Polestar Automotive (NASDAQ:PSNY) held its fourth-quarter earnings conference call on Friday. Below is the complete transcript from the call.
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Summary
Polestar Automotive reported record retail sales of over 60,100 cars for 2025, achieving a 34% year-on-year growth and meeting its growth target of 30-35%.
The company announced a $1 billion equity raise supported by Geely Sweden Holdings and conversions of $640 million in loans to equity, strengthening its balance sheet.
Polestar Automotive plans to expand its model lineup with four new cars over the next three years, including the Polestar 5 and a new variant of the Polestar 4.
Revenue for 2025 grew by 50% year-on-year to surpass $3 billion, although gross margin remained negative at 35% due to impairment expenses.
The company’s plans for 2026 include achieving low double-digit growth in sales volume, expanding its retail network by 20%, and continuing cost reduction initiatives.
Full Transcript
Anna Gavrilova (Head of Investor Relations)
Hello everyone, I’m Anna Gavrilova, Head of Investor Relations at Polestar. Thank you for joining this call covering Polestar’s results for the fourth quarter and full year 2025. I’m joined by Michael Lochscheller, Polestar CEO, and Jean Francois Madi, Polestar CFO, who will comment on the performance and then we will open the floor to analysts questions. Before we start, I would like to remind participants that many of our comments today will be considered forward looking Statements under the U.S. federal securities laws and are subject to numerous risks and uncertainties that may cause Polestar’s actual results to differ materially from what has been communicated. These forward looking statements include, but are not limited to, statements regarding the future financial performance of the company, production and delivery volumes, financial and operating results, near term outlook and medium term targets, fundraising and funding requirements, macroeconomic and industry trends, company initiatives and other future events. Forward looking statements made today are effective only as of today and Polestar undertakes no obligation to update any of its forward looking statements. For a discussion of some of the factors that could cause our actual results to differ, please review the risk factors contained in our SEC filings. In addition, management may make references to non GAAP financial measures during the call. A discussion of why we use non GAAP financial measures and a reconciliation to the most directly comparable GAAP measure can be found in the appendix of the press release and in the form 6k published today. Now I will hand over to Michael
Michael Lochscheller (Chief Executive Officer)
hello everyone and thank you for joining us today as we present our full year 2025 results and provide an update on recent developments across the business. As you are all aware, the world around us continues to throw up challenges, but we are making good progress and we are focusing on delivering against our strategy. I want to update you on the most recent developments within technology, our financing situation and future model lineup expansion. But before that, a few words on the year that just passed. 2025 was a record year for Polestar in terms of retail sales. We delivered over 60,100 cars during the year in line with our guidance of 30 to 35% growth and a new record for our young brand, an achievement to be proud of given the competition and market conditions. 2025 was also a year in which we took significant steps to adapt our commercial strategy and footprint, an important foundation for our future growth and journey towards profitability. We accelerated the expansion of our network of retailers by 50% from 140 to 210 retail sales points and have worked hard to improve our operational efficiency whilst also preparing for the company’s largest ever model Offensive, which we presented in February. During the fourth quarter we made several announcements that reinforce our position as a technology leader in the EV segment. The upgraded model year 26 Polestar 3, which is being tested by the world’s leading automotive media in the UK this week, has received several upgrades including an 800 volt architecture. This means our flagship SUV offers customers charging speeds of up to 350 kilowatts, up to 500 kilowatts of power and 6% better efficiency. It also has an upgraded Nvidia processor taking its computing power from 30 to 254 trillion operations per second. The same upgrade is also being offered to all existing Polestar 3 customers. We are the first OEM to integrate Google’s Life Lane guidance in our cars. It’s already being rolled out to Polestar 4 customers across the US and Sweden with more to come. Further evidence of our strong relationship with Google came in November when We demoed Google’s AI based Gemini assistant in Polestar 5. This service brings a whole new level of interaction and experience to our cars and it will be rolled out via over the air updates to existing Polestar customers. We have made solid progress on securing additional financing in the last month. Starting in December 2025, through a series of the three equity financing rounds, we have raised $1 billion of new external equity with the support of Geely Sweden Holdings. These placements strengthen our balance sheet and widen our shareholder base. Concurrently, we have announced agreements with Volvo Cars and Geely Sweden holdings for the conversion of approximately $640 million of shareholder loans to equity. These conversions, once completed, will reinforce our liquidity profile and maintain Volvo Car’s ownership in Pollster at approximately 19.9%. Both the equity funding rounds and the debt to equity conversions are a clear sign of the continued support that we enjoy from our major shareholders. In February we presented the details of our largest ever model LineUp expansion with four new cars planned in the next three years. Polestar 5, our four door GT which was presented during the end of last year, is expected to start deliveries in the summer. This car sets a whole new standard in EV performance segment, combining design, performance and luxury in a way that has never been done before. Later this year we will bring a new variant of Polestar 4 to the market. Our global bestseller, which represented 65% of our deliveries in the first quarter of this year, will bring even more versatility to an already incredible car. The this will help us to address a wider segment and offer more customers an alternative based on their lifestyle and needs. First deliveries are expected to start in the fourth quarter, with production for all markets taking place in Busan, South Korea. Our next model will be the next generation Polestar 2, the car that built Polestar’s brand. With over 190,000 Polestar 2 on the road, this car already has a huge following and customer base which we have an opportunity to capitalize on. Completely redesigned with the latest in drivetrain, battery and UX technology, Polestar 2 will play an important role in our future success. Our Compact Premium SUV Polestar 7 provides provides an attractive entry point to the brand, offering a level of performance and design that this segment lacks today. The pace at which we are developing and bringing those models to market is a testament to the value of our asset light model, our ability to work in close collaboration with partners, and a sign of our underlying ambitions for more profitable growth. Targeting wider, more profitable segments before handing over to Jean Francois for the financial details, I’d like to just spend a moment reflecting on the first quarter of this year 2026. Our sales team has worked incredibly hard to carry over our record performance in 25 into the start of this year. Our Our retail sales in the first quarter totaled some 13,100 cars, a record number for a first quarter, translating into a year …
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