Stem Cements Software Pivot with CEO Narayanan's Board Appointment

HOUSTON, TX – December 03, 2025 – In a move that signals a definitive doubling-down on its strategic transformation, clean energy technology leader Stem, Inc. (NYSE: STEM) has appointed its Chief Executive Officer, Arun Narayanan, to its Board of Directors. While the announcement of a CEO joining a company’s board is not uncommon, this transaction is far from procedural. It is a powerful endorsement of Narayanan’s leadership and a clear signal to the market that Stem’s future is inextricably linked to its evolution into a software-centric powerhouse.

The appointment, effective December 1, 2025, expands the board from seven to eight members and solidifies the alignment between the company’s executive leadership and its governance body. For investors and industry observers, this is a critical development that underscores the board’s confidence in the very strategy Narayanan was hired to execute less than a year ago.

The Architect of the Pivot

To understand the significance of this move, one must look at the architect himself. Arun Narayanan joined Stem in January 2025, handpicked for his deep expertise in enterprise software and data analytics—a background starkly different from a traditional hardware or utility executive. His career, spanning over 25 years, reads like a blueprint for the very transformation Stem is undergoing.

Narayanan spent over two decades at energy technology giant SLB (formerly Schlumberger), where he held multiple software-focused leadership roles, culminating in a position where he was responsible for defining and implementing complex software solutions for a global client base. Following SLB, he served as Chief Data Officer at mining behemoth Anglo American, where he was a key figure in building VOXEL, a leading-edge data analytics platform. Most recently, before taking the helm at Stem, he was CEO of RES Digital Solutions, the software arm of a global renewable energy company. His entire professional trajectory has been about leveraging software and data to drive efficiency and create value in asset-heavy industries.

When he was appointed CEO, Chairman of the Board David Buzby highlighted Narayanan’s “track record of transformative leadership” as essential for advancing Stem’s software and services strategy. The press release announcing his board seat echoes this sentiment, with Buzby noting, “Arun’s deep expertise in enterprise software and his clear vision for Stem’s future make him an invaluable addition to our Board.” This isn't just corporate praise; it’s an acknowledgement that Narayanan’s specific skillset is the key to unlocking the company's next phase of growth.

Aligning Governance with Strategy

The decision to add a CEO to the board can sometimes raise questions about corporate governance, particularly concerning the potential for concentrated power. However, Stem appears to have structured this move to reinforce strategy without compromising oversight. David Buzby remains the non-executive Chairman of the Board, maintaining the crucial separation of CEO and Chairman roles—a structure widely considered a best practice for ensuring independent board leadership.

With Narayanan’s appointment, the board gains a direct, real-time conduit to the operational execution of its software-first vision. This integration is vital in a market as dynamic as clean energy technology, where speed and agility are paramount. The move “strengthens the connection between management and the Board as we continue to execute on our strategic priorities,” as Buzby stated. It ensures that the individuals setting the strategic direction have an unfiltered view from the person responsible for implementing it day-to-day. This tight loop between governance and execution can accelerate decision-making and sharpen the company's competitive edge.

Furthermore, the board's composition remains majority-independent, and its key committees—Audit, Nominating, and Compensation—are composed entirely of independent directors. This structure provides the necessary checks and balances, suggesting the board’s intent is not to consolidate control but to infuse its strategic deliberations with the deep operational and technical expertise of its chief executive.

PowerTrack: The Software Engine of the Energy Transition

At the heart of Stem’s strategic pivot is its PowerTrack™ software platform. This is not merely a product; it is the central engine of the company's future value proposition. PowerTrack is an integrated software suite that enables asset owners and operators to monitor, manage, and optimize clean energy assets, from solar arrays to battery storage systems. It turns the complexity of energy markets, grid conditions, and asset performance into actionable intelligence.

Under Narayanan, the focus on PowerTrack has intensified. The company is transitioning from a model historically weighted toward hardware and installation to one where scalable, high-margin software and services revenue is the primary growth driver. This is the classic playbook for industrial technology disruption: embedding intelligent software into physical assets to create recurring revenue streams and deeper customer relationships.

By providing a single platform for asset monitoring and management, supported by professional services, Stem is positioning PowerTrack as the industry-standard operating system for clean energy portfolios. This is a critical differentiator in a fragmented market where competitors often specialize in either hardware, software, or services, but rarely integrate all three as seamlessly. As Narayanan himself commented, “Our new strategy is delivering results, and I look forward to working even more closely with our Board as we execute on the opportunities ahead. Together, we’re building a leading software platform that empowers our customers.”

From Promise to Profitability

Strategy is one thing; execution is another. The board's decision to elevate Narayanan is heavily validated by the company’s performance since he took charge. The press release notes the achievement of “positive adjusted EBITDA and accelerating software revenue growth” under his leadership. These are not just financial metrics; they are proof points that the software-centric strategy is working.

Achieving positive adjusted EBITDA is a significant milestone for any growth-oriented technology company, signaling a move towards sustainable profitability. For Stem, it demonstrates that the disciplined focus on higher-margin software and services is improving the company's financial health. The acceleration in software revenue, in particular, confirms that customers are embracing the PowerTrack platform and that the market is receptive to Stem’s value proposition.

This tangible progress provides the board with the confidence needed to fully back its CEO and his vision. Narayanan’s appointment is a reward for results delivered and a clear mandate to continue on the current path. It tells the market that the turnaround is not just a plan on a slide deck but a reality reflected in the company’s operational and financial results, strengthening Stem's position as a key enabler in the global energy transition.