Stem, Inc
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.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueRecurring software fees for energy optimization, asset management, and monitoring.
Implementation, support, advisory, and ongoing services tied to customer deployments.
Sales of OEM energy storage systems and edge hardware devices.
Project asset sales, utility incentives, and other ancillary revenue streams.
Products
Reported · share of revenue- Edge Hardware34.4 %
- Power Track Software24.1 %
- Managed Services19.3 %
- Project and Professional Services and Other12.7 %
- Battery Hardware Resale9.5 %
Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.
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.
Buy monitoring and optimization software to improve performance and visibility across energy assets.
Use software, edge devices, and services to run storage and distributed energy systems.
Purchase advisory, project asset, and deployment-related services for clean energy projects.
Renew recurring software and service contracts tied to PowerTrack and related offerings.
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.
Recurring software and service revenue is more scalable than hardware resale activity.
Lower dependence on lower-quality, less recurring revenue streams improves business mix.
A leaner cost structure supports scaling and helps absorb contract timing volatility.
Retention and contract renewals are critical for recurring revenue visibility.
Geography
Q1/2026Stem 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.
Share of the revenue the company reports by geography.
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 riskImpact: HighLikelihood: High
The company is changing its operating model and may not realize expected benefits.
Exposure: Software and services transition
- Subscription renewal riskImpact: HighLikelihood: High
Recurring revenue depends on customers continuing and expanding subscriptions.
Exposure: PowerTrack and related services
- Customer concentrationImpact: HighLikelihood: Medium
A small number of customers have historically accounted for a material portion of revenue.
Exposure: Large contract timing and renewals
- Supply chain and tariff riskImpact: MediumLikelihood: High
Hardware depends on domestic and international suppliers and is sensitive to tariffs and logistics.
Exposure: Battery and edge hardware components
- Interconnection and permitting delaysImpact: MediumLikelihood: Medium
Energy storage installations require utility approvals and grid connection.
Exposure: Customer project deployment timing
Accounting
Judgemental itemsSoftware subscriptions, services, and hardware are recognized differently under contract terms.
Impact: Affects revenue timing, deferred revenue, and quarterly comparability
Energy storage systems and project assets require recoverability and fair value testing.
Impact: Can create material non-cash charges
The 2030 Senior Secured Notes are valued using a model with unobservable inputs.
Impact: Affects debt valuation disclosures and interest-related accounting
Workforce and operational changes generate one-time charges and related accruals.
Impact: Impacts operating expenses and period-to-period comparability
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Last updated: 24/09/2026