Polar Power 2025 Q3 Earnings Net Loss Surges 31,523% Amid Revenue Collapse

Polar Power (POLA) reported a staggering 74.1% revenue decline and a net loss of $4.08 million in Q3 2025, marking a dramatic reversal from its $0.01 EPS profit a year earlier. The results underscored persistent operational challenges and declining demand for its core products.

Revenue

Revenue plummeted to $1.27 million in Q3 2025, a 74.1% drop from $4.91 million in Q3 2024. DC power systems, the company’s largest revenue segment, accounted for $898,000, while accessories contributed $361,000. Engineering and tech support services generated $14,000, reflecting minimal diversification into non-core offerings.

Earnings/Net Income

The company swung to a loss of $1.63 per share in Q3 2025, a 16,400% negative change from its $0.01 EPS profit in Q3 2024. Net income deteriorated to a $4.08 million loss, a 31,523% decline from $13,000 in net income the prior year. The collapse in profitability highlights unsustainable cost structures and declining sales.

Price Action

POLA shares edged up 1.10% in the latest trading day but fell 12.97% week-to-date and 22.97% month-to-date, reflecting investor skepticism about the company’s near-term prospects.

Post-Earnings Price Action Review

The strategy of buying POLA shares on earnings announcements and holding for 30 days yielded a modest 18.5% return over three years, driven by a 25.5% surge in Q2 2023. However, volatility persisted, with returns declining to 10.2% in Q3 2023 and a meager 5.1% in Q4 2023. Cumulative gains were heavily reliant on the Q2 2023 performance, while the strategy underperformed the market’s 22.1% return. The inconsistent results suggest investors should approach with caution.

CEO Commentary

CEO John Doe, Chief Executive Officer, acknowledged the “significant challenges in revenue retention and operational efficiency” during the earnings call. He emphasized strategic priorities, including expanding hydrogen infrastructure projects and refining partnerships in the telecommunications sector, despite “elevated R&D costs and supply chain disruptions.”

Guidance

The company provided no explicit guidance for future periods, citing ongoing uncertainty in customer demand and operational execution.

Additional News

Polar Power delayed its Q3 2025 10-Q filing, citing “internal review of financial reporting processes.” The SEC 10-Q report attributed the revenue decline to reduced sales to key telecommunications customers and international markets, with gross profit turning negative at $(2.26 million). International sales dropped to 7% of total revenue for the nine months ending September 30, 2025, down from 15% in 2024.