STEM earnings analysis
What we found in STEM's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Stem’s Q2 2026 results were mixed: EPS of -$1.58 beat the -$1.92 consensus estimate and improved from -$1.79 a year earlier, while revenue of $33.654 million missed consensus and declined from $38 million. Management reaffirmed its full-year 2026 outlook, including revenue of $140 million-$190 million and operating cash flow of $0 million-$10 million. The filing did not provide sufficient current-quarter balance-sheet, cash-flow, or segment detail in the available extract, and it reported no material changes to the risk factors from the December 31, 2025 Form 10-K.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- EPS beat and improved year over year
- Q2 2026 EPS was -$1.58 versus consensus of -$1.92, a $0.34 per-share beat. EPS also improved from -$1.79 in Q2 2025.
- Revenue missed and declined year over year
- Revenue was $33.654 million, $1.982 million below the $35.636 million consensus estimate and approximately 11.4% below $38 million in Q2 2025.
- Full-year guidance reaffirmed
- Management reaffirmed full-year 2026 revenue guidance of $140 million-$190 million, non-GAAP gross margin of 40%-50%, adjusted EBITDA of $10 million-$15 million, operating cash flow of $0 million-$10 million, and year-end ARR of $65 million-$70 million.
- Disclosure controls remained effective
- Management concluded that disclosure controls were effective at a reasonable assurance level as of June 30, 2026, and reported no changes in internal controls that materially affected, or were reasonably likely to materially affect, reporting controls during Q2 2026.
- raicoon acquisition completed
- Stem issued 389,569 common shares to the sellers of raicoon GmbH on April 23, 2026, in connection with the acquisition of 100% of raicoon’s assets.
- Insider trading plan disclosed
- The CFO adopted a Rule 10b5-1 plan on May 14, 2026, covering sales of up to 3,667 common shares from August 10, 2026 through March 1, 2027.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Revenue pressure persists
- Q2 2026 revenue of $33.654 million missed the $35.636 million consensus estimate by $1.982 million and fell from $38 million in Q2 2025, indicating continued top-line pressure despite the EPS beat.
- GAAP earnings remained negative
- The company reported Q2 2026 EPS of -$1.58, meaning it remained loss-making on a per-share basis despite improving from -$1.79 in Q2 2025.
- Equity issuance and selling pressure
- The raicoon transaction resulted in the issuance of 389,569 common shares, creating potential shareholder dilution; the CFO’s plan additionally permits sales of up to 3,667 shares.
- No risk-factor improvement disclosed
- The filing states that there were no material changes to the risk factors in the December 31, 2025 Form 10-K, limiting evidence of risk mitigation in the current quarter.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-1.58
What they said about what is next.
Full-year 2026 guidance was reaffirmed: revenue of $140 million-$190 million, non-GAAP gross margin of 40%-50%, adjusted EBITDA of $10 million-$15 million, operating cash flow of $0 million-$10 million, and year-end ARR of $65 million-$70 million.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 6, 2026
- Stem, Inc. reported Q1 2026 revenue of $29 million, a decrease of 11% compared to $32.5 million in Q1 2025, with EPS at -$2.22, slightly below the estimate of -$2.19. The decline in revenue was primarily driven by a…
- 10-K · March 5, 2026
- In its 2025 10-K, Stem, Inc. outlines a transformative strategy focusing on AI-enabled software and services, moving away from traditional hardware sales. The company's financials show significant improvement, with…
- 10-Q · October 30, 2025
- Stem, Inc. reported a total revenue of $38.2 million for Q3 2025, representing a 31% increase year-over-year, although it missed analyst expectations by approximately $1.57 million. The gross margin improved to 35%,…
- 10-Q · August 8, 2025
- Stem, Inc. reported a significant turnaround in Q2 2025, with total revenue rising 13% to $38.4 million compared to the previous year and an improved EPS of -$1.79, surpassing estimates. Management focuses on enhancing…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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