Core Insights - Stem reported a transformative year in 2025, achieving its first full year of positive adjusted EBITDA of approximately $7 million and positive operating cash flow of $7 million [3][4][14] - The company successfully shifted towards a software-centric model, with over 55% of revenue coming from software and services [2][4] Financial Performance - Stem's total revenue for 2025 was $156 million, reflecting an 8% year-over-year increase [4] - Annual recurring revenue (ARR) reached $61 million, up 16% year over year [1] - Revenue from software, services, and Edge hardware increased by 25% year over year to $141 million, while battery hardware resale revenue was $15 million [2] Margin and Efficiency - The company achieved record gross margins, with a full-year GAAP gross margin of 38% and non-GAAP gross margin of 46% [4] - Cash operating expenses were reduced by 41% year over year, indicating a focus on permanent structural efficiency [5] Product Development and Launches - Stem launched the PowerTrack EMS and AI assistant PowerTrack Sage, contributing to a growth in PowerTrack ARR to $41 million [3][6] - The company added 6 gigawatts of solar assets, bringing the total under management to 36 gigawatts [6] Managed Services and Revenue Growth - Managed services revenue rose by 51% year over year, driven by performance-based revenue [9] - Project and professional services revenue increased significantly, with approximately $11 million recognized from one-time DevCo revenue [10] 2026 Guidance and Strategic Outlook - For 2026, Stem provided revenue guidance of $140 million to $190 million, with adjusted EBITDA expected to be between $10 million and $15 million [13] - The company aims to focus on margin expansion and operational leverage while selectively investing for future growth [11][12]