Polestar Automotive reported a second-quarter net loss of $459 million, wider than the $421 million loss a year earlier, as adjusted earnings per share fell short of analyst forecasts. The Swedish EV maker’s shares dropped 9.92% in premarket trading to $10.80, extending a year-to-date decline of 44%.
The company’s adjusted loss per share of $2.19 missed the consensus estimate of $1.81 by 20.99%, according to figures cited during its earnings call on Thursday. Revenue declined 8% year-over-year to $727 million, while first-half revenue fell 4% to $1.36 billion. Retail sales in the second quarter reached approximately 17,300 vehicles, down 4% from the same period last year, though first-half deliveries totaled a record 30,423 cars.
Gross margin remained negative at 8% in the first half of 2026, with an adjusted gross margin of negative 9%. Operating losses narrowed 43% year-over-year to $629 million, while net losses improved 29% to $842 million. Levered free cash flow over the last 12 months stood at negative $1.07 billion, and cash and equivalents fell to $888 million from $1.159 billion at the end of 2025.
Polestar raised €1.2 billion in equity over the past 15 months and completed a €640 million debt-to-equity conversion to bolster liquidity. The company also renewed or increased €1.7 billion in banking facilities and extended a shareholder loan maturity to 2031. Its current ratio stood at 0.43, reflecting tight liquidity conditions.
The EV maker faces headwinds from a U.S. Department of Commerce decision blocking sales of model year 2027 and later vehicles in the United States, with estimated material adjustments of $130 million. Carbon credit revenue declined to $52 million in the first half from $72 million a year earlier.
Polestar’s product pipeline includes the Polestar 4 SUV, which begins customer deliveries in the fourth quarter of 2026, and the Polestar 5, with first deliveries imminent. The Polestar 2 successor is slated for the second half of 2027. The Polestar 4 SUV starts at €57,900 and targets mainstream SUV segments, while the Polestar 4 coupé remains positioned in a niche market segment.
CEO Michael Lohscheller described the automotive market as one of the most challenging in his experience, noting strong demand for SUVs as a key growth driver. Analysts from Barclays and Cantor Fitzgerald participated in the call, with early feedback on the Polestar 4 SUV cited as positive from both fleet and private buyers.
