STEM, INC. Annual Report on Form 10-K For the Year Ended December 31, 2025
STEM, INC. Annual Report on Form 10-K For the Year Ended December 31, 2025
STEM, Inc. filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2025. The company reported a market value of $50.0 million as of June 30, 2025, and had 8,518,974 shares of common stock outstanding as of February 25, 2026. The report does not provide detailed financial information, but it does indicate that the company is a non-accelerated filer and is not a well-known seasoned issuer. The report also indicates that the company has not filed reports required by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months, and has not been subject to such filing requirements for the past 90 days.
Overview of PowerTrack and Stem’s Business
Stem, Inc. is a global leader in clean energy software and solutions. Their integrated suite of products, called PowerTrack, includes software, edge hardware, and services for solar, storage, and hybrid energy assets. PowerTrack enables customers to monitor, optimize, and control their distributed energy resources through a unified platform.
Stem serves a variety of customers, including project developers, asset owners, engineering firms, and distributors. They have been an industry leader in clean energy software and solutions for over 15 years, since the company’s inception in 2009. Stem’s mission is to help energy asset owners and operators benefit from the full value of their energy portfolios by enabling intelligent development, deployment, and operation of clean energy assets.
Financial Performance
Stem’s total revenue increased from $144.6 million in 2024 to $156.3 million in 2025, an 8% increase. This was driven by a $19.9 million increase in services and other revenue, partially offset by an $8.2 million decrease in hardware revenue as the company de-emphasizes battery hardware resales.
The company’s cost of revenue decreased by 38% in 2025 compared to 2024, primarily due to the reduction in low-margin battery hardware resales. This led to a significant improvement in gross profit, which increased from a loss of $11.1 million in 2024 to a gain of $60.0 million in 2025. Stem’s gross margin improved from -8% in 2024 to 38% in 2025.
After several years of net losses, Stem achieved net income of $137.8 million in 2025, compared to a net loss of $854.0 million in 2024. This turnaround was driven by the company’s strategic shift away from battery hardware resales towards a greater focus on software and services, as well as a $220.0 million gain on debt extinguishment.
Stem’s adjusted EBITDA, a non-GAAP metric that excludes certain expenses, improved from a loss of $22.8 million in 2024 to a gain of $6.7 million in 2025. This demonstrates the company’s progress in improving its underlying operating performance.
Table 1. Key Financial Metrics
| Metric | 2025 | 2024 |
|---|---|---|
| Revenue | $156.3 million | $144.6 million |
| GAAP Gross Profit (Loss) | $60.0 million | $(11.1) million |
| GAAP Gross Margin | 38% | -8% |
| Non-GAAP Gross Profit | $72.3 million | $63.7 million |
| Non-GAAP Gross Margin | 46% | 35% |
| Net Income (Loss) | $137.8 million | $(854.0) million |
| Adjusted EBITDA | $6.7 million | $(22.8) million |
Strengths and Weaknesses
Stem’s key strengths include its position as an industry leader in clean energy software and solutions, its hardware-agnostic PowerTrack platform that integrates with a variety of energy assets, and its comprehensive suite of services that support customers throughout the project lifecycle. The company’s strategic shift towards software and services has improved its financial performance and profitability.
However, Stem has historically depended on a small number of significant customers, which poses a risk if it loses a major customer or experiences a significant reduction in business from a key client. The company also faces competition from other software providers and hardware manufacturers offering their own software solutions.
Additionally, Stem’s cash reserves of $48.9 million as of December 31, 2025 may constrain its ability to make the necessary investments to execute its new strategy, and the company may need to secure additional sources of capital in the future.
Outlook and Future Prospects
The outlook for Stem’s business is generally positive, as the deployment of renewable energy sources and energy storage systems is expected to continue increasing. The company’s hardware-agnostic software platform and comprehensive service offerings position it well to capitalize on this growing market.
However, the company faces some near-term challenges, including the operational changes and disruptions associated with its strategic shift, as well as the potential need to secure additional funding to support its growth plans. Stem will need to continue executing its strategy effectively, controlling costs, and diversifying its customer base to mitigate these risks and achieve its financial and operational targets.
Overall, Stem appears to be making progress in transitioning its business towards a more sustainable, software-centric model. If the company can successfully navigate the current challenges and capitalize on the growing demand for clean energy solutions, it has the potential to strengthen its position as a leader in the industry.
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