Achieved strong GAAP and non-GAAP gross margins
First quarter of positive operating cash flow in company history
Increased ARR by 8% sequentially to
Implemented targeted workforce reductions, driving estimated
Reaffirming full year 2025 guidance across all metrics
First Quarter 2025 Financial and Operating Highlights
Financial Highlights
-
Revenue of
$32.5 million , up 27% from$25.5 million in 1Q24 -
GAAP gross profit of
$10.5 million , up from$(24.2) million in 1Q24 -
Non-GAAP gross profit of
$14.8 million up from$13.8 million in 1Q24 - GAAP gross margin of 32%, up from (95)% in 1Q24
- Non-GAAP gross margin of 46%, up from 24% in 1Q24
-
Net loss of
$25.0 million versus net loss of$72.3 million in 1Q24 -
Adjusted EBITDA of
$(4.6) million versus$(12.2) million in 1Q24 -
Operating cash flow of
$8.5 million versus$(0.6) million in 1Q24 -
Ended 1Q25 with
$58.6 million in cash & cash equivalents, up$2.3 million versus$56.3 million at end of 4Q24
Operating Highlights*
-
Bookings of
$34.5 million versus$37.6 million in 4Q24 -
Contracted backlog of
$25.3 million , up 21% from end of 4Q24 - Storage operating assets under management (“AUM”) of 1.6 gigawatt hours (“GWh”), up 100% from the end of 1Q24 and down (11)% from the end of 4Q24
- Solar operating AUM of 32.4 gigawatts (“GW”), up 20% from end of 1Q24 and up 8% from end of 4Q24
-
Contracted annual recurring revenue (“CARR”) of
$69.0 million , up 7% from the end of 4Q24 -
Annual recurring revenue (“ARR”) of
$56.9 million , up 8% from end of 4Q24
“We made meaningful progress advancing our strategic priorities in the first quarter, especially in our software-related businesses,” said
“The first quarter of 2025 showed strong execution of our strategic initiatives and demonstrates that we are steering Stem in the right long-term direction,” said
|
____________________________________ |
|
* The definitions of bookings, contracted backlog, and CARR have been revised versus prior period disclosure. Thus, related 4Q24 operating metrics in this press release have been recalculated under the revised definitions to achieve a more accurate comparison. See table titled “Key Financial Results and Operating Metrics” for these new definitions. |
|
Key Financial Results and Operating Metrics |
||||||||
|
($ in millions, unless otherwise noted): |
||||||||
|
|
Three Months Ended |
|||||||
|
|
2025 |
|
2024 |
|||||
|
Key Financial Results(1) |
|
|
|
|||||
|
Revenue |
$ |
32.5 |
|
|
$ |
25.5 |
|
|
|
GAAP Gross Profit (Loss) |
$ |
10.5 |
|
|
$ |
(24.2 |
) |
|
|
GAAP Gross Margin (%) |
|
32 |
% |
|
|
(95 |
)% |
|
|
Non-GAAP Gross Profit* |
$ |
14.8 |
|
|
$ |
13.8 |
|
|
|
Non-GAAP Gross Margin (%)* |
|
46 |
% |
|
|
24 |
% |
|
|
Net Loss |
$ |
(25.0 |
) |
|
$ |
(72.3 |
) |
|
|
Adjusted EBITDA* |
$ |
(4.6 |
) |
|
$ |
(12.2 |
) |
|
|
|
|
|
|
|||||
|
Key Operating Metrics |
|
|
|
|||||
|
Bookings(2) |
$ |
34.5 |
|
|
|
— |
|
|
|
Contracted Backlog(3)** |
$ |
25.3 |
|
|
|
— |
|
|
|
Storage Operating AUM (in GWh)(4)** |
|
1.6 |
|
|
|
0.8 |
|
|
|
Solar Operating AUM (in GW)(5)** |
|
32.4 |
|
|
|
26.9 |
|
|
|
CARR(6)** |
$ |
69.0 |
|
|
|
— |
|
|
|
ARR(7)** |
$ |
56.9 |
|
|
$ |
45.1 |
|
|
|
(1) As previously disclosed revenue, gross profit (loss), and net loss were negatively impacted by a |
||||||||
|
(2) Redefined versus prior periods. Beginning with our Q1 2025 Quarterly Report on Form 10-Q, the Company is redefining “Bookings” as the total value of executed purchase orders. Previously this metric included all relevant executed contracts, regardless of whether or not a related purchase order had been executed. |
||||||||
|
(3) Redefined versus prior periods. Beginning with our Q1 2025 Quarterly Report on Form 10-Q, the Company is redefining “Contracted Backlog” as the total value of hardware and non-recurring services bookings with executed purchase orders in dollars, as of a specific date. Previously, this metric included the total contract value of hardware, software and services contracts recognized ratably over the contract period, regardless of whether or not a related purchase order had been executed. |
||||||||
|
(4) New metric, introduced in our Q1 2025 Quarterly Report on Form 10-Q. Represents total GWh of energy storage systems in operation. Contracted storage AUM from prior periods has been replaced with this metric. |
||||||||
|
(5) Total GW of solar systems in operation. |
||||||||
|
(6) Contracted Annual Recurring Revenue (“CARR”): Redefined versus prior periods. Beginning with our Q1 2025 Quarterly Report on Form 10-Q, the Company is redefining CARR as the annualized value from Stem customer subscription contracts with executed purchase orders signed in the period for systems that are not yet operating and all operating Stem customer subscription contracts, including solar software, storage software & recurring managed services, and some recurring professional services contracts. Previously, this metric included the annualized value from all executed Stem customer subscription contracts, regardless of whether or not a related purchase order had been executed. |
||||||||
|
(7) Annual Recurring Revenue (“ARR”): New metric, introduced in our Q1 2025 Quarterly Report. Annualized value from operating customer subscription contracts, including solar software, storage software & recurring managed services, and any recurring professional services contracts. |
||||||||
|
*Non-GAAP financial measures. Adjusted EBITDA and non-GAAP gross profit and margin, both for the three months ended |
||||||||
|
** At period end. |
||||||||
First Quarter 2025 Financial and Operating Results
Financial Results
Revenue for the first quarter of 2025 increased 27% year-over-year to
GAAP gross profit (loss) was
Non-GAAP gross profit was
Net loss was
Adjusted EBITDA was
The Company ended the first quarter of 2025 with
Operating Results
The definitions of bookings, contracted backlog, and CARR have been revised versus prior periods.
Contracted backlog was
Bookings were
Storage operating AUM decreased 11% sequentially to 1.6 GWh for the first quarter of 2025 due to the removal of PowerBidder Pro contracts. Solar operating AUM increased 8% sequentially to 32.4 GW for the first quarter of 2025 driven by system activations.
CARR increased 7% sequentially to
ARR increased 8% sequentially to
The following table provides a summary of backlog at the end of the first quarter of 2025, compared to backlog at the end of the fourth quarter of 2024 ($ in millions):
|
End of 4Q24 |
$ |
20.9 |
|
|
|
Add: Bookings |
|
18.2 |
|
|
|
Less: Hardware revenue |
|
(14.3 |
) |
|
|
Project and professional services revenue |
|
(1.7 |
) |
|
|
Amendments/Cancellations |
|
2.2 |
|
|
|
End of 1Q25 |
$ |
25.3 |
|
Outlook
The Company is reaffirming its full year 2025 guidance as follows ($ millions, unless otherwise noted):
|
|
Previous |
|
|
Revenue |
|
|
|
Software, edge hardware, & services |
|
|
|
Battery hardware resale |
Up to |
|
|
|
|
|
|
Non-GAAP Gross Margin (%)* |
30% - 40% |
|
|
|
|
|
|
Adjusted EBITDA |
|
|
|
|
|
|
|
Operating Cash Flow |
|
|
|
|
|
|
|
Year end ARR** |
|
|
*See the section below titled “Reconciliations of Non-GAAP Financial Measures” for information regarding why Stem is unable to reconcile Non-GAAP Gross Margin and Adjusted EBITDA guidance to their most comparable financial measures calculated in accordance with GAAP. |
|
** See below for definitions. |
Business Updates
-
On
January 16, 2025 , the Company’s Board of Directors (the “Board”) appointedArun Narayanan as Chief Executive Officer, effectiveJanuary 27, 2025 . Effective as of that date,David Buzby stepped down as Interim CEO and Executive Chairman of the Board and re-assumed the role of Chairman of the Board. OnMarch 18, 2025 , the Board appointed software and finance veteransVasudevan Guruswamy andKrishna Shivram to the Board. -
In
April 2025 , the Company implemented an organizational realignment, including the establishment of distinct business units (“BU”), namely software, professional services, managed services and OEM hardware. Each BU has full profit and loss responsibility, which is expected to drive accountability, accelerate decision-making, unlock operational efficiencies, and optimize capital deployment across the Company. -
On
April 9, 2025 , and as part of the organizational realignment, the Company announced a reduction of its global workforce of approximately 27%, as part of the Company’s broader efforts to prioritize investments in software, reduce operating costs, increase efficiency, drive profitable growth and increase stockholder value. The Company estimates that it will incur charges of approximately$6.0 million to$6.5 million , primarily consisting of severance payments, notice period payments in applicable jurisdictions, employee benefits and related costs. The Company expects to incur these expenses primarily in the second quarter of 2025. -
On
April 23, 2025 , the Company filed its definitive proxy statement for its 2025 Annual Meeting of Stockholders (“Annual Meeting”), which will occur onJune 4, 2025 . As part of the Annual Meeting, the Company is seeking stockholder approval of a reverse stock split at a ratio of 1-for-10 up to a ratio of 1-for-20. The reverse stock split is intended to enable the Company to regain compliance with the minimum listing standards of theNew York Stock Exchange .
Some Factors Affecting our Business and Operations
As previously disclosed, the Company entered into certain contractual guarantees in 2022 and 2023 pursuant to which, if a customer were unable to install or designate hardware to a specified project within a specified period of time, the Company would be required to assist the customer in re-marketing the hardware for resale by the customer. Such guarantees provide that, in such cases, if the customer resold the hardware for less than the amount initially sold to the customer, the Company would be required to compensate the customer for any shortfall in fair value for the hardware from the initial contract price. The Company accounts for specified contractual guarantees as variable consideration. The Company reviews its estimate of variable consideration, including changes in estimates related to such guarantees, each quarter for facts or circumstances that have changed from the time of the initial estimate. As previously disclosed, the Company recorded a net revenue reduction of
There are no remaining PCGs outstanding, and the Company expects no future impact on its financial results as a result of PCGs.
The Company is subject to risk and exposure from the evolving macroeconomic, geopolitical and business environment, including uncertainty regarding the
Use of Non-GAAP Financial Measures
In addition to financial results determined in accordance with
We use these non-GAAP financial measures for financial and operational decision-making and to evaluate our operating performance and prospects, develop internal budgets and financial goals, and facilitate period-to-period comparisons. Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses and expenditures that may not be indicative of our operating performance, such as stock-based compensation and other non-cash charges, as well as discrete cash charges that are infrequent in nature. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to our historical performance and liquidity as well as comparisons to our competitors’ operating results, to the extent that competitors define these metrics in the same manner that we do. We believe these non-GAAP financial measures are useful to investors both because they (1) allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) are used by investors and analysts to help them analyze the health of our business. Our calculation of these non-GAAP financial measures may differ from similarly-titled non-GAAP measures, if any, reported by other companies. In addition, other companies may not publish these or similar measures. These non-GAAP financial measures should be considered in addition to, not as a substitute for, or superior to, other measures of financial performance prepared in accordance with GAAP. For reconciliation of adjusted EBITDA and non-GAAP gross profit and margin to their most comparable GAAP measures, see the section below entitled “Reconciliations of Non-GAAP Financial Measures.”
Definitions of Non-GAAP Financial Measures
We define adjusted EBITDA as net loss attributable to Stem before depreciation and amortization, including amortization of internally developed software, interest expense, further adjusted to exclude stock-based compensation and other income and expense items, including reduction in revenue, excess supplier costs and resulting liquidated damages, and income tax provision or benefit. The expenses and other items that we exclude in our calculation of adjusted EBITDA may differ from the expenses and other items, if any, that other companies exclude when calculating adjusted EBITDA.
We define non-GAAP gross profit as gross profit excluding amortization of capitalized software, impairments related to decommissioning of end-of-life systems, excess supplier costs and resulting liquidated damages, and reduction in revenue. Non-GAAP gross margin is defined as non-GAAP gross profit (loss) as a percentage of revenue.
In the three months ended
As stated above, in certain customer contracts, the Company previously agreed to provide a guarantee that the value of purchased hardware will not decline for a certain period of time. The Company accounted for such contractual terms and guarantees as variable consideration at each measurement date. The Company reviewed its estimate of variable consideration each quarter, including changes in estimates related to such guarantees, for facts or circumstances that changed from the time of the initial estimate. Additionally, as a result of impairment of accounts receivables related to contracts that provided for a parent company guarantee, the Company recorded a bad debt expense of
See also the section below entitled “Reconciliations of Non-GAAP Financial Measures.”
Conference Call Information
Stem will hold a conference call to discuss this earnings press release and business outlook on
About Stem
Stem (NYSE: STEM) is a global leader in AI-enabled software and services that enable its customers to plan, deploy, and operate clean energy assets. The company offers a complete set of solutions that transform how solar and energy storage projects are developed, built, and operated, including an integrated suite of software and edge products, and full lifecycle services from a team of leading experts. More than 16,000 global customers rely on Stem to maximize the value of their clean energy projects and portfolios. Learn more at stem.com.
Forward-Looking Statements
This earnings press release, as well as other statements we make, contains “forward-looking statements” within the meaning of the federal securities laws, which include any statements that are not historical facts. Such statements often contain words such as “expect,” “may,” “can,” “believe,” “predict,” “plan,” “potential,” “projected,” “projections,” “forecast,” “estimate,” “intend,” “anticipate,” “ambition,” “goal,” “target,” “think,” “should,” “could,” “would,” “will,” “hope,” “see,” “likely,” and other similar words. Forward-looking statements address matters that are, to varying degrees, uncertain, such as statements about financial and operating performance, guidance, outlook, targets and other forecasts or expectations regarding, or dependent on, our business outlook and strategy; our expectations around our new software and services-centric strategy; our ability to secure sufficient and timely inventory from suppliers; our ability to meet contracted customer demand; our ability to manage manufacturing or delivery delays; our ability to manage our supply chain and distribution channels; our joint ventures, partnerships and other alliances; forecasts or expectations regarding energy transition and global climate change; reduction of greenhouse gas (“GHG”) emissions; the integration and optimization of energy resources; our business strategies and those of our customers; our ability to retain or upgrade current customers, further penetrate existing markets or expand into new markets; the effects of natural disasters and other events beyond our control; the direct or indirect effects on our business of macroeconomic factors and geopolitical instability, such as the armed conflicts between
Source:
|
|
||||||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
|
(UNAUDITED) |
||||||||
|
(in thousands, except share and per share amounts) |
||||||||
|
|
|
|
|
|||||
|
ASSETS |
|
|
|
|||||
|
Current assets: |
|
|
|
|||||
|
Cash and cash equivalents |
$ |
58,584 |
|
|
$ |
56,299 |
|
|
|
Accounts receivable, net of allowances of |
|
34,733 |
|
|
|
59,316 |
|
|
|
Inventory |
|
8,836 |
|
|
|
10,920 |
|
|
|
Other current assets |
|
8,427 |
|
|
|
10,082 |
|
|
|
Total current assets |
|
110,580 |
|
|
|
136,617 |
|
|
|
Energy storage systems, net |
|
55,557 |
|
|
|
58,820 |
|
|
|
Contract origination costs, net |
|
9,373 |
|
|
|
9,681 |
|
|
|
Intangible assets, net |
|
141,933 |
|
|
|
143,912 |
|
|
|
Operating lease right-of-use assets |
|
11,923 |
|
|
|
12,574 |
|
|
|
Other noncurrent assets |
|
75,715 |
|
|
|
75,755 |
|
|
|
Total assets |
$ |
405,081 |
|
|
$ |
437,359 |
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) |
|
|
|
|||||
|
Current liabilities: |
|
|
|
|||||
|
Accounts payable |
$ |
19,644 |
|
|
$ |
30,147 |
|
|
|
Accrued liabilities |
|
27,849 |
|
|
|
25,770 |
|
|
|
Accrued payroll |
|
8,470 |
|
|
|
6,678 |
|
|
|
Financing obligation, current portion |
|
17,416 |
|
|
|
16,521 |
|
|
|
Deferred revenue, current portion |
|
40,115 |
|
|
|
43,255 |
|
|
|
Other current liabilities |
|
6,683 |
|
|
|
6,429 |
|
|
|
Total current liabilities |
|
120,177 |
|
|
|
128,800 |
|
|
|
Deferred revenue, noncurrent |
|
85,994 |
|
|
|
85,900 |
|
|
|
Asset retirement obligation |
|
4,263 |
|
|
|
4,203 |
|
|
|
Convertible notes, noncurrent |
|
526,503 |
|
|
|
525,922 |
|
|
|
Financing obligation, noncurrent |
|
37,136 |
|
|
|
41,627 |
|
|
|
Lease liabilities, noncurrent |
|
12,527 |
|
|
|
13,336 |
|
|
|
Other liabilities |
|
35,405 |
|
|
|
35,404 |
|
|
|
Total liabilities |
|
822,005 |
|
|
|
835,192 |
|
|
|
|
|
|
|
|||||
|
Stockholders’ (deficit) equity: |
|
|
|
|||||
|
Preferred stock, |
|
— |
|
|
|
— |
|
|
|
Common stock, |
|
17 |
|
|
|
16 |
|
|
|
Additional paid-in capital |
|
1,233,760 |
|
|
|
1,228,042 |
|
|
|
Accumulated other comprehensive income (loss) |
|
266 |
|
|
|
76 |
|
|
|
Accumulated deficit |
|
(1,651,508 |
) |
|
|
(1,626,508 |
) |
|
|
Total Stem’s stockholders’ (deficit) equity |
|
(417,465 |
) |
|
|
(398,374 |
) |
|
|
Non-controlling interests |
|
541 |
|
|
|
541 |
|
|
|
Total stockholders’ equity (deficit) |
|
(416,924 |
) |
|
|
(397,833 |
) |
|
|
Total liabilities and stockholders’ equity (deficit) |
$ |
405,081 |
|
|
$ |
437,359 |
|
|
|
|
||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||
|
(UNAUDITED) |
||||||||
|
(in thousands, except share and per share amounts) |
||||||||
|
|
Three Months Ended
|
|||||||
|
|
2025 |
|
2024 |
|||||
|
Revenue |
|
|
|
|||||
|
Services and other revenue |
$ |
17,721 |
|
|
$ |
14,840 |
|
|
|
Hardware revenue |
|
14,791 |
|
|
|
10,629 |
|
|
|
Total revenue |
|
32,512 |
|
|
|
25,469 |
|
|
|
Cost of revenue |
|
|
|
|||||
|
Cost of services and other revenue |
|
11,413 |
|
|
|
9,984 |
|
|
|
Cost of hardware revenue |
|
10,561 |
|
|
|
39,676 |
|
|
|
Total cost of revenue |
|
21,974 |
|
|
|
49,660 |
|
|
|
Gross profit (loss) |
|
10,538 |
|
|
|
(24,191 |
) |
|
|
Operating expenses: |
|
|
|
|||||
|
Sales and marketing |
|
6,792 |
|
|
|
11,126 |
|
|
|
Research and development |
|
11,328 |
|
|
|
14,136 |
|
|
|
General and administrative |
|
13,566 |
|
|
|
18,560 |
|
|
|
Total operating expenses |
|
31,686 |
|
|
|
43,822 |
|
|
|
Loss from operations |
|
(21,148 |
) |
|
|
(68,013 |
) |
|
|
Other expense, net: |
|
|
|
|||||
|
Interest expense |
|
(4,290 |
) |
|
|
(4,707 |
) |
|
|
Other income, net |
|
496 |
|
|
|
566 |
|
|
|
Total other expense, net |
|
(3,794 |
) |
|
|
(4,141 |
) |
|
|
Loss before provision for income taxes |
|
(24,942 |
) |
|
|
(72,154 |
) |
|
|
Provision for income taxes |
|
(58 |
) |
|
|
(153 |
) |
|
|
Net loss |
$ |
(25,000 |
) |
|
$ |
(72,307 |
) |
|
|
|
|
|
|
|||||
|
Net loss per share attributable to common stockholders, basic and diluted |
$ |
(0.15 |
) |
|
$ |
(0.46 |
) |
|
|
|
|
|
|
|||||
|
Weighted-average shares used in computing net loss per share to common stockholders, basic and diluted |
|
163,889,801 |
|
|
|
158,180,137 |
|
|
|
|
||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
|
(UNAUDITED) |
||||||||
|
(in thousands) |
||||||||
|
|
Three Months Ended
|
|||||||
|
|
2025 |
|
2024 |
|||||
|
OPERATING ACTIVITIES |
|
|
|
|||||
|
Net loss |
$ |
(25,000 |
) |
|
$ |
(72,307 |
) |
|
|
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|||||
|
Depreciation and amortization expense |
|
10,996 |
|
|
|
10,809 |
|
|
|
Non-cash interest expense, including interest expenses associated with debt issuance costs |
|
289 |
|
|
|
422 |
|
|
|
Stock-based compensation |
|
4,317 |
|
|
|
8,374 |
|
|
|
Non-cash lease expense |
|
679 |
|
|
|
777 |
|
|
|
Accretion of asset retirement obligations |
|
60 |
|
|
|
59 |
|
|
|
Impairment loss of project assets |
|
699 |
|
|
|
345 |
|
|
|
Net accretion of discount on investments |
|
— |
|
|
|
(29 |
) |
|
|
Provision for (recovery of) credit losses on accounts receivable |
|
78 |
|
|
|
(1,004 |
) |
|
|
Other |
|
63 |
|
|
|
(98 |
) |
|
|
Changes in operating assets and liabilities: |
|
|
|
|||||
|
Accounts receivable |
|
24,351 |
|
|
|
63,943 |
|
|
|
Inventory |
|
2,084 |
|
|
|
2,221 |
|
|
|
Other assets |
|
2,025 |
|
|
|
(746 |
) |
|
|
Contract origination costs, net |
|
(324 |
) |
|
|
(356 |
) |
|
|
Project assets |
|
(1,516 |
) |
|
|
(390 |
) |
|
|
Accounts payable |
|
(10,538 |
) |
|
|
(16,280 |
) |
|
|
Accrued expenses and other liabilities |
|
3,861 |
|
|
|
1,731 |
|
|
|
Deferred revenue |
|
(3,046 |
) |
|
|
2,715 |
|
|
|
Lease liabilities |
|
(542 |
) |
|
|
(807 |
) |
|
|
Net cash provided by (used in) operating activities |
|
8,536 |
|
|
|
(621 |
) |
|
|
INVESTING ACTIVITIES |
|
|
|
|||||
|
Proceeds from maturities of available-for-sale investments |
|
— |
|
|
|
8,250 |
|
|
|
Purchase of energy storage systems |
|
(7 |
) |
|
|
(51 |
) |
|
|
Capital expenditures on internally-developed software |
|
(3,583 |
) |
|
|
(3,463 |
) |
|
|
Purchase of property and equipment |
|
— |
|
|
|
(61 |
) |
|
|
Net cash (used in) provided by investing activities |
|
(3,590 |
) |
|
|
4,675 |
|
|
|
FINANCING ACTIVITIES |
|
|
|
|||||
| Proceeds from employee equity transactions to be remitted to tax authorities, net |
— |
5,228 |
||||||
|
Repayment of financing obligations |
|
(2,819 |
) |
|
|
(2,086 |
) |
|
|
Net cash (used in) provided by financing activities |
|
(2,819 |
) |
|
|
3,142 |
|
|
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
158 |
|
|
|
233 |
|
|
|
Net increase in cash, cash equivalents and restricted cash |
|
2,285 |
|
|
|
7,429 |
|
|
|
Cash, cash equivalents and restricted cash, beginning of year |
|
58,085 |
|
|
|
106,475 |
|
|
|
Cash, cash equivalents and restricted cash, end of period |
$ |
60,370 |
|
|
$ |
113,904 |
|
|
|
|
|
|
|
|||||
|
RECONCILIATION OF CASH, CASH EQUIVALENTS, AND RESTRICTED CASH WITHIN THE UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS TO THE AMOUNTS SHOWN IN THE STATEMENTS OF CASH FLOWS ABOVE: |
|
|
|
|||||
|
Cash and cash equivalents |
$ |
58,584 |
|
|
$ |
112,804 |
|
|
|
Restricted cash included in other noncurrent assets |
|
1,786 |
|
|
|
1,100 |
|
|
|
Total cash, cash equivalents, and restricted cash |
$ |
60,370 |
|
|
$ |
113,904 |
|
|
|
|
||||||||
|
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES |
||||||||
|
(UNAUDITED) |
||||||||
|
The following table provides a reconciliation of adjusted EBITDA to net loss: |
||||||||
|
|
Three Months Ended |
|||||||
|
|
2025 |
|
2024 |
|||||
|
|
(in thousands) |
|||||||
|
Net loss |
$ |
(25,000 |
) |
|
$ |
(72,307 |
) |
|
|
Adjusted to exclude the following: |
|
|
|
|||||
|
Depreciation and amortization (1) |
|
11,695 |
|
|
|
11,154 |
|
|
|
Interest expense |
|
4,290 |
|
|
|
4,707 |
|
|
|
Stock-based compensation |
|
4,317 |
|
|
|
8,374 |
|
|
|
Revenue reduction, net (2) |
|
— |
|
|
|
33,128 |
|
|
|
Excess supplier costs and resulting liquidated damages (3) |
|
— |
|
|
|
1,012 |
|
|
|
Provision for income taxes |
|
58 |
|
|
|
153 |
|
|
|
Other expenses (4) |
|
13 |
|
|
|
1,540 |
|
|
|
Adjusted EBITDA |
$ |
(4,627 |
) |
|
$ |
(12,239 |
) |
|
|
Adjusted EBITDA, as used in the Company's full year 2025 guidance, is a non-GAAP financial measure that excludes or has otherwise been adjusted for items impacting comparability. The Company is unable to reconcile projected adjusted EBITDA to net income (loss), its most directly comparable forward-looking GAAP financial measure, without unreasonable effort, because the Company is unable to predict with a reasonable degree of certainty its change in stock-based compensation expense, depreciation and amortization expense, and other items that may affect net loss. The unavailable information could have a significant effect on the Company’s full year 2025 GAAP financial results. |
|
(1) Depreciation and amortization includes depreciation and amortization expense, impairment loss of energy storage systems, impairment loss of project assets, and impairment loss of right-of-use assets. |
|
(2) Refer to the discussion of reduction in revenue in the definition of non-GAAP gross profit provided above. |
|
(3) Refer to the discussion of excess supplier costs in the definition of non-GAAP gross profit provided above. |
|
(4) Adjusted EBITDA for the three months ended |
|
The following table provides a reconciliation of non-GAAP gross profit and margin to GAAP gross profit (loss) and margin ($ in millions): |
||||||||
|
|
Three Months Ended |
|||||||
|
|
2025 |
|
2024 |
|||||
|
Revenue |
$ |
32.5 |
|
|
$ |
25.5 |
|
|
|
Cost of revenue |
|
(22.0 |
) |
|
|
(49.7 |
) |
|
|
GAAP gross profit (loss) |
|
10.5 |
|
|
|
(24.2 |
) |
|
|
GAAP gross margin (%) |
|
32 |
% |
|
|
(95 |
)% |
|
|
|
|
|
|
|||||
|
Non-GAAP Gross Profit |
|
|
|
|||||
|
GAAP Revenue |
$ |
32.5 |
|
|
$ |
25.5 |
|
|
|
Add: Revenue reduction, net (1) |
|
— |
|
|
|
33.1 |
|
|
|
Subtotal |
|
32.5 |
|
|
|
58.6 |
|
|
|
Less: Cost of revenue |
|
(22.0 |
) |
|
|
(49.7 |
) |
|
|
Add: Amortization of capitalized software & developed technology |
|
4.3 |
|
|
|
3.9 |
|
|
|
Add: Excess supplier costs (2) |
|
— |
|
|
|
1.0 |
|
|
|
Non-GAAP gross profit |
$ |
14.8 |
|
|
$ |
13.8 |
|
|
|
Non-GAAP gross margin (%) |
|
46 |
% |
|
|
24 |
% |
|
|
Non-GAAP gross margin as used in the Company's full year 2025 guidance, is a non-GAAP financial measure that excludes or has otherwise been adjusted for items impacting comparability. The Company is unable to reconcile projected non-GAAP gross margin to GAAP gross margin, its most directly comparable forward-looking GAAP financial measure, without unreasonable efforts, because the Company is currently unable to predict with a reasonable degree of certainty its change in amortization of capitalized software, impairments, and other items that may affect GAAP gross margin. The unavailable information could have a significant effect on the Company’s full year 2025 GAAP financial results. |
|
(1) Refer to the discussion of reduction in revenue in the definition of non-GAAP profit provided above. |
|
(2) Refer to the discussion of excess supplier costs in the definition of non-GAAP profit provided above. |
Key Definitions:
|
Item |
Definition |
|
Bookings |
Total value of executed customer purchase orders, as of the end of the relevant period (e.g. quarterly bookings or annual bookings). Customer purchase orders are typically executed 6 months ahead of installation. The booking amount includes (1) hardware revenue, which is typically recognized at delivery of the energy storage hardware and/or edge device to the customer, and (2) services revenue, which represents total nominal software and services contract value recognized ratably over the contract period. |
|
Contracted Backlog |
Total value of hardware and non-recurring services bookings with executed purchase orders in dollars, as reflected on a specific date. Backlog increases as new purchase orders are executed (bookings) and decreases as hardware is delivered and recognized as revenue and as services are provided. |
|
Storage Operating AUM |
Total GWh of energy storage systems in operation. |
|
Solar Operating AUM |
Total GW of solar systems in operation. |
|
CARR |
Annualized value from Stem customer subscription contracts with executed purchase orders signed in the period for systems that are not yet operating and all operating Stem customer subscription contracts, including solar software, storage software & recurring managed services, and some recurring professional services contracts. |
|
ARR |
Annualized value from operating customer subscription contracts, including solar software, storage software & recurring managed services, and any recurring professional services contracts. |
|
Operating Cash Flow |
Net cash provided by (used in) operating activities. Does not represent the change in balance sheet cash which will be further impacted by investing and financing activities. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250426003281/en/
Stem Investor Contacts
IR@stem.com
Stem Media Contacts
press@stem.com
Source:
