Stem, Inc. ( (STEM) ) has released its Q3 earnings. Here is a breakdown of the information Stem, Inc. presented to its investors.
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Stem, Inc. is a global leader in the energy transition sector, focusing on technology solutions that optimize clean energy assets through its integrated software suite, PowerTrack. The company operates across 55 countries, providing asset monitoring and managed services to maximize the value of energy portfolios.
In its third quarter of 2025, Stem, Inc. reported a significant 31% increase in revenue year-over-year, reaching $38.2 million. The company also achieved its second consecutive quarter of positive adjusted EBITDA, reflecting the success of its software-focused strategy. Gross margins remained strong, and the company refined its full-year financial guidance.
Key financial highlights include a GAAP gross profit of $13.5 million, up from $6.2 million in the previous year, and a net loss reduction to $23.8 million from $148.3 million. The adjusted EBITDA improved to $2.0 million, and operating cash flow turned positive at $11.4 million. The company’s ARR grew by 17% year-over-year to $60.2 million, demonstrating the effectiveness of its software-centric approach.
Stem’s strategic initiatives included expanding its Berlin operations to support utility-scale projects in the EMEA region and rebranding its flagship platform to PowerTrack Optimizer. These efforts align with its focus on software and recurring revenue streams, which are driving improved financial performance.
Looking forward, Stem’s management remains confident in the stability and growth potential of its business, supported by a diversified AI-driven platform that capitalizes on rising energy demand. The company continues to refine its guidance and is well-positioned for profitable growth.