Polestar Automotive (PSNY) Q1 2026 earnings summary

Executive summary

• Delivered 7% year-over-year volume growth in Q1 2026, reaching a record 13,126 cars, driven by retail expansion and new model launches.

• Strongest growth in Europe, especially in the UK (+20%), Germany (+35%), and Sweden (+17%).

• Launched largest product offensive with four new models planned over the next three years, including Polestar 4 SUV and Polestar 2 successor.

• Accelerated business model transformation, including increased retailer locations, regionalized manufacturing, and a leaner organization.

• Performance impacted by intensified competition, EU and US tariffs, adverse FX movements, and seasonality, offsetting ongoing cost reductions.

Financial highlights

• Q1 2026 revenue was $633 million, up 0.2% year-over-year, supported by higher volumes and positive FX, but offset by pricing pressure and lower carbon credit sales.

• Gross margin declined to -3.2% from 10.3% in Q1 2025; adjusted gross margin was -3.3%, impacted by pricing pressure, tariffs, and lower carbon credit sales.

• Net loss widened to $383 million from $166 million a year earlier, mainly due to gross margin pressure and FX impacts.

• Adjusted EBITDA loss was $235 million, compared to $96 million in Q1 2025.

• Cash position at end of March 2026 was $676 million, down from $1,159 million at year-end 2025, primarily due to EBITDA loss, working capital outflows, and net repayment of financing facilities.

Outlook and guidance

• Plans to expand retail network to 250 global sales points by end of 2026, focusing on Europe.

• Deliveries of new Polestar 4 variant expected in late 2026, followed by Polestar 2 successor in 2027 and Polestar 7 compact SUV.

• Carbon credit sales expected to be weighted toward the second half of the year.

• Ongoing focus on cost reduction, operational efficiency, and cash conversion.

• Q2 2026 retail sales volumes to be reported on July 9, 2026.