Polestar Automotive (PSNY) Q2 2025 earnings summary

Executive summary

• Retail sales volume grew 51.1% year-over-year to 30,289 cars, surpassing the 30%-35% growth target for 2025-2027.

• Revenue increased 56.5% to $1,423 million in H1 2025, driven by higher sales and a greater share of premium models.

• Adjusted Gross Margin improved to 1.4% from -2.6% year-over-year, reflecting a better sales mix and cost reductions.

• Net loss widened to $1,193 million, mainly due to a $739 million non-cash impairment expense on Polestar 3.

• Cash position stood at $719 million as of June 30, 2025, bolstered by a $200 million equity raise.

Financial highlights

• Adjusted EBITDA loss narrowed by 30% to $302 million, reflecting improved top-line and cost discipline.

• Carbon credit sales reached $90 million, with $72 million booked as revenue.

• SG&A expenses (excluding sales agency remuneration) decreased by $49 million (12%) year-over-year.

• Free cash flow was negative $787 million, reflecting continued investment and operating losses.

• Operating loss was $1,096 million, primarily from the impairment expense.

Outlook and guidance

• Target of 30%-35% compound annual retail sales volume growth for 2025-2027 reiterated; no new financial guidance issued for 2025 due to market uncertainties.

• Focus for H2: rebalance product/channel mix, further cost reductions, capitalize on carbon credit sales, and optimize working capital.

• U.S. market remains challenging due to tariffs and policy changes; focus remains on Europe.