U.S.-based smart energy storage company Stem reported a revenue of $47.2 million in the fourth quarter (Q4) of 2025, a year-over-year (YoY) decline of 15.4% from $55.8 million.

Net profit stood at a negative $16 million, improving 68.7% YoY from a negative $51.1 million.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 31% to $5.5 million from $4.2 million in Q4 2024.

Stem’s revenue rose 31% YoY to $38.2 million in Q3 2025, from $29.3 million. However, revenue fell short of analysts’ expectations by $260,000.

Earnings per share (EPS) came in at a negative $1.85, beating analyst expectations by $0.11. The company said expansion into the utility-scale market, both domestically and internationally, gained meaningful traction in the fourth quarter, with utility-scale bookings increasing 10% sequentially. Notably, nearly all fourth-quarter utility-scale bookings were driven by international solar projects, underscoring growing demand in global markets.

Full Year 2025

Stem’s revenue for the full year 2025 rose 8.1% YoY to $156.3 million from $144.6 million.

Net profit stood at $137.8 million, increasing 116.14% YoY from a negative $854 million.

Adjusted EBITDA rose 129% to $6.7 million from a negative $22.8 million in 2024.

Earnings per share came in at $16.52, up from a negative $105.8 in the previous year.

Arun Narayanan, Chief Executive Officer at Stem, said, “In 2025, we substantially expanded gross margins and considerably reduced our operating expenses. We achieved three consecutive quarters of positive adjusted EBITDA, resulting in our first-ever full-year positive adjusted EBITDA of $7 million. We also achieved positive operating cash flow for the full year 2025, another first and major accomplishment in the company’s history.”

Outlook

In 2026, the company expects to earn $140 million to $190 million in revenue. Of the total, $130 million to $150 million is expected from software, edge hardware, and services, and up to $40 million from battery hardware resale.

Stem expects an adjusted EBITDA of $10 million to $15 million in 2026.

Narayanan said, “In 2026, we are focused on continuing to strengthen our core business while developing new products and offerings, driving operational leverage, and building the foundation for accelerated growth in 2027 and beyond.”

He said the domestic commercial and industrial market is expected to grow moderately in 2026. “But this is a stable, high-retention base that continues to generate recurring revenue.”

Operational Highlights

The company received orders worth $32.7 million in Q4, down 13% YoY from $37.6 million.

Orders for 2025 stood at $131.8 million, up 14% YoY from $115.9 million.

Stem had a contracted backlog of $21.3 million in Q4, increasing 2% from $20.9 million in the same quarter of the previous year.

Its Q4 solar operating assets under management (AUM) reached 36.1 GW, rising 21% YoY from 29.9 GW.

Energy storage operating AUM for the quarter reached 1.7 GWh, reducing slightly from 1.8 GWh in the same quarter last year.

“Expansion into the utility-scale market, both domestically and internationally, gained meaningful traction in the fourth quarter, with utility-scale bookings increasing 10% sequentially,” Narayanan said, adding that nearly all Q4 utility-scale bookings were driven by international solar projects.

In 2025, the company launched its PowerTrack energy management system (EMS) and PowerTrack Sage, an AI assistant layered on PowerTrack.

To help meet rising demand and capture a greater share of the domestic and international utility-scale storage and solar markets, Stem expects PowerTrack EMS to help differentiate it by providing solutions for both hybrid solar-plus-storage sites and standalone battery energy storage sites.

Stem secured a contract with German clean energy developer and engineering, procurement, and construction contractor Everyday to provide the PowerTrack EMS software for the latter’s 100 MWh battery storage project.

The company expects to scale the revenue from the EMS platform by 2027.

It also considers the growing data center segment a potential opportunity to expand its portfolio.

Stem said it sold or wrote off all project assets of DevCo, its project development business.