Stem Inc slashes FY guidance, launches strategic review after plummeting sales and bookings

August 7, 2024
LinkedIn
Twitter
Reddit
Facebook
Email

US system integrator Stem Inc has seen its share price fall by over 40% after its financial results for the second quarter of the year, which saw falling sales, bookings and a huge net loss.

The battery energy storage system (BESS) integrator and software provider saw revenue of US$34 million in the second quarter of 2024, down 63% year-on-year.

Projects completed in the quarter include three solar-plus-storage arrays in Arizona for utility AEPCO.

Its margins improved, bar an 18% increase in its EBITDA loss to US$11.3 million. However, a one-time non-cash US$547 million impairment of goodwill led to a net loss of US$582 million.

This article requires Premium SubscriptionBasic (FREE) Subscription

Enjoy 12 months of exclusive analysis

Not ready to commit yet?
  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Annual digital subscription to the PV Tech Power journal
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

Goodwill is typically generated when a company is acquired or publicly lists on the stock market, and represents the difference between its value post-deal and its tangible assets. As Energy-Storage.news has reported, the company’s share price has fallen substantially since listing via the SPAC route (as have other SPAC firms), so the goodwill impairment may reflect a re-evaluation in light of that.

The company’s bookings also fell substantially, down almost 90% to US$25.4 million (verus US$236.4 million) in the same quarter last year. The firm said this was ‘driven primarily by increased quarterly variability associated with Stem’s continued expansion into large, utility-scale projects’. However, its contracted backlog increase by 14% from the end of 2023.

The company has subsequently revised down full-year guidance. It is now forecasting US$200-270 million in revenue, less than half the previous US$567-667 million estimate, while bookings will be US$600-1,100 million versus US$1,500-2,000 million previously guided for. It has dropped its guidance of positive adjusted EBITDA too.

The company has initiated a strategic review of the business and appointed a new CFO in Doran Hole, who was previously CFO and executive VP at renewable energy, energy efficiency and storage project company Ameresco.

The firm is trading at US$0.56 at the time of writing, down over 40% from around US$1.00 before the results release.

Read Next

October 28, 2025
Tesla reported record energy storage deployments and business segment profits in Q3 2025, just ahead of a shareholder vote on CEO Elon Musk’s historic remuneration package.  
October 28, 2025
Eos announced its move to Pennsylvania, US, as well as agreements for energy storage projects with Talen Energy and MN8 Energy.
October 24, 2025
Energy Vault has acquired a 150MW battery energy storage system (BESS) in Texas. Meanwhile, Jupiter Power has entered an agreement with Austin Energy to provide 100MW of electricity from a BESS facility.
October 24, 2025
Redwood Materials has closed a US$350 million Series E funding round to scale up its critical battery materials and energy storage businesses.
October 24, 2025
Peregrine Energy Solutions has secured US$130 million from investors including the South Korean Ministry of Environment.

Most Popular

Email Newsletter