Polestar Automotive Holding UK PLC (PSNY) Earnings
Polestar Automotive Holding UK PLC is expected to report next earnings on July 17, 2026 (in NaN days), with a consensus EPS estimate of $-4.26. PSNY has beaten EPS estimates in 5 of its last 9 reported quarters (average surprise -3412.8% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Sep 3, 2025 | $-0.12 | $-8.46 | -6779.8% | $711M | — |
| Apr 10, 2025 | $-0.12 | $-8.46 | -6893.5% | $711M | +24.3% |
| Jan 2, 2025 | $-0.15 | $-0.15 | +0.0% | $564M | -28.7% |
| Aug 29, 2024 | $-0.18 | $-0.14 | +22.2% | $573M | -27.7% |
| Nov 16, 2023 | $-0.16 | $-0.15 | +6.3% | $613M | -13.1% |
| Aug 31, 2023 | $-0.12 | $-0.14 | -16.7% | $685M | -9.4% |
| May 11, 2023 | $-0.12 | $-0.01 | +91.7% | $985M | +67.2% |
| Mar 2, 2023 | $-0.13 | $-0.13 | +1.8% | $546M | -21.4% |
| Nov 11, 2022 | $-0.14 | $0.14 | +198.7% | $435M | -35.6% |
| Sep 1, 2022 | — | $-3.25 | — | $589M | — |
| Dec 31, 2021 | — | $-4.78 | — | $590M | — |
| Sep 30, 2021 | — | $-4.29 | — | $213M | — |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q1 FY2026 · May 7, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
### Volume Growth - First quarter volume grew 7% to over 13,100 cars, a record first quarter for Polestar. Europe grew 11% and accounts for 78% of total sales. Strong growth in key markets like UK, Germany, Sweden, South Korea, and Australia. Polestar 4 launch in USA started well. ### Business Model Transformation - Accelerated business model transformation, including increasing retailer locations, evolving to a single group architecture, consolidating manufacturing footprint, and creating a leaner organization. Plan to end 2026 with approximately 250 sales points globally, up from 150 a year ago. Moving from city center-based spaces to full-fledged dealerships. Staff reduced by about 25% to ~1,700. ### Production and Product Offensive - Planned consolidation of Polestar 3 production in South Carolina from two to one factory starting later in 2026. Polestar 4 adding a new variant at Busan South Korea factory. Polestar 5 global media test drive had positive reaction. Next steps include launch of Polestar 4 SUV and all-new Polestar 2 successor early next year. ### Financials and Priorities - Revenue $633 million, broadly stable year-on-year. Positive drivers: higher volume, favorable foreign exchange. Negative factors: pricing pressure, car line mix, lower carbon credit sales. Priorities: drive growth through active selling model and expanding sales network; improve processes and streamline organization; extract efficiencies and sustain cost cutting; manage cash conversion cycle and explore future funding.
Guidance
### Carbon Credit Sales - Carbon credit sales in Q1 2026 were $21 million vs $29 million in Q1 2025, and are expected to follow the same pattern as 2025 with revenues weighted toward the second half of 2026, with full year 2026 carbon credit sales expected to be in line with 2025. ### Volume Growth - The 7% volume growth in the first quarter is influenced by retail expansion and the Polestar 4 launch. The volume guidance for 2026 has already incorporated the impact of retail expansion and the product lineup. ### Cash Position and Burn - Cash position at end of March 2026 was approximately $676 million. Cash consumption affected by EBITDA loss (seasonality), cash out payable, net repayment of financing, but offset by equity proceeds. Working capital still making progress in managing car flow, inventory, and receivables, moving in the right direction towards improved cash burn in future quarters.
Segment performance
In the first quarter, Polestar's retail sales grew by 7% to over 13,100 cars, a record first quarter number. Europe saw an 11% growth, accounting for 78% of total sales. Key markets like the UK grew 20%, Germany 35%, and Sweden 17%. South Korea and Australia also had strong growth. The USA's Polestar 4 launch started well. Revenue was $633 million, broadly stable year-on-year. Positive drivers were higher volume (driven by Polestar 4) and favorable foreign exchange. Negative factors included pricing pressure, car line mix changes (fewer high-priced Polestar 3 cars) and lower carbon credit sales ($21 million in Q1 2026 vs $29 million in Q1 2025).
Risks & headwinds
- Market conditions becoming more challenging. - Impact of EU and US tariffs. - Seasonality of the quarter offsetting cost base improvements. - Pricing pressure due to intensified competition. - Uncertainties related to carbon credit sales timing and amounts.
Analyst Q&A
Q: As you expand to the 250 sales points by the end of the year and ramp up Polestar 4, how should we think about ASP and mixed trends throughout 2026, especially given tariffs and intensified EV competition?
A: Retail location development is linear, adding locations helps get closer to customers. Private retail channel is less discount-consuming, so average ASP should improve. Launch of new Polestar 4 SUV at end of year will have less discount.
Q: Can you talk about the balance sheet given cash on hand and burn and walk us through capital runway and path to free cash flow positivity?
A: Cash burn average 120 million in 2025 showing progress. Q1 2026 cash consumption affected by EBITDA loss (seasonality), cash out payable, net repayment of financing but offset by equity proceeds. Working cap making progress in managing car flow, inventory, and receivables, with cash burn expected to improve in next quarters due to better seasonality and improving profitability.
Q: For the quarter itself on gross margin, dimensionalize impacts from pricing pressure, EU and US tariffs, and tariff mitigation strategy?
A: Pricing pressure and car line mix affected gross margin. Tariffs had impact with inventory and steady state considerations. CO2 credit sale is timing difference. Mitigation strategy is regional manufacturing like using Volvo plant in South Carolina for US and Polestar 7 in Europe.
Q: How does retail expansion affect sales channels and volume guidance?
A: Retail expansion is embedded in volume projection as it brings closer to private customers and smaller fleets, and is part of the elements considered in the low double digit volume guidance given in February.