Cash generation remains highly volatile and disconnected from reported earnings, with a 2026Q1 free cash flow burn of -$8.3M highlighting ongoing liquidity pressures.
| Cash from Operations | -9.99M | 6.86M | -36.65M | -207.38M | -106.03M | -101.27M | -33.67M | -29.68M | -2.58K |
| Operating CF Margin % | - | 4.39% | -25.35% | -44.93% | -29.21% | -79.5% | -92.74% | -169.09% | -0.04% |
| Operating CF Growth % | 100.12% | 118.72% | 82.33% | -95.58% | -4.7% | -200.75% | -13.45% | -1151102.48% | - |
| Net Income | 139.33M | 137.76M | -854.01M | -140.41M | -124.05M | -101.21M | -156.12M | -59.41M | -8.14K |
| Depreciation & Amortization | 42.65M | 44.95M | 44.99M | 46.27M | 41.07M | 24.47M | 17.74M | 13.89M | 4.9M |
| Stock-Based Compensation | 5.9M | 10.22M | 18.47M | 45.11M | 0 | 13.55M | 4.54M | 1.53M | 1.26M |
| Deferred Taxes | 141K | 0 | 0 | -335K | 0 | 10.74M | 85.72M | -1.2M | 0 |
| Other Non-Cash Items | -51.05M | -216.43M | 694.14M | -40.46M | 29.21M | 10.72M | 10.85M | 5.89M | -871 |
| Working Capital Changes | 10.09M | 30.37M | 59.77M | -117.55M | -52.26M | -59.54M | 3.6M | 9.62M | 5.57K |
| Change in Receivables | -1.61M | 17.73M | 133.06M | -80.89M | -155.82M | -48.13M | -6.99M | -5.11M | -203K |
| Change in Inventory | 3.14M | 6.33M | 2.77M | -18.29M | 18.61M | -1.88M | -17.26M | -1.55M | 1.23M |
| Change in Payables | -12.58M | -19.85M | -48.15M | -5.24M | 53.26M | 8.05M | -1.27M | 8.58M | 871 |
| Cash from Investing | -4.55M | -6.76M | -3.52M | 135.73M | -543.83M | -185.23M | -12.04M | -46.36M | -64.38M |
| Capital Expenditures | -2.27M | -6.6M | -217K | -4.14M | -20.87M | -10.17M | -12.04M | -46.36M | -55.53M |
| CapEx % of Revenue | 1.52% | 4.22% | 0.15% | 0.9% | 5.75% | 7.99% | 33.15% | 264.12% | 789.68% |
| Acquisitions | -195K | -158K | 0 | -1.85M | -532.47M | 0 | 0 | 0 | -3.59M |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | -2.08M | 0 | -11.55M | -14.01M | 0 | 0 | 0 | 0 | -5.26M |
| Cash from Financing | -7.35M | -7.41M | -8.44M | 90.24M | -9.81M | 1.03B | 40.29M | 67.2M | 162.25K |
| Debt Issued (Net) | -4.87M | -7.41M | -8.49M | 130.54M | -8.79M | 409.31M | 34.34M | 42.16M | 41.59M |
| Equity Issued (Net) | 0 | 0 | 0 | 0 | 1.28M | 148.53M | 422K | 0 | 25K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -2.48M | 0 | 56K | -40.31M | -2.3M | 469.25M | 5.53M | 25.04M | -41.45M |
| Net Change in Cash | -22M | -7.38M | -48.39M | 18.57M | -659.88M | 740.84M | -5.95M | -9.01M | -64.22M |
| Free Cash Flow | -8.38M | 6.86M | -48.42M | -225.61M | -110.13M | -111.44M | -45.71M | -76.04M | -55.53M |
| FCF Margin % | -5.61% | 4.39% | -33.49% | -48.89% | -30.34% | -87.49% | -125.89% | -433.2% | -789.71% |
| FCF Growth % | 75.26% | 114.17% | 78.54% | -104.86% | 1.17% | -143.81% | 39.89% | -36.92% | - |
| FCF per Share | -0.98 | 0.81 | -6.00 | -29.00 | -14.36 | -21.11 | -22.82 | -31.72 | -23.16 |
| FCF Conversion (FCF/Net Income) | -0.06x | 0.05x | 0.04x | 1.48x | 0.85x | 1.00x | 0.22x | 0.50x | 0.32x |
| Interest Paid | 0 | 0 | 16.2M | 14.59M | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 680K | 235K | 0 | 0 | 0 | 0 | 0 |
Liquidity and cash burn
According to recent financial disclosures, the persistent gap between net income and operating cash flow, highlighted by the 2025Q2 net income of $202.5M against an operating cash outflow of $21.3M, suggests that reported earnings are fundamentally decoupled from the company's actual ability to generate cash.
The extreme variance between GAAP net income and operating cash flow indicates that non-cash accounting adjustments are significantly distorting the perceived profitability of the firm. Investors should interpret these figures as a warning that the core business model is not yet self-funding, regardless of headline accounting gains.
As reported in quarterly filings, Stem's free cash flow trajectory remains erratic, swinging from a positive $10.4M in 2025Q3 to a negative $17.4M in 2024Q4, which underscores the difficulty in achieving consistent cash generation amidst a transition toward a software-centric revenue model.
The lack of a stable positive free cash flow trend suggests that the company remains in a capital-intensive phase where project-based hardware cycles continue to dictate liquidity. This volatility warrants further investigation into whether the software pivot can eventually stabilize cash flows or if the business will remain permanently tethered to lumpy project milestones.
Based on historical cash flow statements, working capital fluctuations have been a primary driver of quarterly cash movement, with a significant $65.6M inflow in 2024Q1 followed by a $20.2M outflow in 2025Q2, indicating that operational cash flow is highly sensitive to timing of project-related receivables and payables.
These large swings in working capital suggest that the company's cash position is heavily reliant on the timing of customer payments and vendor obligations rather than organic operational efficiency. Analysts should monitor these shifts closely, as they may be masking the underlying cash burn inherent in the current hardware-heavy project pipeline.
Data from recent SEC filings reveals that stock-based compensation and other non-cash adjustments frequently obscure the true cash burn, with SBC reaching $16.8M in 2023Q4, which effectively hides the true cost of talent acquisition and retention in the company's pursuit of a software-led growth strategy.
The reliance on stock-based compensation to manage cash outflows suggests that the company is attempting to preserve its limited liquidity by diluting shareholders. This practice may indicate that the firm's operational cash generation is insufficient to support its current cost structure without external or equity-based support.
Quick answers to the most common questions about buying STEM stock.
Stem, Inc. (STEM) generated $6.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Stem, Inc. (STEM) generated $6.9M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Stem, Inc. (STEM) spent $6.6M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.