Polar Power 2025 Q3 Earnings Sharp Loss as Net Income Plummets 16400%

Polar Power (POLA) reported a significant earnings shortfall in Q3 2025, with revenue collapsing 74.1% to $1.27 million and a net loss of $4.08 million. The CEO cited supply chain delays and reduced demand as key culprits, while no quantitative guidance was provided for future periods.

Revenue

Revenue in Q3 2025 dropped sharply to $1.27 million, with DC power systems leading the revenue stream at $898,000. Engineering & Tech Support Services contributed $14,000, while Accessories rounded out the total with $361,000. The decline reflected reduced sales to key customers, particularly in the telecommunications sector.

Earnings/Net Income

Polar Power swung to a $1.63 per share loss in Q3 2025, a 16,400% deterioration from the $0.01 profit in the prior-year period. The net loss of $4.08 million marked a 31,523% decline from the $13,000 net income in 2024 Q3, driven by operational inefficiencies and underutilized capacity. The EPS swung to a significant loss, with net income declining sharply due to operational challenges and reduced sales.

Price Action

POLA shares posted a 1.10% gain on the latest trading day but fell 12.97% weekly and 22.97% month-to-date, reflecting investor uncertainty amid the earnings miss.

Post-Earnings Price Action Review

The strategy of buying POLA shares on earnings-raise dates and holding for 30 days showed mixed results over three years, yielding a modest 18.5% total return. Volatile quarterly performance included a 25.5% peak in Q2 2023, followed by a 10.2% return in Q3 2023, and a 5.1% return in Q4 2023. Cumulative returns were heavily skewed by the Q2 2023 surge, while the strategy underperformed the 22.1% market return.

CEO Commentary

The CEO attributed the revenue shortfall to supply chain bottlenecks and reduced demand in key markets, emphasizing cost optimization and operational efficiency as priorities. Strategic focus includes hydrogen infrastructure investments and renewable energy partnerships to drive long-term growth.

Guidance

The company declined to provide explicit revenue, EPS, or CAPEX targets for future periods, citing market uncertainties. Leadership emphasized disciplined capital allocation and high-margin projects to stabilize cash flow.

Additional News

Polar Power delayed its Q3 2025 10-Q filing, citing internal review processes. The subsequent SEC report revealed a 74% revenue drop to $1.27 million, with telecommunications customers accounting for 92% of Q3 sales. Geographical sales shifted entirely to U.S. markets in Q3, down from 10% international sales in 2024.