Stem narrows Q4 net loss to $16M as annual revenue reaches $156M
Stem’s shares trade at 1.64x annual recurring revenue following a sustained pullback, with GAAP gross margin of 49% and non-GAAP margin of 45%. For fiscal 2025, the company reported $156 million in revenue and $137 million net income, while Q4 revenue fell 15% to $47 million and net loss narrowed to $16 million.
1. Q4 and Fiscal 2025 Financials
Stem generated $156 million in revenue and $137 million net income in fiscal 2025. In Q4, revenue declined 15% year-over-year to $47 million while net loss narrowed to $16 million from $51 million a year earlier.
2. Margins and Valuation
The company reported a GAAP gross margin of 49% and a non-GAAP gross margin of 45%, as non-hardware solutions constituted the majority of sales for the first time. Stem’s shares now trade at a 1.64x multiple to annual recurring revenue following a sustained pullback in its common shares.
3. Germany Energy Storage Deal
Stem secured agreements to deploy 100 MWh of its energy management system as utility-scale battery storage in the Kölsa and Elsterwerda regions, marking its first major European deployment.