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EarningsQ2 2026 Earnings Report
STEM Q2 2026 EPS Results
Actual EPS-$1.58
Consensus EPS-$1.75
Beat/MissBeat by +$0.17
One Year Ago EPS-$1.79
STEM Q2 2026 Revenue Results
Actual Revenue$33.65M
Expected Revenue$36.65M
Beat/MissMissed by -$2.99M
YoY Revenue Growth-12.30%
Earnings Announcement Details
QuarterQ2 2026
Date08/12/2026
TimeAfter Close
Conference CallWednesday, August 12, 2026
STEM Upcoming Earnings
Stem Inc's next earnings date is estimated for October 29, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
STEM Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call highlights a clear operational inflection: record non-GAAP margins (55%), five consecutive quarters of positive adjusted EBITDA with strong YoY improvement (+63%), operating cash flow turned positive, bookings and ARR growth, successful international utility-scale wins, product awards, and a new AI services launch. These positives are tempered by a 12% YoY decline in total revenue driven largely by a sharp reduction in battery hardware resale in Q2, a 34% YoY decline in managed services (driven by timing of deployments), and continued dependence on second-half battery resale timing which creates a wide full-year revenue range and potential margin mix pressure. On balance, the operational improvements, margin expansion, cash-flow inflection, product validation, and bookings momentum notably outweigh the revenue timing and mix headwinds.Company Guidance
Record Non-GAAP Gross Margin
Non-GAAP gross margin reached a record 55% in Q2 2026, up from 49% in Q2 2025 and above the company guidance range (40%–50%) for the first half, driven by a higher mix of software, services, and edge hardware versus low battery hardware resales.
Sustained Adjusted EBITDA Improvement
Adjusted EBITDA was $6.0M in Q2 2026 (an 18% adjusted EBITDA margin), up 63% YoY from $4.0M; this marked the fifth consecutive quarter of positive adjusted EBITDA. First-half adjusted EBITDA was $8M versus negative $1M in H1 2025.
Operating Cash Flow Turned Positive
Operating cash flow reached breakeven at $0.3M in Q2 2026, a sequential improvement of ~$9M and a $22M improvement versus Q2 2025 (Q2 2025 was negative $21M). Company reaffirmed full-year OCF guidance of $0–$10M.
Commercial Momentum: Bookings and Backlog Growth
Bookings were $37M in Q2, up 39% sequentially (from $27M) and ~7% YoY (from $34M). Contracted backlog rose to $27M, +18% QoQ.
PowerTrack Software and ARR Growth
PowerTrack software revenue grew 11% YoY to $11M. PowerTrack ARR was $42.8M, up 3% QoQ and 13% YoY. Total ARR was $62.4M, up 2% QoQ.
Edge Hardware Strength
Edge hardware revenue was $15M, up 22% YoY, reflecting increased utility-scale deployments and contributing to higher-margin product mix.
Utility-Scale and International Expansion
PowerTrack EMS bookings expanded across six countries on three continents. Notable wins include Granja Solar Project (Chile) with a 420 MWh battery addition and a Hungary hybridization booking (two 80 MWh batteries), and the Everyray Germany project went live.
Product and Market Validation
PowerTrack EMS won The smarter E AWARD 2026 (Smart Integrated Energy). Company launched AIONA (AI services) in June and is progressing integration of raicoon automated fault detection into PowerTrack.
Improved Cost Discipline
Cash operating expenses were sequentially flat and down 11% YoY; GAAP operating expenses declined both YoY and sequentially, with continued use of AI to drive efficiency.
Liquidity and Capital Actions
Cash and equivalents were $38.4M at quarter end (up from $36.6M). Company raised approximately $6M via its ATM equity program during the quarter.
STEM Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed