Smart energy storage company Stem reported a steep 67% year-over-year revenue drop in Q4 2024, with revenue falling to $55.8 million from $167.4 million. The decline was mainly driven by reduced battery hardware sales following the company’s shift toward a software-focused strategy. 

Stem’s net loss widened to $51.1 million, a 35% increase from $37.7 million in Q4 2023, while adjusted EBITDA slipped to $4.2 million from $4.6 million in the previous year. The company’s annual recurring revenue (ARR) fell 6% to $86 million. 

For the full year 2024, Stem reported a net loss of $854 million, significantly up from $140.4 million in 2023, largely due to a $104.1 million bad debt expense and a $547.2 million goodwill impairment in Q2. Annual revenue plummeted 69% to $144.6 million from $461.5 million in 2023. 

Despite the losses, Stem’s solar monitoring assets under management grew to 29.9 GW from 27.5 GW at the end of 2023. The company also secured a five-year deal with Hungary’s Neovolt to monitor and optimize a 484 MW solar portfolio using its PowerTrack Web platform. 

Looking ahead, Stem expects 2025 revenue between $125 million and $175 million, with $120 million to $140 million from high-margin software, edge devices, and services. 

Battery hardware resales are projected to contribute $35 million. The company anticipates adjusted EBITDA between -$10 million and $5 million and aims to improve cash flow by cutting operating expenses. 

(mercom)