Overview

* Stem Q3 2025 revenue grows 31% yr/yr, beating analyst expectations

* Company achieves positive adjusted EBITDA for second consecutive qtr, reflecting operational efficiency

* ARR increases 17% yr/yr, evidencing continued software-focused strategy execution

Outlook

* Stem revises 2025 revenue guidance to $135 mln-$160 mln

* Non-GAAP gross margin guidance raised to 40%-50% for 2025

* Stem maintains year-end ARR guidance at $55 mln-$65 mln

Result Drivers

* SOFTWARE STRATEGY - Stem's software-focused strategy led to a 17% yr/yr increase in ARR, highlighting successful execution

* HARDWARE MARGINS - Improved hardware margins contributed to higher gross profit and margin

* COST REDUCTION - Lower operating expenses from cost reduction initiatives improved adjusted EBITDA

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $38.20 $36.80

Revenue mln mln (3

Analysts

)

Q3 Net -$23.80

Income mln

Q3 $2 mln

Adjusted

EBITDA

Q3 Gross 35%

Margin

Q3 47%

Adjusted

Gross

Margin

Q3 Order $22.20

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", 7 "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 $14.50, about 61.8% below its October 28 closing price of $23.46

Press Release:

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(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.)