Stem, Inc. · NYSE:STEM

Stem — Q2 2026 Earnings Presentation

19 slides from Stem's earnings presentation, Aug 12, 2026

  1. Slide 1: Second Quarter 2026 Results

    August 12, 2026 Second Quarter 2026 Results

  2. 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

  3. Slide 3: Second Quarter 2026 Results and Other Highlights

    Second Quarter 2026 Results and Other Highlights Driving sustained commercial progress and disciplined execution Second Quarter 2026 Results Highlights Revenue Annual Recurring Revenue (ARR) $34M (12)% YoY $62M +7% YoY Increased PowerTrackTM software PowerTrack EMS selected for revenue by 3% QoQ and

  4. Slide 4: 2Q 2026 Financial Metrics

    2Q 2026 Financial Metrics $ millions, unless otherwise noted GAAP & Non-GAAP Revenue Gross Margin % ● Total revenue decrease driven $38.4 (12%) 55% by significantly less battery $33.7 49% 41% resale revenue ($0.3M in 2Q26 1% 33% vs $5.4M in 2Q25) ● Margin improvements driven by favorable revenue mix

  5. Slide 5: 2Q 2026 Operating Metrics

    2Q 2026 Operating Metrics $ millions, unless otherwise noted Bookings Contracted CARR $36.8 Backlog $67.2 +3% $69.0 +39% +18% $27.1 • Bookings up nearly 40% $26.5 $23.0 sequentially due to increased PowerTrack software, edge hardware, and services bookings 1Q26 2Q26 1Q26 2Q26 1Q26 2Q26 Battery Hardw

  6. Slide 6: Reaffirming Full Year 2026 Guidance

    Reaffirming Full Year 2026 Guidance $ millions, unless otherwise noted Low High Total Revenue $140 $190 Software, services, & edge hardware $130 $150 Battery hardware resale Up to $40 Non-GAAP gross margin % 40% – 50% Adjusted EBITDA $10 $15 Operating cash flow $0 $10 Year-end ARR $65 $70 Note: Sub-

  7. Slide 7: 2026 Key Priorities

    2026 Key Priorities 1) Drive operational leverage 2) Continue to strengthen core business 3) Build the foundation for accelerated growth in 2027+ © 2026 Stem, Inc. 7

  8. Slide 8: About Stem

    About Stem Stem (NYSE: STEM) is a global leader reimagining technology to support the energy transition. We turn complexity into clarity and potential into performance. Stem helps asset owners, operators, and energy stakeholders unlock the full value of their portfolios by enabling the intelligent d

  9. Slide 9: Appendix

    Appendix © 2026 Stem, Inc. 9

  10. Slide 10: Key Financial and Operating Metrics

    Key Financial and Operating Metrics Three Months Ended Six Months Ended $ millions unless otherwise noted June 30, June 30, 2026 2025 2026 2025 Key Financial Results Revenue $33.7 $38.4 $62.7 $70.9 GAAP Gross Profit (Loss) 13.9 12.8 24.8 23.3 GAAP Gross Margin (%) 41% 33% 40% 33% Non-GAAP Gross Prof

  11. Slide 11: Supplemental Revenue Detail

    Supplemental Revenue Detail Three Months Ended Six Months Ended $ in thousands June 30, June 30, 2026 2025 2026 2025 PowerTrack software 10,543 9,521​ 20,817​ 18,375 Edge hardware 14,750 12,086 25,076 22,349 Project and professional services 2,182 2,330 3,901 4,146 Subtotal $27,475 $23,937 $49,794 $

  12. Slide 12: Supplemental Margin Detail

    Supplemental Margin Detail Three Months Ended Six Months Ended June 30, 2026 June 30, 2026 GAAP Gross Non-GAAP GAAP Gross Non-GAAP Margin Gross Margin Margin Gross Margin PowerTrack software 64% 75% 64% 75% Edge hardware 47% -- 43% -- Project and professional services 59% -- 57% -- Managed services

  13. Slide 13: Reconciliation of GAAP Operating Expense to Cash Operating Expense

    Reconciliation of GAAP Operating Expense to Cash Operating Expense Three Months Ended Six Months Ended $ millions unless otherwise noted June 30, June 30, 2026 2025 2026 2025 GAAP Operating Expense $21.6 $26.1 $46.7 $57.8 Less: Non-cash adjustments Depreciation and Amortization (4.3) (3.7) (7.7) (7.

  14. Slide 14: Reconciliation of GAAP and Non-GAAP Gross Margin

    Reconciliation of GAAP and Non-GAAP Gross Margin Three Months Ended Six Months Ended $ millions unless otherwise noted June 30, June 30, 2026 2025 2026 2025 Revenue $33.7 $38.4 $62.7 $70.9 Cost of revenue (19.8) (25.6) (37.9) (47.6) GAAP gross profit $13.9 12.8 $24.8 $23.3 GAAP gross margin (%) 41%

  15. Slide 15: Reconciliation of Net Income (Loss) to Adjusted EBITDA

    Reconciliation of Net Income (Loss) to Adjusted EBITDA $ thousands unless otherwise noted Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 Net income (loss) $(14,383) $202,531 $(33,308) $177,531 Adjusted to exclude the following: Depreciation and amortization(1) 11,507 12,92

  16. Slide 16: Reconciliation of GAAP and Non-GAAP Gross Margin: PowerTrack Software

    Reconciliation of GAAP and Non-GAAP Gross Margin PowerTrack Software Three Months Ended Six Months Ended June 30, 2026 June 30, 2026 $ millions unless otherwise noted PowerTrack Software Revenue $10.5 $20.8 Less: Cost of revenue (3.8) (7.4) GAAP gross (loss) profit $6.7 $13.4 GAAP gross margin (%) 6

  17. Slide 17: Reconciliation of GAAP and Non-GAAP Gross Margin: Managed Services

    Reconciliation of GAAP and Non-GAAP Gross Margin Managed Services Three Months Ended Six Months Ended June 30, 2026 June 30, 2026 $ millions unless otherwise noted Managed Services Revenue $5.9 $12.6 Less: Cost of revenue (7.0) (14.2) GAAP gross (loss) profit $(1.1) $(1.6) GAAP gross margin (%) (19%

  18. Slide 18: Definitions

    Definitions Item Definition Annual Recurring Revenue Annualized value from operating customer subscription contracts, including solar software, storage software & recurring managed services, and any recurring professional services contracts. (“ARR”) Total value of executed customer purchase orders,

  19. Slide 19: © 2026 Stem, Inc.

    stem stem © 2026 Stem, Inc. 19

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