COMPANY PROFILE

Stem

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AI-driven clean energy solutions and services platform

San Francisco, United StatesFounded 2009Energy

Valuation $100–500M Latest valuation · 2026

Revenue $100–500M Latest reported FY

EBITDA $12M Latest reported FY

Headcount 100–500 Current team size

Total funding $100–500M Disclosed equity funding

About Stem

Established in 2009 by Prakash Menon, Salim Khan, and Ed Steadman, Stem, Inc. operates at the intersection of clean energy and artificial intelligence. The company originated in Millbrae, California, securing $10 million in Series A funding to commence operations and deployed its first energy storage systems in 2010. A significant milestone was achieved in April 2021, when Stem went public on the New York Stock Exchange through a merger with Star Peak Energy Transition Corp., a special purpose acquisition company (SPAC), which provided substantial capital for growth and product development. Another pivotal moment was the acquisition of AlsoEnergy in 2021 for approximately $695 million, a move that significantly expanded its software capabilities and market presence in solar energy management.

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Stem's business model centers on providing intelligent energy storage solutions and services, primarily to commercial, industrial, and utility-scale customers. Revenue is generated through a combination of upfront hardware sales of energy storage systems and recurring fees from its software-as-a-service (SaaS) platform, Athena®. This dual approach allows the company to capture value throughout the lifecycle of an energy project. The company also offers consulting services to help clients design and implement tailored energy management strategies. Recently, Stem announced a strategic shift to focus more on its higher-margin software and services, aiming to create more predictable, recurring revenue streams while reducing reliance on hardware resale.

The core of Stem's offering is Athena®, its AI-powered analytics platform. Athena uses machine learning algorithms to analyze real-time data from energy assets, weather forecasts, and grid conditions to optimize energy usage. For businesses, this translates into lower utility bills by automatically managing energy storage to reduce demand charges during peak hours. For utility and grid operators, the platform aggregates customer-sited storage to create a virtual power plant, providing services like demand response and frequency regulation to enhance grid stability. The platform integrates with solar, energy storage, and EV charging assets, offering a unified solution for managing diverse clean energy portfolios. The 2022 acquisition of AlsoEnergy integrated the PowerTrack solar asset management platform, further strengthening Athena's capabilities and providing a comprehensive tool for both solar and storage projects.

Source: Dealroom company data