Polestar Automotive Holding UK Plc reported a second-quarter net loss of $459 million, narrowing from $1.027 billion a year earlier but missing adjusted earnings per share estimates by $0.38. The company posted a loss of $2.19 per share on an adjusted basis, compared with analysts' expectations of a loss of $1.81 per share.
Revenue declined 8% year-over-year to $727 million in the quarter, while first-half revenue totaled $1.36 billion, down 4% from the prior-year period. Retail sales for the first half reached 30,423 vehicles, a record for the period, though second-quarter sales fell 4% to about 17,300 units. Europe accounted for 78% of total volume, led by the U.K., Germany and Southern Europe, while the U.S. represented 6% of retail sales, down from 9% in the first half of 2025.
Operating losses improved to $629 million in the first half, a 43% reduction year-over-year, while net losses narrowed 29% to $842 million. Adjusted EBITDA loss totaled $521 million, and the adjusted gross margin remained negative at 9%. Cash and cash equivalents stood at $888 million at the end of June, down from $1.159 billion at year-end 2025. The company's current ratio was 0.43, and levered free cash flow was negative $1.07 billion over the last 12 months.
Polestar lowered its full-year volume outlook to low- to mid-single-digit growth, citing ongoing competitive pressures. The company operates in 28 markets with 235 sales points and 178 retail partners, having expanded its footprint by 39% year-over-year. New markets such as Estonia were added in June, with Latvia and Lithuania expected to follow.
Product momentum included the Polestar 4, which accounted for two-thirds of volume and was the best-selling model. The Polestar 4 SUV, priced from €57,900, began taking orders with deliveries slated for the fourth quarter. The Polestar 5 halo car is approaching first customer deliveries, while the Polestar 2 successor is planned for the second half of 2027.
The company also confirmed it will not appeal a U.S. Commerce Department decision restricting sales of model year 2027 and later vehicles in the U.S., limiting future operations there to service and used-car activities. The decision is estimated to impact residual value guarantee costs by $130 million.
Polestar raised €1.2 billion in equity over the past 15 months and converted €640 million of debt into equity. It also extended a Volvo Cars shareholder loan maturity to 2031 and renewed or increased €1.7 billion in banking facilities.
Shares fell 9.9% to $10.80 premarket, extending a year-to-date decline of 44% and a 64% drop over the past 12 months.
