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Third Quarter 2025 Financial Results October 29, 2025
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© 2025 Stem, Inc. 2 Cautionary Statement Regarding Forward-Looking Statements This presentation, as well as other statements we make, contains “forward-looking statements” within the meaning of the federal securities laws, which include any statements that are not historical facts. Such statements often contain words such as “expect,” “may,” “can,” “believe,” “predict,” “plan,” “potential,” “projected,” “projections,” “f orecast,” “estimate,” “intend,” “anticipate,” “ambition,” “goal,” “target,” “think,” “should,” “could,” “would,” “will,” “hope,” “see,” “likely,” and other similar words. Forward -looking statements address matters that are, to varying degree s, uncertain, such as statements about our financial and operating performance, guidance, outlook, targets and other forecasts or expectations regarding, or dependent on, our business outlook and strategy; our joint ventures, partnerships and other alliances; forecasts or expectations regarding energy transition and global climate change; reduction of greenhouse gas (“GHG”) emissions; the integration and optimization of energy resource s; our business strategies and those of our customers; our ability to retain or upgrade current customers, further penetrate existing markets or expand into new markets; the effects of natural disasters and other events b eyond our control; the expected impacts of the One Big Beautiful Bill Act (“OBBB”) on our business and that of our customers; the direct or indirect effects on our business of macroeconomic factors and geopolitical instability, such as the armed conflicts between Russia and Ukraine and in the Gaza Strip and nearby areas; and our future results of operations, including revenue, adjusted EBITDA and the other metrics presented herein. S uch forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results or outcomes to differ materially from those expressed or implied by such forward -looking statements, including but not limited to our inability to execute on, and achieve the expected benefits from, our operational and strategic initiatives, including from our cost reduction, workforce reduction and restructuring efforts; our inability to successfully execute on our new software and services -centric strategy; the effects of the OBBB on our business and that of our customers; disruptions in sales, production, service or other business activities; g eneral macroeconomic and business conditions in key regions of the world, including inflationary pressures, general economic slowdown or a recession, high interest rates, changes in monetary policy, changes in trade policies, including tariffs or other trade restrictions or the threat of such actions, government shutdowns and instability in financial institutions; the direct and indirect effects of widespread health emergencies on our workforce, operations, financial results and cash flows; geopolitical instability, such as the armed conflicts between Russia and Ukraine and in the Gaza Strip and nearby areas; the results of operations and financial conditio n of our customers; pricing pressures; severe weather and seasonal factors; our inability to continue to grow and manage our growth effectively; our inability to attract and retain qualified employees and key personnel ; our inability to comply with, and the effect on our business of, evolving legal standards and regulations, including those concerning data protection, consumer privacy, sustainability, and evolving labor standards; risk s relating to the development and performance of our software -enabled services; our inability to retain or upgrade current customers, further penetrate existing markets or expand into new markets; the risk that our busines s, financial condition and results of operations may be adversely affected by other political, economic, business and competitive factors; and other risks and uncertainties discussed in this presentation and in our most recent Forms 10-K, 10-Q and 8-K filed with or furnished to the SEC. If one or more of these or other risks or uncertainties materialize (or the consequences of any such development changes), or should our underlying assu mptions prove incorrect, our actual results or outcomes, or the timing of these results or outcomes, may vary materially from those reflected in our forward -looking statements. Forward-looking statements and other state ments in this presentation regarding our environmental, social, and other sustainability plans and goals are not an indication that these statements are necessarily material to the Company, investors or other stake holders or required to be disclosed in our filings under U.S. securities laws or any other laws or requirements applicable to the Company. In addition, historical, current, and forward -looking environmental, social, and sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future . Forward-looking statements in this presentation are made as of the date of this presentation, and the Company disclaims any intention or obligation to update publicly or revise such forward -looking statements, whether as a result of new information, future events, or otherwise, except as required by law. Non-GAAP measures In addition to financial measures in accordance with U.S. GAAP, this presentation includes references to non -GAAP financial measures, including adjusted EBITDA, non-GAAP gross profit, and non-GAAP gross margin. We believe these non-GAAP measures provide useful supplemental information regarding certain financial and business trends relat ing to our financial condition and results of operations. We also believe that these non - GAAP financial measures provide an additional tool for investors to use in evaluating ongoing operating results and trends an d in comparing our financial performance with other similar companies, many of which present similar non-GAAP financial measures to investors. These non-GAAP financial measures are in addition to, and should not be considered superior to, or a substitute for, financial results prepared in accordance with GAAP. Non-GAAP financial measures should not be considered in isolation and are subject to significant inherent limitations. The non -GAAP measures presented herein may not be comparable to similar non -GAAP measures presented by other companies. Reconciliation of these non -GAAP measures to their most directly comparable GAAP financial measure s are included in the Appendix to this presentation. Industry and Market Data In this presentation, Stem relies on and refers to certain information and statistics obtained from third -party sources which it believes to be reliable, including reports by market research firms. Stem has not independently verified the accuracy or completeness of any such third -party information. This presentation may contain trademarks, service ma rks, trade names and copyrights of other companies, which are the property of their respective owners.
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© 2025 Stem, Inc. 3 Third Quarter 2025 Results and Other Highlights Strategic transformation continues to drive performance improvements See Appendix for definitions and reconciliation of non-GAAP financial measures to most directly comparable GAAP measures. Highlights3Q25 Results Revenue $38M +31% YoY Operating Cash Flow $11M +$21M YoY Adjusted EBITDA $2M +$6M YoY GAAP/Non- GAAP Gross Margin 35% / 47% +14 p.p. / +1 p.p. YoY Refining guidance across nearly all metrics Annual Recurring Revenue (ARR) $60M +3% QoQ / +17% YoY Generated positive operating cash flow and sustained cash position Several PowerTrackTM EMS bookings with significant capacity deployments from blue-chip customers across three countries Increased ARR by ~$2M QoQ and $9M YoY to $60M Increased solar and storage AUM by 4% and 6%, respectively Achieved strong GAAP and non- GAAP gross margins and second consecutive quarter of positive adjusted EBITDA
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© 2025 Stem, Inc. 4 $ millions, unless otherwise noted $29.3 $38.2 3Q24 3Q25 Revenue 21% 35% 46% 47% 3Q24 3Q25 GAAP GM Non-GAAP GM GAAP & Non-GAAP Gross Margin % ($3.5) $2.0 3Q24 3Q25 Adjusted EBITDA ($9.4) $11.4 3Q24 3Q25 3Q 2025 Financial Metrics See Appendix for definitions and reconciliation of non-GAAP financial measures to most directly comparable GAAP measures. +31% +$6M ● Significant YoY improvement across metrics ● Non-GAAP gross margin increases driven by increased software revenue and improved hardware margins across edge and battery resale ● GAAP gross margin improved YoY due to absence of $5.6M revenue reduction ● Improved adjusted EBITDA YoY driven by improved gross margin and significantly reduced operating expenses ● Cash OpEx down 47% YoY ● Operating cash flow up $21M YoY Operating Cash Flow +$21M $38.0 $20.3 3Q24 3Q25 Cash OpEx (47%)
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© 2025 Stem, Inc. 5 See Appendix for definitions. $ millions, unless otherwise noted $69.2 $70.1 2Q25 3Q25 ARR Contracted CARR $20.5 $21.3 $38.0 $38.9 $58.5 $60.2 2Q25 3Q25 Managed Services PowerTrack ARR • Bookings down sequentially due to strategic de-emphasis of low- margin battery hardware • Software, edge hardware and services bookings flat QoQ • Contracted backlog down sequentially due to lower quarterly bookings, and increased hardware and services revenue recognition in the quarter • ARR up 3% QoQ and 17% YoY $34.3 $30.3 2Q25 3Q25 Battery Hardware Resale Software, edge hardware, & services Bookings 3Q 2025 Operating Metrics 1.7 1.8 2Q25 3Q25 AUM – Storage (GWh) 32.7 33.9 2Q25 3Q25 AUM – Solar (GW) $26.8 $22.2 2Q25 3Q25 Battery Hardware Resale Edge hardware & services Contracted Backlog +3% +6% +4%
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© 2025 Stem, Inc. 6 Note: Sub-revenue items do not add to total revenue due to ranges and rounding. See Appendix for definitions and reconciliation of non-GAAP financial measures to most directly comparable GAAP measures. Updating 2025 Guidance $ millions, unless otherwise noted Low High Prior Range Total Revenue $135 $160 $125 – $175 Software, edge hardware, & services $125 $140 $120 – $140 Battery hardware resale Up to $20 Up to $35 Non-GAAP gross margin % 40% – 50% 30% – 40% Adjusted EBITDA ($5) $5 ($10) – $5 Operating cash flow ($5) $5 $0 – $15 Year-end ARR Unchanged $55 - $65
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© 2025 Stem, Inc. 7 Note: Sub-revenue items do not add to total revenue due to ranges and rounding. See Appendix for definitions and reconciliation of non-GAAP financial measures to most directly comparable GAAP measures. Updating Full Year 2025 Guidance Metric Range Comments Total Revenue $135 - $160 Tightened range. High-end slightly lower due to strategic de-emphasis of battery hardware resale Software, edge hardware, & services $125 - $140 Raised low end of range. De-risked low end Battery hardware resale Up to $20 Within previous range. Strategically de-emphasizing Non-GAAP gross margin % 40% - 50% Raised range. Expect slight margin compression in 4Q with increased edge hardware revenue Adjusted EBITDA ($5) - $5 Raised low end of range. Tracking above midpoint Operating cash flow ($5) - $5 Lowered range. Fluctuations in working capital may trend negative in 4Q Year-end ARR $55 - $65 Range unchanged
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© 2025 Stem, Inc. Helping asset owners, operators and stakeholders benefit from the full value of their energy portfolio by enabling the intelligent development, deployment, and operation of clean energy assets. Stem’s integrated software suite, PowerTrackTM, is the industry standard and best-in-class for asset monitoring, supported by professional and managed services, under one roof. Meant to tackle challenges as seamlessly as possible, Stem shows the information needed clearly and accurately and helps harness raw data to inform actionable insight. With global projects managed in 55 countries, customers have relied on Stem for nearly 20 years to maximize the value of their clean energy projects. Driven by human and artificial intelligence – Stem is unlocking energy intelligence. Learn more at stem.com. About Stem Stem (NYSE: STEM) is a global leader reimagining technology to support the energy transition. Turning complexity into clarity, and potential into performance. 8
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© 2025 Stem, Inc. Appendix 9
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© 2025 Stem, Inc. 10 $ millions, unless otherwise noted $88.8 $109.1 2024 2025 Revenue 9 Months Ended September 30, (10%) 34% 34% 47% 2024 2025 GAAP GM Non-GAAP GM GAAP & Non-GAAP Gross Margin % 9 Months Ended September 30, ($27.0) $1.2 2024 2025 Adjusted EBITDA 9 Months Ended September 30, ($21.9) ($1.4) 2024 2025 Year to Date Financial Metrics See Appendix for definitions and reconciliation of non-GAAP financial measures to most directly comparable GAAP measures. +23% +$28M ● Significant YoY improvement across metrics ● Non-GAAP gross margin increases driven by increased software revenue and improved hardware margins across edge and battery resale ● GAAP gross margin improved YoY due to absence of revenue reduction ● Improved adjusted EBITDA YoY driven by improved gross margin and significantly reduced operating expenses ● Cash OpEx down 38% YoY ● Operating cash flow up $21M YoY Operating Cash Flow 9 Months Ended September 30, +$21M $99.9 $61.7 2024 2025 Cash OpEx 9 Months Ended September 30, (38%)
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© 2025 Stem, Inc. 11 $ in thousands Three Months Ended September 30, Nine Months Ended September 30, 2025 2025 2024 2025 2024 PowerTrack software(1) 9,380 8,488 27,755 24,185 Edge hardware 15,558 13,202 37,907 32,384 Project and professional services(2) 2,475 6,857 6,621 9,540 Subtotal $27,413 $28,547 $72,283 $66,109 Managed services(3) 6,554 6,798 22,606 18,361 Battery hardware resale 4,270 (6,054) 14,243 4,289 Total Stem Revenue $38,237 $29,291 $109,123 $88,759 Supplemental Revenue Detail (1) Previously defined as Solar Software Revenue. (2) Includes approximately $5M DevCo revenue for the three months ended September 30, 2024. (3) Previously defined as storage software and managed services revenue.
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© 2025 Stem, Inc. 12 Three Months Ended September 30, 2025 Nine Months Ended September 30, 2025 GAAP Gross Margin Non-GAAP Gross Margin GAAP Gross Margin Non-GAAP Gross Margin PowerTrack software 59% 70% 56% 69% Edge hardware 46% -- 43% -- Project and professional services(1) 74% -- 67% -- Subtotal Managed services (13%) 37% (4%) 44% Battery hardware resale (2%) -- 11% -- Total Stem Gross Margin 35% 47% 34% 47% Supplemental Margin Detail Note: GAAP and Non-GAAP gross margin are the same for edge hardware, project and professional services, and battery hardware res ale.
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© 2025 Stem, Inc. 13 Key Financial and Operating Metrics $ millions unless otherwise noted Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Key Financial Results(1) Revenue $38.2 $29.3 $109.1 $88.8 GAAP Gross Profit (Loss) 13.5 6.2 36.8 (8.6) GAAP Gross Margin (%) 35% 21% 34% (10%) Non-GAAP Gross Profit* 17.9 16.2 51.4 43.5 Non-GAAP Gross Margin (%)* 47% 46% 47% 34% Net Income (Loss) (23.8) (148.3) 153.7 (802.9) Adjusted EBITDA* 2.0 (3.5) 1.2 (27.0) Key Operating Metrics Bookings(2) $30.3 -- $99.1 -- Contracted Backlog(3)** $22.2 -- $22.2 -- Storage Operating AUM (GWh)(4)** 1.8 1.6 1.8 1.6 Solar Operating AUM (GW)(5)** 33.9 28.5 33.9 28.5 CARR(6)** $70.1 -- $70.1 -- ARR(7)** $60.2 $51.4 $60.2 $51.4 (1) As previously disclosed, revenue, gross profit (loss), and net loss were negatively impacted by a $38.7 million reduction in revenue for the nine months ended September 30, 2024, and by excess supplier costs and resulting liquidated damages, as discussed in our earnings press release . (2) Beginning with our Q1 2025 Quarterly Report on Form 10-Q, the Company defines “Bookings” as the total value of executed purchase orders. Previously this metric included all relevant executed contracts, regardless of whether or not a related purchase order had been executed. Prior period amounts have been excluded as they do not reflect the newly defined metrics. (3) Beginning with our Q1 2025 Quarterly Report on Form 10-Q, the Company defines “Contracted Backlog” as the total value of hardware and non-recurring services bookings with executed purchase orders in dollars, as of a specific date. Previously, this metric included the total contract value of hardware, software and services contracts recognized ratably over the contract period, regardless of whether or not a related purchase order had been executed. Prior period amounts have been excluded as they do not reflect the newly defined metrics. (4) Represents total GWh of energy storage systems in operation. Contracted storage AUM from prior periods has been replaced with this metric. (5) Total GW of solar systems in operation. (6) Beginning with our Q1 2025 Quarterly Report on Form 10-Q, the Company defines CARR as the annualized value from Stem customer subscription contracts with executed purchase orders signed in the period for systems that are not yet operating and all operating Stem customer subscription contracts, including solar software, storage software & recurring managed services, and some recurring professional services contracts. Previously, this metric included the annualized value from all executed Stem customer subscription contracts, regardless of whether or not a related purchase order had been executed. Prior period amounts have been excluded as they do not reflect the newly defined metrics. (7) Represents annualized recurring revenue from operating customer subscription contracts, including solar software, storage software & recurring managed services, and any recurring professional services contracts. *Non-GAAP financial measures. Adjusted EBITDA and non-GAAP gross profit and margin for the nine months ended September 30, 2024 were adjusted to exclude the impact of the previously disclosed reductions in revenue, excess supplier costs and resulting liquidated damages. See the section in our earnings press release titled “Use of Non-GAAP Financial Measures” for details. See the section in our earnings press release titled “Reconciliations of Non -GAAP Financial Measures” and this Appendix for reconciliations. **At period end.
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© 2025 Stem, Inc. 14 Reconciliation of GAAP Operating Expense to Cash Operating Expense (1) Includes $10 million contract termination payment to a vendor for the delivery of hardware incurred during the three months e nded September 30, 2024. $ millions unless otherwise noted Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 GAAP Operating Expense(1) $26.4 $150.6 $84.2 $783.6 Less: Non-cash adjustments Depreciation and Amortization (3.5) (3.5) (10.7) (11.5) Stock Compensation (2.2) (6.5) (7.9) (21.7) Impairment of parent company guarantees -- (104.1) -- (104.1) Impairment of goodwill -- -- -- (547.2) Other adjustments (0.4) 1.5 (3.9) 0.8 Cash Operating Expense $20.3 $38.0 $61.7 $99.9 Revenue $38.2 $29.3 $109.1 $88.8 Cash Operating Expense as % of Revenue 54% 130% 57% 113%
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© 2025 Stem, Inc. 15 Non-GAAP gross margin, as used in the Company's full year 2025 guidance, is a non-GAAP financial measure that excludes or has otherwise been adjusted for items impacting comparability. The Company is unable to reconcile projected non-GAAP gross margin to GAAP gross margin, its most directly comparable forward-looking GAAP financial measure, without unreasonable efforts, because the Company is currently unable to predict with a reasonable degree of certainty its change in amortization of capita lized software, impairments, and other items that may affect GAAP gross margin. The unavailable information could have a significant effect on the Company’s full year 2025 GAAP financial results. (1) Refer to the discussion of reduction in revenue and excess supplier costs in the earnings press release. Reconciliation of GAAP and Non-GAAP Gross Margin $ millions unless otherwise noted Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Revenue $38.2 $29.3 $109.1 $88.8 Cost of revenue (24.7) (23.1) (72.3) (97.4) GAAP gross (loss) profit $13.5 $6.2 $36.8 ($8.6) GAAP gross margin (%) 35% 21% 34% (10%) Non-GAAP Gross Profit GAAP Revenue $38.2 $29.3 $109.1 $88.8 Add: Revenue reduction, net(1) -- 5.6 -- 38.7 Subtotal $38.2 $34.9 $109.1 $127.5 Less: Cost of revenue (24.7) (23.1) (72.3) (97.4) Add: Amortization of capitalized software & developed technology 4.4 4.1 13.2 12.0 Add: Impairments -- 0.3 1.4 0.4 Add: Excess supplier costs(1) -- -- -- 1.0 Non-GAAP gross profit $17.9 $16.2 $51.4 $43.5 Non-GAAP gross margin (%) 47% 46% 47% 34%
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© 2025 Stem, Inc. 16 Reconciliation of Net Income (Loss) to Adjusted EBITDA $ thousands unless otherwise noted Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Net income (loss) $(23,791) $(148,300) $153,740 $(802,877) Adjusted to exclude the following: Depreciation and amortization(1) 11,022 11,516 35,643 36,321 Interest expense 7,270 4,512 15,632 13,850 Gain on extinguishment of debt -- -- (220,047) -- Stock-based compensation 2,217 6,532 7,929 21,716 Revenue reduction(2) -- 5,525 -- 38,653 Excess supplier costs(2) -- -- -- 1,012 Change in fair value of derivative liability -- -- -- (1,477) Change in fair value of warrant liability 4,190 -- 4,190 -- Impairment of goodwill -- -- -- 547,152 Contract termination payment(3) -- 10,000 -- 10,000 Impairment and accounts receivable write-off(4) -- 104,134 (3,500) 104,134 Provision for income taxes (141) 129 392 344 Other expenses(5) 1,280 2,460 7,258 4,125 Adjusted EBITDA $2,047 $(3,492) $1,237 $(27,047) Adjusted EBITDA, as used in the Company's full-year 2025 guidance, is a non-GAAP financial measure that excludes or has otherwise been adjusted for items impacting comparability. The Company is unable to reconcile projected adjusted EBITDA to net income (loss), its most directly comparable forward-looking GAAP financial measure, without unreasonable effort, because the Company is unable to predict with a reasonable degree of certainty its change in stock-based compensation expense, depreciation and amortization expense, and other items that may affect net loss. The unavailable information could have a significant effect on the Company’s full-year 2025 GAAP financial results. (1) Depreciation and amortization reflects depreciation and amortization expense, impairment loss of energy storage systems, and impairment loss of project assets. (2) Refer to the discussion of reduction in revenue and excess supplier costs in our earnings press release. (3) Contract termination payment to a vendor for the delivery of hardware. (4) See Note 3 – “Impairment and Accounts Receivable Write-Off” in the notes to the unaudited condensed consolidated financial statements in the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2025. (5) Adjusted EBITDA for the three and nine months ended September 30, 2025 included other expenses of $1.3 million and $7.3 million, respectively. For the three months ended September 30, 2025, other expenses includes $0.9 million for one-time costs associated with a loss on disposal and abandonment of property, plant and equipment, $0.1 million for expenses related to restructuring costs to pursue greater efficiency and to realign our business and strategic priorities and $0.3 million of other non-recurring expenses. For the nine months ended September 30, 2025, other expenses includes $6.0 million for expenses related to restructuring costs to pursue greater efficiency and to realign our business and strategic priorities, $0.9 million for one-time costs associated with a loss on disposal and abandonment of property, plant and equipment, and $0.4 million of other non-recurring expenses. Restructuring expenses included employee severance and other exit costs. Adjusted EBITDA for the three and nine months ended September 30, 2024 included other expenses of $2.5 million and $4.1 million, respectively. For the three months ended September 30, 2024, other expenses includes $1.2 million for advisory services relating to strategy, and $1.3 million in connection with separation agreements for certain of the Company’s former executive officers. For the nine months ended September 30, 2024, other expenses includes $1.2 million for advisory services relating to strategy, $1.3 million in connection with separation agreements for certain of the Company’s former executive officers, $1.1 million for expenses related to restructuring costs to pursue greater efficiency and to realign our business and strategic priorities, and $0.5 million of other non-recurring expenses.
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© 2025 Stem, Inc. 17 Non-GAAP gross margin as used in the Company's full year 2025 guidance, is a non -GAAP financial measure that excludes or has otherwise been adjusted for items impacting comparability. The Company is unable to reconcile projected non-GAAP gross margin to GAAP gross margin, its most directly comparable forward-looking GAAP financial measure, without unreasonable efforts, because the Company is currently unable to predict with a reasonable degree of certainty its change in amortization of capita lized software, impairments, and other items that may affect GAAP gross margin. The unavailable information could have a significant effect on the Company’s full year 2025 GAAP financial results . Reconciliation of GAAP and Non-GAAP Gross Margin PowerTrack Software $ millions unless otherwise noted Three Months Ended September 30, 2025 Nine Months Ended September 30, 2025 PowerTrack Software Revenue $9.4 $27.8 Cost of revenue (3.9) (12.3) GAAP gross (loss) profit $5.5 $15.5 GAAP gross margin (%) 59% 56% Non-GAAP Gross Profit GAAP Revenue $9.4 $27.8 Less: Cost of revenue (3.9) (12.3) Add: Amortization of capitalized software & developed technology 1.1 3.8 Add: Impairments -- -- Non-GAAP gross profit $6.6 $19.3 Non-GAAP gross margin (%) 70% 69%
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© 2025 Stem, Inc. 18 Non-GAAP gross margin as used in the Company's full year 2025 guidance, is a non -GAAP financial measure that excludes or has otherwise been adjusted for items impacting comparability. The Company is unable to reconcile projected non-GAAP gross margin to GAAP gross margin, its most directly comparable forward-looking GAAP financial measure, without unreasonable efforts, because the Company is currently unable to predict with a reasonable degree of certainty its change in amortization of capita lized software, impairments, and other items that may affect GAAP gross margin. The unavailable information could have a significant effect on the Company’s full year 2025 GAAP financial results . Reconciliation of GAAP and Non-GAAP Gross Margin Managed Services $ millions unless otherwise noted Three Months Ended September 30, 2025 Nine Months Ended September 30, 2025 Managed Services Revenue $6.6 $22.6 Cost of revenue (7.4) (23.5) GAAP gross (loss) profit ($0.9) ($0.9) GAAP gross margin (%) (13%) (4%) Non-GAAP Gross Profit GAAP Revenue $6.6 $22.6 Less: Cost of revenue (7.4) (23.5) Add: Amortization of capitalized software & developed technology 3.3 9.3 Add: Impairments -- 1.4 Non-GAAP gross profit $2.5 $9.9 Non-GAAP gross margin (%) 37% 44%
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© 2025 Stem, Inc. 19 Definitions Item Definition Annual Recurring Revenue (“ARR”) Annualized value from operating customer subscription contracts, including solar software, storage software & recurring manag ed services, and any recurring professional services contracts. Bookings Total value of executed customer purchase orders, as of the end of the relevant period (e.g. quarterly bookings or annual bookings). Customer purchase orders are typically executed 6 months ahead of installation. The booking amount includes (1) hardware revenue, which is typically recognized at delivery of the energy storage hardware and/or edge device to the customer, and (2) services revenue, which represents total nominal software and services contract value recognized ratably over the contract period. Battery Hardware Resale Revenue Sales of energy storage systems. Contracted Annual Recurring Revenue (“CARR”) Annualized value from Stem customer subscription contracts with executed purchase orders signed in the period for systems tha t are not yet operating and all operating Stem customer subscription contracts, including solar software, storage software & recurring managed services, and some recurring professional services contracts. Contracted Backlog Total value of hardware and non-recurring services bookings with executed purchase orders in dollars, as reflected on a specific date. Backlog increases as new purchase orders are executed (bookings) and decreases as hardware is delivered and recognized as revenue and as services are provided. Edge Hardware Sales of edge device hardware to aid in the collection of site data and the real -time operation and control of a site. Operating Cash Flow Net cash provided by (used in) operating activities. Does not represent the change in balance sheet cash which will be further impacted by investing and financing activities. Project and Professional Services Revenue Full lifecycle energy services including development and engineering, procurement and integration, performance and operations support, and revenue tied to Development Company investments. Solar Operating AUM Total GW of solar systems in operation. PowerTrack Software Revenue Recurring SaaS revenue from our PowerTrack software. Storage Operating Assets Under Management (“AUM”) Total GWh of storage systems in operation. Managed Services Revenue Includes (1) recurring revenue related to the operation and optimization of energy storage and hybrid portfolios managed by S tem and (2) Host Customer recurring and merchant revenues.
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© 2025 Stem, Inc. 20