Stem (STEM) Investor presentation summary

Company overview and strategy

• Manages over 35 GW of solar and 1.5 GWh of storage assets across 55+ countries, with 40+ million runtime hours of data leveraged for insights.

• Transitioned from a hardware-focused model to a software and services-centric strategy, emphasizing AI-driven energy intelligence and consultative services.

• PowerTrack™ software suite is widely adopted, with 90% of leading community solar asset owners and 13 of the top 15 commercial & industrial solar asset owners as clients.

• Offers end-to-end solutions including software, professional services, managed services, and integrated storage hardware.

Financial performance and guidance

• Fourth quarter 2025 revenue was $47M, down 15% YoY, but annual recurring revenue (ARR) grew 16% YoY to $61M.

• Achieved positive operating cash flow of $8M and third consecutive quarter of positive adjusted EBITDA, with $5M in 4Q25.

• Full year 2026 guidance projects total revenue of $140–$190M, with software, services, and edge hardware contributing $130–$150M.

• Non-GAAP gross margin expected between 40–50%, adjusted EBITDA of $10–$15M, and year-end ARR of $65–$70M.

Product and technology highlights

• PowerTrack™ suite provides monitoring, control, diagnostics, optimization, and integration for solar, storage, and hybrid assets.

• Managed services deliver 24x7 monitoring, real-time diagnostics, and proactive maintenance, maximizing uptime and system value.

• Edge-to-cloud platform leverages advanced analytics to drive business efficiencies and asset performance.

• Professional services support projects through all lifecycle stages, including advisory, deployment, and operational optimization.