\n| \n \n\u00a0<\/p>\n<\/td>\n | \n 2025<\/b><\/p>\n<\/td>\n | \n 2024<\/b><\/p>\n<\/td>\n | \n Change, %<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Revenue<\/b><\/p>\n<\/td>\n | \n \n3,058<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n2,034<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 50.3<\/i><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nCost of sales<\/p>\n<\/td>\n | \n \n(4,142<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \n \n(2,910<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \n (42.3<\/i><\/p>\n<\/td>\n | \n )<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n \nImpairment expense, net of reversals<\/p>\n<\/td>\n | \n \n(1,050<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \n \n(622<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \n (68.8<\/i><\/p>\n<\/td>\n | \n )<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n \nOther cost of sales<\/p>\n<\/td>\n | \n \n(3,092<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \n \n(2,288<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \n (35.1<\/i><\/p>\n<\/td>\n | \n )<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n Gross loss<\/b><\/p>\n<\/td>\n | \n \n(1,084<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \n \n(876<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \n (23.7<\/i><\/p>\n<\/td>\n | \n )<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n Gross margin, %<\/i><\/p>\n<\/td>\n | \n (35.4<\/i><\/p>\n<\/td>\n | \n )<\/i><\/p>\n<\/td>\n | \n (43.1<\/i><\/p>\n<\/td>\n | \n )<\/i><\/p>\n<\/td>\n | \n 7.7ppts<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n \nAdjusted Gross Loss (non-GAAP) 1<\/sup><\/p>\n<\/td>\n| \n \n(22<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \n \n(254<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \n 91.4<\/i><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Adjusted Gross Margin (non-GAAP) 1<\/sup>, %<\/i><\/p>\n<\/td>\n| \n (0.7<\/i><\/p>\n<\/td>\n | \n )%<\/i><\/p>\n<\/td>\n | \n (12.5<\/i><\/p>\n<\/td>\n | \n )%<\/i><\/p>\n<\/td>\n | \n 11.8ppts<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n \nSelling, general and administrative expense<\/p>\n<\/td>\n | \n \n(856<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \n \n(891<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \n 3.8<\/i><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nResearch and development expense<\/p>\n<\/td>\n | \n \n(78<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \n \n(38<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \n (102.4<\/i><\/p>\n<\/td>\n | \n )<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n \nOther operating income<\/p>\n<\/td>\n | \n \n52<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n59<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n (11.8<\/i><\/p>\n<\/td>\n | \n )<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n \nOther operating expense<\/p>\n<\/td>\n | \n \n(88<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \n \n(24<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \n (268.7<\/i><\/p>\n<\/td>\n | \n )<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n \nForeign exchange gains (losses) on operating activities, net<\/p>\n<\/td>\n | \n \n44<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(44<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \n 201.0<\/i><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Operating loss<\/b><\/p>\n<\/td>\n | \n \n(2,009<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \n \n(1,813<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \n (10.8<\/i><\/p>\n<\/td>\n | \n )<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n Net loss<\/b><\/p>\n<\/td>\n | \n \n(2,357<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \n \n(2,050<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \n (15.0<\/i><\/p>\n<\/td>\n | \n )<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n Adjusted EBITDA (non-GAAP) 1<\/sup><\/b><\/p>\n<\/td>\n| \n \n(783<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \n \n(1,080<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \n 27.5<\/i><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \n\n| \n \n(1)<\/p>\n<\/td>\n | | \n\n \nNon-GAAP measure. See Appendix C for details and a reconciliation of non-GAAP metrics to the nearest GAAP measure.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \n- \nRetail sales totaled 60,119 cars, representing growth of 34.0% year-on-year (YoY) from 44,851 cars in the comparable period, driven by the transition to an active selling model, accelerated retail expansion and an attractive model line-up.<\/p>\n<\/li>\n
- \nRevenue of USD 3,058 million, up by 50.3% from USD 2,034 million a year earlier, driven predominantly by higher volumes, a growing share of higher priced models (Polestar 3 and Polestar 4) in the sales mix, and carbon credits sales partially offset by pressure on pricing in a competitive and challenging market environment. Carbon credits sales totaled USD 211 million in the period from USD 11 million a year earlier, including USD 19 million worth of carbon credits sales booked in other operating income (2024: USD nil).<\/p>\n<\/li>\n
- \nCost of sales increased to USD (4,142) million, an increase of 42.3% from USD (2,910) million in 2024, mainly due to higher sales volumes and related increased production volumes and carline mix, as well as higher duties and tariffs related to increase in tariffs, primarily from China to the EU; higher cost of sales includes impairment expenses on tangible and intangible assets net of reversals of USD (1,050) million (2024: USD (622) million).<\/p>\n<\/li>\n
- \nGross margin was a negative (35.4)%, an improvement from (43.1)% in the comparable period, and includes impairment expenses booked in 2025.<\/p>\n<\/li>\n
- \nAdjusted Gross Margin at near-breakeven of (0.7)%, an improvement from (12.5)% a year earlier; Adjusted Gross Loss significantly reduced to USD (22) million from USD (254) million in 2024 mainly as a result of evolving product and geographical sales mix, reduction in materials costs and higher carbon credits sales, lower adjustment of residual value guarantee in North American markets and positive impact from the China JV settlement partially offset by pressure on pricing and tariffs and collateral impact on inventory net realizable value.<\/p>\n<\/li>\n
- \nSelling, General and Administrative (SG&A) expenses improved to USD (856) million from USD (891) million in 2024; expenses decreased by USD 100 million due to optimized marketing and advertising expenses, cost discipline and organizational restructuring with reduced headcount (from 2,547 in December 2024 to 1,686 in December 2025) but were partially offset by higher sales agent remuneration, by USD 65 million year-on-year, linked to growing retail sales volumes.<\/p>\n<\/li>\n
- \nResearch and development (R&D) expenses increased to USD (78) million from USD (38) million in the comparable period, driven by higher spend due to commencement of new programs with a lower capitalization rate.<\/p>\n<\/li>\n
- \nOperating loss was USD (2,009) million compared to USD (1,813) million in 2024, primarily due to factors described above; other net operating income\/expense was higher due to restructuring expenses related to headcount reduction and real-estate downsizing.<\/p>\n<\/li>\n
- \nNet loss of USD (2,357) million, compared to net loss of USD (2,050) million in 2024, driven by factors described above; finance income was lower due to lower interest rates; finance expense was higher on higher levels of outstanding external financing; net foreign exchange gains on financial activities arose from positive FX movements; positive fair value changes from Earn-out rights and Class C shares were lower due to a smaller relative depreciation of Polestar’s share price over the period compared to prior year; share of losses in associates increased due to the capital contributions made by Polestar in its China associate in 2025 which triggered recognition of previously unrecognized losses.<\/p>\n<\/li>\n
- \nAdjusted EBITDA of USD (783) million, improved by USD 297 million from USD (1,080) million in the comparable period, is a result of achieving near-breakeven Adjusted Gross Loss and optimizing SG&A expenses, which were partially offset by increased R&D expenses and higher sales agent remuneration.<\/p>\n<\/li>\n
- \nFurther details are provided in the reconciliation tables for non-GAAP measures in Appendix C.<\/p>\n<\/li>\n<\/ul>\n
Select results for Q4 2025<\/b><\/p>\n \nThe table below summarizes key operational and financial results and provides the year-on-year (YoY) comparison for the three months ended December 31, 2026:<\/p>\n \n\n| \n (in millions of U.S. dollars)<\/i><\/b><\/p>\n<\/td>\n | \n For the three months<\/b><\/p>\n ended December 31,<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | \n 2025<\/b><\/p>\n<\/td>\n | \n 2024<\/b><\/p>\n<\/td>\n | \n Change, %<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nRetail sales, units<\/p>\n<\/td>\n | \n \n15,608<\/p>\n<\/td>\n | \n \n12,256<\/p>\n<\/td>\n | \n 27.3<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nRevenue<\/p>\n<\/td>\n | \n \n887<\/p>\n<\/td>\n | \n \n575<\/p>\n<\/td>\n | \n 54.3<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n \nGross Loss<\/p>\n<\/td>\n | \n \n(335)<\/p>\n<\/td>\n | \n \n(846)<\/p>\n<\/td>\n | \n 60.4<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n Gross margin, %<\/i><\/p>\n<\/td>\n | \n (37.8)%<\/i><\/p>\n<\/td>\n | \n (147.1)%<\/i><\/p>\n<\/td>\n | \n 109.3ppts<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n \nAdjusted Gross Profit \/ (Loss) (non-GAAP)1<\/sup>, %<\/p>\n<\/td>\n| \n \n17<\/p>\n<\/td>\n | \n \n(224)<\/p>\n<\/td>\n | \n nm<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n Adjusted Gross Margin (non-GAAP)1<\/sup>, %<\/i><\/p>\n<\/td>\n| \n 1.9%<\/i><\/p>\n<\/td>\n | \n (39.0)%<\/i><\/p>\n<\/td>\n | \n 40.9ppts<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n \nNet loss<\/p>\n<\/td>\n | \n \n(799)<\/p>\n<\/td>\n | \n \n(1,183)<\/p>\n<\/td>\n | \n 32.5<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n \nAdjusted EBITDA (non-GAAP)1<\/sup><\/p>\n<\/td>\n| \n \n(223)<\/p>\n<\/td>\n | \n \n(470)<\/p>\n<\/td>\n | \n 52.6<\/i><\/p>\n<\/td>\n<\/tr>\n<\/table>\n\n\n| \n \n(1)<\/p>\n<\/td>\n | | \n\n \nNon-GAAP measure. See Appendix C for details and a reconciliation of non-GAAP metrics to the nearest GAAP measure.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n For the three months ended December 31, 2025:<\/b><\/p>\n\n- \nRetail sales totaled 15,608 cars, up 27.3% YoY from 12,256 cars a year earlier, supported by retail expansion and an attractive model line-up.<\/p>\n<\/li>\n
- \nRevenue of USD 887 million, up by 54.3% from USD 575 million in the comparable period, driven predominantly by retail sales volumes and channel and product mix developments with a further positive contribution from carbon credits sales, lower residual value guarantee adjustment related to the North American markets and positive FX impact offset by pressure on pricing due to competitive and challenging pricing and market environment. Carbon credits sales totaled USD 88 million in the period from USD 11 million a year earlier, including USD nil million worth of carbon credits sales booked in other operating income (Q4 2024: USD nil million).<\/p>\n<\/li>\n
- \nGross margin at (37.8)%, an improvement of 109.3ppts from (147.1)% a year earlier, mainly due to lower impairment expenses of USD 340 million booked in the fourth quarter of 2025 compared to USD 622 million booked in the fourth quarter of 2024.<\/p>\n<\/li>\n
- \nAdjusted Gross Margin turning positive at 1.9%, an improvement of 40.9ppts from (39.0)% in the comparable period, mainly due to favorable product and margin mix, especially due to Polestar 4 sales, higher carbon credits sales, and lower adjustment of residual value guarantee in North American markets partially offset by pressure on pricing and higher tariffs.<\/p>\n<\/li>\n
- \nNet loss of USD (799) million, compared to net loss of USD (1,183) million for the fourth quarter of 2024, is better due to factors mentioned above and lower impairment expenses booked in Q4 2025.<\/p>\n<\/li>\n
- \nAdjusted EBITDA loss of USD (223) million, compared to Adjusted EBITDA loss of USD (470) million for the fourth quarter of 2024, mainly due to improvement from Adjusted Gross Loss of USD (224) million in Q4 2024 to Adjusted Gross Profit of USD 17 million in Q4 2025.<\/p>\n<\/li>\n<\/ul>\n
Key operational highlights<\/b><\/p>\n \nThe table below summarizes key operational results as of and for the 12 months and three months ended December 31, 2025:<\/p>\n \n\n| \n \n\u00a0<\/p>\n<\/td>\n | \n For the year ended<\/b><\/p>\n December 31,<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n For the three months<\/b><\/p>\n ended December 31,<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | \n 2025<\/b><\/p>\n<\/td>\n | \n 2024<\/b><\/p>\n<\/td>\n | \n Change, %<\/i><\/p>\n<\/td>\n | \n 2025<\/b><\/p>\n<\/td>\n | \n 2024<\/b><\/p>\n<\/td>\n | \n Change, %<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n \nRetail sales 1<\/sup><\/p>\n<\/td>\n| \n \n60,119<\/p>\n<\/td>\n | \n \n44,851<\/p>\n<\/td>\n | \n 34.0<\/i><\/p>\n<\/td>\n | \n \n15,608<\/p>\n<\/td>\n | \n \n12,256<\/p>\n<\/td>\n | \n 27.3<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n \u2022 <\/b>including external vehicles with repurchase obligations2<\/sup><\/p>\n<\/td>\n| \n \n2,366<\/p>\n<\/td>\n | \n \n1,651<\/p>\n<\/td>\n | \n 43.3<\/i><\/p>\n<\/td>\n | \n \n914<\/p>\n<\/td>\n | \n \n481<\/p>\n<\/td>\n | \n 90.0<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n \u2022 <\/b>including internal vehicles<\/p>\n<\/td>\n | \n \n3,455<\/p>\n<\/td>\n | \n \n2,927<\/p>\n<\/td>\n | \n 18.0<\/i><\/p>\n<\/td>\n | \n \n772<\/p>\n<\/td>\n | \n \n723<\/p>\n<\/td>\n | \n 6.8<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n \nMarkets3<\/sup><\/p>\n<\/td>\n| \n \n28<\/p>\n<\/td>\n | \n \n27<\/p>\n<\/td>\n | \n + 1 market<\/i><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nSales points4<\/sup><\/p>\n<\/td>\n| \n \n211<\/p>\n<\/td>\n | \n \n175<\/p>\n<\/td>\n | \n 20.6<\/i><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nof which sales points, excluding China<\/p>\n<\/td>\n | \n \n211<\/p>\n<\/td>\n | \n \n140<\/p>\n<\/td>\n | \n 50.7<\/i><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nService points5<\/sup><\/p>\n<\/td>\n| \n \n1,243<\/p>\n<\/td>\n | \n \n1,170<\/p>\n<\/td>\n | \n 6.2<\/i><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \n\n| \n \n(1)<\/p>\n<\/td>\n | | \n\n \nRetail sales figures are sales to end customers. Retail Sales include new cars handed over via all sales channels and all sale types, including but not restricted to internal, fleet, retail, rental and leaseholders\u2019 channels across all markets irrespective of their market model and setup and may or may not generate directly revenue for Polestar.<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n(2)<\/p>\n<\/td>\n | | \n\n \nIn the year ended December 31, 2025 this number includes 179 cars that were handed over as security under a financing arrangement.<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n(3)<\/p>\n<\/td>\n | | \n\n \nRepresents the markets in which Polestar operates.<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n(4)<\/p>\n<\/td>\n | | \n\n \nRepresents Sales Points, including retail locations which are physical facilities (such as showrooms), actively selling Polestar cars, and pre-space activations, which represent locations with an ongoing project to build a retail location that have already started selling Polestar cars.<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n(5)<\/p>\n<\/td>\n | | \n\n \nRepresents Volvo Cars service centers to provide access to customer service points worldwide in support of Polestar\u2019s international expansion.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \n- \nRetail sales totaled 60,119 cars in the year ended December 31, 2025, representing growth of 34%, compared with 44,851 new cars sold in 2024, driven by the transition to an active selling model, accelerated retail expansion and an attractive model line-up.<\/p>\n<\/li>\n
- \nSales points, excluding China, grew at 51%. In 2025, Polestar opened 71 new retail sales points with a total of 211 sales points at the end of 2025. During 2025, Polestar signed up 54 new retailers with a total of 158 retail partners, representing an increase of 52%, at the end of 2025.<\/p>\n<\/li>\n
- \nThe increase in external sales with a repurchase obligation is primarily related to the delivery of Polestar 4 cars under a financing agreement in the German market.<\/p>\n<\/li>\n
- \nPolestar increased sales of internal cars to support its retail network expansion.<\/p>\n<\/li>\n<\/ul>\n
Key cash flow highlights<\/b><\/p>\n \nThe table below summarizes cash flow for the 12 months ended December 31, 2025:<\/p>\n \n\n| \n (in millions of U.S. dollars)<\/i><\/b><\/p>\n<\/td>\n | \n For the year ended<\/b><\/p>\n December 31,<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | \n 2025<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Beginning cash<\/b><\/p>\n<\/td>\n | \n \n739<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nOperating<\/p>\n<\/td>\n | \n \n(915)<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nInvesting<\/p>\n<\/td>\n | \n \n(521)<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nFinancing<\/p>\n<\/td>\n | \n \n1,693<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nForeign exchange effect on cash and cash equivalents<\/p>\n<\/td>\n | \n \n163<\/p>\n<\/td>\n<\/tr>\n | \n| \n Ending cash<\/b><\/p>\n<\/td>\n | \n \n1,159<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \n- \nOperating cash outflow of USD (915) million, mainly driven by the operating loss net of non-cash adjustments, finance expenses and negative working capital movements due mainly to an increase in trade receivables due to high sales volumes in December and a decrease in trade payables offset by continuing inventory unwind.<\/p>\n<\/li>\n
- \nInvesting cash outflow of USD (521) million included additions to property, plant, and equipment as well as intangible assets and additions to investment in associates; investments were predominantly driven by investments in intellectual property and tangible assets related mainly to the model years of Polestar 3 and Polestar 4, Polestar 4 new variant, and to prepare for the commencement of production of Polestar 5 in Wuhan and Chongqing (China) in January 2026 as well the production of Polestar 4 in Busan (Korea) factory in H2 2025.<\/p>\n<\/li>\n
- \nFinancing cash inflow of USD 1,693 million, driven by net increase in proceeds from mainly short-term borrowing and, to a lesser extent, long-term borrowings and the new equity raises of a total of USD 500 million in June and December 2025. During the period, Polestar received a USD 200 million PIPE investment from PSD Investment Limited in June 2025 and USD 300 million investment from NATIXIS and BBVA in December 2025 as well as secured and renewed financing facilities.<\/p>\n<\/li>\n
- \nCash position of USD 1,159 million, compared to the 2024 year-end cash position of USD 739 million.<\/p>\n<\/li>\n<\/ul>\n
Key loan facilities and funding highlights<\/b><\/p>\n\n- \nDuring 2025, approx. USD 4.6 billion of debt facilities were either renewed (approx. USD 3.0 billion) or newly secured (approx. USD 1.6 billion).<\/p>\n
\n- \nNew facilities include previously announced secured term facilities of up to USD 450 million, EUR 150 million of term facilities, approx. CNY 2.8 billion in working capital facilities and USD 600 million in new Shareholder loan facility with Geely Sweden Holdings AB. This includes new facilities of USD 600 million secured in Q4 2025.<\/p>\n<\/li>\n
- \nRenewed facilities include EUR 480 million for the renewed Green Trade Finance Facility (TFF), and approx. USD 2.4 billion of working capital facilities, of which CNY 3.0 billion was renewed in Q4 2025.<\/p>\n<\/li>\n<\/ul>\n<\/li>\n
- \nFrom June 2025 to March 2026, Polestar secured USD 1.2 billion of new equity:<\/p>\n
\n- \nPolestar secured a USD 200 million PIPE investment from PSD Investment Limited, an entity that is controlled by Mr. Shufu (Eric) Li, Founder and Chairman of Geely Holding Group, in June 2025.<\/p>\n<\/li>\n
- \nIn December 2025, Polestar secured USD 300 million from NATIXIS and BBVA.<\/p>\n<\/li>\n
- \nIn February 2026, Polestar secured USD 400 million from Feathertop Funding Limited, a special purpose vehicle consolidated to Sumitomo Mitsui Banking Corporation, and Standard Chartered Bank (Hong Kong) Limited.<\/p>\n<\/li>\n
- \nIn March 2026, Polestar secured USD 300 million from investors including Credit Agricole CIB, Vida France S.A., Innovator Limited and Proximaster Holdings Company.<\/p>\n<\/li>\n<\/ul>\n<\/li>\n
- \nIn February 2026, Green Trade Finance Facility (TFF) with a syndicate of global banks restructured and renewed for EUR400 million. Additionally, approximately USD 570 million in working capital loans was renewed.<\/p>\n<\/li>\n
- \nGeely Sweden and Volvo Cars agreed to convert approx. USD 639 million of loans outstanding to Polestar into equity with USD 274 million converted by Volvo Cars on March 31, 2026; Volvo Cars is expected to carry out a second debt-to-equity conversion later during the second quarter, totaling approximately USD 65 million.<\/p>\n<\/li>\n
- \nOn March 31, 2026, Volvo Cars extended the remaining USD 726 million shareholder loan to December 2031. Additionally, approximately USD 380 million in working capital loans was renewed.<\/p>\n<\/li>\n
- \nDebt covenants and other covenants with Club Loan facility banks agreed and amended for test periods in 2025 and 2026.<\/p>\n<\/li>\n<\/ul>\n
\nThe Company was in compliance with its covenants as of December 31, 2025.<\/p>\n \nThe Company continues to have a constructive dialogue with lenders of the Company\u2019s USD 950 million Club Loan regarding its future club loan obligations. On March 31, 2026, the Club Loan lenders agreed to amend the debt-to-asset ratio range for all test periods for 2026 as well as the minimum revenue covenant for 2026. Polestar complied with Club Loan covenants as of December 31, 2025.<\/p>\n \nIn December 2025, Polestar, as borrower, entered into a credit agreement with a wholly owned subsidiary, as lender, of Geely Sweden Holdings AB in relation to a subordinated term loan facility of up to USD 600 million, of which the last USD 300 million would require lender consent based on Polestar\u2019s future liquidity needs. The term loan facility is available to Polestar for general corporate purposes.<\/p>\n \nIn February 2022, Polestar entered into an uncommitted TFF with a syndicate of leading global banks, to support its working capital requirements. The TFF was restructured and renewed for EUR400 million in February 2026.<\/p>\n \nSince December 2025, Polestar announced external equity investment of a total of USD 1 billion by institutional investors, including NATIXIS and BBVA, with USD 150 million each; Feathertop Funding Limited, a special purpose vehicle consolidated to Sumitomo Mitsui Banking Corporation, and Standard Chartered Bank (Hong Kong) Limited, with USD 200 million each; and Cr\u00e9dit Agricole CIB, Vida Finance S.A., Innovator Limited and Proximaster Holdings Company, with different amounts each. Concurrent with the purchase, these financial institutions have each entered into a put option arrangement with a wholly-owned subsidiary of Geely Sweden Holdings AB, which provides the financial institutions with an exit path, if needed, in three years with certain returns, as part of this equity financing arrangement. The price per Class A ADS to be purchased at each closing was USD 19.34. The financial institutions will not have any restrictions on the sale of the Class A ADSs they receive, subject to any applicable securities laws.<\/p>\n \nIn conjunction with the equity financing in December 2025, Geely Sweden Holdings AB agreed with Polestar to convert approximately USD 300 million of its outstanding principal and interest owed by Polestar under a Term Facility Agreement, dated 8 November 2023, into equity at the conversion price of USD 19.34. The conversion is expected to be completed after the receipt of any necessary regulatory approvals.<\/p>\n \nOn March 31, 2026, Volvo Cars converted approximately USD 274 million of its outstanding shareholder loan into Polestar’s equity, while also extending the maturity of the remaining USD 726 million shareholder loan to December 2031. Following completion of the previously announced approximate USD 300 million debt-to-equity conversion by Geely Sweden Holdings AB, Volvo Cars is expected to carry out a second debt-to-equity conversion later during the second quarter, totaling approximately USD 65 million. In doing so, Volvo Cars\u2019 ownership in Polestar will remain at approximately 19.9%. The conversion price of USD 16.97 was set at 95 per cent of the 30-day volume-weighted average price in Polestar shares up to 27 March 2026.<\/p>\n \nWith the support from Geely Holding Group, we have implemented significant steps to strengthen our balance sheet and improve our debt and liquidity positions, and we continue to consider new equity and debt funding.<\/p>\n ADS ratio change<\/b><\/p>\n \nOn 9 December 2025, Polestar effected the ADS ratio change. Specifically, the Company\u2019s Class A, Class B, Class C-1 and Class C-2 American Depositary Shares (collectively, the \u201cADSs\u201d) ratio to the respective Class A, Class B, Class C-1 and Class C-2 ordinary shares (the \u201cADS Ratio\u201d) changed from an ADS Ratio of one (1) ADS to one (1) ordinary share, to the a new ADS Ratio of one (1) ADS to thirty (30) ordinary shares.<\/p>\n Key recent developments and business highlights<\/b><\/p>\n\n- \nPolestar commenced sales in France, its 28th<\/sup> market, in June 2025 with all three models available to order<\/p>\n<\/li>\n
- \nPolestar 7, a premium compact SUV, was announced<\/p>\n<\/li>\n
- \nPolestar 5 Grand Tourer revealed at IAA Mobility in Munich<\/p>\n<\/li>\n
- \nPolestar publishes full Life Cycle Assessment for Polestar 5, strengthening industry-leading transparency<\/p>\n<\/li>\n
- \nPolestar 4 achieves 5-star Euro NCAP safety rating<\/p>\n<\/li>\n
- \nPolestar 4 wins the 2025 Mille Miglia Green<\/p>\n<\/li>\n
- \nPolestar 4 receives Red Dot \u201cBest of the Best\u201d design award<\/p>\n<\/li>\n
- \nPolestar 4 will be the first car to integrate Google Maps\u2019 live lane guidance, winning the AutoBest Smartbest 2026 award<\/p>\n<\/li>\n
- \nPolestar 3 introduces Abbey Rode Mode via over-the-air-update<\/p>\n<\/li>\n
- \nPolestar 3 sets Guinness World Record for longest journey travelled by an electric SUV on a single charge<\/p>\n<\/li>\n
- \nPolestar 3 upgraded with 800 Volt electrical architecture and peak DC charging rate of up to 350 kW for the 2026 model year<\/p>\n<\/li>\n
- \nPolestar 3 named safest executive car of 2025<\/p>\n<\/li>\n
- \nPolestar scales battery circularity by confirming up to 50% recycled cobalt in Polestar 2 and Polestar 3<\/p>\n<\/li>\n
- \nPolestar announces Google Gemini to be introduced across model line-up via over-the-air updates<\/p>\n<\/li>\n
- \nPolestar Charge now offers 1 million charge points through its partners<\/p>\n<\/li>\n<\/ul>\n
Calendar<\/b><\/p>\n \nPolestar expects to publish Q1 2026 select financial results on 7 May 2026 and host an audio call; further details will be available on Polestar’s Investor Relations website in due course.<\/p>\n Notes<\/b><\/p>\n \nAll financial figures are in millions of U.S. dollars (USD). Unless otherwise stated, the performance shown in this press release covers the 12-month period to December 31, 2025 (FY 2025) and is compared to the 12-month period to December 31, 2024 (FY 2024) and the three-month period to December 31, 2025 (Q4 2025) and is compared to the three-month period to December 31, 2024 (Q4 2024).<\/p>\n About Polestar<\/b><\/p>\n \nPolestar (Nasdaq: PSNY) is the Swedish electric performance car brand with a focus on uncompromised design and innovation, and the ambition to accelerate the change towards a sustainable future. Headquartered in Gothenburg, Sweden, its cars are available in 28 markets globally across North America, Europe, and Asia Pacific.<\/p>\n \nPolestar has four models in its line-up: Polestar 2, Polestar 3, Polestar 4, and Polestar 5. Planned models include Polestar 4 new variant (to be introduced in the last quarter of 2026), Polestar 2 successor (to be launched early in 2027), Polestar 7 compact SUV (to be introduced in 2028) and the Polestar 6 roadster. With its vehicles currently manufactured on two continents, North America and Asia, Polestar is diversifying its manufacturing footprint further, with production of Polestar 7 planned in Europe.<\/p>\n \nPolestar has an unwavering commitment to sustainability and has set an ambitious roadmap to reach its climate targets: halve greenhouse gas emissions by 2030 per-vehicle-sold and become climate-neutral across its value chain by 2040. Polestar\u2019s comprehensive sustainability strategy covers the four areas of Climate, Transparency, Circularity, and Inclusion.<\/p>\n Statement regarding unaudited financial and operational results<\/b><\/p>\n \nThe unaudited financial and operational information published in this press release is subject to potential adjustments. Potential adjustments to operational and consolidated financial information may be identified from work performed during Polestar\u2019s year-end audit. This could result in differences from the unaudited operational and financial information published herein. For the avoidance of doubt, the unaudited operational and financial information published in this press release should not be considered a substitute for the financial information filed with the SEC in Polestar\u2019s Annual Reports on Form 20-F.<\/p>\n Forward-looking statements<\/b><\/p>\n \nCertain statements in this press release (\u201cPress Release\u201d) may be considered \u201cforward-looking statements\u201d as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or the future financial or operating performance of Polestar including the number of vehicle deliveries and gross margin. For example, projections of revenue, volumes, margins, cash flow break-even and other financial or operating metrics and statements regarding expectations of future needs for funding and plans related thereto are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as \u201cmay\u201d, \u201cshould\u201d, \u201cexpect\u201d, \u201cintend\u201d, \u201cwill\u201d, \u201cestimate\u201d, \u201canticipate\u201d, \u201cbelieve\u201d, \u201cpredict\u201d, \u201cpotential\u201d, \u201cforecast\u201d, \u201cplan\u201d, \u201cseek\u201d, \u201cfuture\u201d, \u201cpropose\u201d or \u201ccontinue\u201d, or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward looking statements.<\/p>\n \nThese forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Polestar and its management, as the case may be, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: (1) Polestar\u2019s ability to enter into or maintain agreements or partnerships with its strategic partners, including Volvo Cars and Geely, original equipment manufacturers, vendors and technology providers; (2) Polestar\u2019s ability to maintain relationships with its existing suppliers, source new suppliers for its critical components and enter into longer term supply contracts and complete building out its supply chain; (3) Polestar\u2019s ability to raise additional funding; (4) Polestar\u2019s ability to successfully execute cost-cutting activities and strategic efficiency initiatives; (5) Polestar\u2019s estimates of expenses, profitability, gross margin, cash flow, and cash reserves; (6) Polestar\u2019s ability to continue to meet stock exchange listing standards; (7) changes in domestic and foreign business, market, financial, political and legal conditions; (8) demand for Polestar\u2019s vehicles or car sale volumes, revenue and margin development based on pricing, variant and market mix, cost reduction efficiencies, logistics and growing aftersales; (9) delays in the expected timelines for the development, design, manufacture, launch and financing of Polestar\u2019s vehicles and Polestar\u2019s reliance on a limited number of vehicle models to generate revenues; (10) increases in costs, disruption of supply or shortage of materials, in particular for lithium-ion cells or semiconductors; (11) risks related to product recalls, regulatory fines and\/or an unexpectedly high volume of warranty claims; (12) Polestar\u2019s reliance on its partners to manufacture vehicles at a high volume, some of which have limited experience in producing electric vehicles, and on the allocation of sufficient production capacity to Polestar by its partners in order for Polestar to be able to increase its vehicle production volumes; (13) the ability of Polestar to grow and manage growth profitably, maintain relationships with customers and suppliers and retain its management and key employees; (14) risks related to future market adoption of Polestar\u2019s offerings; (15) risks related to Polestar\u2019s current distribution model and the evolution of its distribution model in the future; (16) the effects of competition and the high barriers to entry in the automotive industry and the pace and depth of electric vehicle adoption generally on Polestar\u2019s future business; (17) changes in regulatory requirements (including environmental laws and regulations and regulations related to connected vehicles), governmental incentives, tariffs and fuel and energy prices; (18) Polestar\u2019s reliance on the development of vehicle charging networks to provide charging solutions for its vehicles and its strategic partners for servicing its vehicles and their integrated software; (19) Polestar\u2019s ability to establish its brand and capture additional market share, and the risks associated with negative press or reputational harm, including from electric vehicle fires; (20) the outcome of any potential litigation, including litigation involving Polestar and Gores Guggenheim, Inc., government and regulatory proceedings, including the NHTSA investigation into the Polestar 2 rear view camera, tax audits, investigations and inquiries; (21) Polestar\u2019s ability to continuously and rapidly innovate, develop and market new products; (22) the impact of the ongoing conflict between Ukraine and Russia and the conflict with Iran and the conflict in the Red Sea; and (23) other risks and uncertainties set forth in the sections entitled \u201cRisk Factors\u201d and \u201cCautionary Note Regarding Forward-Looking Statements\u201d in Polestar\u2019s Form 20-F, and other documents filed, or to be filed, with the SEC by Polestar. There may be additional risks that Polestar presently does not know or that Polestar currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. Nothing in this Press Release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Polestar assumes no obligation to update these forward-looking statements, even if new information becomes available in the future, except as may be required by law.<\/p>\n \nNothing in this Press Release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Polestar assumes no obligation to update these forward-looking statements, even if new information becomes available in the future, except as may be required by law.<\/p>\n Appendix A<\/b><\/p>\n\n\n| \n Polestar Automotive Holding UK PLC<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Consolidated Statement of Income (Loss)<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n (in millions of U.S. dollars unless otherwise stated)<\/i><\/p>\n<\/td>\n<\/tr>\n\n | \n\u00a0<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | \n For the year ended December 31,<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | \n | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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