In 2007, Stevens lost 12–13 to Shaun Murphy in the quarter-finals of the World Championship, having led 11–5 and 12–7 earlier in the match, making him the first person to ever lose a best-of-25 match from a 12–7 lead. The defeat left him ranked outside the top 16 for the first time in eight years. In 2008, he was defeated in the first round of the World Championship for the first time in his career, by defending champion John Higgins, and he finished ranked outside the top 16 for the second consecutive season. The only highlight of the 2008–09 season was a run to the final of the Bahrain Championship, in which he was given a top 16 seeding due to the unavailability of three leading players. He only reached the last 16 of one other event, and failed to qualify for the World Championship after a defeat to Martin Gould. He finished the season with a drop of nine places to world number 26.