Economic Observation Network The first quarter financial report for the 2026 fiscal year will be released in May 2026, with core business achieving growth and disclosing progress in strategic transformation and annual performance guidance.

Recent Events
The recent noteworthy events of STEM.US mainly revolve around its first quarter financial report for fiscal year 2026 and subsequent strategic execution.

Performance and business situation
The company released its first quarter financial report for the 2026 fiscal year on May 6, 2026 The core points include:
*Transformation of revenue and profit structure: Total revenue of 29 million US dollars, a year-on-year decrease of 11%, mainly due to the temporary lack of battery hardware resale business. Excluding this business, the core software, services, and edge hardware businesses increased by 4% year-on-year 。
*Significant improvement in profitability: Adjusted EBITDA remained positive for the fourth consecutive quarter, reaching $2 million, marking the first profitable first quarter in the company's history. GAAP gross profit margin increased from 32% to 38% 。
*Cash flow and orders: Operating cash flow was negative $8.3 million, which management explained as a difference in the timing of the outflow of working capital. The quarterly order amount was 26.5 million US dollars, and the backlog of contract orders increased by 8% month on month to 23 million US dollars 。

Strategic Advancement
*Business Transformation: The company is transitioning from hardware sales to a high profit margin software and service (such as PowerTrack software) dominant model, with revenue from this business increasing by 16% year-on-year this quarter 。
*Collaboration and Acquisition: Announced a joint marketing agreement with Nuvation Energy and plans to acquire raicoon software assets to enhance platform functionality 。
*Full year guidance: The management reiterates the guidance for the 2026 fiscal year, with an expected total revenue of $140 million to $190 million and adjusted EBITDA of $10 million to $15 million 。

Institutional Perspective
According to InvestingDro's analysis, the trading price of Stem stock is considered to be lower than its fair value estimate, and the analyst's target price range is between $10 and $18 The main risks faced by the company include a slower than expected recovery in battery hardware sales, intensified industry competition, and macro policy changes 。

Future Development
Stem's current core focus is on the effectiveness of its transition to a software driven high profit margin business model, and whether it can resume battery hardware sales as planned in the second half of the year to achieve full year performance guidance. We need to track its order growth, cash flow improvement, and the progress of strategic cooperation implementation in the future.

The above content is based on publicly available information and does not constitute investment advice.