Overview

* Stem Q2 2025 revenue rises 13% YoY to $38.4 mln, beating estimates

* Co achieves positive adjusted EBITDA of $3.8 mln, up from $(11.3) mln

* Net income at $202.5 mln vs. $582.3 mln loss in Q2 2024

Outlook

* Stem reaffirms 2025 revenue guidance of $125 mln to $175 mln

* Company expects 2025 non-GAAP gross margin of 30% to 40%

* Stem anticipates 2025 adjusted EBITDA between $(10) mln and $5 mln

* Company projects year-end ARR of $55 mln to $65 mln

Result Drivers

* COST SAVINGS - Achieved positive adjusted EBITDA through cost savings efforts

* DEBT REFINANCING - One-time gain on extinguishment of debt contributed to positive net income

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $38.40 $32.60

Revenue mln mln (3

Analysts

)

Q2 Net $202.50

Income mln

Q2 $3.80

Adjusted mln

EBITDA

Q2 Gross 33.0%

Margin

Q2 49.0%

Adjusted

Gross

Margin

Q2 Order $26.80

Backlog mln

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the renewable energy equipment & services peer group is "buy."

* Wall Street's median 12-month price target for Stem Inc ( STEM ) is $7.50, about 55.3% below its August 6 closing price of $11.65

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)