Polestar Automotive Holding Reports Q1 Earnings: Revenue at $608M, Cash Position at $732M.

Polestar Automotive Holding reports Q1 results, with a cash position of $732M, nearly at the same level as the 2024 year-end cash position of $739M. Revenue increased by 84.2% Y/Y to $608M, but missed estimates by $68.62M. Retail sales totaled 8,624 vehicles, up 72% Y/Y. The company's strong cash position and revenue growth demonstrate its financial health despite missing revenue estimates.

Polestar Automotive Holding (Nasdaq: PSNY) has released its Q1 2025 financial results, showcasing a resilient performance amidst challenging market conditions. The company reported a cash position of USD 732 million, nearly unchanged from the USD 739 million at the end of 2024. This robust cash position underscores Polestar's financial stability.

Revenue growth was significant, increasing by 84.2% year-over-year (YoY) to USD 608 million. However, the company missed revenue estimates by USD 68.62 million. Despite this, retail sales surged by 72% YoY to 12,304 vehicles, driven primarily by higher volumes and a favorable shift in the product mix [1].

Polestar's gross margin improved by 14.5 percentage points to 6.8%, reaching a positive 7%. This was largely due to a growing share of higher margin models, although competitive pricing in Q1 2025 impacted overall margins. The net loss decreased by USD 86 million to USD 190 million, reflecting gross profit improvement and fixed cost savings. Adjusted EBITDA loss also improved by USD 97 million to USD 115 million, driven by gross margin enhancement, cost savings, and positive foreign exchange impacts [1].

Polestar secured or renewed over USD 900 million worth of financing facilities in Q1 2025, including a Green Trade Finance Facility (TFF) with a syndicate of global banks for EUR 480 million. The company continues to work with lenders to ensure compliance with its loan covenants and is exploring new equity and debt funding opportunities with Geely Group [1].

The company's operational highlights included the launch of the Polestar 2 model year 2026 and the Polestar 3 achieving a five-star Euro NCAP rating. Polestar 4 was named 'Car of the Year' in South Korea, and digital key functionality was added to the Polestar 3 and Polestar 4 via over-the-air updates [1].

Polestar's CEO, Michael Lohscheller, stated, "We continue to make great progress, transforming our commercial operations and taking steps to reduce our cost base. We are selling more cars, at improved margins, resulting in revenue growth of 84%, a gross margin that is now positive, at 7%, and a narrowing net loss. We have a strong and growing line-up of attractive cars, with an expanding network of retail partners across key markets" [1].

Polestar's Q1 2025 results demonstrate its financial health and operational resilience, despite missing revenue estimates and facing geopolitical and market challenges. The company remains focused on growth and innovation, particularly in the Chinese market, where it has terminated its joint venture and transferred distribution rights [1].

References:
[1] https://www.marketscreener.com/quote/stock/POLESTAR-AUTOMOTIVE-HOLDI-139989540/news/Polestar-reports-Q1-2025-revenue-growth-of-84-and-significant-gross-margin-improvement-to-positive-49911530/