Recent Updates — STEM

The New York Stock Exchange notified Stem that it failed to maintain the required average global market capitalization and stockholders' equity of at least $50 million over a consecutive 30-trading-day period. The company received a formal non-compliance letter on October 20, 2026, and intends to submit a business plan within 45 days demonstrating how it expects to regain compliance within 18 months. During the cure period, Stem's common stock will continue to trade on the NYSE subject to the exchange's acceptance of the plan and quarterly reviews. This non-compliance does not affect the company's ongoing business operations or SEC reporting requirements. Stem is a global leader in AI-enabled clean energy software and services.

Stem, Inc. reported financial results for the quarter ended June 30, 2026, announcing a revenue decline of 12% year-over-year to $33.7 million, driven by reduced battery hardware resales and lower managed services revenue. The company posted a net loss of $14.4 million compared to net income of $202.5 million in the prior year period, primarily due to the absence of a one-time debt extinguishment gain recorded in 2Q25. However, adjusted EBITDA improved significantly by 63% to $6.2 million, marking the fifth consecutive quarter of positive adjusted EBITDA, while non-GAAP gross margin expanded to 55%. Operating metrics showed strength with bookings rising 39% sequentially to $36.8 million and contracted backlog increasing 18% to $27.1 million. The company reaffirmed its full-year 2026 financial guidance across all metrics, including revenue of $140-$190 million and adjusted EBITDA of $10-$15 million. Stem operates in the clean energy technology sector, providing AI-enabled software and services for solar and battery storage asset management.