Core Viewpoint - Stem's stock has significantly outperformed the broader technology sector, driven by strong first-quarter 2025 results and strategic shifts towards a software-centric business model [1][2]. Financial Performance - Total revenues for the first quarter of 2025 increased by 27% year over year, surpassing Zacks Consensus Estimates by 26% [2] - Gross margins improved by 46%, attributed to growth in high-margin software and services [3] - Annual recurring revenue (ARR) reached $57 million, an 8% increase year over year, while contracted annual recurring revenue (CARR) grew 7% sequentially to $69 million [5] - The company generated positive cash flow of $8.5 million from operations for the first time [3] Operational Metrics - Solar operating AUM increased to 32.4 GW, a 20% year-over-year rise, while storage operating AUM doubled to 1.6 GWh [6] - Bookings for the quarter were $34.5 million, slightly below the previous year's $37.6 million, but contracted backlog rose 21% sequentially to $25.3 million [6] Organizational Changes - Stem has undergone a significant organizational transformation, creating four distinct business units with full profit and loss accountability [7] - A targeted workforce reduction of 27% was announced, expected to save approximately $30 million annually, with a $24 million benefit anticipated in 2025 [8] Future Outlook - The company reaffirmed its 2025 revenue guidance, projecting between $125 million and $175 million, with a consensus estimate of $145.20 million [10] - The bottom line is expected to improve significantly, with a projected loss of 51 cents per share compared to a loss of $1.04 per share in the prior year [10] Conclusion - Stem's strong first-quarter performance, growing recurring revenue, and positive cash flow indicate strategic momentum and a path towards sustainable profitability [11]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Characteristics - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential [2] - Investing in bargain stocks with recent price momentum may be a safer approach [3] Group 2: Stem, Inc. (STEM) Analysis - STEM has shown a significant price increase of 46.4% over the past four weeks, indicating growing investor interest [4] - The stock gained 0.1% over the past 12 weeks and has a beta of 1.42, suggesting it moves 42% more than the market [5] - STEM has a Momentum Score of A, indicating a favorable time to invest [6] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investors [7] - STEM is trading at a Price-to-Sales ratio of 0.54, suggesting it is undervalued at 54 cents for each dollar of sales [7] Group 3: Additional Investment Opportunities - Besides STEM, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles [9]

Financial Data and Key Metrics Changes - Total revenue increased by 27% year over year, driven by strong growth across the business [19] - Software revenue rose by 17% compared to Q1 2024, reflecting continued strong performance from PowerTrack and increased storage software activations [19] - GAAP gross margin reached a record 32%, while non-GAAP gross margin was close to an all-time high at 46% [20] - Positive operating cash flow of $9 million was generated for the first time in the company's history [20] - Cash balance grew to $59 million at quarter end, with a focus on cash conservation and margin improvement [21] Business Line Data and Key Metrics Changes - Solar annual recurring revenue (ARR) increased by 10% sequentially and 24% year over year [10] - Storage ARR grew by 4% sequentially and 31% year over year [11] - Professional services are gaining momentum, establishing the company as a trusted advisor in the clean energy sector [12] Market Data and Key Metrics Changes - The company is experiencing strong momentum in utility-scale bookings, with nearly triple the bookings in Q1 compared to the same period last year [10] - The overall bookings pace and pipeline development remain robust across core offerings, with no discernible slowdown in deployments by customers [15][23] Company Strategy and Development Direction - The company has restructured into four distinct business units: software, professional services, managed services, and OEM hardware, each with full P&L responsibility [5][6] - A targeted 27% reduction in workforce is expected to yield $30 million in annual cash cost savings, with $24 million of that benefit realized in 2025 [6][24] - The strategic focus is on growing software revenue, particularly through PowerTrack, while reducing the cost structure and driving profitability [8][12] Management's Comments on Operating Environment and Future Outlook - The clean energy sector faces uncertainty due to evolving economic and regulatory policies, but the company maintains upward momentum [15] - Management expects improving profitability as the year progresses, driven by operational cost discipline and revenue growth [13][24] - The company is committed to enhancing software features and functionality to maximize customer value [29] Other Important Information - The company plans to enhance financial transparency through segment reporting, providing deeper insights into performance drivers across business lines [25] - A reverse stock split is proposed to regain compliance with New York Stock Exchange listing standards [26] Q&A Session Summary Question: How is the bookings environment evolving given the tariffs? - Management noted that OEM hardware sales are not a significant component of the business going forward, and they are actively engaging with customers despite tariff volatility [33][34] Question: What are the drivers for expected improving profitability? - Management indicated that revenue cyclicality and operational expense management are key factors, with a focus on higher-margin offerings [42][43] Question: Can you elaborate on the brownfield opportunities mentioned? - Management highlighted that there are broad-based opportunities in geographies where they already operate, with a focus on increasing profitability through managed services [50] Question: What is the rationale for deemphasizing PowerBidder Pro? - The decision was based on growth potential and the ability to execute effectively, leading to a focus on PowerTrack and associated offerings [55][57]

Financial Performance - Revenue reached $33 million, a 27% year-over-year increase[6] - GAAP gross margin was 32%, a 127 percentage point increase year-over-year[6] - Non-GAAP gross margin was 46%, a 22 percentage point increase year-over-year[6] - Adjusted EBITDA improved by $8 million year-over-year to $(5) million[6] - Operating cash flow improved by $9 million year-over-year to $9 million[6] Recurring Revenue and Bookings - Annual Recurring Revenue (ARR) increased by 8% quarter-over-quarter and 26% year-over-year to $57 million[6] - Contracted Annual Recurring Revenue (CARR) reached $69 million in 1Q25[18] - Bookings were $34.5 million in 1Q25[18] Business Strategy and Cost Savings - Implemented targeted workforce reductions in April, driving $30 million in annualized cost savings[6] - The company is creating four distinct business units to optimize operations and drive growth: Software Products, Professional Services, Managed Services, and OEM Hardware[8, 9] 2025 Guidance - The company reaffirmed its 2025 guidance, projecting total revenue between $125 million and $175 million[7, 22] - The company projects year-end ARR between $55 million and $65 million[22]

Stem, Inc. (STEM) came out with a quarterly loss of $0.15 per share versus the Zacks Consensus Estimate of a loss of $0.20. This compares to loss of $0.46 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 25%. A quarter ago, it was expected that this company would post a loss of $0.16 per share when it actually produced a loss of $0.12, delivering a surprise of 25%. Over the last four quarters, the company has surpassed consens ...

Financial Data and Key Metrics Changes - Total revenue increased by 27% year over year, driven by strong growth across the business [18] - Software revenue rose by 17% compared to Q1 2024, reflecting continued strong performance from PowerTrack and increased storage software activations [18] - GAAP gross margin reached a record 32%, while non-GAAP gross margin was close to an all-time high at 46% [19] - Positive operating cash flow of $9 million was generated for the first time in the company's history [19] - Cash balance grew to $59 million at quarter end, with over $2 million in net cash generated during the quarter [20] Business Line Data and Key Metrics Changes - Solar annual recurring revenue (ARR) increased by 10% sequentially and 24% year over year [10] - Storage ARR grew by 4% sequentially and 31% year over year [11] - Professional services are gaining momentum, establishing the company as a trusted advisor in the clean energy sector [12] Market Data and Key Metrics Changes - The company is experiencing strong bookings in the solar segment, with no significant slowdown noted despite macroeconomic uncertainties [36] - The pace of deployment for solar projects remains robust, with customers continuing to develop new projects [38] Company Strategy and Development Direction - The company has restructured into four distinct business units: software, professional services, managed services, and OEM hardware, each with full P&L responsibility [6][7] - A targeted 27% reduction in workforce is expected to yield $30 million in annual cash cost savings, with $24 million of that benefit realized in 2025 [7][23] - The focus is on growing software revenue, particularly through PowerTrack, and enhancing product capabilities with AI integration [15][19] Management's Comments on Operating Environment and Future Outlook - The clean energy sector faces uncertainty due to evolving economic and regulatory policies, but the company maintains upward momentum [15] - The company reaffirms its full-year 2025 financial guidance across all metrics, with no discernible slowdown in customer deployments [22] - Management emphasizes a commitment to enhancing software features and functionality to maximize customer value [28] Other Important Information - The company plans to enhance financial transparency through segment reporting following the new business unit structure [24] - A reverse stock split is proposed to regain compliance with New York Stock Exchange listing standards [26] Q&A Session Summary Question: How is the bookings environment evolving given the tariffs? - Management noted that OEM hardware sales are not a significant component of the business going forward, and they are actively engaging with customers regarding tariffs [32][33] Question: Are customers still contracting for storage projects? - Management indicated that while there is volatility, they have not seen a significant impact on bookings, particularly in the solar segment [36][38] Question: What are the drivers for expected improving profitability? - Management highlighted that improvements will come from operational expense reductions and revenue growth, with a focus on higher-margin offerings [40][43] Question: Can you elaborate on the brownfield opportunities mentioned? - Management stated that there are broad-based opportunities in core geographies where they operate, with a focus on increasing assets under management [48][49] Question: What is the rationale for deemphasizing PowerBidder Pro? - Management explained that the decision was based on growth potential and execution capabilities, focusing resources on more promising products like PowerTrack [55][56]

Financial Data and Key Metrics Changes - Total revenue increased by 27% year over year, driven by strong growth across the business [18] - Software revenue rose by 17% compared to Q1 2024, reflecting continued strong performance from PowerTrack and increased storage software activations [18] - GAAP gross margin reached a record 32%, while non-GAAP gross margin was close to an all-time high at 46% [19] - Positive operating cash flow of $9 million was generated for the first time in the company's history [19] - Cash balance grew to $59 million at quarter end, with over $2 million in net cash generated during the quarter [20] Business Line Data and Key Metrics Changes - Solar annual recurring revenue (ARR) increased by 10% sequentially and 24% year over year [10] - Storage ARR grew by 4% sequentially and 31% year over year [11] - Professional services are gaining momentum, establishing the company as trusted advisors in the clean energy sector [12] Market Data and Key Metrics Changes - The company is experiencing strong bookings in the solar segment, with no significant slowdown noted despite macroeconomic uncertainties [36] - The pace of deployment for solar projects remains robust, with customers continuing to develop new projects [38] Company Strategy and Development Direction - The company has restructured into four distinct business units: software, professional services, managed services, and OEM hardware, each with full P&L responsibility [6] - A targeted 27% reduction in workforce is expected to yield $30 million in annual cash cost savings, with $24 million of that benefit realized in 2025 [7] - The focus is on growing software revenue, particularly through PowerTrack, and optimizing capital deployment towards high-growth opportunities [9] Management's Comments on Operating Environment and Future Outlook - The clean energy sector faces uncertainty due to evolving economic and regulatory policies, but the company maintains upward momentum [15] - The company expects improving profitability as it moves through the year, driven by operational cost discipline and revenue growth [13][22] - The organizational changes are seen as a significant milestone in the company's evolution, supporting a strategy shift aimed at enhancing shareholder value [24] Other Important Information - The company plans to enhance financial transparency through segment reporting, providing deeper insights into performance drivers across business lines [24] - A reverse stock split is proposed to regain compliance with New York Stock Exchange listing standards [26] Q&A Session Summary Question: How is the bookings environment evolving given the tariffs? - The OEM hardware sales are not a significant component of the business going forward, and there is active dialogue with customers regarding the impact of tariffs [32][33] Question: Are customers still contracting for storage projects? - There has not been a significant slowdown in solar bookings, and the pace of deployment remains strong [36][38] Question: What are the drivers for expected improving profitability? - Improvement is anticipated from operational expense reductions and revenue growth, with a focus on managing operating expenses effectively [40][42] Question: Can you elaborate on the brownfield opportunities mentioned? - The company is pursuing opportunities in core geographies where managed services are already established, with a broad-based approach rather than targeting specific areas [48] Question: What is the rationale for deemphasizing PowerBidder Pro? - The decision was based on growth potential and the ability to execute effectively, focusing on PowerTrack and associated offerings instead [55]

[Part I. Financial Information](index=3&type=section&id=Part%20I.%20Financial%20Information) [Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Stem, Inc. presents its unaudited condensed consolidated financial statements for Q1 2025, showing a net loss of $25.0 million and decreased total assets [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $405.1 million, liabilities to $822.0 million, and stockholders' deficit increased to $416.9 million as of March 31, 2025 Condensed Consolidated Balance Sheet Highlights (in thousands) | Balance Sheet Item | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $58,584 | $56,299 | | Accounts receivable, net | $34,733 | $59,316 | | Total current assets | $110,580 | $136,617 | | **Total assets** | **$405,081** | **$437,359** | | Total current liabilities | $120,177 | $128,800 | | Convertible notes, noncurrent | $526,503 | $525,922 | | **Total liabilities** | **$822,005** | **$835,192** | | **Total stockholders' (deficit) equity** | **($416,924)** | **($397,833)** | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Revenue increased to $32.5 million, gross profit turned positive at $10.5 million, and net loss narrowed to $25.0 million in Q1 2025 Q1 2025 vs. Q1 2024 Statement of Operations (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total revenue | $32,512 | $25,469 | | Gross profit (loss) | $10,538 | ($24,191) | | Loss from operations | ($21,148) | ($68,013) | | **Net loss** | **($25,000)** | **($72,307)** | | **Net loss per share, basic and diluted** | **($0.15)** | **($0.46)** | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating activities generated $8.5 million in cash, with total cash, cash equivalents, and restricted cash ending at $60.4 million for Q1 2025 Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $8,536 | ($621) | | Net cash (used in) provided by investing activities | ($3,590) | $4,675 | | Net cash (used in) provided by financing activities | ($2,819) | $3,142 | | **Net increase in cash, cash equivalents and restricted cash** | **$2,285** | **$7,429** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail business, accounting policies, liquidity, convertible notes, and subsequent events, including a 27% workforce reduction in April 2025 - The company leads in **AI-driven software and services** for clean energy assets, utilizing its Athena® AI platform and PowerTrack software[22](index=22&type=chunk)[23](index=23&type=chunk) - As of March 31, 2025, the company held **$58.6 million in cash and cash equivalents**, deemed sufficient for the next 12 months despite a **$9.6 million negative working capital**[26](index=26&type=chunk) - Q1 2024 included a **$33.1 million net revenue reduction** from Parent Company Guarantees (PCGs) on hardware, with no remaining PCGs as of March 31, 2025[69](index=69&type=chunk)[70](index=70&type=chunk) - On April 9, 2025, the company announced a **27% global workforce reduction**, anticipating **$6.0 million to $6.5 million in Q2 2025 charges**[121](index=121&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=22&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 financial results, including a 28% revenue increase, improved gross profit, a new software strategy, NYSE compliance, and liquidity, with an Adjusted EBITDA loss of $4.6 million [Key Factors, Trends and Uncertainties](index=23&type=section&id=Key%20Factors,%20Trends%20and%20Uncertainties%20Affecting%20our%20Business) Key factors include a new AI-enabled software strategy, NYSE non-compliance due to stock price, and uncertainty regarding the Inflation Reduction Act - The company adopted a new business strategy focusing on **AI-enabled software and services**, reducing battery resales, a historical revenue source[134](index=134&type=chunk) - The company received an **NYSE non-compliance notice** on August 28, 2024, due to its stock price falling below $1.00, and plans to seek stockholder approval for a reverse stock split[138](index=138&type=chunk) - Uncertainty surrounds the **Inflation Reduction Act (IRA)** and **Infrastructure Investment and Jobs Act (IIJA)** due to a new U.S. administration's executive order pausing government fund disbursements[141](index=141&type=chunk)[142](index=142&type=chunk) [Non-GAAP Financial Measures](index=26&type=section&id=Non-GAAP%20Financial%20Measures) Non-GAAP Gross Profit reached $14.8 million (46% margin) and Adjusted EBITDA loss improved to $4.6 million in Q1 2025, excluding specific non-recurring items Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit (in millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | GAAP gross profit (loss) | $10.5 | ($24.2) | | Add: Revenue reduction, net | — | $33.1 | | Add: Amortization of capitalized software | $4.3 | $3.9 | | Add: Excess supplier costs | — | $1.0 | | **Non-GAAP gross profit** | **$14.8** | **$13.8** | Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss | ($25,000) | ($72,307) | | Depreciation and amortization | $11,695 | $11,154 | | Stock-based compensation | $4,317 | $8,374 | | Revenue reduction, net | — | $33,128 | | **Adjusted EBITDA** | **($4,627)** | **($12,239)** | [Financial Results and Key Metrics](index=29&type=section&id=Financial%20Results%20and%20Key%20Metrics) Key operating metrics for Q1 2025 include Bookings of $34.5 million, Contracted Backlog of $25.3 million, and ARR of $56.9 million, with redefined definitions Key Operating Metrics | Metric (at period end unless noted) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Bookings (for the quarter) | $34.5M | $23.8M | | Contracted backlog* | $25.3M | $1,639.6M | | Storage operating AUM (GWh) | 1.6 | 0.8 | | Solar operating AUM (GW) | 32.4 | 26.9 | | CARR* | $69.0M | $89.3M | | ARR | $56.9M | $45.1M | *Redefined metric vs. prior periods [Results of Operations](index=32&type=section&id=Results%20of%20Operations%20for%20the%20Three%20Months%20Ended%20March%2031,%202025%20and%202024) Q1 2025 revenue increased 28% to $32.5 million, gross profit reached $10.5 million, and total operating expenses decreased 28% to $31.7 million - Revenue increased by **$7.0 million (28%) year-over-year**, driven by **$4.2 million in hardware revenue** and **$2.9 million in services and other revenue** growth[184](index=184&type=chunk) - Cost of revenue decreased by **$27.7 million (56%) year-over-year**, primarily due to a **$29.1 million reduction in hardware cost** from product mix changes[185](index=185&type=chunk) - Total operating expenses decreased by **$12.1 million (28%) year-over-year**, with reductions across Sales & Marketing (**$4.3 million**), R&D (**$2.8 million**), and G&A (**$5.0 million**) due to lower headcount and professional services costs[186](index=186&type=chunk)[187](index=187&type=chunk)[188](index=188&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity as of March 31, 2025, was **$58.6 million in cash**, deemed sufficient for 12 months despite a **$9.6 million working capital deficit**, with significant convertible notes outstanding - Principal liquidity sources as of March 31, 2025, were **$58.6 million in cash and cash equivalents**, with a **$9.6 million working capital deficit**[193](index=193&type=chunk) - Long-term debt includes **$297.0 million** for 2028 Convertible Notes and **$240.0 million** for 2030 Convertible Notes[85](index=85&type=chunk)[98](index=98&type=chunk) - The company generated **$8.5 million in cash from operations** in Q1 2025, a significant improvement from a **$0.6 million use of cash** in Q1 2024, driven by a smaller net loss and a **$24.4 million decrease in accounts receivable**[207](index=207&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, the company is exempt from providing quantitative and qualitative disclosures about market risk - As a smaller reporting company, Stem, Inc. is **not required to provide quantitative and qualitative disclosures about market risk**[216](index=216&type=chunk) [Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal controls over financial reporting - The CEO and CFO concluded that the company's **disclosure controls and procedures were effective** as of March 31, 2025[218](index=218&type=chunk) - No material changes to **internal controls over financial reporting** occurred during Q1 2025[219](index=219&type=chunk) [Part II. Other Information](index=38&type=section&id=Part%20II.%20Other%20Information) [Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings but does not anticipate a material loss from any pending cases - The company does not believe any pending legal proceedings will have a **material adverse effect** on the company[118](index=118&type=chunk)[222](index=222&type=chunk) [Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported from the Annual Report on Form 10-K for the fiscal year ended December 31, 2024 - No **material changes to risk factors** from the Annual Report on Form 10-K for the fiscal year ended December 31, 2024, were reported[223](index=223&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales or repurchases of its equity securities during the period - There were **no unregistered sales of equity securities** or company repurchases of its equity securities in the quarter[224](index=224&type=chunk)[225](index=225&type=chunk) [Other Information](index=38&type=section&id=Item%205.%20Other%20Information) A Section 16 officer adopted a Rule 10b5-1 trading plan on March 18, 2025, to sell up to 20,017 shares of common stock - Matthew Tappin, President, Software, adopted a **Rule 10b5-1 trading plan** on March 18, 2025, to sell up to **20,017 shares of common stock**[229](index=229&type=chunk)

Revenue Performance - Revenue for Q1 2025 increased 27% year-over-year to $32.5 million, compared to $25.5 million in Q1 2024[7] - Total revenue for the three months ended March 31, 2025, was $32,512 million, a 27.7% increase from $25,469 million in the same period of 2024[43] - Hardware revenue increased to $14,791 million, up 39.0% from $10,629 million year-over-year[43] Profitability Metrics - GAAP gross profit was $10.5 million with a gross margin of 32%, up from a loss of $(24.2) million and a margin of (95)% in Q1 2024[8] - Non-GAAP gross profit reached $14.8 million, representing a gross margin of 46%, compared to $13.8 million and 24% in Q1 2024[8] - Gross profit for the quarter was $10,538 million, compared to a gross loss of $24,191 million in the prior year[43] - Net loss narrowed to $25.0 million from $72.3 million in Q1 2024, reflecting improved gross profit and lower operating costs[18] - Net loss for the quarter was $25,000 million, significantly improved from a net loss of $72,307 million in the same quarter of 2024[43] - Adjusted EBITDA for the three months ended March 31, 2025, was $(4,627) million, an improvement from $(12,239) million in the same period of 2024[48] Cash Flow and Liquidity - Operating cash flow was positive at $8.5 million, compared to $(0.6) million in Q1 2024[7] - Cash, cash equivalents, and restricted cash at the end of the period totaled $60,370 million, down from $113,904 million at the end of the same period in 2024[46] - Operating cash flow for the quarter was $8,536 million, a significant turnaround from $(621) million in the same quarter of 2024[46] Cost Management - The company implemented targeted workforce reductions expected to generate approximately $30 million in annual cash cost savings[3] - Total operating expenses decreased to $31,686 million from $43,822 million year-over-year, reflecting a reduction in sales and marketing, R&D, and administrative costs[43] Guidance and Future Outlook - Full year 2025 guidance reaffirmed with revenue expected between $125 million and $175 million[23] - The conference call to discuss earnings and business outlook is scheduled for April 29, 2025[33] Asset and Liability Overview - As of March 31, 2025, total current assets decreased to $110.58 million from $136.62 million as of December 31, 2024[41] - Total assets decreased to $405.08 million as of March 31, 2025, down from $437.36 million as of December 31, 2024[41] - Total liabilities amounted to $822.01 million as of March 31, 2025, compared to $835.19 million as of December 31, 2024[41] - The accumulated deficit increased to $1.65 billion as of March 31, 2025, from $1.63 billion as of December 31, 2024[41] Financial Reporting and Adjustments - The company defines adjusted EBITDA as net loss before depreciation and amortization, excluding stock-based compensation and other income and expense items[29] - Non-GAAP gross profit excludes amortization of capitalized software and other specific costs, providing a clearer view of operational performance[30] - The company emphasizes the importance of non-GAAP financial measures for internal decision-making and performance evaluation[28] Other Financial Events - In the three months ended March 31, 2024, the company incurred costs of $1.0 million above initially agreed prices due to production delays, resulting in liquidated damages of $4.8 million during the year ended December 31, 2023[31] - The company recorded a bad debt expense of $104.1 million during the year ended December 31, 2024, related to impairment of accounts receivable[32] - The company reported a weighted-average share count of 163,889,801 for the calculation of net loss per share, compared to 158,180,137 in the prior year[43]

Core Viewpoint - Stem (STEM) is expected to report its first-quarter 2025 earnings on April 29, with revenues estimated at $25.80 million, reflecting a 1.30% increase year-over-year, and a projected loss of 20 cents per share, which is an improvement from a loss of 46 cents in the same quarter last year [1][3]. Group 1: Earnings Expectations - The Zacks Consensus Estimate for first-quarter 2025 revenues is $25.80 million, indicating a 1.30% increase from the previous year [1]. - The consensus for the bottom line is a loss of 20 cents per share, which has widened by 6 cents over the past month but shows improvement from a loss of 46 cents in the prior year [1][2]. Group 2: Performance Drivers - The anticipated performance for the first quarter is expected to benefit from the high-margin software platform, PowerTrack, which has delivered gross margins of 70-80% in previous quarters [3]. - The company's strategic shift towards software and services aims to reduce reliance on lower-margin hardware sales, likely supporting improved profitability [3]. - International expansion, particularly a deal with Neovolt in Hungary to manage a 484 MW solar portfolio, is expected to contribute to revenue growth [4]. Group 3: Operational Improvements - The company expects an improvement in operating cash flow due to working capital releases related to OEM hardware, aided by efficient inventory management and a reduction in lower-margin hardware deployments [5]. - Stem plans to cut operational expenses by over 20% in 2025, focusing on profitability and operational efficiency through targeted initiatives [6]. Group 4: Challenges - A significant decline in hardware sales during the fourth quarter of 2024 negatively impacted overall performance, and this trend is expected to continue into the first quarter of 2025, putting pressure on total revenues [7]. Group 5: Earnings Prediction Model - According to the Zacks model, Stem currently has an Earnings ESP of 0.00% and a Zacks Rank of 2 (Buy), indicating that the odds of an earnings beat are not favorable [8].