Stem reaffirms full-year 2026 revenue guidance of $140 mln to $190 mln
Company expects 2026 non-GAAP gross margin of 40% to 50%
Stem forecasts 2026 adjusted EBITDA of $10 mln to $15 mln
Overview
U.S. clean energy software firm's Q2 revenue fell 12% yr/yr, missing analyst expectations
Company posted fifth straight quarter of positive adjusted EBITDA, with improved gross margins
Stem reaffirmed full-year 2026 financial and operating guidance
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 $10.75, about 82.5% above its August 11 closing price of $5.89
Result drivers and key details
LOWER HARDWARE REVENUE - Co said revenue decline was mainly due to significantly reduced battery hardware resales and lower managed services revenue
HIGHER-MARGIN SALES MIX - Co attributed improved gross margins to increased higher-margin software, services, and edge hardware sales, and reduced lower-margin battery hardware resale and managed services revenue
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