Stem, Inc. (STEM) Q3 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

has been recorded. It is now my pleasure to introduce your host for today, Erin Reid, Investor Relations Manager. Please go ahead. Thank you, Operator. This is Erin Reid, Head of Investor Relations at STEM. We welcome you to our third quarter 2025 earnings call. Before we begin, please note that some of the statements we will be making today are forward-looking. These statements involve risks and uncertainties that could cause our results to differ materially from those projected in these statements. We therefore refer you to our latest 10Q, 10K, and other SEC filings and supplemental materials, which can be found on our website. Our comments today also include non-GAAP financial measures. Additional details and reconciliations to the most directly comparable GAAP financial measures can be found in our third quarter 2025 earnings release, which is on our website. Arun Narayanan, CEO, and Brian Musfelt, CFO, We'll start the call today with prepared remarks, and then we will take your questions. And now I will turn the call over to Arun. Thanks, Erin. Hello, everyone, and thank you for joining us today. Q3 2025 marks 12 months since we announced our strategic realignment, and I'm proud to report that our transformation continues to deliver tangible, positive results. Today we reported third quarter revenue of $38 million, up 31% year-over-year, with ARR growing 17% year-over-year to 60 million. We achieved our second consecutive quarter of positive adjusted EBITDA and generated positive operating cash flow. Our software-centric strategy is delivering results. The success of our strategic transformation is evident in our consistent earnings performance with steady growth in software and services revenue and continued improvement across key profitability metrics. As we m...