Slide 1: Third Quarter 2025 Financial Results
October 29, 2025 Third Quarter 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: Third Quarter 2025 Results and Other Highlights
Third Quarter 2025 Results and Other Highlights Strategic transformation continues to drive performance improvements 3Q25 Results Highlights Revenue Annual Recurring Revenue (ARR) $38M +31% YoY $60M +3% QoQ / +17% YoY Achieved strong GAAP and non- Generated positive operating GAAP gross margins and
Slide 4: 3Q 2025 Financial Metrics
3Q 2025 Financial Metrics ● Significant YoY improvement across metrics $ millions, unless otherwise noted GAAP & Non-GAAP ● Non-GAAP gross margin Revenue Gross Margin % $38.2 increases driven by increased +31% 46% 47% $29.3 35% software revenue and improved hardware margins 21% across edge and batte
Slide 5: 3Q 2025 Operating Metrics
3Q 2025 Operating Metrics $ millions, unless otherwise noted Bookings Contracted CARR Backlog $70.1 • Bookings down sequentially due $69.2 $34.3 $30.3 $26.8 to strategic de-emphasis of low- $22.2 margin battery hardware • Software, edge hardware and services bookings flat QoQ 2Q25 3Q25 2Q25 3Q25 2Q2
Slide 6: Updating 2025 Guidance
Updating 2025 Guidance $ millions, unless otherwise noted Low High Prior Range Total Revenue $135 $160 $125 – $175 Software, edge hardware, & services $125 $140 $120 – $140 Battery hardware resale Up to $20 Up to $35 Non-GAAP gross margin % 40% – 50% 30% – 40% Adjusted EBITDA ($5) $5 ($10) – $5 Oper
Slide 7: Updating Full Year 2025 Guidance
Updating Full Year 2025 Guidance Metric Range Comments Total Revenue $135 - $160 Tightened range. High-end slightly lower due to strategic de-emphasis of battery hardware resale Software, edge hardware, $125 - $140 Raised low end of range. De-risked low end & services Battery hardware resale Up to $
Slide 8: About Stem
About Stem Stem (NYSE: STEM) is a global leader reimagining technology to support the energy transition. Turning complexity into clarity, and potential into performance. Helping asset owners, operators and stakeholders benefit from the full value of their energy portfolio by enabling the intelligent
Slide 9: Appendix
Appendix © 2025 Stem, Inc. 9
Slide 10: Year to Date Financial Metrics
Year to Date Financial Metrics ● Significant YoY improvement $ millions, unless otherwise noted across metrics GAAP & Non-GAAP Revenue Gross Margin % ● Non-GAAP gross margin 9 Months Ended September 30, 9 Months Ended September 30, increases driven by increased $109.1 +23% 47% software revenue and $
Slide 11: Supplemental Revenue Detail
Supplemental Revenue Detail Three Months Ended Nine Months Ended $ in thousands September 30, September 30, 2025 2025 2024 2025 2024 PowerTrack software(1) 9,380 8,488 27,755 24,185 Edge hardware 15,558 13,202 37,907 32,384 Project and professional services(2) 2,475 6,857 6,621 9,540 Subtotal $27,41
Slide 12: Supplemental Margin Detail
Supplemental Margin Detail Three Months Ended Nine Months Ended September 30, 2025 September 30, 2025 Non-GAAP Non-GAAP GAAP Gross GAAP Gross Gross Gross Margin Margin Margin Margin PowerTrack software 59% 70% 56% 69% Edge hardware 46% -- 43% -- Project and professional services(1) 74% -- 67% -- Sub
Slide 13: Key Financial and Operating Metrics
Key Financial and Operating Metrics Three Months Ended Nine Months Ended $ millions unless otherwise noted September 30, September 30, (1) As previously disclosed, revenue, gross profit (loss), and net loss were negatively impacted by a $38.7 million reduction in revenue for the nine months 2025 202
Slide 14: Reconciliation of GAAP Operating Expense to Cash Operating Expense
Reconciliation of GAAP Operating Expense to Cash Operating Expense Three Months Ended Nine Months Ended $ millions unless otherwise noted September 30, September 30, 2025 2024 2025 2024 GAAP Operating Expense(1) $26.4 $150.6 $84.2 $783.6 Less: Non-cash adjustments Depreciation and Amortization (3.5)
Slide 15: Reconciliation of GAAP and Non-GAAP Gross Margin
Reconciliation of GAAP and Non-GAAP Gross Margin Three Months Ended Nine Months Ended $ millions unless otherwise noted September 30, September 30, 2025 2024 2025 2024 Revenue $38.2 $29.3 $109.1 $88.8 Cost of revenue (24.7) (23.1) (72.3) (97.4) GAAP gross (loss) profit $13.5 $6.2 $36.8 ($8.6) GAAP g
Slide 16: Reconciliation of Net Income (Loss) to Adjusted EBITDA
Reconciliation of Net Income (Loss) to Adjusted EBITDA Adjusted EBITDA, as used in the Company's full-year 2025 guidance, is Three Months Ended Nine Months Ended a non-GAAP financial measure that excludes or has otherwise been $ thousands unless otherwise noted adjusted for items impacting comparabi
Slide 17: Reconciliation of GAAP and Non-GAAP Gross Margin: PowerTrack Software
Reconciliation of GAAP and Non-GAAP Gross Margin PowerTrack Software Three Months Ended Nine Months Ended September 30, 2025 September 30, 2025 $ millions unless otherwise noted PowerTrack Software Revenue $9.4 $27.8 Cost of revenue (3.9) (12.3) GAAP gross (loss) profit $5.5 $15.5 GAAP gross margin
Slide 18: Reconciliation of GAAP and Non-GAAP Gross Margin: Managed Services
Reconciliation of GAAP and Non-GAAP Gross Margin Managed Services Three Months Ended Nine Months Ended September 30, 2025 September 30, 2025 $ millions unless otherwise noted Managed Services Revenue $6.6 $22.6 Cost of revenue (7.4) (23.5) GAAP gross (loss) profit ($0.9) ($0.9) GAAP gross margin (%)
Slide 19: 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,
Slide 20: © 2025 Stem, Inc.
stem stem © 2025 Stem, Inc. 20