will be available until September 12, 2026. An archive of the webcast will be available shortly after the call on Stem’s website at https://investors.stem.com for 6 months following the call. About Stem Stem (NYSE: STEM) is a global leader reimagining technology to support the energy transition. We turn complexity into clarity and potential into performance. Stem helps asset owners, operators, and energy stakeholders unlock the full value of their portfolios by enabling the intelligent development, deployment, and operation of clean energy assets. Stem’s integrated software suite, PowerTrackTM, is the industry-standard and best-in-class platform for asset monitoring and optimization and is backed by expert professional and managed services, all delivered under one roof. Designed to address complex energy challenges seamlessly, our technology transforms raw data into clear, actionable insights, providing the visibility and intelligence needed to drive performance. With projects across 55 countries, customers have trusted Stem for nearly 20 years to maximize the value of their clean energy investments. Driven by human and artificial intelligence, Stem is unlocking energy intelligence. Learn more at stem.com. Source: Stem, Inc. View source version on businesswire.com: https://www.businesswire.com/news/home/20260722513280/en/ Contacts For News Media: Stem Investor Contacts Erin Reed, StemMarc Silverberg, [email protected] Stem Media Contact Tatjana Legans, [email protected]

Stem, Inc.'s (NYSE:STEM) solid earnings report last week was underwhelming to investors. Our analysis has found some underlying factors which may be cause for concern. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. As finance nerds would already know, the accrual ratio from cashflow is a key measure for assessing how well a company's free cash flow (FCF) matches its profit. The accrual ratio subtracts the FCF from the profit for a given period, and divides the result by the average operating assets of the company over that time. This ratio tells us how much of a company's profit is not backed by free cashflow. Therefore, it's actually considered a good thing when a company has a negative accrual ratio, but a bad thing if its accrual ratio is positive. While it's not a problem to have a positive accrual ratio, indicating a certain level of non-cash profits, a high accrual ratio is arguably a bad thing, because it indicates paper profits are not matched by cash flow. To quote a 2014 paper by Lewellen and Resutek, "firms with higher accruals tend to be less profitable in the future". Stem has an accrual ratio of 1.97 for the year to March 2026. As a general rule, that bodes poorly for future profitability. And indeed, during the period the company didn't produce any free cash flow whatsoever. In the last twelve months it actually had negative free cash flow, with an outflow of US$14m despite its profit of US$143.8m, mentioned above. We also note that Stem's free cash flow was actually negative last year as well, so we could understand if shareholders were bothered by its outflow of US$14m. However, that's not all there is to consider. The accrual ratio is reflecting the impact of unusual items on statutory profit, at least in part. The good news for shareholders is that Stem's accrual ratio was much better last year, so this year's poor reading might simply be a case of a short term mismatch between profit and FCF. As a result, some shareholders may be looking for stronger cash conversion in the current year. Check out our latest analysis for Stem That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. The fact that the company had unusual items boosting profit by US$203m, in the last year, probably goes some way to explain why its accrual ratio was so weak. While we like to see profit increases, we tend to be a little more cautious when unusual items have made a big contribution. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. Which is hardly surprising, given the name. Stem had a rather significant contribution from unusual items relative to its profit to March 2026. As a result, we can surmise that the unusual items are making its statutory profit significantly stronger than it would otherwise be. Summing up, Stem received a nice boost to profit from unusual items, but could not match its paper profit with free cash flow. For all the reasons mentioned above, we think that, at a glance, Stem's statutory profits could be considered to be low quality, because they are likely to give investors an overly positive impression of the company. In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. For instance, we've identified 6 warning signs for Stem (4 don't sit too well with us) you should be familiar with. In this article we've looked at a number of factors that can impair the utility of profit numbers, and we've come away cautious. But there is always more to discover if you are capable of focussing your mind on minutiae. Some people consider a high return on equity to be a good sign of a quality business. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

PowerTrack™ software revenue up 16% YoY Software, services, and edge hardware revenue up 4% YoY to $29M Achieved fourth consecutive quarter of positive adjusted EBITDA Reaffirming full year 2026 financial and operating guidance across all metrics HOUSTON, May 06, 2026--(BUSINESS WIRE)--Stem, Inc. ("Stem," "we" or the "Company") (NYSE: STEM), a global leader reimagining technology to support the energy transition, announced today its results for the quarter ended March 31, 2026. Financial Highlights Revenue of $29.0 million, down 11% from $32.5 million in 1Q25 Software, services, and edge hardware revenue of $29.0 million, up 4% from $28.0 million in 1Q25 GAAP gross profit of $10.9 million, up from $10.5 million in 1Q25 Non-GAAP gross profit of $15.2 million, up from $14.8 million in 1Q25 GAAP gross margin of 38%, up from 32% in 1Q25 Non-GAAP gross margin of 52%, up from 46% in 1Q25 Net loss of $18.9 million versus net loss of $25.0 million in 1Q25 Adjusted EBITDA of $2.0 million versus $(4.6) million in 1Q25 Operating cash flow of $(8.3) million versus $8.5 million in 1Q25 Ended 1Q26 with $36.6 million in cash and cash equivalents versus $48.9 million in 4Q25 Operating Highlights Bookings of $26.5 million versus $32.7 million in 4Q25 Contracted backlog of $23.0 million versus $21.3 million at the end of 4Q25 Storage operating assets under management ("AUM") of 1.7 gigawatt hours ("GWh"), sequentially flat Solar operating AUM of 37.5 gigawatts ("GW") up 4% sequentially Contracted annual recurring revenue ("CARR") of $67.2 million, flat from the end of 4Q25 Annual recurring revenue ("ARR") of $61.2 million, a slight increase sequentially "Our first quarter 2026 performance demonstrated that the operational discipline and margin profile we established in 2025 are proving durable," stated Arun Narayanan, Chief Executive Officer of Stem. "Delivering positive adjusted EBITDA in our seasonally lightest-revenue quarter, combined with strong gross margins and continued PowerTrack momentum, underscores the strength of our execution and gives us confidence in our outlook. We continue to make meaningful progress against all three of our 2026 strategic priorities: driving operational leverage, strengthening our core business, and building the foundation for growth. Based on that progress, we are reaffirming our full year 2026 guidance across all metrics." "Our first quarter results demonstrate continued operating leverage in the business and the sustainable benefits of our software-focused strategy," stated Brian Musfeldt, Chief Financial Officer of Stem. "We delivered record non-GAAP gross margins of 52% and our fourth consecutive quarter of positive adjusted EBITDA, driven by continued software revenue growth and the lasting benefits of the efficiency improvements we implemented in 2025. We remain well-positioned to execute against our full-year 2026 plan and are confident in delivering on our full year 2026 financial and operating commitments." First Quarter 2026 Financial and Operating Results Financial Results Revenue decreased 11% year-over-year to $29.0 million, versus $32.5 million in the first quarter of 2025 due to significantly reduced battery hardware sales. Revenue from software, services, and edge hardware was $29.0 million for first quarter 2026, up 4% from $28.0 million for the first quarter 2025, driven by 16% year-over-year growth in PowerTrack software revenue. GAAP gross profit was $10.9 million, or 38%, versus $10.5 million, or 32%, in the first quarter of 2025. The year-over-year increase in GAAP gross profit ($) and GAAP gross margin (%) was due to reduced costs and increased higher-margin software, services, and edge hardware sales and significantly decreased lower-margin battery hardware sales. Non-GAAP gross profit was $15.2 million, or 52%, versus $14.8 million, or 46%, in the first quarter of 2025. The year-over-year increase in non-GAAP gross profit ($) and non-GAAP gross margin (%) was again due to increased higher-margin software, services, and edge hardware sales and significantly decreased lower-margin battery hardware sales. Net loss was $18.9 million versus the first quarter 2025 net loss of $25.0 million. The year-over-year improvement was primarily driven by significantly lower operating expenses. Adjusted EBITDA was $2.0 million, up significantly compared to $(4.6) million in the first quarter of 2025. The material improvement and achievement of positive quarterly adjusted EBITDA was primarily driven by significantly lower operating expenses. The Company ended the first quarter with $36.6 million in cash and cash equivalents, versus $48.9 million reported at the end of the fourth quarter of 2025. Operating Results Bookings were $26.5 million in the first quarter of 2026, compared to $32.7 million in the fourth quarter of 2025 due to typical first quarter seasonality. Contracted backlog was $23.0 million at the end of the first quarter of 2026 compared to $21.3 million at the end of the fourth quarter of 2025. CARR was $67.2 million at the end of the first quarter of 2026, flat versus the end of the fourth quarter of 2025. ARR increased slightly to $61.2 million at the end of the first quarter of 2026 from $61.1 million at the end of the fourth quarter of 2025. PowerTrack ARR increased 2% sequentially to $41.7 million in the first quarter from $40.7 million at the end of the fourth quarter of 2025. Managed services ARR decreased 4% sequentially to $19.5 million from $20.4 million at the end of the fourth quarter of 2025. Solar operating AUM increased 4% sequentially to 37.5 GW for the first quarter of 2026. Storage operating AUM was sequentially flat at 1.7 GWh for the quarter. The following table provides a summary of contracted backlog at the end of the first quarter, and includes only hardware and non-recurring services contracts, compared to backlog at the end of the fourth quarter of 2025 ($ in millions): Business Updates On March 4, 2026, the Company announced that its PowerTrack Energy Management System ("EMS") had been selected to support Everyray GmbH’s 90 MWh utility-scale battery energy storage system ("BESS") in Kölsa, Germany, and a 10 MWh BESS in Elsterwerda, Germany. Together, the projects further expand Stem’s presence in the German market and reinforce PowerTrack’s role as the control system for sophisticated, utility-scale storage deployments across Europe. Commercial operations are expected to commence in summer 2026. On April 28, 2026, the Company announced it acquired the software assets of raicoon GmbH, a Vienna-based provider of automated fault detection and event management for solar asset performance. The acquisition enhances Stem’s PowerTrack platform by improving how operational data is analyzed and translated into action, helping customers identify, prioritize, and resolve performance issues more quickly across their renewable energy portfolios. On April 30, 2026 the Company announced a co-marketing agreement with Nuvation Energy, a North American provider of battery management and energy control solutions, to jointly promote a fully North American-made BESS control stack. The agreement will bring together Stem’s PowerTrack EMS and Unit Controller with Nuvation’s Battery Management System, to create an integrated control layer designed to meet growing demand for secure, compliant, and domestically sourced energy infrastructure. Outlook The Company is reaffirming its full-year 2026 guidance as follows ($ millions, unless otherwise noted): Some Factors Affecting our Business and Operations The Company is subject to risk and exposure from the evolving macroeconomic, regulatory, geopolitical and business environment, including uncertainty regarding the effects of the One Big Beautiful Bill (OBBB) on our business and that of our suppliers and customers, the effects of increased import tariffs and retaliatory trade policies, global inflationary pressures and interest rates, potential economic slowdowns or recessions, government shutdowns, and geopolitical pressures, including the wars in Ukraine and the Middle East, as well as tensions between China and the United States, and uncertainty around other current and future trade policies and other regulations. We regularly monitor and attempt to mitigate the direct and indirect effects of these circumstances on our business and financial results, although there is no guarantee of the extent to which we will be successful in these efforts. Use of Non-GAAP Financial Measures In addition to financial results determined in accordance with U.S. generally accepted accounting principles ("GAAP"), this earnings press release contains the following non-GAAP financial measures: adjusted EBITDA, non-GAAP gross profit and non-GAAP gross margin. We use these non-GAAP financial measures for financial and operational decision-making and to evaluate our operating performance and prospects, develop internal budgets and financial goals, and facilitate period-to-period comparisons. Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses and expenditures that may not be indicative of our operating performance, such as stock-based compensation and other non-cash charges, as well as discrete cash charges that are infrequent in nature. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to our historical performance and liquidity as well as comparisons to our competitors’ operating results, to the extent that competitors define these metrics in the same manner that we do. We believe these non-GAAP financial measures are useful to investors both because they (1) allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) are used by investors and analysts to help them analyze the health of our business. Our calculation of these non-GAAP financial measures may differ from similarly titled non-GAAP measures, if any, reported by other companies. In addition, other companies may not publish these or similar measures. These non-GAAP financial measures should be considered in addition to, not as a substitute for, or superior to, other measures of financial performance prepared in accordance with GAAP. For reconciliation of adjusted EBITDA and non-GAAP gross profit and margin to their most comparable GAAP measures, see the section below entitled "Reconciliations of Non-GAAP Financial Measures." Definitions of Non-GAAP Financial Measures We define adjusted EBITDA as net income (loss) attributable to Stem before depreciation and amortization, including amortization of internally developed software, interest expense, further adjusted to exclude stock-based compensation and other income and expense items, including change in fair value of warrant liability, and income tax provision or benefit. The expenses and other items that we exclude in our calculation of adjusted EBITDA may differ from the expenses and other items, if any, that other companies exclude when calculating adjusted EBITDA. We define non-GAAP gross profit as gross profit excluding amortization of capitalized software, and impairments related to decommissioning of end-of-life systems. Non-GAAP gross margin is defined as non-GAAP gross profit (loss) as a percentage of revenue. See also the section below entitled "Reconciliations of Non-GAAP Financial Measures." Conference Call Information Stem will hold a conference call to discuss this earnings press release and business outlook on Wednesday, May 6, 2026, beginning at 5:00 p.m. Eastern Time. The conference call and accompanying slides may be accessed via a live webcast on a listen-only basis on the Events & Presentations page of the Investor Relations section of the Company’s website at https://investors.stem.com/events-and-presentations. The call can also be accessed live over the telephone by dialing (877) 407-3982, or for international callers, (201) 493-6780 and referencing Stem. An audio replay will be available shortly after the call and can be accessed by dialing (844) 512-2921 or for international callers by dialing (412) 317-6671. The passcode for the replay is 13757929. The replay will be available until Saturday, June 6, 2026. An archive of the webcast will be available shortly after the call on Stem’s website at https://investors.stem.com/overview for 12 months following the call. About Stem Stem (NYSE: STEM) is a global leader reimagining technology to support the energy transition. We turn complexity into clarity and potential into performance. Stem helps asset owners, operators, and energy stakeholders unlock the full value of their portfolios by enabling the intelligent development, deployment, and operation of clean energy assets. Stem’s integrated software suite, PowerTrack™, is the industry-standard and best-in-class platform for asset monitoring and optimization and is backed by expert professional and managed services, all delivered under one roof. Designed to address complex energy challenges seamlessly, our technology transforms raw data into clear, actionable insights, providing the visibility and intelligence needed to drive performance. With projects across 55 countries, customers have trusted Stem for nearly 20 years to maximize the value of their clean energy investments. Driven by human and artificial intelligence, Stem is unlocking energy intelligence. Learn more at stem.com. Forward-Looking Statements This earnings press release, as well as other statements we make, contains "forward-looking statements" within the meaning of the federal securities laws, which include any statements that are not historical facts. Such statements often contain words such as "expect," "may," "can," "believe," "predict," "plan," "potential," "projected," "projections," "forecast," "estimate," "intend," "anticipate," "ambition," "goal," "target," "think," "should," "could," "would," "will," "hope," "see," "likely," and other similar words. Forward-looking statements address matters that are, to varying degrees, uncertain, such as statements about our financial and operating performance, guidance, targets and other forecasts or expectations regarding, or dependent on, our business outlook and strategy and expectations around our software-centric business; our ability to secure sufficient and timely inventory from suppliers; our ability to meet contracted customer demand; our ability to manage manufacturing or delivery delays; our ability to manage our supply chain and distribution channels; our acquisitions, joint ventures, partnerships and other alliances; forecasts or expectations regarding energy transition and global climate change; the integration and optimization of energy resources; our business strategies and those of our customers; our ability to retain or upgrade current customers, further penetrate existing markets or expand into new markets; the effects of natural disasters and other events beyond our control; the impacts of the One Big Beautiful Bill Act ("OBBB") on our business and that of our customers; the direct or indirect effects on our business of macroeconomic factors and geopolitical instability, such as the wars in Ukraine and the Middle East; and our outlook and future results of operations, including revenue, adjusted EBITDA and other metrics. Such forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results or outcomes to differ materially from those expressed or implied by such forward-looking statements, including but not limited to our inability to execute on, and achieve the expected benefits from, our operational and strategic initiatives; including from our cost reduction, workforce reduction and restructuring efforts; our inability to successfully execute on our new software-centric strategy; the effects of the OBBB on our business and that of our customers; our inability to secure sufficient and timely inventory from our suppliers, as well as contracted quantities of equipment; our inability to meet contracted customer demand; supply chain interruptions and manufacturing or delivery delays; disruptions in sales, production, service or other business activities; general macroeconomic and business conditions in key regions of the world, including inflationary pressures, general economic slowdown or a recession, high interest rates, changes in monetary policy, changes in trade policies, including tariffs or other trade restrictions or the threat of such actions, government shutdowns, and instability in financial institutions; the direct and indirect effects of widespread health emergencies on our workforce, operations, financial results and cash flows; geopolitical instability, such as the wars in Ukraine and the Middle East; the results of operations and financial condition of our customers and suppliers; pricing pressures; severe weather and seasonal factors; our inability to continue to grow and manage our growth effectively; our inability to attract and retain qualified employees and key personnel; our inability to comply with, and the effect on our business of, evolving legal standards and regulations, including those concerning data protection, consumer privacy, sustainability, and evolving labor standards; risks relating to the development and performance of our software-enabled services; our inability to retain or upgrade current customers, further penetrate existing markets or expand into new markets; the risk that our business, financial condition and results of operations may be adversely affected by other political, economic, business and competitive factors; and other risks and uncertainties discussed in this release and in our most recent Forms 10-K, 10-Q and 8-K filed with or furnished to the SEC. If one or more of these or other risks or uncertainties materialize (or the consequences of any such development changes), or should our underlying assumptions prove incorrect, our actual results or outcomes, or the timing of these results or outcomes, may vary materially from those reflected in our forward-looking statements. Forward-looking statements and other statements in this release regarding our environmental, social, and other sustainability plans and goals are not an indication that these statements are necessarily material to the Company, investors, or other stakeholders, or required to be disclosed in our filings under U.S. securities laws or any other laws or requirements applicable to the Company. In addition, historical, current, and forward-looking environmental, social, and sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future. Forward-looking statements in this earnings press release are made as of the date of this release, and the Company disclaims any intention or obligation to update publicly or revise such forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. Source: Stem, Inc. Key Definitions: View source version on businesswire.com: https://www.businesswire.com/news/home/20260506858399/en/ Contacts Stem Investor Contacts Erin Reed, Stem Marc Silverberg, ICR [email protected] Stem Media Contacts Tatjana Legans, Stem [email protected]

Achieved the first positive adjusted EBITDA in a first fiscal quarter in company history, driven by a high-margin revenue mix and a leaner cost structure. Non-GAAP gross margins reached a record 52% due to the absence of battery hardware resales and a focus on core software, services, and edge hardware. Operational leverage is being sustained through permanent structural efficiencies, including a 30% year-over-year reduction in cash operating expenses. Internal AI adoption has reached nearly 70% of the employee base, accelerating software feature delivery and improving operational triage productivity. The acquisition of raicoon serves as a strategic 'buy vs. build' move to integrate automated fault detection and event management into the PowerTrack platform. Utility scale bookings more than doubled quarter-over-quarter, signaling a successful pivot toward larger, more complex energy storage and hybrid projects. Reaffirmed full-year 2026 guidance, assuming revenue will be weighted toward the second half as construction projects ramp up seasonally. Expect non-GAAP gross margins to compress toward the 40% to 50% range as lower-margin battery hardware resales are opportunistically layered in. Operating cash flow is projected to turn positive for the full year as working capital requirements lessen and billings increase in later quarters. PowerTrack EMS bookings from late 2025 are on track to convert to revenue starting in the second quarter of 2026. International revenue is expected to grow beyond the current 5% of total revenue as European utility scale projects move through commissioning and into revenue recognition in late 2026 and 2027. Managed services ARR saw a 4% sequential decline due to a battery supplier bankruptcy that prevented the renewal of specific warranty management contracts. Negative $8 million operating cash flow in Q1 was attributed to expected working capital timing and scheduled interest payments rather than underlying business performance. The company is navigating tightening regulatory requirements, such as FEOC, through a new co-marketing partnership for North American-manufactured hardware. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Growth is primarily driven by PowerTrack EMS, which offers unified controls and portfolio visibility for hybrid and standalone storage projects. Management highlighted a 50-plus megawatt hour hybridization project in Hungary as a key example of existing solar customers expanding into storage. Margins improved to 75% for PowerTrack due to increased Assets Under Management (AUM) providing SaaS-like operating leverage. Management has successfully implemented modest pricing increases to offset supply chain factors and tariffs. The acquisition was an opportunistic 'tuck-in' to gain proven automated fault detection technology faster than internal development would allow. The technology is expected to improve customer retention by allowing asset managers to triage performance issues more rapidly at scale. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.