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Jun 30, 2025
Polestar Q2 2025 Earnings Report
Polestar reported a sharp decline in Q2 2025 due to a significant impairment charge related to the Polestar 3.
Key Takeaways
Revenue grew 36.6% year-over-year, but the quarter was heavily impacted by a $739 million impairment on the Polestar 3, resulting in a $1.03 billion net loss and a negative gross margin.
Revenue reached $791 million, a 36.6% YoY increase driven by higher sales volumes and carbon credit sales.
Net loss widened to $1.03 billion due to a $739 million non-cash impairment on Polestar 3.
Gross margin dropped to -97.2%, primarily because of the impairment expense.
Adjusted EBITDA was -$216 million, slightly improved YoY due to cost controls and carbon credit sales.
Forward Guidance
Polestar reaffirmed its 30–35% compound annual growth target for retail sales volume between 2025 and 2027 but withdrew all other guidance due to market volatility.
Positive Outlook
- Retail network expanded with new sales points in Q2.
- Polestar 4 launched with strong safety and design accolades.
- Carbon credit revenue increased significantly YoY.
- Adjusted gross margin supported by better model mix and cost reductions.
- Cash position maintained above $700M.
Challenges Ahead
- No updated financial guidance due to macro uncertainty.
- Severe impairment related to Polestar 3.
- Gross margin turned deeply negative.
- Higher tariffs and pricing pressure eroded margins.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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