Finance
Ev Maker Polestar's Fourth-Quarter Revenue Jumps, Loss Narrows
Published by Global Banking & Finance Review®
Posted on April 17, 2026
2 min readLast updated: April 17, 2026
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Polestar’s Q4 2025 revenue surged 54% to $887 million and its net loss shrank to $799 million, thanks to cost cuts, production ramp‑up and strong European demand. Headcount fell sharply and gross margin improved to 1.9%, with Q1 results due May 7.
Polestar Q4 Revenue Rises 54% and Loss Narrows Amid Strong European Demand
Polestar's Financial Performance and Strategic Focus
Q4 Revenue Growth and Loss Reduction
April 17 (Reuters) - Sweden's Polestar on Friday reported a sharp jump in fourth-quarter revenue and a smaller loss, as the electric vehicle maker ramped up production and cut costs to cater to growing European demand.
The company's revenue jumped 54% to $887 million for the three months ended December 31 from a year ago. Net loss narrowed to $799 million, compared with a loss of $1.18 billion in the same quarter in 2024.
Market Focus and Regional Demand
Shift to European Market
Polestar has shifted its focus to its home market of Europe over the past year, where demand for its lineup of battery vehicles has been strong, while other core markets including the U.S. have seen sluggish performance.
Challenges in International Expansion
Economic uncertainty, sparked by the turmoil in the Middle East and the fallout from U.S. President Donald Trump's tariff policies, has also hampered Polestar's international expansion plans and contributed to its Europe-focused strategy.
Future Outlook and Company Strategy
Market Conditions and CEO Statement
The company expects market conditions to become more challenging "amid ongoing geopolitical developments", CEO Michael Lohscheller said.
Financial Forecasts and Cost-Cutting Measures
Sales Volume Growth and Cost Optimization
Polestar did not provide any financial forecasts apart from the previously disclosed retail sales volume growth, which is expected to increase at low-double-digit rates.
It has been aggressively cutting costs by reducing headcount, optimizing its manufacturing processes and rejigging supply chains. The company had 1,686 employees at the end of 2025, compared with 2,547 at the end of 2024.
Upcoming Results and Cash Position
Polestar expects to publish first-quarter financial results on May 7. Its cash position was around $1.16 billion at the end of 2025.
Adjusted Gross Margin
Adjusted gross margin for the fourth quarter was 1.9%, compared with negative 39% in 2024.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Shreya Biswas)
Key Takeaways
- •Revenue jumped 54% YoY in Q4 2025 to $887 million, while net loss narrowed from $1.18 billion to $799 million — signaling improving operational leverage.
- •Adjusted gross margin turned positive at 1.9% in Q4 2025, a substantial recovery from –39% a year earlier, driven by cost‐cutting and higher‑margin models.
- •Polestar slashed workforce from 2,547 to 1,686 employees in 2025, broadened its Europe focus amid FX and tariff headwinds, and ended the quarter with $1.16 billion cash while preparing Q1 results on May 7.
References
Frequently Asked Questions about EV maker Polestar's fourth-quarter revenue jumps, loss narrows
1How much did Polestar's fourth-quarter revenue increase?
Polestar's fourth-quarter revenue increased by 54% to $887 million compared to the previous year.
2What factors contributed to Polestar's narrowed net loss?
The narrowed net loss was due to ramped-up production, cost-cutting measures, and strong demand in Europe.
3Why has Polestar shifted its focus to the European market?
Polestar shifted to Europe to cater to strong battery EV demand, while facing sluggish performance in the U.S. and global challenges.
4What is Polestar's financial outlook for the future?
Polestar did not provide new financial forecasts, but expects retail sales volume to grow at low-double-digit rates amid challenging conditions.
5When will Polestar release its first-quarter financial results?
Polestar expects to publish its first-quarter financial results on May 7.