Polestar Automotive Holding UK PLC reported fourth‑quarter 2025 revenue of $887 million, up 54% from $520 million in Q4 2024, and a net loss of $799 million, a 32% improvement from the $1.183 billion loss recorded in the same quarter last year. Full‑year 2025 revenue reached $3.058 billion, a 50.3% increase over $2.034 billion in 2024, while the annual net loss widened to $2.357 billion from $2.050 billion in 2024. The company’s product mix shifted toward higher‑priced Polestar 3 and Polestar 4 SUVs, which now account for more than 50% of volume, with the Polestar 4 representing 66% of Q4 sales and just over half of the full‑year mix.
Revenue growth was driven by a stronger retail network and a higher share of the premium Polestar 4 model. The Polestar 4’s 66% share of Q4 volume reflects the company’s focus on higher‑margin vehicles, while the Polestar 3 also contributed to the mix shift. The expansion of the retail footprint, including new showrooms and service centers, helped capture additional demand in key markets, offsetting pricing pressure in the broader electric‑vehicle segment.
Adjusted gross margin improved markedly, turning positive at 2% in Q4 2025 from a negative 39% margin in Q4 2024. For the full year, the margin was –0.7% versus –12.5% in 2024. The improvement is attributed to the higher mix of Polestar 4 vehicles, increased carbon‑credit revenue, and cost‑reduction initiatives that lowered production and operating expenses. Adjusted EBITDA also narrowed, falling to a loss of $223 million in Q4 from $470 million in Q4 2024, and to $783 million for the year from $1.05 billion in 2024.
The widening of the full‑year net loss is largely due to a $1.05 billion impairment charge in 2025, compared with $622 million in 2024. This one‑time expense, combined with ongoing tariff‑related cost inflation, offset the gains from improved margins and cost savings, resulting in a larger GAAP loss despite stronger revenue and adjusted profitability metrics.
Polestar has implemented significant cost‑saving measures, including a nearly 25% reduction in headcount and $100 million in SG&A savings, a 12% drop year‑over‑year. Nevertheless, the company continues to face tariff‑related cost inflation and competitive pricing pressure, which constrain gross margin expansion. The management team highlighted that these headwinds are being mitigated through disciplined cost management and a focus on higher‑margin models.
Management emphasized the company’s progress and future focus. 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, "Fourth‑quarter net loss was $799 million, which was a 32% improvement year‑over‑year, mainly due to lower impairment expenses." Lohscheller also noted, "We will continue to drive financial performance, building on our achievements in 2025, with an improved model mix, sustained cost reduction and financial discipline."
The company’s earnings release signals continued revenue momentum and operational improvement, but also highlights the need for further cost discipline and the impact of one‑time impairment charges on net profitability.
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