As of September 30, 2024, Stem, Inc. reported total assets of $537.8 million, a significant decrease from $1.36 billion at the end of 2023. Current assets also fell to $227.5 million from $473.0 million, with cash and cash equivalents declining to $75.4 million from $105.4 million. The company’s stockholders’ equity showed a drastic shift, reporting a deficit of $(344.1) million compared to equity of $426.2 million at the end of 2023.

For the third quarter of 2024, Stem, Inc. generated total revenue of $29.3 million, a sharp decline of 78% from $133.7 million in the same quarter of 2023. This drop was primarily driven by a significant decrease in hardware revenue, which fell to $7.1 million from $117.1 million, attributed to project-related delays in interconnection and financing. However, services and other revenue increased to $22.1 million, up from $16.6 million, reflecting growth in solar services subscriptions.

The gross profit for Q3 2024 was $6.2 million, a notable improvement from a gross loss of $(20.3) million in Q3 2023. Despite this, total operating expenses surged to $150.6 million, up from $48.0 million in the prior year, largely due to a $104.1 million impairment related to parent company guarantees. The net loss for the quarter was $(148.3) million, compared to a loss of $(77.1) million in Q3 2023.

For the nine months ended September 30, 2024, total revenue was $88.8 million, down from $294.1 million in the same period of 2023. The net loss for this period ballooned to $(802.9) million, significantly higher than the $(102.7) million loss reported in the prior year. The increase in losses was influenced by a $547.2 million goodwill impairment and substantial operating expenses.

The company’s cash flow situation showed net cash used in operating activities of $(21.9) million for the nine months ended September 30, 2024, a marked improvement from $(205.2) million in the same period of 2023. Stem, Inc. indicated that its cash position and expected accounts receivable collections are deemed sufficient for at least the next 12 months.

Strategically, Stem, Inc. is focusing on larger utility-scale projects and has transitioned to a new business strategy emphasizing AI-enabled software and services. This shift may lead to short-term disruptions and increased costs, but aims to strengthen the company's market position in energy storage solutions.

About STEM, INC.

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