Polestar(US:PSNY)2025-09-03 11:02Financial Performance - Revenue increased by 56.5% year-on-year to USD 1,423 million, driven by higher retail sales volumes and an attractive model line-up [6] - Retail sales volumes grew by 51.1% year-on-year, totaling 30,289 cars sold in the first half of 2025 [16] - Net loss for the first half of 2025 was USD (1,193) million, primarily due to the impairment expense [6] - Operating loss for the first half of 2025 was USD (1,096) million, with an Adjusted EBITDA loss of USD (302) million, a reduction of 30.3% year-on-year [6] - Polestar's net loss for the first half of 2025 was $1,193.1 million, significantly higher than the net loss of $543.9 million in the first half of 2024 [41] - For the six months ended June 30, 2025, Polestar reported a net loss of $1,193,079 thousand, compared to a net loss of $543,878 thousand for the same period in 2024, representing an increase in losses of 119% [44] - Cash used for operating activities was $497,652 thousand for the first half of 2025, up from $267,671 thousand in the same period of 2024, indicating a 86% increase in cash outflow [44] - Free cash flow for the six months ended June 30, 2025, was $(787,265) thousand, compared to $(484,604) thousand in 2024, reflecting a 62% increase in negative cash flow [60] Profitability Metrics - Adjusted Gross Margin improved by 4.0 percentage points to 1.4%, despite a gross margin of (49.4)% impacted by a non-cash impairment expense of USD 739 million [6] - Adjusted Gross Profit for the six months ended June 30, 2025, was $20,400 thousand, a significant recovery from a loss of $(23,286) thousand in 2024 [61] - The Adjusted Gross Margin for the six months ended June 30, 2025, was 1.4%, compared to -2.6% in 2024, indicating a positive shift in profitability [63] Cash Position - Cash position stood at USD 719 million as of 30 June 2025, following the raising of USD 200 million in new equity [5] - Polestar's cash and cash equivalents stood at $718.6 million as of June 30, 2025, slightly down from $739.2 million at the end of 2024 [42] - Cash and cash equivalents at the end of the period were $718,625 thousand, a decrease from $668,911 thousand at the end of June 2024 [45] Sales and Market Expansion - Polestar's retail network expanded with an average of five new sales points opening per month in Q2 2025, totaling 170 sales points [3] - Polestar commenced sales in France, marking its entry into the 28th market [30] - Sales of carbon credits reached USD 72 million in the first half of 2025, significantly up from USD 0.04 million a year earlier [9] Future Plans and Product Launches - Polestar plans to launch the Polestar 5 in September 2025 and has confirmed a future production site in Europe for the Polestar 7, expected to launch in 2028 [6] - The company plans to launch the Polestar 7 compact SUV in 2028, with manufacturing set to begin in Slovakia [30] - The company targets a compound annual retail sales volume growth of 30-35% from 2025 to 2027 [6] Asset and Liability Management - Polestar's total assets as of June 30, 2025, were $3,642.7 million, down from $4,054.4 million at the end of 2024 [42] - Proceeds from short-term borrowings increased significantly to $1,954,240 thousand in the first half of 2025, compared to $388,420 thousand in 2024 [45] Environmental Goals - The company aims to halve greenhouse gas emissions per vehicle sold by 2030 and achieve climate neutrality across its value chain by 2040 [36] Product Recognition - The Polestar 4 received a 5-star Euro NCAP safety rating and won the Red Dot "Best of the Best" award [30] Impairment and Losses - The company recognized an impairment loss of $739 million related to the Polestar 3 CGU due to reduced forecast gross margin and sales volumes [47]