STEM Inc. appoints new President of Managed Services

SAN FRANCISCO – STEM, Inc. (NYSE:STEM), a company specializing in miscellaneous electrical machinery, equipment, and supplies, announced a significant change in its executive team earlier this week. The company, currently valued at $73.5 million and trading at $0.44 per share, has seen its stock decline 27% year-to-date. Effective March 6, 2025, Michael Carlson, who served as the Chief Operating Officer of STEM, Inc., has transitioned to the role of President, Managed Services.

This strategic shift within the company’s leadership was disclosed in a recent SEC filing. The document, filed on March 7, 2025, outlines the latest executive movement but does not detail the reasons behind Carlson’s role change or the implications for the company’s operations. According to InvestingPro data, STEM operates with a significant debt burden of $600 million and faces challenges with cash burn, which could impact its strategic decisions.

Carlson’s new position as President, Managed Services indicates a focus on a specific division within STEM, Inc., though the responsibilities and objectives associated with this role have not been elaborated upon in the filing. The company has not yet announced a successor to Carlson’s former position as Chief Operating Officer.

STEM, Inc., headquartered at 4 Embarcadero Center in San Francisco, California, is listed on the New York Stock Exchange under the ticker symbol (NYSE:STEM). The company has undergone several name changes in its history, previously known as Star Peak Energy Transition Corp., Star Peak Energy Acquisition Corp., and Roaring Fork Acquisition Corp., with the latest change occurring on July 14, 2020.

Investors and industry observers will be watching closely to see how this executive change will influence STEM, Inc.’s strategy and operations in the managed services sector. The information reported is based on a press release statement.

In other recent news, Stem Inc. reported a challenging fourth quarter of 2024, with earnings and revenue falling short of expectations. The company recorded a revenue of $55.8 million, missing the forecasted $69.68 million, and an earnings per share (EPS) of -0.19, which aligned with expectations. Despite the revenue shortfall, Stem’s strategic pivot towards software has shown promise, with a 19% year-over-year increase in operating annual recurring revenue (ARR) indicating strong demand for its software offerings. The company is shifting its focus from hardware to high-margin software, leveraging its PowerTrak platform, which is now utilized by 13 of the top 16 commercial and industrial solar asset owners.

BMO Capital Markets recently adjusted its outlook on Stem Inc., reducing the stock’s price target from $0.50 to $0.40 while maintaining a Market Perform rating. This decision followed Stem Inc.’s strategic review and leadership changes in the latter half of 2024. BMO analysts expressed concerns over the company’s fiscal year 2025 guidance, which forecasts revenue between $125 million and $175 million and adjusted EBITDA ranging from a loss of $10 million to a gain of $5 million. The analysts also noted apprehensions regarding the growth potential of Stem Inc.’s software and services revenue, contributing to the lowered stock price target.

Stem Inc. ended the year with approximately $58 million in cash and projects 2025 revenue between $125 million and $175 million, with a significant portion expected from high-margin software and services. The company anticipates ARR growth of 15% and adjusted EBITDA ranging from -$10 million to +$5 million. Despite the challenges, Stem’s leadership remains optimistic about the company’s software focus and potential cost savings, aiming for improved operational efficiency in the coming year.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.