Stem, Inc. (STEM): Business Model Canvas [Apr-2026 Updated]

You're tracking the energy transition, and honestly, the story at Stem, Inc. is all about the pivot you've been waiting for. After years in the capital-intensive hardware game, they are defintely pushing hard toward that high-margin, AI-driven software play with PowerTrack, moving away from the lower-margin resale business. Here's the quick math: they are guiding for 2025 revenue between $135 million and $160 million, aiming for that crucial first taste of positive Adjusted EBITDA, between $0 and $15 million. Let's break down the nine blocks of their Business Model Canvas to see exactly how they plan to make this software-first vision stick.

Stem, Inc. (STEM) - Canvas Business Model: Key Partnerships

You're looking at the network of firms Stem, Inc. relies on to deploy and manage its AI-driven energy solutions. These relationships are crucial for scaling hardware supply, securing project pipelines, and ensuring grid stability services can be monetized.

Battery OEMs for hardware supply

While specific named OEM supply contracts (like Samsung or Tesla) aren't detailed with 2025 volumes in the latest reports, the shift to a software-focused strategy means hardware sales are intentionally lower, though margins on resales are improving. Full year 2024 revenue reflected significantly reduced battery hardware sales. The company reaffirmed its full-year 2025 guidance targeting up to $35 million in hardware sales.

Solar developers and EPC firms

The partnership with solar developers is evidenced by major software standardization deals. For instance, Summit Ridge Energy standardized on PowerTrack across its fleet of 200 solar sites totaling 514 MW as of March 2025. Furthermore, Stem is deeply involved in large-scale hybrid projects, such as providing engineering advisory and design support for the 400-megawatt (MW) solar and 1,600-megawatt-hour (MWh) battery energy storage project known as Green River Energy Center, which is developed and indirectly owned by rPlus Energies. Stem's Solar operating assets under management (AUM) reached 33.9 gigawatts (GW) at the end of the third quarter of 2025.

The scale of these developer relationships is substantial, as Stem's customer service portfolio includes over 1,000 operational or contracted battery energy storage system (BESS) sites globally.

Partner Type / Project Example	Metric	Value (as of late 2025 data)
Solar Developer Standardization (Summit Ridge Energy)	Number of Solar Sites	200
Solar Developer Standardization (Summit Ridge Energy)	Total Capacity	514 MW
Utility-Scale Project Support (Green River Energy Center with rPlus Energies)	Solar Capacity	400 MW
Utility-Scale Project Support (Green River Energy Center with rPlus Energies)	Storage Capacity	1,600 MWh
Total Solar AUM (Operating)	Capacity	33.9 GW

Utilities and grid operators for grid services programs

Stem, Inc.'s software is relied upon by utilities to manage grid stress. In June 2021, Stem dispatched its portfolio in response to heat waves, handling almost 4,000 site events across 10 different utility programs and more than 400 customer sites in California, Massachusetts, New York, and Ontario, Canada. The company operates across more than 40 utility territories throughout North America. Contracted storage AUM stood at 1.8 gigawatt hours (GWh) at the end of Q3 2025. Stem also secured a 484 MW contract in Hungary with Neovolt to monitor and control eight utility-scale sites.

• Global projects managed in 55 countries.
• Portfolio includes the first-ever municipal energy storage virtual power plant (VPP) with Austin Energy.
• Managed a 33MWh energy storage system for Orange County Sanitation District.

Project finance partners for large-scale asset deployment

Financing partners are critical for the capital-intensive nature of utility-scale assets. Stem itself executed a major balance sheet strengthening transaction in June 2025, reducing outstanding debt by approximately $195 million and exchanging $350 million in aggregate principal amount of convertible senior notes for new notes due in 2030 and warrants. The company ended Q2 2025 with $40.8 million in cash and cash equivalents. The company reported positive operating cash flow of $11.4 million in the third quarter of 2025.

The recurring revenue base supporting these financing structures is growing:

• Annual Recurring Revenue (ARR) was $60.2 million at the end of Q3 2025.
• Contracted Annual Recurring Revenue (CARR) was $70.1 million at the end of Q3 2025.

Finance: review Q4 2025 debt covenant compliance by January 15, 2026.

Stem, Inc. (STEM) - Canvas Business Model: Key Activities

The Key Activities for Stem, Inc. center on the continuous evolution of its software intelligence and the disciplined execution of its service offerings, all while driving toward sustained profitability.

AI software development and PowerTrack™ platform maintenance

This activity involves the core engineering and upkeep of the PowerTrack suite, which now includes PowerTrack Optimizer (the rebranded Athena platform) and the newly launched PowerTrack EMS (Energy Management System). The focus is on maintaining the intelligence that optimizes energy assets across solar, storage, and hybrid configurations globally. Stem, Inc. operates in 55 countries, providing asset monitoring.

• The PowerTrack platform is the standard for Commercial & Industrial (C&I) solar asset monitoring.
• The company currently manages more than 30 GW of solar assets and nearly 2 GWh of battery energy storage systems (BESS).
• For Q3 2025, Annual Recurring Revenue (ARR) reached $60.2 million, a 17% year-over-year increase.
• The full-year 2025 ARR is forecasted in the range of $55 million to $65 million.
• PowerTrack EMS, launched to target utility-scale and international markets, is designed to offer a 32% reduction in engineering hours through pre-configuration and AI-enabled tuning.

Real-time energy asset optimization and dispatch

This is the application of the AI software to maximize asset value through functions like forecasting, value stacking, and real-time dispatch. The operational scale directly reflects the success of this activity. As of Q3 2025, the assets under management (AUM) show the scope of this optimization work.

Metric	Q3 2025 End Value	Q2 2025 End Value
Storage Operating Assets Under Management (AUM)	1.8 GWh	1.7 GWh
Solar Operating Assets Under Management (AUM)	33.9 GW	32.7 GW

The company is focused on driving PowerTrack adoption in international and utility scale markets, building on its C&I leadership where 13 of the top 15 US C&I players standardize on PowerTrack.

Professional and managed services delivery for complex projects

Stem, Inc. structures its operations around business units that include Managed Services and Professional Services, which support the deployment and ongoing operation of complex energy projects. The shift to a software-centric model emphasizes the higher-margin nature of these service offerings. Storage software and managed services revenue grew an impressive 53% year-over-year in Q2 2025.

• PowerTrack Optimizer directly powers the Managed Services offerings.
• The company executed expert engineering services and software platform integration for Avangrid\'s 57 megawatt Camino Solar project in Q2 2025.
• The company is increasingly focused on cross-selling professional services with other business unit offerings.

Strategic cost reduction and driving positive Adjusted EBITDA

This activity is about achieving financial discipline to transition from growth investment to sustained profitability. Management has been diligent in reducing the cost structure, which is clearly reflected in the recent Adjusted EBITDA performance and guidance. Cash operating expenses were down 47% year-over-year in Q3 2025. The workforce reduction executed earlier in 2025 is expected to drive an estimated $30 million in annualized cash cost savings.

The focus on software and services is boosting margins; the Non-GAAP Gross Margin reached 47% in Q3 2025, with the full-year 2025 guidance pointing to up to 50%.

The financial results show tangible progress on the profitability goal:

Financial Metric (Full Year 2025 Guidance)	Range
Revenue	$135 million to $160 million
Adjusted EBITDA	Negative $5 million to Positive $5 million
Operating Cash Flow	Negative $5 million to Positive $5 million

Stem, Inc. achieved its second consecutive quarter of positive Adjusted EBITDA in Q3 2025, reporting $2.0 million. Operating cash flow also turned positive in Q3 2025 at $11.4 million.

Stem, Inc. (STEM) - Canvas Business Model: Key Resources

You're looking at the core assets Stem, Inc. (STEM) relies on to run its business as of the end of the third quarter of 2025. These aren't just ideas; they are the actual deployed scale and the intellectual property that underpins their value proposition.

The PowerTrack™ AI-driven software platform, rebranded from Athena to PowerTrack Optimizer on September 5, 2025, represents the central nervous system for managing distributed clean energy assets. This platform is heavily adopted in key market segments, with 13 of the top 15 US C&I players and 90% of leading US community solar asset owners standardizing on it. The financial output from this software focus is reflected in the Annual Recurring Revenue (ARR), which reached $60.2 million at the end of Q3 2025.

The sheer scale of assets managed by Stem, Inc. provides the data moat necessary for its machine learning models. As of September 30, 2025, the operational scale under management was:

• Solar operating Assets Under Management (AUM): 33.9 gigawatts (GW).
• Storage operating AUM: 1.8 gigawatt hours (GWh).

This massive deployment base, spanning 55 countries globally, feeds the proprietary energy market data and machine learning models that drive optimization. The company's focus on software and services is evident, with 73% of revenue coming from this segment in Q1 2025.

The intellectual property backing the platform is significant. Stem, Inc. holds numerous granted patents related to energy storage control and optimization, with key grants dating through 2023 covering methods for maximizing economic return and automatically reconfiguring multi-phased networked energy storage devices. The expertise is operationalized through services and platform capabilities, such as the PowerTrack EMS, which offers 99.99% controller reliability.

Here's a quick look at the scale and financial metrics tied to these key resources as of the end of Q3 2025:

Resource Metric	Value	Reporting Period End Date
Solar Operating AUM	33.9 GW	September 30, 2025 (Q3 2025)
Storage Operating AUM	1.8 GWh	September 30, 2025 (Q3 2025)
Annual Recurring Revenue (ARR)	$60.2 million	September 30, 2025 (Q3 2025)
Contracted Annual Recurring Revenue (CARR)	$70.1 million	September 30, 2025 (Q3 2025)
Controller Reliability	99.99%	Reported for PowerTrack EMS
Global Project Footprint	55 countries	Reported as of September 2025

The subject matter expertise is also quantified by the platform's ability to handle complex deployments, such as the 484 MW solar portfolio contract secured in Hungary in January 2025. The company's focus on software is further supported by the fact that its GAAP gross margin improved to 35% in Q3 2025, up from 21% in Q3 2024, reflecting the higher margin nature of the software assets.

The core technology assets include:

• PowerTrack Optimizer, formerly Athena, managing solar, storage, and hybrid assets.
• AI-enabled analytics for real-time energy management and value stacking.
• Proprietary models supporting bidding engines for wholesale energy markets.
• Deep operational expertise demonstrated by managing assets across diverse regulatory environments.

Finance: review the Q3 2025 ARR to CARR ratio against the 2025 guidance by end of day Tuesday.

Stem, Inc. (STEM) - Canvas Business Model: Value Propositions

Maximize asset revenue via AI-driven value stacking.

• Athena AI enables time-shifting and ancillary revenue streams, delivering 10% - 30% unlevered IRRs.
• Annual Recurring Revenue (ARR) reached $60.2 million as of the end of the third quarter of 2025.
• Contracted Annual Recurring Revenue (CARR) stood at $70.1 million at the close of Q3 2025.

Hardware-agnostic platform for vendor flexibility.

Stem, Inc.'s PowerTrack™ and edge devices offer a flexible solution for solar, unlike monolithic competitor offerings. This approach benefits from operational data across a multitude of hardware types. The strategic move away from lower-margin battery hardware resale supports this value. The success of this pivot is visible in margin performance.

Metric	Q3 2024	Q3 2025
GAAP Gross Margin	21%	35%
Non-GAAP Gross Margin	46%	47%

Simplify complex clean energy operations for customers.

• More than 16,000 global customers rely on Stem, Inc. for maximizing clean energy project value.
• Storage operating assets under management (AUM) reached 1.8 gigawatt hours (GWh) in Q3 2025, a 6% sequential increase.
• Solar operating AUM was 33.9 gigawatts (GW) in Q3 2025, up 4% sequentially.

Achieve positive operating cash flow, guided to $0 to $15 million in 2025.

The company expects to generate positive cash from operations in the second half of 2025. Full-year 2025 operating cash flow guidance is set between $0 to $15,000,000. This follows a strong Q3 2025 result of $11.4 million in operating cash flow, and a first-ever positive quarter in Q1 2025 of $9 million. The cost reductions executed, including an estimated $30 million in annualized cash cost savings from workforce reductions, directly support this target. If onboarding takes 14+ days, churn risk rises.

Financial Metric (2025)	Q1 Result	Q2 Result	Q3 Result
Revenue	$32.5 million	$38.4 million	$38.2 million
Adjusted EBITDA	$(4.6) million	$3.8 million	$2.0 million
Operating Cash Flow	$9 million	$(21.3) million	$11.4 million

Finance: draft 13-week cash view by Friday.

Stem, Inc. (STEM) - Canvas Business Model: Customer Relationships

You're looking at how Stem, Inc. keeps its customers engaged and the value it extracts over time. For a company deeply involved in complex energy assets, the relationship isn't just transactional; it's about long-term operational partnership.

High-touch managed services for complex asset operation.

Stem, Inc. provides end-to-end support for its customers, which number over 16,000 global customers relying on the platform. This high-touch approach is necessary because maximizing asset value in the clean energy sector requires specialized, continuous expertise. The managed services team handles everything from procurement through to optimization to ensure reliable operations and regulatory compliance throughout an asset's life. This focus is clearly driving financial results; for instance, storage software and managed service revenue grew an impressive 53% year-over-year in the second quarter of 2025. The scale of assets under their management demonstrates the depth of this relationship.

The operational scale managed by Stem, Inc. as of the end of the second quarter of 2025 included:

• Storage operating assets under management ("AUM") of 1.7 gigawatt hours ("GWh").
• Solar operating AUM of 32.7 gigawatts ("GW").

The PowerTrack Optimizer, a set of intelligent software tools, underpins these managed services, using forecasting, dispatch, and financial optimization to give experts the insights needed to manage storage and hybrid systems across diverse markets.

Dedicated professional services for project lifecycle support.

For new deployments or complex integrations, Stem, Inc. offers dedicated professional services that streamline the entire project lifecycle. This support is designed to accelerate timelines, ensuring systems are fully operational and compliant before commercial operation through expert commissioning. The goal here is to eliminate coordination complexity across multiple vendors by acting as a single services partner, standardizing the development process with proven methods. This focus on full lifecycle support helps ensure that the assets feeding the recurring revenue streams are brought online effectively and quickly.

Software subscription model with recurring support.

The core of the long-term customer relationship is the software subscription, which generates predictable, high-margin revenue. Stem, Inc. has a clear strategy focused on growing this segment, which is reflected in the improving profitability metrics; the non-GAAP gross margin hit a record 49% in the second quarter of 2025. The recurring revenue base is substantial and growing.

Here are the key recurring revenue and asset metrics as of the end of the second quarter of 2025:

Metric	Value as of Q2 2025	Year-over-Year Change
Annual Recurring Revenue (ARR)	$58.5 million	22% increase
Contracted Annual Recurring Revenue (CARR)	$69.2 million	Up from $69.0 million at end of Q1 2025

The growth in ARR, which includes solar software, storage software, and recurring managed services, was driven by system activations and higher renewals. This recurring revenue stream is critical, as the company achieved a positive adjusted EBITDA of $3.8 million in the second quarter of 2025, partly due to the higher contribution from software and services revenue.

The customer relationship is cemented by the ongoing support tied to these subscriptions, ensuring the software platforms continue to maximize the value of the clean energy projects they control.

Finance: draft 13-week cash view by Friday.

Stem, Inc. (STEM) - Canvas Business Model: Channels

You're looking at how Stem, Inc. (STEM) gets its software and services to market as of late 2025. The focus has clearly shifted to high-margin software delivery, which impacts how they structure their sales and partnerships.

The channels are segmented to address the different needs of commercial & industrial (C&I) customers, utility-scale operators, and software-only users of the PowerTrack platform.

Direct Sales and Customer Segments

The direct sales effort targets large energy consumers and asset owners, which is reflected in the scale of assets managed through the PowerTrack platform.

• 13 of the top 16 commercial and industrial solar asset owners in the U.S. are standardizing on the PowerTrack platform.
• 90% of leading U.S. community solar asset owners standardize on the PowerTrack platform.
• The company successfully deployed its advanced energy system at the Camino Solar project in Kern County, California, developed by Avangrid.

Here are the operational scale metrics tied to these customer segments as of the end of the third quarter of 2025:

Metric	Value (As of Q3 2025 End)	Unit
Solar Operating Assets Under Management (AUM)	33.9	Gigawatts (GW)
Storage Operating Assets Under Management (AUM)	1.8	Gigawatt hours (GWh)
Annual Recurring Revenue (ARR)	$60.2 million	Amount
Contracted Annual Recurring Revenue (CARR)	$70.1 million	Amount

Strategic Partners for Project Integration

Stem uses strategic relationships with developers and Engineering, Procurement, and Construction (EPC) firms to integrate its solutions into new and existing projects, especially for hybrid and storage deployments.

This channel is crucial for scaling deployment, as seen with developer standardization agreements.

• Summit Ridge Energy standardized on PowerTrack across its fleet of 200 solar sites, totaling 514 MW.
• Norbut Solar Farms (NSF), a community solar developer in the New York ISO market, standardized on PowerTrack to scale and manage its portfolio, enabling NSF to accelerate its EPC strategy.
• Neovolt, a major asset owner in Hungary, will standardize on PowerTrack for a 484 MW solar portfolio, indicating international channel penetration.

Online Platform Access for PowerTrack Software Users

The online platform is the primary delivery mechanism for the core software and managed services, which are driving the company's margin expansion.

PowerTrack software revenue growth in the third quarter of 2025 was 11% year-over-year.

PowerTrack Offering	Status/Metric (Late 2025)	Focus
PowerTrack Software (General)	Revenue grew 11% YoY in Q3 2025	Centralized portfolio management
PowerTrack EMS (Energy Management System)	Launched in Q3 2025	Unified hybrid control for commercial- to utility-scale assets
PowerTrack Sage	Limited beta release expected in December 2025	AI-enabled workflows and next-generation energy intelligence

The company is actively managing the mix of revenue through this channel, with full-year 2025 guidance for software, edge hardware, and services revenue tightened to a range of $125 million to $140 million.

Stem, Inc. (STEM) - Canvas Business Model: Customer Segments

You're analyzing Stem, Inc. (STEM) and need to map out exactly who is paying for their AI-driven clean energy solutions as of late 2025. The customer base is clearly segmented across distributed energy resources (DER) owners and large-scale energy providers, with a strong, deliberate pivot toward software-centric revenue streams.

As of the third quarter of 2025, Stem, Inc. has more than 16,000 global customers relying on them to maximize the value of their clean energy projects and portfolios. The company's strategic shift is evident in the revenue breakdown, moving away from pure hardware sales toward recurring software services.

Commercial and Industrial (C&I) energy users.

This segment represents a core user group for behind-the-meter (BTM) solutions, utilizing the PowerTrack EMS (Energy Management System) for cost savings and operational efficiency. The industrial segment held the major market share in the overall energy storage consulting and deployment services market in 2024. For the trailing twelve months ending September 30, 2025, the revenue attributed to Hardware was $91.73M, while Services revenue was $72.71M, showing the ongoing, though diminishing, role of physical assets in serving this segment. The company's Annual Recurring Revenue (ARR), which is the engine of their software focus, stood at $60.2 million as of Q3 2025.

Utility-scale solar and storage project owners/developers.

This group drives significant growth in Assets Under Management (AUM) for both solar and storage. Utility-scale bookings nearly tripled year-over-year in the first quarter of 2025, signaling strong developer confidence in Stem, Inc.'s platform for large projects. The scale of managed assets provides the foundation for future software monetization. If onboarding takes 14+ days, churn risk rises, but the overall deployment pace has not shown a slowdown in customer project development mapping.

Electric utilities and grid service providers.

These entities are key customers for grid-level services, often utilizing the AI platform for ancillary services and grid optimization. The grid services application captured a significant market share in 2024. Furthermore, the Customer Energy Management Services segment, which directly addresses utility and large commercial needs for enhanced analytics and optimization, led the energy storage consulting and deployment services market in 2024. The Contracted Annual Recurring Revenue (CARR), which includes contracts for systems not yet commissioned, was $69.2 million at the end of Q2 2025, providing visibility into future service contracts with these large entities.

Here is a snapshot of the key operational metrics relevant to these customer groups as of mid-to-late 2025:

Metric	Value (Latest Reported Period)	Period End Date
Total Revenue Guidance (FY 2025)	$135 million to $160 million	Full Year 2025
Annual Recurring Revenue (ARR)	$60.2 million	Q3 2025
Contracted Annual Recurring Revenue (CARR)	$69.2 million	Q2 2025
Storage Operating Assets Under Management (AUM)	1.7 GWh	Q2 2025
Solar Operating Assets Under Management (AUM)	32.7 GW	Q2 2025
Services Revenue (TTM)	$72.71M	Sep 30, 2025

The utility segment is projected to expand at a strong Compound Annual Growth Rate (CAGR) from 2025 to 2034, indicating where future deployment focus will be. Also, the company's Q2 2025 results showed a positive Adjusted EBITDA of $3.8 million, a direct result of the higher contribution from software and services revenue across these customer types.

Finance: draft 13-week cash view by Friday.

Stem, Inc. (STEM) - Canvas Business Model: Cost Structure

You're looking at the core expenses Stem, Inc. is managing as it pushes hard into a software-centric model. The cost structure is clearly being aggressively managed, especially around personnel, while still funding necessary technology development.

Personnel Costs and Restructuring Savings:

• Annualized cash cost savings target from workforce reduction: $30 million.
• Projected cash cost savings to be realized in fiscal year 2025: $24 million.
• Workforce reduction implemented: 27% of the global full-time workforce.
• Estimated one-time GAAP pre-tax charge for severance and related costs (incurred primarily in Q2 2025): $6.0 million to $6.5 million.

The company is finding significant leverage here; that $24 million in savings for 2025 is a major factor in driving toward profitability.

High Cost of Software R&D and Cloud Infrastructure:

Research and Development (R&D) remains a significant operating expense as Stem focuses on enhancing PowerTrack and integrating AI. Cloud infrastructure costs are embedded within R&D and Cost of Goods Sold (COGS) associated with software delivery, but the R&D line item gives a clear view of development spend.

Here are the latest reported operating expenses, likely in thousands of US Dollars:

Expense Category	Q3 2025 (Reported)	Nine Months Ended Sept. 30, 2025 (Reported)
Research and Development	$6,916	$28,237
Sales and Marketing	$6,979	$21,021

For comparison, the prior year's nine-month figures were:

Expense Category	Nine Months Ended Sept. 30, 2024 (Reported)
Research and Development	$28,237
Sales and Marketing	$30,286

You can see the R&D spend for the first nine months of 2025 is flat compared to 2024, while Sales and Marketing expenses have seen a reduction, reflecting the strategic shift.

Cost of Goods Sold for Edge Hardware and Battery Resale:

Stem is actively de-emphasizing the lower-margin battery resale business, which directly impacts the COGS profile. The cost structure associated with hardware is variable based on sales volume, which management is intentionally capping.

• Battery Hardware Resale Revenue for Q3 2025: $4 million.
• Full-year 2025 guidance for Battery Hardware Resale Revenue: Capped at up to $20 million.
• Non-GAAP Gross Margin for Q3 2025: 47%, reflecting the higher mix of software and services.
• GAAP Gross Margin for Q3 2025: 35%.

The improvement in gross margin, despite hardware sales, shows the higher-margin software component is absorbing the fixed costs associated with the edge hardware and battery resale COGS more effectively.

Sales and Marketing Expenses for Software Adoption:

The Sales and Marketing spend is clearly being managed down, which is expected when pivoting away from high-volume, low-margin hardware sales toward software adoption, which relies more on product strength (PowerTrack) and existing customer relationships.

The nine-month Sales and Marketing expense for the period ending September 30, 2025, was $21,021 (likely in thousands), down from $30,286 (likely in thousands) for the same period in 2024. Finance: draft 13-week cash view by Friday.

Stem, Inc. (STEM) - Canvas Business Model: Revenue Streams

You're looking at how Stem, Inc. (STEM) actually brings in the money, which is key to understanding their valuation right now. The strategy is clearly pivoting toward predictable, high-margin software income, even if hardware sales still show up on the books.

The most important number here is the Annual Recurring Revenue (ARR) generated by the PowerTrack software platform. As of the third quarter of 2025, this ARR stood at $60.2 million, showing a 17% year-over-year growth. This recurring stream is the engine for future margin expansion, and it's what analysts are watching closest.

To give you a sense of the Q3 2025 revenue mix, here's a quick look at the components reported for that period:

Revenue Stream Component	Q3 2025 Reported Amount	Context/Growth
Total Revenue	$38.2 million	Up 31% year-over-year.
Annual Recurring Revenue (ARR)	$60.2 million (Annualized Run Rate)	Up 17% year-over-year.
Battery Hardware Resale Revenue	$4 million	Deemphasized business line.
Edge Hardware Revenue Growth	18%	Year-over-year growth in Q3 2025.

Next up are the Managed Services and Professional Services fees. Stem, Inc. is actively expanding these offerings, which support the full lifecycle management of energy storage and hybrid systems. This is a natural extension of the PowerTrack software, helping customers deploy and optimize their assets, which should carry better margins than pure hardware sales.

Then you have the Edge hardware and battery resale. Honestly, this stream is being deemphasized because it's lower margin. For instance, battery hardware resale revenue in Q3 2025 was just $4 million. The company is clearly prioritizing the software and services mix, which drove the non-GAAP gross margin up to 47% in Q3 2025.

Looking at the big picture for the year, management has tightened the full-year 2025 revenue guidance. They are now guiding total revenue between $135 million and $160 million. This refinement reflects confidence in the software and service performance, which has greater predictability, while also capping expectations for the lower-margin hardware component.

Here are the key revenue-driving activities you should track:

• PowerTrack software adoption across C&I and utility scale.
• Bookings for the new PowerTrack EMS product.
• Expansion of managed services contracts globally.
• Revenue recognition from hardware deliveries, though lower margin.

Finance: draft 13-week cash view by Friday.