Stem, Inc. ( (STEM) ) has released its Q2 earnings. Here is a breakdown of the information Stem, Inc. presented to its investors.
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Stem, Inc., a global leader in AI-driven clean energy solutions, specializes in software and services for solar and energy storage projects. The company has reported a strong second quarter in 2025, with a 13% increase in revenue year-over-year, reaching $38.4 million. Stem achieved a positive adjusted EBITDA and a significant net income of $202.5 million, marking a substantial turnaround from a net loss in the previous year. This performance underscores the company’s successful execution of its software-centric strategy and cost-saving measures.
Key financial highlights include a GAAP gross profit increase to $12.8 million, a non-GAAP gross profit of $18.7 million, and a notable improvement in gross margins. The company also reported an annual recurring revenue (ARR) increase of 3% quarter-over-quarter, reaching $58.5 million. Stem’s strategic focus on software and services is evident in its expanded storage and solar operating assets under management, which grew significantly compared to the previous year.
Stem’s operational achievements are complemented by strategic moves such as debt refinancing, which reduced outstanding debt by $195 million and extended maturities to 2030, providing a solid financial foundation. The company also announced collaborations with major solar developers and the successful deployment of its advanced energy systems, further solidifying its position in the clean energy market.
Looking ahead, Stem remains confident in its full-year 2025 guidance, anticipating continued revenue growth and maintaining a strong focus on its AI-centric offerings. Despite external challenges such as tariffs and policy changes, the company is well-positioned to capitalize on the growing demand in the US commercial and industrial solar market.