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/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $38.20 mln | $36.80 mln (3 Analysts) |
Q3 Net Income | -$23.80 mln | ||
Q3 Adjusted EBITDA | $2 mln | ||
Q3 Gross Margin | 35% | ||
Q3 Adjusted Gross Margin | 47% | ||
Q3 Order Backlog | $22.20 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 is $14.50, about 61.8% below its October 28 closing price of $23.46
Press Release: ID:nBw8xZ2Pfa
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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.)