Stem stock reports Q2 margin gains and reaffirms guidance

Published on 10/06/2026 at 00:00 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Stem stock was last at USD 4.25 on October 5, 2026, while Q2 revenue fell 12 percent to USD 33.7 million. Adjusted EBITDA rose 63 percent to USD 6.2 million.

STEM, US85859N3008, Illustration mit AI erstellt.

Stem stock (ISIN US85859N3008) was last at USD 4.25 on the NYSE on October 5, 2026 at 4:00 p.m. ET, down 0.23 percent from the prior close. The energy software company enters the next reporting cycle after a second quarter in which margins and adjusted profitability improved even as revenue declined.

Q2 revenue falls while margins improve

According to StockTitan, Stem reported Q2 2026 revenue of USD 33.7 million for the quarter ended June 30, 2026, down 12 percent from USD 38.4 million in the prior-year quarter. Software, services and edge hardware revenue reached USD 33.4 million, up 1 percent year over year, with PowerTrack software revenue growing 11 percent.

The earnings mix was more favorable. GAAP gross profit rose to USD 13.9 million, lifting gross margin to 41 percent from 33 percent, while adjusted EBITDA reached USD 6.2 million, up 63 percent from USD 3.8 million and marking a fifth consecutive quarter of positive adjusted EBITDA, StockTitan reported.

Guidance keeps the software thesis alive

Stem also reported bookings of USD 36.8 million in Q2 2026, up 39 percent from the prior quarter, while contracted backlog rose 18 percent to USD 27.1 million. Annual recurring revenue reached USD 62.4 million, and contracted annual recurring revenue stood at USD 69.0 million, according to StockTitan.

The company reaffirmed full-year 2026 guidance for revenue of USD 140-190 million, non-GAAP gross margin of 40-50 percent, adjusted EBITDA of USD 10-15 million, operating cash flow of USD 0-10 million and year-end ARR of USD 65-70 million. For investors, the central test is whether recurring software growth can offset weaker hardware and managed-services revenue.

Analysts see a higher target

StockAnalysis reports a Hold consensus from 6 analysts and an average 12-month price target of USD 7.45. The same source lists a recent UBS upgrade to Buy from Neutral with an unchanged USD 7.00 target, while the latest quarterly figures combine a revenue decline with a 63 percent adjusted EBITDA increase.

Stem stock stays near its yearly low

Stem stock was last at USD 4.25 on the NYSE on October 5, 2026 at 4:00 p.m. ET, with a session range of USD 4.13 to USD 4.30 and a 52-week range of USD 3.70 to USD 32.23. Its market capitalization was USD 38.1 million and volume was 101,897 shares.