STEM - Stem: Liquidity Dips As Profitability Expansion Trade Drives Rally

2025-10-11 09:20:11 ET

Stem ( STEM ) is driving ever-higher quarterly revenue growth with a profitability profile that's riding the wave of growing software sales to move higher. The company generated fiscal 2025 second-quarter revenue of $38.37 million, up a healthy 12.9% over its year-ago quarter and a beat by $5.9 million on consensus estimates. Critically, gross profit margins moved up by roughly 500 basis points to 33.36%. STEM sits at the intersection of several divergent macrotrends, with the rise in electricity demand from an ongoing ramp in data centers for AI applications, in aggregate with an increasing volume of electric vehicles on U.S. roads, pushing ever higher load demand that could catalyze a substantial energy supply deficit by the end of this decade....

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