Polestar Automotive (PSNY) Q2 2026 earnings summary

Executive summary

• Achieved record first-half retail sales of 30,423 cars, up 0.4% year-over-year, driven by the Polestar 4 coupé and a 39% expansion of the retail network to 235 locations in 28 markets.

• Transitioned to a retailer-led sales model and expanded sales points by 39% year-over-year.

• Facing significant pricing pressure, regulatory headwinds in the U.S., and intensified EV market competition.

• Operational improvements and cost discipline measures have begun to yield results, with a leaner and more focused company.

• Cash position stood at $888 million as of June 30, 2026, bolstered by new equity and debt-to-equity conversions.

Financial highlights

• Revenue for H1 2026 was $1.36 billion, down 4.4% year-on-year, impacted by pricing pressure, U.S. restructuring, and lower carbon credit sales.

• Operating loss reduced by 43% year-on-year to $629 million; net loss narrowed by 29.4% to $842 million.

• Gross margin improved to negative 8.4% from a much larger negative margin last year, mainly due to absence of impairment charges.

• Adjusted EBITDA loss for H1 2026 was $521 million, higher year-on-year due to adverse profitability evolution and U.S. restructuring impacts.

• Free cash flow for H1 2026 was negative $1.061 billion.

Outlook and guidance

• Full-year volume guidance updated to low to mid single-digit growth, reflecting market conditions and portfolio changes.

• Polestar 4 SUV customer deliveries to begin in Q4 2026, with ramp-up into 2027.

• Polestar 4 (SUV and coupé) and Polestar 2 successor expected to be dominant volume drivers in 2027.

• Focus remains on cost discipline, operational execution, and maintaining financial flexibility.

• Market environment expected to remain highly competitive and volatile in H2 2026.