$STEM

STEM, INC.

CIK:0001758766|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenue
Total revenue	$ 33,654	$ 38,374	$ 62,654	$ 70,886
Cost of revenue
Total cost of revenue	19,767	25,574	37,908	47,548
Gross profit	13,887	12,800	24,746	23,338
Operating expenses:
Sales and marketing	7,437	7,250	13,954	14,042
Research and development	6,459	9,993	13,034	21,321
General and administrative	8,207	8,900	16,873	22,466
(Remeasurement of) impairment of assets held for sale	(545)	0	2,770	0
Total operating expenses	21,558	26,143	46,631	57,829
Loss from operations	(7,671)	(13,343)	(21,885)	(34,491)
Other (expense) income, net:
Interest expense	(7,510)	(4,072)	(14,869)	(8,362)
Gain on extinguishment of debt	0	220,047	0	220,047
Change in fair value of warrant liability	503	0	2,914	0
Other income, net	308	374	657	870
Total other (expense) income, net	(6,699)	216,349	(11,298)	212,555
(Loss) income before provision for income taxes	(14,370)	203,006	(33,183)	178,064
Provision for income taxes	(13)	(475)	(125)	(533)
Net (loss) income	$ (14,383)	$ 202,531	$ (33,308)	$ 177,531
Net (loss) income per share attributable to common stockholders, basic (in dollars per share)	$ (1.58)	$ 24.31	$ (3.78)	$ 21.48
Net loss per share attributable to common stockholders, diluted (in dollars per share)	$ (1.58)	$ (1.79)	$ (3.78)	$ (4.54)
Net (loss) income attributable to Stem common stockholders, basic	$ (14,383)	$ 202,531	$ (33,308)	$ 177,531
Net loss attributable to Stem common stockholders, diluted	$ (14,383)	$ (15,160)	$ (33,308)	$ (38,205)
Weighted-average shares used in computing net (loss) income per share to common stockholders, basic (in shares)	9,110,452	8,330,679	8,815,386	8,263,378
Weighted-average shares used in computing net loss per share to common stockholders, diluted (in shares)	9,110,452	8,481,799	8,815,386	8,414,498
Services and other revenue
Revenue
Total revenue	$ 18,618	$ 20,852	$ 37,292	$ 38,573
Cost of revenue
Total cost of revenue	11,559	14,262	23,503	25,675
Hardware revenue
Revenue
Total revenue	15,036	17,522	25,362	32,313
Cost of revenue
Total cost of revenue	$ 8,208	$ 11,312	$ 14,405	$ 21,873

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2026	Mar. 31, 2026	Jun. 30, 2025	Mar. 31, 2025	Jun. 30, 2026	Jun. 30, 2025	Dec. 31, 2025
OPERATING ACTIVITIES
Net (loss) income	$ (14,383)	$ (18,925)	$ 202,531	$ (25,000)	$ (33,308)	$ 177,531
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Depreciation and amortization expense					21,918	22,242
Non-cash interest expense, including interest expenses associated with debt issuance costs					737	210
Stock-based compensation					3,501	5,712
Change in fair value of warrant liability	(503)		0		(2,914)	0
Non-cash lease expense					1,319	1,362
Accretion of asset retirement obligations					123	119
Impairment loss of energy storage systems	100		1,400		103	1,413
Gain on disposal and abandonment of property, plant and equipment					(112)	0
Impairment loss of project assets					4	966
Impairment of assets held for sale, net					2,770	0
Provision for credit losses on accounts receivable					17	1,547
Gain on extinguishment of debt	0		(220,047)		0	(220,047)
Other					(16)	53
Changes in operating assets and liabilities:
Accounts receivable					5,114	14,772
Inventory					(1,535)	6,321
Other assets					(1,397)	1,715
Contract origination costs, net					(547)	(573)
Project assets					(4)	(2,202)
Accounts payable					4,083	(18,727)
Accrued expenses and other liabilities					(3,339)	(1,174)
Deferred revenue					(2,861)	(2,793)
Lease liabilities					(1,631)	(1,189)
Net cash used in operating activities					(7,975)	(12,742)
INVESTING ACTIVITIES
Capital expenditures on internally-developed software					(2,555)	(4,626)
Purchase of property and equipment					0	(48)
Net cash used in investing activities					(2,555)	(4,674)
FINANCING ACTIVITIES
Proceeds from issuances of common stock under at-the-market program, net					5,631	0
Repayment of financing obligations					(4,701)	(8,355)
Proceeds from issuance of senior secured notes					0	10,000
(Distributions to) contributions from non-controlling interests, net					(809)	37
Net cash provided by financing activities					121	1,682
Effect of exchange rate changes on cash, cash equivalents and restricted cash					(91)	225
Net decrease in cash, cash equivalents and restricted cash					(10,500)	(15,509)
Cash, cash equivalents and restricted cash, beginning of year		$ 50,701		$ 58,085	50,701	58,085	$ 58,085
Cash, cash equivalents and restricted cash, end of period	40,201		42,576		40,201	42,576	50,701
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for interest					18,395	9,440
RECONCILIATION OF CASH, CASH EQUIVALENTS, AND RESTRICTED CASH WITHIN THE UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS TO THE AMOUNTS SHOWN IN THE STATEMENTS OF CASH FLOWS ABOVE:
Cash and cash equivalents	38,415		40,790		38,415	40,790	48,915
Restricted cash included in other noncurrent assets	1,786		1,786		1,786	1,786
Total cash, cash equivalents, and restricted cash	$ 40,201		$ 42,576		$ 40,201	$ 42,576	$ 50,701

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents (VIE: $337 and $560 as of June 30, 2026 and December 31, 2025, respectively)	$ 38,415	$ 48,915
Accounts receivable, net of allowances of $2,717 and $3,893 as of June 30, 2026 and December 31, 2025, respectively (VIE: $1,633 and $3,820 as of June 30, 2026 and December 31, 2025, respectively)	33,222	38,353
Inventory	6,122	4,587
Assets held for sale	1,229	0
Other current assets (VIE: $300 and $0 as of June 30, 2026 and December 31, 2025, respectively)	10,339	8,236
Total current assets	89,327	100,091
Energy storage systems, net	33,990	43,925
Contract origination costs, net	6,121	7,466
Goodwill	2,463	0
Intangible assets, net	113,045	123,028
Operating lease right-of-use assets	10,598	9,571
Other noncurrent assets	24,229	24,806
Total assets	279,773	308,887
Current liabilities:
Accounts payable (VIE: $157 and $440 as of June 30, 2026 and December 31, 2025, respectively)	14,468	10,310
Accrued liabilities	21,796	26,875
Accrued payroll	5,552	9,131
Financing obligation, current portion	13,151	13,792
Deferred revenue, current portion	44,381	43,625
Other current liabilities	8,168	6,832
Total current liabilities	107,516	110,565
Deferred revenue, noncurrent	81,634	85,251
Asset retirement obligation	4,385	4,349
Convertible notes, noncurrent	184,007	183,594
Senior secured notes, noncurrent	135,212	128,796
Financing obligation, noncurrent	24,010	29,590
Warrant liability	2,207	5,121
Lease liabilities, noncurrent	10,070	9,860
Other liabilities	729	820
Total liabilities	549,770	557,946
Commitments and contingencies (Note 15)
Stockholders’ deficit:
Preferred stock, $0.0001 par value; 1,000,000 shares authorized as of June 30, 2026 and December 31, 2025; zero shares issued and outstanding as of June 30, 2026 and December 31, 2025	0	0
Common stock, $0.0001 par value; 250,000,000 shares authorized as of June 30, 2026 and December 31, 2025, respectively; 9,607,873 and 8,489,540 issued and outstanding as of June 30, 2026 and December 31, 2025, respectively	1	1
Additional paid-in capital	1,252,624	1,239,263
Accumulated other comprehensive (loss) income	(141)	41
Accumulated deficit	(1,522,055)	(1,488,747)
Total Stem stockholders’ deficit	(269,571)	(249,442)
Non-controlling interests	(426)	383
Total stockholders’ deficit	(269,997)	(249,059)
Total liabilities and stockholders’ deficit	$ 279,773	$ 308,887