Polestar Q1 Revenue Up 84%, Losses Shrink on Higher Volumes and Positive Gross Margin

Polestar Automotive Holding reported a Q1 revenue jump of 84.2% YoY to $608 million, driven by higher volumes and a positive shift in product mix. Retail sales rose 76.4% YoY to 12,304 cars, led by increased uptake of newer models. Gross margin expanded 14.5 ppts YoY to 6.8%, aided by higher margin models. Adjusted EBITDA loss narrowed to $115 million, vs. a loss of $212 million a year ago. Net loss came in at $190 million, vs. a loss of $276 million prior year quarter. Polestar's cash position stood at $732 million at the end of the quarter.

Polestar Automotive Holding (NASDAQ: PSNY) reported its Q1 2025 results, showcasing a significant 84.2% year-over-year (YoY) revenue growth to $608 million, despite falling short of analyst expectations. The company's shares rose 3.67% in pre-market trading following the announcement.

Retail sales surged 76.5% YoY to 12,304 vehicles, driven by the growing uptake of newer models. This strong performance was supported by a 14.5 percentage point increase in gross margin to 6.8%, primarily attributed to higher margin models. The company's adjusted EBITDA loss narrowed to $115 million, representing a 45.7% improvement from the previous year's $212 million loss. Despite this progress, the net loss increased to $190 million, up from $176 million a year ago.

Polestar's CEO, Michael Lohscheller, commented on the results, stating, "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."

The company's cash balance stood at $732 million at the end of the quarter, a slight decrease from the $784 million at the end of 2024. Polestar also secured over $900 million worth of financing facilities in Q1, demonstrating its commitment to expanding its global footprint. The company remains focused on the Chinese market despite terminating its joint venture there and plans to launch in France this summer.

[1] https://www.investing.com/news/earnings/polestar-q1-revenue-misses-estimates-shares-rise-over-3-on-margin-improvement-93CH-4038678
[2] https://seekingalpha.com/news/4446304-polestar-automotive-holding-reports-q1-results