Polestar reports select financial and operational results for the quarter ended March 31, 2025 (Q1 2025).
Michael Lohscheller, Polestar CEO, said: “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. The geopolitical environment and market conditions are challenging, but we are on the right track and doing the right things.”
Key financial highlights
| (in millions of U.S. dollars) |
For the three months ended March 31, |
||
| 2025 | 2024 | Change % | |
| Revenue | 608 | 330 | 84.2 |
| Gross margin % | 6.8% | -7.7% | +14.5ppts |
| Net loss | (190) | (276) | (31.2) |
| Adjusted EBITDA | (115) | (212) | (45.7) |
| Cash balance | 732 | 784 | (6.6) |
- Retail sales totaled an estimated 12,304 cars, up 76.4% YoY supported by a growing uptake of newer models
- Revenue increased by USD 278 million, up 84.2% YoY, driven predominantly by higher volumes and favorable shift in the product mix
- Gross margin at a positive 6.8%, an improvement of 14.5ppts YoY, due to a growing share of higher margin models, however impacted by more competitive pricing compared with the Q1 2024 level
- Net loss of USD 190 million, a decrease of USD 86 million, driven by gross profit improvement and fixed cost savings and a positive foreign exchange impact within net finance expenses, partially offset by our share of the losses in the Joint Venture (JV) with Hubei Xingji Meizu Group Co. Ltd and lower positive fair value change of earn out rights
- Adjusted EBITDA loss of USD 115 million, decreased by USD 97 million due to gross margin improvement, cost savings from headcount reduction in 2024, optimized marketing spend, and positive FX impacts partially offset by the share of losses in the JV in China
- Cash position of USD 732 million is nearly at the same level as the 2024 year-end cash position of USD 739 million
Preliminary key operational highlights
The table below summarizes key preliminary operational highlights as of and for the three months ended March 31, 2025:
|
For the three months ended March 31 |
|||
|
2025 |
2024 |
% Change |
|
| Retail sales 1 |
12,304 |
6,975 |
76.5 |
| including external vehicles with repurchase obligations |
183 |
527 |
(65.3) |
| including internal vehicles |
395 |
234 |
68.8 |
| Markets2 |
27 |
27 |
unch |
| Sales points3 |
159 |
158 |
0.6 |
| of which sales points, excluding China |
154 |
116 |
32.8 |
| Service points4 |
1,190 |
1,173 |
1.4 |
(1) Retail sales figures are sales to end customers. Retail Sales include new cars handed over via all sales channels and all sale types, including but not restricted to internal, fleet, retail, rental and leaseholders’ channels across all markets irrespective of their market model and setup and may or may not generate directly revenue for Polestar.
(2) Represents the markets in which Polestar operates.
(3) Represents Sales Points, including retail locations which are physical facilities (such as showrooms), actively selling Polestar cars, and pre-space activations, which represent locations with an ongoing project to build a retail location that have already started selling Polestar cars.
(4) Represents Volvo Cars service centers to provide access to customer service points worldwide in support of Polestar’s international expansion.
Key loan facilities and funding highlights
- Over USD 800 million in term facilities secured from several banks at the end of 2024
- Over USD 900 million worth of facilities secured or renewed in February 2025
- Further up to USD 450 million in term facilities secured
- Green Trade Finance Facility (TFF) with a syndicate of global banks renewed for EUR 480 million
As previously announced regarding the Company’s USD 950 million ‘club loan’, the lenders agreed to amend the revenue covenant for 2024 to ensure its compliance and also agreed to waive testing of the year-end 2024 and Q1 2025 debt-to-asset ratio covenant. The Company is continuing to have a constructive dialogue with lenders regarding its future club loan obligations.
We continue to work closely with Geely Group on securing new equity and debt funding.
The Company is still at an acceptable debt level in relation to its loan covenants.
Key recent developments
Polestar to launch in France in summer 2025 with Stéphane Le Guevel appointed Managing Director
- As a result of a change in market focus and strategy, the business of the JV in China has been terminated and distribution rights transferred to Polestar. Polestar remains fully committed to the Chinese market and will continue to pursue its long-term strategy for growth and innovation, whilst protecting its premium brand position in China.
Key business and operational highlights
- Polestar 2 model year 2026 introduced and available to order, including new features and technology updates
- Polestar 3 achieved a five-star Euro NCAP rating, setting new standards for child occupancy protection
- Polestar 4 won ‘Car of the Year’ in South Korea
- Digital key functionality added to Polestar 3 and Polestar 4 thanks to over-the-air update capability
- Polestar 2024 Annual Sustainability report published: CO2 emissions reduced by 25% per car sold
- Polestar Energy launched in 11 markets, offering customers smarter, more efficient and cheaper home charging
Unaudited reconciliation of GAAP and Non-GAAP measures
Adjusted EBITDA
| (in millions of U.S. dollars) |
For the three months ended March 31, |
|
|
2025 |
2024 |
|
| Net loss |
(190) |
(276) |
| Fair value change – Earn-out rights |
(12) |
(83) |
| Fair value change – Class C Shares |
1 |
(1) |
|
Finance income |
(37) |
(3) |
|
Finance expense |
93 |
125 |
| Income tax expense |
(1) |
2 |
| Depreciation and amortization |
31 |
24 |
| Adjusted EBITDA (non-GAAP) |
(115) |
(212) |
SOURCE: Polestar
