Stem, Inc. reported a total revenue of $156.3 million for the fiscal year ending December 31, 2025, marking an 8% increase from $144.6 million in 2024. The company's net income for the year was $137.8 million, a significant turnaround from a net loss of $854.0 million in the previous year. This improvement was largely attributed to a strategic shift towards software and services, which has begun to yield positive results despite ongoing challenges in hardware sales. The company’s accumulated deficit as of December 31, 2025, stood at approximately $1.49 billion.
The transition to a software-centric business model has led to notable operational changes, including a 27% reduction in the global workforce announced in April 2025, which resulted in $6.1 million in restructuring costs. The company has also seen a decrease in hardware revenue, which fell to $68.6 million from $76.8 million in 2024, as it de-emphasizes battery resales in favor of higher-margin software and service offerings. Services and other revenue, however, increased by 29% to $87.7 million, driven by growth in solar services subscriptions.
In terms of operational metrics, Stem reported a contracted backlog of $21.3 million and annual recurring revenue (ARR) of $61.1 million as of December 31, 2025. The company managed 36.1 gigawatts (GW) of solar assets and 1.7 gigawatt-hours (GWh) of operating energy storage assets, reflecting its significant presence in the clean energy sector. The workforce reduction and strategic realignment are expected to enhance operational efficiency and profitability in the long term.
Looking ahead, Stem's management expressed cautious optimism about the future, emphasizing the need for continued investment in software development and customer acquisition to sustain growth. The company is also navigating regulatory changes, particularly those introduced by the One Big Beautiful Bill Act (OBBB) of 2025, which has altered the landscape for clean energy tax credits. The ongoing evaluation of these changes will be crucial for the company’s financial planning and operational strategy moving forward.
About STEM, INC.
Stem, Inc. is a global provider of AI-driven software and services for renewable energy asset management, focusing on solar and energy storage projects. Its solutions optimize performance, enhance grid stability, and support energy market participation for asset owners, developers, and utilities. The company leverages proprietary AI platform Athena, offering software, hardware, and advisory services to maximize the value and efficiency of clean energy assets.
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