# Stem, Inc > Clarifo company profile — qualitative business description generated from > the company's filings. Financial statements, charts and ratios are > available on Clarifo (https://www.clarifo.com/en/companies/Stem, Inc). ## Overview Stem, Inc. is a U.S.-based software and services company focused on energy storage, clean energy asset management, and grid-connected optimization solutions. Its platform combines AI-enabled software, edge hardware, and professional and managed services to help asset owners and energy operators monitor, control, and optimize distributed energy resources. ## Products & services • PowerTrack™ asset monitoring and optimization software • AI-enabled energy management and analytics software • Edge hardware devices for energy sites • OEM energy storage systems and related hardware • Professional services and managed services • Project asset and advisory services - **Software subscriptions** (45%) — Recurring software fees for energy optimization, asset management, and monitoring. - **Managed and professional services** (20%) — Implementation, support, advisory, and ongoing services tied to customer deployments. - **Hardware sales** (30%) — Sales of OEM energy storage systems and edge hardware devices. - **Project assets and other revenue** (5%) — Project asset sales, utility incentives, and other ancillary revenue streams. - PowerTrack™ asset monitoring and optimization software - AI-enabled energy management and analytics software - Edge hardware devices for energy sites - OEM energy storage systems and related hardware - Professional services and managed services - Project asset and advisory services ## Customers Stem sells to asset owners, operators, developers, and other energy stakeholders that need software and hardware to manage clean energy portfolios. Customers buy the platform to improve visibility, optimize dispatch and performance, and support the operation of storage and distributed energy assets. The company has historically depended on a relatively small number of significant customers, so contract timing and retention matter materially. - **Asset owners** (primary) — Buy monitoring and optimization software to improve performance and visibility across energy assets. - **Energy operators** (primary) — Use software, edge devices, and services to run storage and distributed energy systems. - **Developers and project stakeholders** (secondary) — Purchase advisory, project asset, and deployment-related services for clean energy projects. - **Subscription customers** (primary) — Renew recurring software and service contracts tied to PowerTrack and related offerings. - Asset owners using software to monitor and optimize energy portfolios - Operators of storage and distributed energy assets - Developers and project stakeholders needing deployment support - Customers buying edge hardware and storage systems with software - Subscribers renewing PowerTrack-enabled services over contract terms ## Geography Stem describes itself as a global business, with customers and operations spanning multiple geographies. The company sources components from both domestic and international vendors, so its operating footprint is exposed to logistics, tariffs, and supply-chain conditions across regions. Geography matters because grid interconnection, permitting, and utility relationships are local, which can affect deployment timing and customer adoption. - Headquartered in the United States - Operates as a global business with multi-region customer exposure - Uses domestic and international suppliers for hardware components - Customer deployments depend on local grid interconnection and utilities - Tariffs and shipping disruptions can affect hardware costs and delivery ## Strategy Stem's strategy is centered on expanding AI-enabled software, edge, and services while reducing reliance on battery resale activity. The company is also prioritizing operational simplification, customer retention, and more disciplined spending so it can scale recurring software and service revenue. These priorities are intended to strengthen the mix of revenue and improve the durability of the business model. - **Grow software and services revenue** (medium-term) — Recurring software and service revenue is more scalable than hardware resale activity. - **Reduce reliance on battery resales** (short-term) — Lower dependence on lower-quality, less recurring revenue streams improves business mix. - **Improve operating efficiency** (short-term) — A leaner cost structure supports scaling and helps absorb contract timing volatility. - **Strengthen customer base and renewals** (medium-term) — Retention and contract renewals are critical for recurring revenue visibility. - Shift mix toward AI-enabled software and services - Reduce dependence on battery resales and hardware-heavy activity - Improve customer retention and subscription renewals - Simplify operations and align processes around the new model - Control spending while investing in software and go-to-market ## Risks Stem faces execution risk as it transitions from a hardware- and battery-resale-heavy model toward software and services. Its results are also exposed to customer concentration, subscription renewals, supplier disruptions, interconnection delays, and regulatory or permitting constraints tied to energy infrastructure. Because the business combines software, hardware, and project-based delivery, revenue and margins can vary materially with contract timing and deployment conditions. - **Strategy execution risk** [high] — The company is changing its operating model and may not realize expected benefits. - **Customer concentration** [high] — A small number of customers have historically accounted for a material portion of revenue. - **Subscription renewal risk** [high] — Recurring revenue depends on customers continuing and expanding subscriptions. - **Supply chain and tariff risk** [medium] — Hardware depends on domestic and international suppliers and is sensitive to tariffs and logistics. - **Interconnection and permitting delays** [medium] — Energy storage installations require utility approvals and grid connection. - Transition away from battery resales can disrupt revenue and operations - Small number of customers can create concentration and renewal risk - Hardware supply chains are exposed to tariffs, logistics, and shortages - Grid interconnection and utility approvals can delay customer deployments - Software defects, data security, and IP protection remain key technology risks ## Accounting Revenue recognition is important because Stem sells a mix of recurring software, services, and point-in-time hardware deliveries, each with different timing. The company also has judgment-heavy estimates around asset impairments, fair value of debt, and restructuring-related costs, which can materially affect reported results and comparability across periods. Quarterly results may be volatile because contract timing, hardware delivery, and project execution can shift revenue between periods. - **Revenue recognition** — Affects revenue timing, deferred revenue, and quarterly comparability - **Asset impairment** — Can create material non-cash charges - **Fair value of debt** — Affects debt valuation disclosures and interest-related accounting - **Restructuring costs** — Impacts operating expenses and period-to-period comparability - ASC 606 timing differs for software, services, and hardware deliveries - Deferred revenue can build before hardware is delivered or services begin - Asset impairment estimates affect energy storage systems and project assets - Level 3 fair value estimates are used for senior secured notes - Restructuring costs and contract timing can create quarter-to-quarter volatility --- *Last updated: 2026-09-24T11:16:14.263478+00:00*