Polestar Automotive Holding UK PLC announced its full‑year 2025 results, reporting revenue of $3.058 billion, up 50.3% from $2.034 billion in 2024. The company posted a net loss of $2.357 billion, a modest improvement over the $2.050 billion loss in 2024, but still the largest loss on record for the brand.
The earnings release highlighted a continued shift in the product mix toward higher‑priced Polestar 3 and Polestar 4 SUVs, which now account for more than 50% of total volume. The move to a higher‑margin lineup has helped lift revenue, but the company’s adjusted gross margin remained negative, reflecting the impact of impairment expenses and tariff‑related cost inflation.
While the reported gross margin was negative due to a $1.1 billion impairment charge for the year, the adjusted gross margin – which excludes impairments – improved to –0.7% from –12.5% in 2024 and turned positive at 2% in Q4 2025. The improvement is attributed to a higher share of Polestar 4 sales, a favorable geographic mix, increased carbon‑credit revenue, and ongoing cost‑reduction initiatives such as “decontenting” and commercial negotiations.
Polestar’s cash position was reported at $719 million as of June 2025, with an average quarterly burn of approximately $140 million. The company reiterated its reliance on Geely for equity injections and credit‑facility renewals, underscoring the liquidity challenge that could influence future capital‑structure decisions.
CEO Michael Lohscheller 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.” CFO Jean‑François Mady added, “Adjusted gross margin (excluding impairment and other unusual items) improved to –0.7% from –12.5% in 2024, helped by a higher share of Polestar 4, improved geographic mix, higher carbon‑credit revenue, and ongoing product cost reductions through commercial negotiations and ‘decontenting’ initiatives.”
The results underscore Polestar’s continued focus on scaling its higher‑priced model lineup while managing the cost pressures of a transition to U.S. production and tariff exposure. The company’s Nasdaq compliance deadlines and reliance on Geely’s financial support remain key risks, but the improved revenue growth and adjusted margin trend suggest a potential path toward profitability if the company can sustain its product mix gains and control costs.
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