Slide 1: 1Q 2025 Financial Results
April 29, 2025 1Q 2025 Financial Results
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements This presentation, 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 s
Slide 3: First Quarter 2025 Results and Other Highlights
First Quarter 2025 Results and Other Highlights Early benefits of software-focused strategy evidenced in 1Q25 results 1Q25 Results Latest Updates Revenue Annual Recurring Revenue $33M +27% YoY $57M +8% QoQ / +26% YoY Implemented targeted workforce Achieved strong gross margins and first- reductions
Slide 4: Business Units – Benefits & Rationale
Business Units – Benefits & Rationale Creating four distinct business units to optimize operations and drive growth Software ✓ Aligning services with market demands and customer needs Products ✓ Strengthening profitability and revenue stability Professional Services ✓ Enhancing focus on high-margin
Slide 5: Our Four Internal Business Units
Our Four Internal Business Units Optimizing operations and driving growth Software Products Professional Services Managed Services OEM Hardware Differentiated IP + Bespoke Advisory + End-to-end Operations + Battery Resale + Recurring Revenue High Margin LT Recurring Revenue Selective Engagement • Le
Slide 6: 1Q 2025 Financial Metrics
1Q 2025 Financial Metrics Revenue, Gross Margin, Adj. EBITDA, and Operating Cash Flow $ millions, unless otherwise noted ● Solar revenue remains strong, up 21% YoY GAAP & Non-GAAP Revenue* Gross Margin %* ● Software revenue up 17% YoY +27% $33 46% 32% $25 ● Non-GAAP gross margin up due to increased
Slide 7: 1Q 2025 Operating Metrics
1Q 2025 Operating Metrics Bookings, Backlog, CARR, ARR and AUM $ millions, unless otherwise noted Bookings Contracted CARR • CARR and ARR growth Backlog $25.3 +7% $69.0 demonstrate success in driving $37.6 $64.5 (8)% $34.5 $20.9 +21% software-focused strategy • Bookings down slightly QoQ due to seas
Slide 8: Reaffirming 2025 Guidance
Reaffirming 2025 Guidance $ millions, unless otherwise noted Low High Total Revenue $125 $175 Software, edge hardware, & services $120 $140 Battery hardware resale Up to $35 Non-GAAP gross margin % 30%-40% Adjusted EBITDA $(10) $5 Operating cash flow $0 $15 Year-end ARR $55 $65 Note: Sub-revenue ite
Slide 9: About Stem
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. Stem offers a complete set of solutions that transform how solar and energy storage projects are developed, built, and operated, including a
Slide 10: Appendix
Appendix © 2025 Stem, Inc. 10
Slide 11: Supplemental Revenue Detail
Supplemental Revenue Detail Three Months Ended $ millions unless otherwise noted March 31, 2025 2024 Solar software 8.8 7.8 Edge hardware 10.3 8.0 Subtotal $19.1 $15.8 Storage software & recurring managed services 7.0 5.7 Project and professional services 1.8 1.4 Subtotal $8.8 $7.1 Battery
Slide 12: Key Financial and Operating Metrics
Key Financial and Operating Metrics (1) As previously disclosed, revenue, gross profit (loss), and net loss were Three Months Ended negatively impacted by a $33.1 million reduction in revenue for the three months $ millions unless otherwise noted ended March 31, 2024, and by excess supplier costs an
Slide 13: Reconciliation of GAAP Operating Expense to Cash Operating Expense
Reconciliation of GAAP Operating Expense to Cash Operating Expense Three Months Ended $ millions unless otherwise noted March 31, 2025 2024 GAAP Operating Expense $31.7 $43.8 Less: Non-cash adjustments Depreciation and Amortization (3.5) (4.0) Stock Compensation (4.3) (8.4) Other adjustments (0.8) 1
Slide 14: Reconciliation of GAAP and Non-GAAP Gross Margin
Reconciliation of GAAP and Non-GAAP Gross Margin Three Months Ended $ millions unless otherwise noted March 31, 2025 2024 Revenue $32.5 $25.5 Cost of revenue (22.0) (49.7) GAAP gross (loss) profit 10.5 (24.2) GAAP gross margin (%) 32% (95)% Non-GAAP Gross Profit GAAP Revenue $32.5 $25.5 Add: Revenue
Slide 15: Reconciliation of Net Loss to Adjusted EBITDA
Reconciliation of Net Loss to Adjusted EBITDA Three Months Ended March 31, $ thousands 2025 2024 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)
Slide 16: Definitions
Definitions Item Definition 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 Bookings booking amount includes (1) hardware revenue,
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