Polestar Automotive Holding UK PLC Q4 FY2025 earnings call

• 2025 was a record year for retail sales, with growth driven by active selling model and retail network expansion. - Accelerated expansion of retail network by 50% to 210 sales points. - Technological upgrades: Polestar 3 upgraded with 800 - volt architecture, NVIDIA processor upgrade, integration of Google's live lane guidance, and demo of Google's AI - based Gemini Assistant in Polestar 5. - Secured additional financing, raising $1 billion in equity and converting $640 million of shareholder loans to equity. - Presented model lineup expansion with four new cars planned in next three years, including Polestar 5 expected to start deliveries in summer, new Polestar 4 variant in fourth quarter, next - generation Polestar 2, and Polestar 7. - First quarter 2026 retail sales toted some 13,100 cars, a record for first quarter, with strong growth in Europe and other markets.

2025 was a record year for Polestar in terms of retail sales, delivering over 60,100 cars with a 34% year - on - year growth. Revenue grew 50% year on year to surpass $3 billion. Polestar 4 was the best - selling model, making up just over half of the volume. Europe, including the Nordics, delivered 78% of total volume. The full - year gross margin was negative 35% due to impairment expenses, but adjusted gross margin improved to near break - even at negative 0.7%. In the fourth quarter, retail sales exceeded 15,600 cars, revenue was $887 million, and adjusted EBITDA improved.

• Reiterates low double - digit growth rate for retail sales volume in 2026 with progress through the year and in line with seasonality. - Cell mix will continue to evolve to include greater share of Polestar 4 coupes and later the new Polestar 4 variant.

• Geopolitical developments leading to more challenging market conditions. - Tariffs and policy changes exerting pressure on pricing and production costs, affecting segments like the upper EV premium segment.

Q: How much of a headwind do you expect from tariffs and geopolitics given significant manufacturing in China and the plant in the U.S. and South Carolina?

A: It's a time of uncertainty. Manufacturing footprint is good with production in North America, South Korea, and China. There is uncertainty but efforts are made to balance, and midterm plan is to localize more in Europe.

Q: Talk about the autonomy space and Polestar's autonomy plans.

A: Autonomous driving is important, will go step by step to level two, level two plus, with partnership with Mobileye and access to Geely ecosystem.

Q: Walk us through the latest cost initiatives and cadence after headcount initiative.

A: Headcount decreased by 25% in 2025, optimized marketing and communication spending, achieved low double - digit product cost reduction on Polestar 4, and will continue focusing on product and fixed cost reductions.

Q: Latest outlook for monthly cash burn.

A: 2025 cash burn average around $120 million per year, structurally improving operating results, inventory decreased by around 7,000 new vehicles year on year, but affected by receivables and payables. Cash burn in 2026 expected to improve due to improved operating results, reduction in financial interest weight, and reduced capex cash out with unique platform strategy reliance on GD Group technologies.