Polestar revenues surge 50% as EV maker pivots to "active selling" model

Polestar (NASDAQ:PSNY) delivered a year of aggressive top-line expansion in 2025, according to its full-year financial results released today.

The electric vehicle (EV) manufacturer reported total revenues of $3,058 million, a 50% increase compared to 2024, as the company benefited from a more diversified model lineup and a successful transition to an "active selling" retail model.

Retail sales volumes grew 34% for the year, supported by the global rollout of the Polestar 3 and Polestar 4 SUVs.

This volume growth was a primary catalyst for the revenue surge, helping the company navigate a competitive global EV landscape.

Operationally, Polestar also achieved a year-on-year reduction in selling, general, and administrative (SG&A) expenses, reflecting a sharpened focus on cost efficiency.

The company’s bottom line, however, remained heavily impacted by accounting adjustments.

Polestar reported a net loss of $2,357 million for 2025, largely driven by approximately $1.1 billion in non-cash impairment expenses.

Despite the headline loss, the company’s underlying financial health showed signs of stabilization; the adjusted EBITDA loss improved by $297 million year-on-year to $783 million.

Similarly, the adjusted gross loss narrowed significantly to just $22 million, an improvement of $232 million over the previous year.

Financially, Polestar fortified its balance sheet during the period, ending 2025 with a cash position of $1,159 million.