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Mar 31, 2025
Stem Q1 2025 Earnings Report
Stem reported strong GAAP and non-GAAP gross margins, achieved positive operating cash flow for the first time, and reaffirmed full year 2025 guidance.
Key Takeaways
Stem, Inc. announced its first quarter 2025 financial results, highlighting a 27% year-over-year increase in revenue to $32.5 million and a significant improvement in GAAP gross profit to $10.5 million from a loss in the prior year. The company achieved positive operating cash flow for the first time in its history and reduced its net loss. Stem also reaffirmed its full year 2025 guidance across all metrics.
Revenue increased 27% year-over-year to $32.5 million.
GAAP gross profit improved significantly to $10.5 million (32% margin) from a $(24.2) million loss in 1Q24.
Achieved positive operating cash flow of $8.5 million, a first for the company.
Reaffirmed full year 2025 guidance across all metrics, including revenue, adjusted EBITDA, and ARR.
Forward Guidance
Stem reaffirmed its full year 2025 guidance, expecting revenue between $125 million and $175 million, with a focus on high-margin software and services. The company anticipates positive adjusted EBITDA and operating cash flow for the full year.
Positive Outlook
- Reaffirming full year 2025 guidance across all metrics.
- Expected revenue of $125 million to $175 million.
- Anticipated Non-GAAP Gross Margin of 30% to 40%.
- Projected Adjusted EBITDA between $(10) million and $5 million.
- Forecasted Operating Cash Flow between $0 and $15 million.
Challenges Ahead
- The company is unable to reconcile projected adjusted EBITDA and non-GAAP gross margin to GAAP measures due to the unpredictability of certain expenses.
- Potential impact of macroeconomic factors and geopolitical instability.
- Risks related to securing sufficient and timely inventory from suppliers.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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