Revenue has contracted significantly by 84.8% since 2023Q4, while operating margins remain deeply negative at -119.3% as of 2026Q1.
Stem, Inc. (STEM) annual income statement — 8-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 |
|---|
| Sales/Revenue | 148.03M | 156.27M | 144.58M | 461.51M | 362.98M | 127.37M | 36.31M | 17.55M | 7.03M |
| Revenue Growth % | -5.11% | 8.08% | -68.67% | 27.15% | 184.98% | 250.82% | 106.85% | 149.6% | - |
| Cost of Goods Sold | 91.47M | 96.31M | 155.64M | 457.85M | 329.89M | 126.12M | 40.22M | 20.81M | 9.69M |
| COGS % of Revenue | - | 61.63% | 107.65% | 99.21% | 90.88% | 99.02% | 110.77% | 118.57% | 137.8% |
| Gross Profit | 56.56M | 59.96M | -11.06M | 3.67M | 33.09M | 1.25M | -3.91M | -3.26M | -2.66M |
| Gross Margin % | 38.21% | 38.37% | -7.65% | 0.79% | 9.12% | 0.98% | -10.77% | -18.57% | -37.8% |
| Gross Profit Growth % | - | 642.2% | -401.72% | -88.92% | 2553.73% | 131.88% | -20% | -22.65% | - |
| Operating Expenses | 101.13M | 115.64M | 828.4M | 182.98M | 164.21M | 84.32M | 45.48M | 44.59M | 8.15K |
| OpEx % of Revenue | - | 74% | 572.95% | 39.65% | 45.24% | 66.2% | 125.25% | 254.05% | 0.12% |
| Selling, General & Admin | 74.67M | 80.35M | 125.83M | 126.47M | 125.91M | 61.6M | 29.53M | 29.89M | 3.45K |
| SG&A % of Revenue | - | 51.42% | 87.03% | 27.4% | 34.69% | 48.36% | 81.35% | 170.28% | 0.05% |
| Research & Development | 27.01M | 35.3M | 51.28M | 56.51M | 38.3M | 22.72M | 15.94M | 14.7M | 12.68M |
| R&D % of Revenue | - | 22.59% | 35.47% | 12.24% | 10.55% | 17.84% | 43.91% | 83.77% | 180.28% |
| Other Operating Expenses | -545K | 0 | 651.29M | 0 | 0 | 0 | 0 | 0 | -4.7K |
| Operating Income | -44.57M | -55.69M | -839.46M | -179.31M | -131.12M | -83.07M | -49.39M | -47.85M | -8.15K |
| Operating Margin % | -30.11% | -35.64% | -580.6% | -38.85% | -36.12% | -65.22% | -136.03% | -272.62% | -0.12% |
| Operating Income Growth % | - | 93.37% | -368.15% | -36.75% | -57.84% | -68.21% | -3.21% | - | - |
| EBITDA | -6.89M | -10.74M | -795.12M | -133.48M | -90.05M | -62.25M | -31.06M | -33.96M | 4.89M |
| EBITDA Margin % | -4.65% | -6.87% | -549.94% | -28.92% | -24.81% | -48.87% | -85.55% | -193.49% | 69.59% |
| EBITDA Growth % | 96.19% | 98.65% | -495.68% | -48.23% | -44.66% | -100.4% | 8.54% | -793.95% | - |
| D&A (Non-Cash Add-back) | 36.87M | 44.95M | 44.34M | 45.83M | 41.07M | 20.82M | 18.32M | 13.89M | 4.9M |
| EBIT | -42.51M | 162.23M | -835.39M | -125M | -128.75M | -83.82M | -135.31M | -47.55M | -8.14K |
| Net Interest Income | -30.44M | -23.93M | -18.29M | -14.98M | -10.47M | -17.39M | -20.81M | -12.55M | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5.53M |
| Interest Expense | 30.44M | 23.93M | 18.29M | 14.98M | 10.47M | 17.39M | 20.81M | 12.55M | 0 |
| Other Income/Expense | -28.38M | 193.99M | -14.23M | 39.33M | -8.09M | -18.14M | -106.73M | -11.56M | -49.03M |
| Pretax Income | -72.95M | 138.3M | -853.68M | -139.98M | -139.22M | -101.21M | -156.12M | -59.41M | -8.14K |
| Pretax Margin % | -49.28% | 88.5% | -590.44% | -30.33% | -38.35% | -79.46% | -430% | -338.47% | -0.12% |
| Income Tax | 128K | 536K | 332K | 433K | -15.16M | 0 | 5K | 6K | 13K |
| Effective Tax Rate % | -0.18% | 0.39% | -0.04% | -0.31% | 10.89% | 0% | -0% | -0.01% | -159.63% |
| Net Income | -73.08M | 137.76M | -854.01M | -140.41M | -124.05M | -101.21M | -156.12M | -59.41M | -8.14K |
| Net Margin % | -49.37% | 88.16% | -590.67% | -30.42% | -34.18% | -79.46% | -430.01% | -338.5% | -0.12% |
| Net Income Growth % | -233.6% | 116.13% | -508.22% | -13.19% | -22.57% | 35.17% | -162.77% | - | - |
| Net Income (Continuing) | -73.08M | 137.76M | -854.01M | -140.41M | -124.05M | -101.21M | -156.12M | -59.41M | -8.14K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | -426K | 383K | 541K | 485K | 541K | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -8.02 | -9.18 | -105.80 | -18.05 | -16.17 | -19.18 | -77.94 | -0.00 | -0.00 |
| EPS Growth % | 70.98% | 91.32% | -486.15% | -11.63% | 15.69% | 75.39% | - | - | - |
| EPS (Basic) | - | 16.52 | -105.80 | -18.05 | -16.17 | -19.18 | -77.94 | -0.00 | -0.00 |
| Diluted Shares Outstanding | 9.11M | 8.49M | 8.07M | 7.78M | 7.67M | 5.28M | 2M | 2.4M | 2.4M |
| Basic Shares Outstanding | 9.11M | 8.34M | 8.07M | 7.78M | 7.67M | 5.28M | 2M | 2.4M | 2.4M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying STEM stock.
For fiscal year 2025, Stem, Inc. (STEM) reported total revenue of $156.3M. This represents a 2122.2% increase compared to $7.0M in 2018.
Stem, Inc. (STEM) is profitable, generating $137.8M in net income for the fiscal year ending 2025 with a net profit margin of 88.2%.
Stem, Inc. (STEM) reported an operating income of $-55.7M, resulting in an operating profit margin of -35.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Stem, Inc. (STEM) generated $60.0M in gross profit for the year, representing a gross profit margin of 38.4%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Liquidity and cash burn
Metrics are mathematically derived from official filings.
Revenue Contraction Amid Strategic Pivot
As indicated by the most recent quarterly data, Stem's revenue has experienced a significant decline, falling to $25.5M in 2026Q1 from $167.4M in 2023Q4, reflecting a challenging transition away from hardware-heavy project deployments toward a more selective, software-focused business model that currently lacks sufficient scale.
The sharp deceleration in top-line growth suggests that the company is struggling to replace the lumpy, transactional hardware revenue with consistent software-enabled services. This contraction appears to be a deliberate, albeit painful, attempt to improve revenue quality, yet the lack of immediate replacement volume raises questions about the durability of the current growth trajectory.
Volatile Margins Reflect Project Mix
Based on reported financial statements, Stem's gross margin profile remains highly inconsistent, fluctuating from a low of -95.0% in 2024Q1 to a peak of 38.7% in 2025Q4, which highlights the inherent difficulty in managing costs within a business model heavily reliant on third-party hardware pass-throughs.
The wide variance in gross margins suggests that the company's profitability is currently dictated more by the specific mix of hardware versus software recognized in a given period than by structural pricing power. Investors should monitor whether the recent stabilization in the 30% range represents a sustainable shift or merely a temporary benefit from high-margin project milestones.
Operating Leverage Remains Elusive
According to historical income statement data, Stem has failed to demonstrate meaningful operating leverage, as evidenced by persistent operating losses that reached -$30.5M in 2026Q1, indicating that fixed overhead costs continue to outpace the company's ability to generate gross profit from its core software and service offerings.
The inability to scale operating income alongside gross profit suggests that the current cost structure is too heavy for the existing revenue base. This lack of efficiency implies that significant further rationalization of SG&A and R&D expenses may be required before the company can approach a break-even point on an operating basis.
Accounting Anomalies Mask Operational Reality
As highlighted in recent SEC filings, the reported net margin of 88.16% in 2025Q2 stands in stark contrast to the underlying negative operating performance, suggesting that headline earnings are heavily distorted by non-operating items rather than reflecting the core business's true ability to generate sustainable bottom-line profit.
The presence of such significant non-operating gains warrants extreme caution, as it may mislead market participants regarding the company's actual path to profitability. Analysts should focus on cash flow from operations and exclude these one-time accounting adjustments to gain a clearer picture of the firm's true financial health.
Liquidity Constraints Threaten Operational Viability
Based on the provided financial snapshot, the company's cash position of $48.9M against a TTM operating loss exceeding $55M suggests a tightening liquidity window that may force management to seek dilutive financing or implement drastic cost-cutting measures to maintain operations over the next twelve months.
Short-sellers would likely focus on this narrowing runway as a primary catalyst for potential equity dilution. The risk is that the pivot to a software-only model may not generate sufficient cash flow quickly enough to offset the ongoing burn, leaving the company vulnerable to external macro shocks or project delays.