Polestar reports fourth quarter select and full-year 2025 financial results

• Record retail sales of 60,119 cars (+34% YoY); revenue surpassed USD 3 billion (+50% YoY)
• Adjusted Gross Profit near breakeven; gross loss impacted by impairment expenses
• Continued product cost, headcount and fixed cost reductions yielding meaningful savings
• Improved capital structure profile and liquidity position
• Cash position of approx. USD 1.2 billion as at 2025 year-end
• 2026 guidance: low double-digit volume growth

GOTHENBURG, Sweden–(BUSINESS WIRE)–Polestar (Nasdaq: PSNY) today presents its consolidated financial results and operational metrics for the year and three months ended December 31, 2025.

Michael Lohscheller, Polestar CEO, said: “2025 was a record year for Polestar, with retail sales of over 60,000 cars and revenue surpassing USD 3 billion. Our strong commercial performance was driven by the expansion of our sales network and strength of our model line-up.

“Since June 2025 to-date, we have strengthened our balance sheet and improved our debt and liquidity positions through a total of USD 1.2 billion in equity injections, approx. USD 0.6 billion debt-to-equity conversions, partially executed and planned, and an agreement of a three-year extension of the USD 0.7 billion shareholder loan.

“In 2026, our operational focus will be on the continued expansion of our sales network, growing our sales points by a planned 20%, to coincide with the largest model offensive in our history, with four new models planned during the next three years. While we expect market conditions to become more challenging, amid ongoing geopolitical developments, we will continue to drive financial performance, building on our achievements in 2025, with an improved model mix, sustained cost reduction and financial discipline.”

Key financial and operational highlights for 2025 (year-on-year comparison)

• Retail sales volumes up 34% driven by accelerated transition to an active selling model, retail expansion and attractive model line-up
• Revenues up 50% to USD 3,058 million, driven by higher sales volumes
• Gross margin of (35)% impacted by impairment expenses of approx. USD 1.1 billion
• Adjusted gross loss of USD (22) million, significantly improved by USD 232 million
• Selling, general and administrative expenses reduced year-on-year
• Net loss of USD (2,357) million, mainly driven by impairment expense, net of reversals of approx. USD (1,050) million
• Adjusted EBITDA loss of USD (783) million, an improvement of USD 297 million year-on-year
• 2025 year-end cash position of USD 1,159 million
• New equity of USD 0.5 billion raised from existing and external investors

Since the start of 2026

• New equity of USD 0.7 billion raised from external investors
• Debt-to-equity conversion of approx. USD 639 million of loans outstanding to Geely Sweden and Volvo Cars with USD 274 million already executed
• Extension of maturity of Volvo Cars’ USD 726 million shareholder loan from December 2028 to December 2031
• Largest model offensive in Polestar’s history: four new cars planned in three years (Polestar 5 in 2026, Polestar 4 new variant in 2026, Polestar 2 next generation in 2027 and Polestar 7 in 2028)
• Intention to consolidate manufacturing of Polestar 3 in Charleston, South Carolina, USA to drive efficiencies
• 2026 guidance with market conditions becoming more challenging, amid ongoing geopolitical developments: volume growth at low double-digit rate

Financial guidance

Polestar has continued to make major strides in its commercial transformation supported by accelerated retail expansion and the strength of its attractive model line-up in a challenging geopolitical and economic environment.

Looking to 2026, the global environment is expected to remain highly uncertain given recent geopolitical developments. As previously indicated, retail sales volumes are expected to increase at a low double-digit rate, with a continued focus on quality revenue. The sales mix is expected to further evolve with an increasing share of Polestar 4 coupe, our best-selling model, complemented later in 2026 with the introduction of new Polestar 4 SUV variant.

Key financial highlights

The table below summarizes key financial results for the 12 months ended December 31, 2025:

• Retail sales totaled 60,119 cars, representing growth of 34.0% year-on-year (YoY) from 44,851 cars in the comparable period, driven by the transition to an active selling model, accelerated retail expansion and an attractive model line-up.
• Revenue of USD 3,058 million, up by 50.3% from USD 2,034 million a year earlier, driven predominantly by higher volumes, a growing share of higher priced models (Polestar 3 and Polestar 4) in the sales mix, and carbon credits sales partially offset by pressure on pricing in a competitive and challenging market environment. Carbon credits sales totaled USD 211 million in the period from USD 11 million a year earlier, including USD 19 million worth of carbon credits sales booked in other operating income (2024: USD nil).
• Cost of sales increased to USD (4,142) million, an increase of 42.3% from USD (2,910) million in 2024, mainly due to higher sales volumes and related increased production volumes and carline mix, as well as higher duties and tariffs related to increase in tariffs, primarily from China to the EU; higher cost of sales includes impairment expenses on tangible and intangible assets net of reversals of USD (1,050) million (2024: USD (622) million).
• Gross margin was a negative (35.4)%, an improvement from (43.1)% in the comparable period, and includes impairment expenses booked in 2025.
• Adjusted Gross Margin at near-breakeven of (0.7)%, an improvement from (12.5)% a year earlier; Adjusted Gross Loss significantly reduced to USD (22) million from USD (254) million in 2024 mainly as a result of evolving product and geographical sales mix, reduction in materials costs and higher carbon credits sales, lower adjustment of residual value guarantee in North American markets and positive impact from the China JV settlement partially offset by pressure on pricing and tariffs and collateral impact on inventory net realizable value.
• Selling, General and Administrative (SG&A) expenses improved to USD (856) million from USD (891) million in 2024; expenses decreased by USD 100 million due to optimized marketing and advertising expenses, cost discipline and organizational restructuring with reduced headcount (from 2,547 in December 2024 to 1,686 in December 2025) but were partially offset by higher sales agent remuneration, by USD 65 million year-on-year, linked to growing retail sales volumes.
• Research and development (R&D) expenses increased to USD (78) million from USD (38) million in the comparable period, driven by higher spend due to commencement of new programs with a lower capitalization rate.
• Operating loss was USD (2,009) million compared to USD (1,813) million in 2024, primarily due to factors described above; other net operating income/expense was higher due to restructuring expenses related to headcount reduction and real-estate downsizing.
• Net loss of USD (2,357) million, compared to net loss of USD (2,050) million in 2024, driven by factors described above; finance income was lower due to lower interest rates; finance expense was higher on higher levels of outstanding external financing; net foreign exchange gains on financial activities arose from positive FX movements; positive fair value changes from Earn-out rights and Class C shares were lower due to a smaller relative depreciation of Polestar’s share price over the period compared to prior year; share of losses in associates increased due to the capital contributions made by Polestar in its China associate in 2025 which triggered recognition of previously unrecognized losses.
• Adjusted EBITDA of USD (783) million, improved by USD 297 million from USD (1,080) million in the comparable period, is a result of achieving near-breakeven Adjusted Gross Loss and optimizing SG&A expenses, which were partially offset by increased R&D expenses and higher sales agent remuneration.
• Further details are provided in the reconciliation tables for non-GAAP measures in Appendix C.

Select results for Q4 2025

The table below summarizes key operational and financial results and provides the year-on-year (YoY) comparison for the three months ended December 31, 2026:

For the three months ended December 31, 2025:

• Retail sales totaled 15,608 cars, up 27.3% YoY from 12,256 cars a year earlier, supported by retail expansion and an attractive model line-up.
• Revenue of USD 887 million, up by 54.3% from USD 575 million in the comparable period, driven predominantly by retail sales volumes and channel and product mix developments with a further positive contribution from carbon credits sales, lower residual value guarantee adjustment related to the North American markets and positive FX impact offset by pressure on pricing due to competitive and challenging pricing and market environment. Carbon credits sales totaled USD 88 million in the period from USD 11 million a year earlier, including USD nil million worth of carbon credits sales booked in other operating income (Q4 2024: USD nil million).
• Gross margin at (37.8)%, an improvement of 109.3ppts from (147.1)% a year earlier, mainly due to lower impairment expenses of USD 340 million booked in the fourth quarter of 2025 compared to USD 622 million booked in the fourth quarter of 2024.
• Adjusted Gross Margin turning positive at 1.9%, an improvement of 40.9ppts from (39.0)% in the comparable period, mainly due to favorable product and margin mix, especially due to Polestar 4 sales, higher carbon credits sales, and lower adjustment of residual value guarantee in North American markets partially offset by pressure on pricing and higher tariffs.
• Net loss of USD (799) million, compared to net loss of USD (1,183) million for the fourth quarter of 2024, is better due to factors mentioned above and lower impairment expenses booked in Q4 2025.
• Adjusted EBITDA loss of USD (223) million, compared to Adjusted EBITDA loss of USD (470) million for the fourth quarter of 2024, mainly due to improvement from Adjusted Gross Loss of USD (224) million in Q4 2024 to Adjusted Gross Profit of USD 17 million in Q4 2025.

Key operational highlights

The table below summarizes key operational results as of and for the 12 months and three months ended December 31, 2025:

• Retail sales totaled 60,119 cars in the year ended December 31, 2025, representing growth of 34%, compared with 44,851 new cars sold in 2024, driven by the transition to an active selling model, accelerated retail expansion and an attractive model line-up.
• Sales points, excluding China, grew at 51%. In 2025, Polestar opened 71 new retail sales points with a total of 211 sales points at the end of 2025. During 2025, Polestar signed up 54 new retailers with a total of 158 retail partners, representing an increase of 52%, at the end of 2025.
• The increase in external sales with a repurchase obligation is primarily related to the delivery of Polestar 4 cars under a financing agreement in the German market.
• Polestar increased sales of internal cars to support its retail network expansion.

Key cash flow highlights

The table below summarizes cash flow for the 12 months ended December 31, 2025:

• Operating cash outflow of USD (915) million, mainly driven by the operating loss net of non-cash adjustments, finance expenses and negative working capital movements due mainly to an increase in trade receivables due to high sales volumes in December and a decrease in trade payables offset by continuing inventory unwind.
• Investing cash outflow of USD (521) million included additions to property, plant, and equipment as well as intangible assets and additions to investment in associates; investments were predominantly driven by investments in intellectual property and tangible assets related mainly to the model years of Polestar 3 and Polestar 4, Polestar 4 new variant, and to prepare for the commencement of production of Polestar 5 in Wuhan and Chongqing (China) in January 2026 as well the production of Polestar 4 in Busan (Korea) factory in H2 2025.
• Financing cash inflow of USD 1,693 million, driven by net increase in proceeds from mainly short-term borrowing and, to a lesser extent, long-term borrowings and the new equity raises of a total of USD 500 million in June and December 2025. During the period, Polestar received a USD 200 million PIPE investment from PSD Investment Limited in June 2025 and USD 300 million investment from NATIXIS and BBVA in December 2025 as well as secured and renewed financing facilities.
• Cash position of USD 1,159 million, compared to the 2024 year-end cash position of USD 739 million.

Key loan facilities and funding highlights

• During 2025, approx. USD 4.6 billion of debt facilities were either renewed (approx. USD 3.0 billion) or newly secured (approx. USD 1.6 billion).
  • New facilities include previously announced secured term facilities of up to USD 450 million, EUR 150 million of term facilities, approx. CNY 2.8 billion in working capital facilities and USD 600 million in new Shareholder loan facility with Geely Sweden Holdings AB. This includes new facilities of USD 600 million secured in Q4 2025.
  • Renewed facilities include EUR 480 million for the renewed Green Trade Finance Facility (TFF), and approx. USD 2.4 billion of working capital facilities, of which CNY 3.0 billion was renewed in Q4 2025.
  • Polestar secured a USD 200 million PIPE investment from PSD Investment Limited, an entity that is controlled by Mr. Shufu (Eric) Li, Founder and Chairman of Geely Holding Group, in June 2025.
  • In December 2025, Polestar secured USD 300 million from NATIXIS and BBVA.
  • In February 2026, Polestar secured USD 400 million from Feathertop Funding Limited, a special purpose vehicle consolidated to Sumitomo Mitsui Banking Corporation, and Standard Chartered Bank (Hong Kong) Limited.
  • In March 2026, Polestar secured USD 300 million from investors including Credit Agricole CIB, Vida France S.A., Innovator Limited and Proximaster Holdings Company.

  The Company was in compliance with its covenants as of December 31, 2025.

  The Company continues to have a constructive dialogue with lenders of the Company’s USD 950 million Club Loan regarding its future club loan obligations. On March 31, 2026, the Club Loan lenders agreed to amend the debt-to-asset ratio range for all test periods for 2026 as well as the minimum revenue covenant for 2026. Polestar complied with Club Loan covenants as of December 31, 2025.

  In December 2025, Polestar, as borrower, entered into a credit agreement with a wholly owned subsidiary, as lender, of Geely Sweden Holdings AB in relation to a subordinated term loan facility of up to USD 600 million, of which the last USD 300 million would require lender consent based on Polestar’s future liquidity needs. The term loan facility is available to Polestar for general corporate purposes.

  In February 2022, Polestar entered into an uncommitted TFF with a syndicate of leading global banks, to support its working capital requirements. The TFF was restructured and renewed for EUR400 million in February 2026.

  Since December 2025, Polestar announced external equity investment of a total of USD 1 billion by institutional investors, including NATIXIS and BBVA, with USD 150 million each; Feathertop Funding Limited, a special purpose vehicle consolidated to Sumitomo Mitsui Banking Corporation, and Standard Chartered Bank (Hong Kong) Limited, with USD 200 million each; and Crédit Agricole CIB, Vida Finance S.A., Innovator Limited and Proximaster Holdings Company, with different amounts each. Concurrent with the purchase, these financial institutions have each entered into a put option arrangement with a wholly-owned subsidiary of Geely Sweden Holdings AB, which provides the financial institutions with an exit path, if needed, in three years with certain returns, as part of this equity financing arrangement. The price per Class A ADS to be purchased at each closing was USD 19.34. The financial institutions will not have any restrictions on the sale of the Class A ADSs they receive, subject to any applicable securities laws.

  In conjunction with the equity financing in December 2025, Geely Sweden Holdings AB agreed with Polestar to convert approximately USD 300 million of its outstanding principal and interest owed by Polestar under a Term Facility Agreement, dated 8 November 2023, into equity at the conversion price of USD 19.34. The conversion is expected to be completed after the receipt of any necessary regulatory approvals.

  On March 31, 2026, Volvo Cars converted approximately USD 274 million of its outstanding shareholder loan into Polestar’s equity, while also extending the maturity of the remaining USD 726 million shareholder loan to December 2031. Following completion of the previously announced approximate USD 300 million debt-to-equity conversion by Geely Sweden Holdings AB, Volvo Cars is expected to carry out a second debt-to-equity conversion later during the second quarter, totaling approximately USD 65 million. In doing so, Volvo Cars’ ownership in Polestar will remain at approximately 19.9%. The conversion price of USD 16.97 was set at 95 per cent of the 30-day volume-weighted average price in Polestar shares up to 27 March 2026.

  With the support from Geely Holding Group, we have implemented significant steps to strengthen our balance sheet and improve our debt and liquidity positions, and we continue to consider new equity and debt funding.

  ADS ratio change

  On 9 December 2025, Polestar effected the ADS ratio change. Specifically, the Company’s Class A, Class B, Class C-1 and Class C-2 American Depositary Shares (collectively, the “ADSs”) ratio to the respective Class A, Class B, Class C-1 and Class C-2 ordinary shares (the “ADS Ratio”) changed from an ADS Ratio of one (1) ADS to one (1) ordinary share, to the a new ADS Ratio of one (1) ADS to thirty (30) ordinary shares.

  Key recent developments and business highlights

  • Polestar commenced sales in France, its 28^th market, in June 2025 with all three models available to order
  • Polestar 7, a premium compact SUV, was announced
  • Polestar 5 Grand Tourer revealed at IAA Mobility in Munich
  • Polestar publishes full Life Cycle Assessment for Polestar 5, strengthening industry-leading transparency
  • Polestar 4 achieves 5-star Euro NCAP safety rating
  • Polestar 4 wins the 2025 Mille Miglia Green
  • Polestar 4 receives Red Dot “Best of the Best” design award
  • Polestar 4 will be the first car to integrate Google Maps’ live lane guidance, winning the AutoBest Smartbest 2026 award
  • Polestar 3 introduces Abbey Rode Mode via over-the-air-update
  • Polestar 3 sets Guinness World Record for longest journey travelled by an electric SUV on a single charge
  • Polestar 3 upgraded with 800 Volt electrical architecture and peak DC charging rate of up to 350 kW for the 2026 model year
  • Polestar 3 named safest executive car of 2025
  • Polestar scales battery circularity by confirming up to 50% recycled cobalt in Polestar 2 and Polestar 3
  • Polestar announces Google Gemini to be introduced across model line-up via over-the-air updates
  • Polestar Charge now offers 1 million charge points through its partners

  Calendar

  Polestar expects to publish Q1 2026 select financial results on 7 May 2026 and host an audio call; further details will be available on Polestar’s Investor Relations website in due course.

  Notes

  All financial figures are in millions of U.S. dollars (USD). Unless otherwise stated, the performance shown in this press release covers the 12-month period to December 31, 2025 (FY 2025) and is compared to the 12-month period to December 31, 2024 (FY 2024) and the three-month period to December 31, 2025 (Q4 2025) and is compared to the three-month period to December 31, 2024 (Q4 2024).

  Contacts

  Anna Gavrilova
  
  Head of Investor Relations
  
  anna.gavrilova@polestar.com

  Theo Kjellberg
  
  Head of Corporate Communications
  
  theo.kjellberg@polestar.com

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