Stem(US:STEM)2025-10-29 20:24Financial Performance - Revenue increased by 31% year-over-year to $38.2 million, up from $29.3 million in Q3 2024[6] - GAAP gross profit was $13.5 million with a gross margin of 35%, compared to $6.2 million and 21% in Q3 2024[6] - Adjusted EBITDA improved to $2.0 million from a loss of $3.5 million in Q3 2024[19] - Annual recurring revenue (ARR) rose by 3% quarter-over-quarter to $60.2 million, up from $58.5 million[22] - Total revenue for the three months ended September 30, 2025, was $38,237 thousand, a 30.6% increase from $29,291 thousand in the same period of 2024[45] - Revenue for Q3 2025 was $38.2 million, a 30.5% increase from $29.3 million in Q3 2024[54] - For the nine months ended September 30, 2025, revenue reached $109.1 million, up from $88.8 million in the same period of 2024[54] - Non-GAAP gross profit for Q3 2025 was $17.9 million, with a non-GAAP gross margin of 47%, slightly up from 46% in Q3 2024[54] - Non-GAAP gross profit for the nine months ended September 30, 2025 was $51.4 million, compared to $43.5 million in the same period of 2024[54] Cost and Expenses - Operating expenses for the three months ended September 30, 2025, totaled $26,431 thousand, down from $150,648 thousand in Q3 2024, indicating a reduction of 82.5%[45] - The company reported a significant reduction in cost of revenue, which was $24.7 million in Q3 2025 compared to $23.1 million in Q3 2024[54] - The Company incurred costs of $1.0 million above initially agreed prices for hardware systems due to supplier production delays, resulting in $4.8 million in liquidated damages under customer contracts[34] - Excess supplier costs were noted as a factor affecting non-GAAP profit, although specific figures were not disclosed[55] Assets and Liabilities - Cash and cash equivalents at the end of Q3 2025 were $43.1 million, up from $40.8 million at the end of Q2 2025[19] - As of September 30, 2025, total current assets decreased to $93.8 million from $136.6 million as of December 31, 2024, reflecting a significant decline[43] - Total liabilities decreased to $597.7 million as of September 30, 2025, from $835.2 million as of December 31, 2024[43] - The Company’s total assets decreased to $362.6 million as of September 30, 2025, from $437.4 million as of December 31, 2024[43] Profitability - Net income for the nine months ended September 30, 2025, was $153,740 thousand, a significant recovery from a net loss of $(802,877) thousand in the same period of 2024[47] - The company incurred a total operating loss of $(12,851) thousand for the three months ended September 30, 2025, compared to a loss of $(144,452) thousand in Q3 2024[45] - The accumulated deficit improved to $(1,472.8) million as of September 30, 2025, compared to $(1,626.5) million as of December 31, 2024[43] Strategic Initiatives - The company launched the PowerTrack Energy Management System (EMS) to enhance its offerings in the standalone storage and solar-plus-storage control market[25] - The company revised its full-year 2025 revenue guidance to $135 - $160 million from a previous range of $125 - $175 million[24] - Bookings for the quarter were $30.3 million, down from $34.3 million in Q2 2025 due to a strategic de-emphasis on low-margin battery hardware[20] Market Conditions - The Company is subject to various macroeconomic risks, including inflationary pressures and geopolitical tensions, which may impact financial results[28] Conference Call - The Company plans to hold a conference call on October 29, 2025, to discuss earnings and business outlook[36]