Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $38.4 million, representing a 13% year-over-year increase [5][24] - Total Annual Recurring Revenue (ARR) grew 3% sequentially and 22% year-over-year to $59 million [5][29] - Positive adjusted EBITDA of $4 million for the quarter, a $15 million year-over-year improvement [9][26] - GAAP gross margins were 33%, while non-GAAP gross margins reached a record 49% [25] - Cash operating expenses decreased by nearly 40% year-over-year [9][25] Business Line Data and Key Metrics Changes - Solar software revenue grew 20% year-over-year, while storage software and managed service revenue increased by 53% year-over-year [24] - Professional services expanded with new consulting engagements, including the Green River Energy Center project [7] - PowerTrack software engagements were established with Norbert Solar Farms and Avangrid [6] Market Data and Key Metrics Changes - The largest share of revenue comes from the U.S. Commercial and Industrial (C&I) solar market, which is expected to grow in 2026 [19][20] - The company anticipates a shift towards utility-scale solar, supported by the new PowerTrack EMS offering [40] Company Strategy and Development Direction - The company is focusing on a software-centric strategy, with a new business unit structure to enhance operational efficiency [11][12] - A strategic reduction in force was implemented, resulting in a 35% reduction in personnel costs [9][25] - The introduction of AI-enabled products like PowerTrack EMS and PowerTrack Sage is part of the company's strategy to enhance software offerings [14][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macro challenges, citing a diversified software-centric model [17][20] - The company is tracking towards the high end of guidance for most metrics, despite uncertainties in the policy environment [20][30] - Future technology roadmaps and a cleaner balance sheet are expected to support sustainable profitable growth [31] Other Important Information - A significant debt exchange transaction was completed, reducing overall debt burden by approximately $200 million [10][28] - The company is now in compliance with New York Stock Exchange listing standards following a reverse stock split [30] Q&A Session Summary Question: How should we think about hardware sales moving forward? - The company aims to achieve up to $35 million in hardware sales but is pivoting towards a more software-centric focus [37] Question: What is the progress on growing into utility-scale solar? - The company is excited about the PowerTrack EMS offering, which integrates solar and storage management, allowing entry into the utility-scale market [40] Question: What are the expectations for operating expenses at the end of the year? - Operating expenses are expected to continue declining, with a focus on non-personnel related savings [42][44] Question: Can you elaborate on the recent debt deal? - The debt exchange significantly improved the balance sheet by reducing outstanding debt and extending maturity dates [48][50] Question: How does the cash position reconcile with the operating cash flow guidance? - The decrease in cash was primarily due to working capital fluctuations and one-time payments related to the reduction in force [51][53]

Financial Performance - Revenue increased to $38 million, a 13% year-over-year increase[6] - Adjusted EBITDA was $4 million, a $15 million year-over-year improvement[6] - GAAP gross margin was 33%, a 5 percentage point increase year-over-year, while non-GAAP gross margin was 49%, a 9 percentage point increase year-over-year[6] - Annual Recurring Revenue (ARR) reached $59 million, a 3% quarter-over-quarter increase and a 22% year-over-year increase[6] Operating Metrics - Contracted Annual Recurring Revenue (CARR) was $692 million in 2Q25[12] - Storage Operating Assets Under Management (AUM) increased to 17 GWh[13] - Solar Operating AUM reached 327 GW[13] Strategic Debt Exchange - Stem completed a strategic debt exchange, reducing outstanding debt by nearly $200 million[21] - The debt exchange decreased the 2028 principal amount by nearly $230 million[21] - The company exchanged $350 million in aggregate principal amount of 2028 and 2030 Convertible Senior Notes for $155 million in new First Lien Notes due 2030 and $10 million in cash[18] Guidance - Stem reaffirmed its 2025 guidance, with expectations of tracking towards the high end on nearly all metrics[7, 30]

Core Insights - Stem (STEM) is scheduled to report its second-quarter 2025 earnings on August 7, with revenue estimates at $33.1 million, indicating a 2.65% decrease from the previous year [1] - The consensus estimate for loss is $3 per share, unchanged over the past 90 days, but represents a 31.82% improvement from the same quarter last year [1] - Stem has beaten earnings estimates in three of the last four quarters, with an average surprise of 12.34% [1] Performance Drivers - The performance in Q2 2025 is expected to be driven by the growth of the solar asset performance management software platform, Powertrack, which saw a 10% sequential and 24% year-over-year increase in solar ARR [3] - A 27% workforce reduction announced on April 9 is anticipated to generate $30 million in annual cash savings, with $24 million expected in 2025, aligning with the company's software-first strategy [4] - Profitability is projected to improve throughout the year due to better management of operating expenses and a shift in product mix towards high-margin software and edge devices [5] Seasonal Trends - Seasonal trends may have slightly impacted bookings in Q2, with lower total bookings in Q1 due to seasonality, typically seeing higher volumes in the second half of the year [6] - Despite an increase in key metrics like Contracted Backlog and CARR in Q1, the seasonal pattern may have constrained overall revenue growth in early Q2 [6] Earnings Outlook - According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank of 1, 2, or 3 increases the likelihood of an earnings beat, but Stem currently has an Earnings ESP of 0.00% and a Zacks Rank 3 [7]

Group 1: Stem, Inc. (STEM) - STEM shares increased by 45.6% in the last trading session, closing at $13.5, with significantly higher trading volume compared to normal sessions [1] - The stock has gained 6.4% over the past four weeks, driven by a focus on high-margin software and services, particularly PowerTrack and managed services, alongside cost reductions and improved operational efficiency [1] - The consensus EPS estimate for the upcoming quarterly report is a loss of $3.00 per share, reflecting a year-over-year change of +31.8%, with expected revenues of $33.1 million, down 2.7% from the previous year [2] Group 2: Industry Context - STEM belongs to the Zacks Computers - IT Services industry, which includes other companies like Taboola.com Ltd. (TBLA) [3] - TBLA's consensus EPS estimate for its upcoming report is unchanged at $0.09, representing a +1000% change from the previous year [4] - Both STEM and TBLA currently hold a Zacks Rank of 3 (Hold), indicating a neutral outlook for these stocks [3][4]

Group 1: Stem, Inc. (STEM) - STEM shares increased by 8.8% to $6.71 in the last trading session, following a 33.7% loss over the past four weeks [1] - The company is benefiting from a focus on high-margin software and services, particularly PowerTrack and managed services, along with cost reductions and improved operational efficiency [1] - The consensus EPS estimate for the upcoming report is a loss of $3.00 per share, reflecting a year-over-year change of +31.8%, with expected revenues of $33.1 million, down 2.7% from the previous year [2] Group 2: Earnings Estimates and Stock Performance - The consensus EPS estimate for STEM has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [3] - STEM currently holds a Zacks Rank of 2 (Buy), suggesting positive market sentiment [3] - The company is part of the Zacks Computers - IT Services industry, which includes Cognizant (CTSH), also holding a Zacks Rank of 2 (Buy) [3][4] Group 3: Cognizant (CTSH) - Cognizant's consensus EPS estimate for the upcoming report has increased by 0.7% to $1.26, representing a year-over-year change of +7.7% [4] - Cognizant's stock closed the last trading session at $77.59, with a return of -4.3% over the past month [3][4]

Leader in AI-Driven Energy Solutions January 2022 1 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 such as "expect," "may," "can," "believe," "predict," "plan," "potential," "projected," "projections," "forecast," "estimate," "intend," "anticipate," "ambition, ...

Financial Performance & Guidance - Stem reported Q2 2023 revenue of $93 million, a 39% year-over-year increase[12] - The company's adjusted EBITDA for Q2 2023 was $(9) million[12] - GAAP gross margin was 13% and non-GAAP gross margin was 18% in Q2 2023[12] - Stem reaffirms full-year 2023 revenue guidance of $550 million to $650 million and bookings of $14 billion to $16 billion[65] - The company anticipates achieving positive adjusted EBITDA in the second half of 2023[13] Operational Metrics & Growth - Bookings reached $236 million in Q2 2023, a 5% year-over-year increase[12] - Contracted backlog grew to $136 billion, an 88% year-over-year increase[12] - Contracted Annual Recurring Revenue (CARR) increased by 5% quarter-over-quarter to $75 million[12] Market Outlook & Strategy - The US Front-of-the-Meter (FTM) storage market is projected to reach 51068 MWh in 2026, representing a 46% CAGR from 2022[34] - The US Behind-the-Meter (BTM) storage market is projected to reach 3132 MWh in 2026, representing a 48% CAGR from 2022[36] - US Solar market is projected to reach 33977 MW in 2026, representing a 21% CAGR from 2022[37] - Municipalities and Co-ops are expected to represent >20% of future storage deployments[40]

Industry Overview - The global shift toward sustainability is transforming the energy landscape, with a rapid adoption of renewable sources like solar and wind, highlighting the critical need for reliable energy storage [1][2] - Demand for scalable storage solutions has surged alongside the increased adoption of renewable energy, positioning both as key pillars of the global energy transition [2] Growth Projections - According to the IEA, global electricity generation grew over 1,200 terawatt-hours (TWh) in 2024, with clean energy accounting for 80% of this growth, indicating strong growth opportunities in renewable energy and battery storage [3] - The IEA projects that new renewable energy capacity added globally between 2024 and 2030 will exceed 5,500 gigawatts (GW), almost three times the increase seen between 2017 and 2023, with energy storage projected to increase six times [4] Demand Drivers - The essential nature of electricity fuels strong demand even during economic downturns, providing stability to stakeholders in renewable energy and battery storage [5] - Factors such as expanding industrial output, rapid growth in electric vehicle (EV) adoption, data center proliferation, and increased use of cooling systems amid worsening climate conditions are contributing to a surge in electricity demand [5] Policy and Economic Support - Robust policy support, fiscal incentives, international commitments to net-zero emissions, and declining installation costs for solar and wind are enhancing the competitiveness of clean energy companies [6] Company Highlights - Ameren Corp. is investing in cleaner energy sources, with 1,200 MW of approved generation currently under construction and plans to expand its renewable portfolio by adding 3,200 MWs by 2030 [7][8] - American Electric Power Corp. aims to enhance its renewable generation portfolio to 50% by 2030, with a planned investment of $9.9 billion during 2025-2029 [10][11] - Vestas Wind Systems, the largest wind turbine manufacturer, has around 56,700 wind turbines under service, expected to avoid 490 million tons of CO2 over their lifetime, reflecting a 25% improvement year over year [13] - Stem Inc. has emerged as a leading clean energy software provider, managing nearly 30 GW of solar assets and over 5 GWh of contracted energy storage globally, with significant year-over-year growth in energy storage and solar systems [15][16]

Core Viewpoint - The stock price of Stem, Inc. (STEM) has recently experienced a bearish trend, losing 16% over the past week, but the formation of a hammer chart pattern suggests a potential trend reversal as buying interest may be emerging [1][2]. Group 1: Technical Analysis - The hammer chart pattern indicates a potential bottom in the stock price, suggesting that selling pressure may be exhausting [2][5]. - A hammer pattern forms when there is a small candle body with a long lower wick, indicating that despite a downtrend, buying interest has emerged to push the stock price up towards the opening price [4][5]. - The occurrence of a hammer pattern at the bottom of a downtrend signals that bears may have lost control, indicating a possible trend reversal [5]. Group 2: Fundamental Analysis - Recent upward revisions in earnings estimates for STEM are viewed as a bullish indicator, correlating strongly with near-term stock price movements [7]. - The consensus EPS estimate for the current year has increased by 23.9% over the last 30 days, reflecting analysts' optimism about the company's earnings potential [8]. - STEM holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which typically outperform the market [9].

Core Insights - The Plant Stem Cell Market is projected to grow from USD 401.02 Million in 2024 to USD 635.54 Million by 2030, with a CAGR of 8.12% [2][9] - The market intersects biotechnology, healthcare, agriculture, and cosmetics, focusing on plant-derived stem cells for various applications [2][3] Market Drivers - Rising consumer preference for natural and organic products is a significant growth driver, as consumers favor plant-based ingredients over synthetic ones [4] - The demand for plant stem cells in skincare and personal care is driven by their antioxidant and rejuvenating properties, particularly in anti-aging and skin repair [4] - The expanding elderly population and increased awareness of regenerative solutions are fueling demand in the cosmetic and healthcare sectors [3] Market Challenges - Regulatory hurdles and compliance issues present considerable challenges, with a lack of globally harmonized regulations complicating product approval and commercialization [5] - Ethical sourcing concerns, especially regarding rare or endangered plant species, add complexity to product development and operational costs [5] Market Trends - There is a growing focus on sustainable and ethical sourcing, with manufacturers prioritizing environmentally responsible extraction methods and sustainable cultivation practices [6] - Companies that commit to transparency and sustainable innovation are likely to gain competitive advantages, influenced by eco-conscious consumers [6] Key Players - Notable companies in the Plant Stem Cell Market include Uniliver PLC, Renature Skin Care Inc., PhytoScience Ltd., and Oriflame Cosmetics AG [7]