Stem Reports Q1 Net Loss, Achieves Positive Adjusted EBITDA & Reaffirms Full-Year Guidance

summarizeSummary

Stem, Inc. reported a net loss of $18.9 million for Q1 2026, an improvement from the prior year, while achieving its fourth consecutive quarter of positive Adjusted EBITDA and reaffirming its full-year 2026 guidance.

check_boxKey Events

• Q1 2026 Financial Results

  Reported a net loss of $18.9 million, an improvement from a $25.0 million net loss in Q1 2025.

• Operational Profitability Achieved

  Achieved positive Adjusted EBITDA of $2.0 million, marking the fourth consecutive quarter of positive Adjusted EBITDA, significantly up from $(4.6) million in Q1 2025.

• Revenue Mix Shift

  Total revenue decreased 11% year-over-year to $29.0 million, but software, services, and edge hardware revenue increased 4% year-over-year, driven by 16% growth in PowerTrack software revenue.

• Gross Margin Improvement

  GAAP gross margin increased to 38% from 32% in Q1 2025, and Non-GAAP gross margin rose to 52% from 46%, reflecting reduced costs and a shift to higher-margin sales.

auto_awesomeAnalysis

The company's first-quarter results present a mixed financial picture. While a significant GAAP net loss of $18.9 million was reported, representing a substantial portion of the company's market capitalization, this was an improvement from the prior year. More importantly, Stem achieved its fourth consecutive quarter of positive Adjusted EBITDA, signaling operational discipline and a successful pivot towards higher-margin software and services revenue, which saw a 4% year-over-year increase. The reaffirmation of full-year 2026 guidance across all metrics, despite the net loss, indicates management's confidence in their strategic execution and future outlook. Investors should monitor the company's ability to translate improved operational metrics into GAAP profitability and positive operating cash flow in subsequent quarters.