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]