Stem reported a revenue miss for the second quarter 2026 as the company continued its strategic pivot away from low-margin battery hardware resales. Despite the lower top-line figure, the shift toward higher-margin software and services resulted in record non-GAAP gross margins and an earnings per share result that significantly exceeded analyst expectations.
Key Highlights
- Record non-GAAP gross margins reached 55%, up from 49% in the prior-year period, driven by a higher mix of software and services.
- Achieved a fifth consecutive quarter of positive adjusted EBITDA at $6.2 million, representing a 63% increase year-over-year.
- Software, services, and edge hardware revenue rose to $33.4 million, representing nearly 99% of total quarterly revenue.
- Bookings increased 39% sequentially to $36.8 million, while contracted backlog grew 18% from the end of the first quarter to $27.1 million.
- Reaffirmed full-year 2026 guidance, including projected adjusted EBITDA of $10 million to $15 million and revenue between $140 million and $190 million.