Polar Power Q2 Revenue Down 42% YoY Amid Decline in Telecom and International Sales

Polar Power's Q2 2025 earnings show a 42% YoY decline in revenue and a significant drop in gross profit, resulting in a net loss. The company attributes the decline to weakened telecom and international sales. Polar Power is focusing on product diversification and new technology launches. No financial guidance was provided.

Polar Power Inc. (NASDAQ: POLA), a global provider of prime, backup, and solar hybrid DC power solutions, has reported its financial results for the second quarter of 2025, revealing significant declines across key metrics. The company's net sales decreased by 42% to $2.7 million from $4.6 million in the same period last year [1]. Gross profit fell by 49% to $930,000, and the company reported a net loss of $271,000, or $(0.11) per share, compared to a net income of $501,000 in the prior year's quarter [1].

The telecom sector remained dominant, accounting for 92% of total net sales, while international sales dropped significantly to 3% from 25% year-over-year. Despite these challenges, aftermarket parts and services saw substantial growth of 288% [1]. The company plans to release a 30 kW mobile EV charger in the fourth quarter of 2025 and is restructuring its sales approach through domestic and international resellers to rebuild sales to pre-pandemic levels [1].

Arthur Sams, Chairman and CEO of Polar Power, commented on the quarterly results, stating that the telecom market continues to dominate their customer base for DC power systems. He noted that restructuring their US sales to include distribution through domestic resellers will be the fastest direction in rebuilding sales to pre-pandemic levels [1]. The company is also focusing on expanding its international presence and improving its sales and marketing proficiency to further diversify its customer base [1].

The company's cash position is a concern, with cash and equivalents dwindling to $175,000 as of June 30, down from $498,000 at year-end 2024. The company has increased its line of credit utilization to $5.3 million and taken on additional related-party debt. Negative operating cash flow of $404,000 this quarter, compared to $1.2 million positive last year, highlights the need for liquidity management [1].

Polar Power's Q2 2025 results reveal significant deterioration in financial performance, with revenue dropping by 42% year-over-year. The company's strategic initiatives, including product diversification and new technology launches, offer potential recovery paths. However, the inventory situation requires monitoring, with inventory levels remaining high relative to quarterly sales, suggesting potential obsolescence risks if product demand patterns shift [1].

References:
[1] https://www.stocktitan.net/news/POLA/polar-power-reports-second-quarter-2025-financial-8vkc572x6qfk.html