STEM
The numbers: not exactly a victory lap
Stem, the energy-transition tech company, reported first-quarter 2026 results with revenue of $29.0 million, down from $32.5 million a year ago. That’s the kind of line that makes investors squint a little harder at the rest of the release.
But it wasn’t all red ink and doom-scrolling. The company’s software, services, and edge hardware revenue rose 4% year over year to $29.0 million, which suggests the mix is tilting toward the parts of the business Stem wants to be known for. In other words: the “we’re more than just hardware” pitch is still alive.
Why this matters
For a company like Stem, investors aren’t just watching whether sales go up or down. They’re watching what kind of sales are showing up. Software-heavy revenue usually gets more love than chunky project-based business because it tends to be stickier, more predictable, and less likely to ghost you like a flaky group chat.
The gross profit line also helped soften the blow a bit. GAAP gross profit came in at $10.9 million, up slightly from $10.5 million last year, while non-GAAP gross profit reached $15.2 million. So even with lower total revenue, the company is still trying to prove it can squeeze more value out of each dollar it brings in.
Big picture
This is a “show me” quarter. Stem’s story only works if the software engine keeps growing faster than the old, less glamorous stuff fades away. If you’re an investor, the key question isn’t just whether revenue was down — it’s whether the business is becoming cleaner, stickier, and less dependent on one-off swings. That’s the difference between a turnaround and a treadmill.