Polestar Automotive Holding UK PLC (NASDAQ:PSNY) reported a 56.5% year-over-year increase in revenue to $1.42 billion for the first half of 2025, driven by a 51.1% rise in retail sales volumes to 30,289 vehicles.
Carbon credit sales totaled $72 million compared with $0.04 million a year earlier. The company recorded a net loss of $1.19 billion, widened from $544 million a year earlier, mainly due to a $739 million non-cash impairment expense on the Polestar 3.
Gross margin fell to negative 49.4% from negative 2.6%, though adjusted gross margin improved to 1.4% from negative 2.6%. Adjusted EBITDA loss narrowed 30.3% to $302 million.
Second-quarter revenue rose 36.6% to $791 million as retail sales reached 18,049 units, up 38.1% year over year. The quarter included $41 million in carbon credit sales.
Gross margin dropped to negative 97.2% from 0.4% a year earlier due to the impairment, while adjusted gross margin fell to negative 5.7%. Net loss widened to $1.03 billion from $268 million in Q2 2024. Adjusted EBITDA loss stood at $216 million, roughly flat year over year.
Operating cash outflow totaled $498 million in the first half, while investing activities consumed $322 million. Financing activities provided $687 million, including a $200 million PIPE investment from PSD Investment. Free cash flow was negative $787 million, compared with negative $485 million a year earlier.
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On June 30, cash stood at $719 million. Through August, Polestar noted approximately $2.1 billion in secured and renewed loan facilities.
“Our operational performance in the first half of 2025 reaffirms that we are doing the right things, in a difficult market: increasing our commercial footprint, selling more cars and relentlessly focusing on cost and inventory management,” said CEO Michael Lohscheller. “Revenue growth was 56% and our Adjusted Gross Margin improved year-on-year. With an average of five new sales points opening per month in the second quarter, we are making it easier for more customers to experience and buy a Polestar. The launch of Polestar 5, our four-seat Grand Tourer, at IAA in September will strengthen our position as the leading performance EV brand.”
The company confirmed future European production for the Polestar 7 in Kosice, Slovakia, with the launch planned in 2028. Recent milestones include Polestar 4 winning a Red Dot “Best of the Best” award, achieving a 5-star Euro NCAP safety rating, and winning the 2025 Mille Miglia Green. Polestar Charge also surpassed 1 million available charging points globally.
Polestar continues to target compound annual retail sales volume growth of 30–35% between 2025 and 2027. The company withdrew its 2025 financial guidance in April and is assessing the impact of tariffs, policy changes, and market dynamics on its operations while pursuing further cooperation with Volvo Cars and Geely.
Price Action: PSNY shares are trading lower by 3.01% at $1.29 premarket at the last check on Wednesday.
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