AI Analysis | Feedback

• DeepMind for battery energy storage, applying AI to optimize how electricity is stored and used on the grid.
• ServiceNow for energy storage operations, offering an AI-driven platform to manage and optimize large-scale batteries.
• The AI brains behind large-scale energy storage, like the smart software optimizing Tesla's Megapack, but as an independent platform.

AI Analysis | Feedback

• Athena Smart Energy Software: An AI-driven analytics platform that optimizes energy storage systems in real-time to reduce energy costs and enhance grid resilience.
• Energy Storage Hardware: Integrated battery storage solutions, typically including batteries, inverters, and other balance-of-system components for commercial, industrial, and utility-scale applications.
• Managed Services: Comprehensive management and optimization of energy storage assets for customers, leveraging their software and hardware expertise to maximize value and performance.

AI Analysis | Feedback

• Lightsource BP: A global solar energy developer. Stem has partnered with Lightsource BP on significant solar-plus-storage projects. Lightsource BP is a subsidiary of BP plc (symbol: NYSE: BP).
• Ameresco, Inc.: An energy efficiency and renewable energy company that integrates Stem's solutions into its projects for various clients. Ameresco is a public company (symbol: NYSE: AMRC).
• Key Capture Energy: A leading independent developer, owner, and operator of energy storage projects. While not publicly traded, Key Capture Energy is a prominent customer and partner for Stem's technology deployments.

AI Analysis | Feedback

• CATL (Contemporary Amperex Technology Co. Limited) (Symbol: 300750.SZ)
• BYD (BYD Company Limited) (Symbol: 1211.HK)
• Sungrow (Sungrow Power Supply Co., Ltd.) (Symbol: 300274.SZ)

AI Analysis | Feedback

John Carrington, Chief Executive Officer and Director

John Carrington has a distinguished track record with over 25 years of leadership in technology, energy, and industrial companies. He previously served as CEO of MiaSole, a thin-film solar company, where he oversaw its sale to Hanergy in December 2012. Prior to MiaSole, he was Executive Vice President of Marketing and Business Development at First Solar, where he grew company revenue significantly. Carrington also spent over 16 years at General Electric, most recently as General Manager and Chief Marketing Officer of GE Plastics. He was part of the executive team that executed the $12 billion sale of GE Plastics to SABIC in 2007.

Doran Hole, Chief Financial Officer & Executive Vice President

Doran Hole was appointed Chief Financial Officer and Executive Vice President, effective September 2, 2024. He brings over 25 years of global finance and management experience, particularly in the clean technology industry. Prior to joining Stem, Mr. Hole served as Executive Vice President and Chief Financial Officer of Ameresco, a leading independent clean technology integrator.

Michael Carlson, Chief Operating Officer

Michael Carlson serves as the Chief Operating Officer at Stem. He is responsible for the company's operational aspects.

Saul Laureles, Chief Legal Officer and Secretary

Saul Laureles holds the position of Chief Legal Officer and Secretary at Stem. He oversees the legal and corporate governance functions for the company.

Larsh Johnson, Chief Technology Officer

Larsh Johnson serves as the Chief Technology Officer of Stem, Inc., having joined the company in January 2016. He is responsible for the company's technological direction and innovation.

AI Analysis | Feedback

The key risks to Stem Inc.'s business include the following:

1. Challenges in Implementing New Software and Services-Centric Strategy: Stem is in the midst of a significant strategic transition, shifting its business model from one heavily reliant on hardware sales to an AI-driven software and services platform. This pivot entails substantial operational changes, a planned reduction in hardware resale revenue, potential short-term disruptions in operations, and the critical need to effectively scale its software and services offerings. The success of this new strategy is paramount, and any failure to implement it effectively could materially and adversely impact the company's business, financial condition, and overall results of operations.
2. Financial Instability and Uncertainty on Path to Consistent Profitability: Despite recent operational improvements, including positive Adjusted EBITDA and cash flow, Stem Inc. has a history of net losses and has not yet achieved net-income profitability. The company faces ongoing financial instability, characterized by wide revenue and EBITDA guidance ranges, which introduces uncertainty about its ability to achieve consistent, positive earnings necessary to justify its current valuation. The existence of a negative book value also highlights a challenging financial foundation.
3. Exposure to Macroeconomic and Regulatory Headwinds: Stem Inc. is vulnerable to broader macroeconomic factors, including inflationary pressures, rising interest rates, and the potential for economic slowdowns or recessions. Geopolitical instability also poses a risk. Furthermore, the company's business is susceptible to changes in regulatory and political policies, particularly those impacting the clean energy sector, such as modifications to tax credits or other incentives, which could diminish its market potential and financial performance.

AI Analysis | Feedback

The increasing vertical integration and sophistication of AI-driven optimization software platforms offered by major energy storage hardware manufacturers (e.g., Fluence's Fluence OS, Tesla's Autobidder). These companies are developing robust in-house software to complement their hardware, providing customers with integrated "one-stop shop" solutions that can compete directly with Stem's hardware-agnostic Athena® software, potentially eroding Stem's market differentiation and share for independent AI-driven energy optimization.

AI Analysis | Feedback

• The **global stationary energy storage market** was valued at USD 75.66 billion in 2023 and is projected to grow to USD 231.06 billion by 2032, exhibiting a Compound Annual Growth Rate (CAGR) of 12.45% during the forecast period.
• The **U.S. stationary energy storage market** is projected to reach an estimated value of USD 49.11 billion by 2032.
• The **North America energy storage systems market** was valued at USD 68.9 billion in 2023 and is projected to grow at a CAGR of 16.1% between 2024 and 2032.
• The **global battery energy storage market** is estimated at USD 50.81 billion in 2025 and is projected to reach USD 105.96 billion by 2030, at a CAGR of 15.8% during the forecast period.
• The **U.S. battery energy storage system market** was estimated at USD 711.9 million in 2023 and is expected to reach USD 4.4 billion by 2030, growing at a CAGR of 30.5% from 2024 to 2030.

AI Analysis | Feedback

• Growth in Software and Services Revenue: Stem is emphasizing the expansion of its high-margin software and services offerings, particularly through its PowerTrack suite. This includes increased activations of storage software and the continued strong performance of PowerTrack. The company anticipates strong growth in software and edge device sales, with software revenue often boasting gross margins of 70% to 80%, and professional services tied to PowerTrack installation and commissioning at 50% gross margins. Stem’s Q1 2025 results showed software revenue up 17% year-over-year, and Q2 2025 saw solar software grow 20% year-over-year and storage software and managed service revenue increase by an impressive 53% year-over-year. The launch of new products like PowerTrack EMS for hybrid and standalone storage projects is expected to further contribute to this growth, expanding the total addressable market and unlocking utility-scale and international opportunities.
• Increase in Annual Recurring Revenue (ARR): A significant driver of future revenue is the sustained growth in Annual Recurring Revenue (ARR). Stem has consistently reported increases in ARR, driven by system activations and higher renewals. In Q3 2025, ARR grew 17% year-over-year to $60 million. The company’s 2025 guidance projects ARR to be between $55 million and $65 million, reflecting a strong base of recurring revenue. This recurring revenue model is central to the company's long-term financial stability and growth.
• Expansion into New Markets and Customer Segments: Stem is actively pursuing expansion into new market segments, including utility-scale solar and storage, and international markets. The launch of PowerTrack EMS is specifically noted as a catalyst for unlocking utility-scale and international market opportunities. This strategic move broadens Stem's customer base beyond its traditional commercial and industrial clients, independent power producers, and renewable developers, positioning the company to benefit from rising energy demand.
• Strategic Reduction in Hardware Resales and Focus on Higher-Margin Offerings: While not a direct growth driver in terms of increased volume of all hardware, Stem's strategy involves a deliberate reduction in lower-margin battery hardware resales, shifting towards higher-margin edge hardware and software. This strategic pivot aims to improve overall gross margins and profitability, ensuring that the hardware revenue that remains contributes more significantly to the bottom line. The company expects battery resale revenue to be heavily weighted towards the back end of the year with gross margins in the 5% to 10% range, while software, edge device, and services revenue are projected to have significantly higher gross margins. This focus allows Stem to maximize the profitability of its hardware-related transactions, often through cross-selling with its software solutions.

AI Analysis | Feedback

Share Repurchases

• Stem, Inc. has not reported any significant share repurchases over the last 3-5 years, with a buyback yield consistently at 0.00% as of October 30, 2025.
• The company's 2025 10-K filing explicitly stated "Purchases of Equity Securities by the Issuer and Affiliated Purchasers. None."

Share Issuance

• Stem became a publicly traded company in April 2021 through a merger with Star Peak Energy Transition Corp., which involved the issuance of approximately 65,000,000 shares of common stock.
• In June 2025, Stem implemented a 1-for-20 reverse stock split, reducing the number of issued and outstanding shares from approximately 167 million to about 8.4 million to comply with NYSE listing requirements.
• The company entered into privately negotiated exchange agreements in June 2025 to exchange its 2028 and 2030 Green Convertible Senior Notes for new Senior Secured PIK Toggle Notes due 2030 and warrants for common stock.

Inbound Investments

• The SPAC merger in April 2021, which brought Stem public, resulted in over $500 million of cash on the balance sheet, including a $225 million private investment in public equity (PIPE) from institutional investors.

Outbound Investments

• Stem acquired AlsoEnergy, a solar asset management software provider, for $695 million in a stock and cash transaction. The agreement was reached in December 2021 and completed in Q1 2022, with about 75% of the consideration paid in cash and 25% in Stem common stock.

Capital Expenditures

• Stem's capital expenditures were reported as $10.17 million in 2021, $20.87 million in 2022, $18.24 million in 2023, and $11.77 million in 2024.
• Expected capital expenditures are $12.53 million for 2025, $15.26 million for 2026, and $14.32 million for 2027.
• A significant portion of capital expenditures is focused on internally-developed software, such as the Athena platform (now PowerTrack Optimizer), to enhance its AI-driven energy intelligence and optimization capabilities.