Polestar发布2026年H1/Q2业绩：收入低于预期、调整后亏损扩大、全年销量指引下调

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EX-99.1
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polestarh1266-kxmdaexh991.htm
EX-99.1
Document
Management's Discussion and Analysis of Financial Condition and Results of Operations
The following discussion includes information that is relevant to understanding Polestar's consolidated financial condition and results of operations and should be read together with the Unaudited Condensed Consolidated Interim Financial Statements for the six months ended June 30, 2026 and 2025, included elsewhere in this report. Refer to Polestar's consolidated financial statements as of December 31, 2025 and 2024, and for each of the years in the three-year period ended December 31, 2025 (the "Consolidated Financial Statements") that were included in Polestar's annual report on Form 20-F filed with the SEC on April 17, 2026 (the "2025 20-F") for more information about the year ended December 31, 2025. All figures presented in the tables below are in thousands of U.S. dollars, unless otherwise stated.
Forward-looking statements
The following Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") contains forward-looking statements that are based on Polestar's current expectations and beliefs concerning future developments and their potential effects on the Company. 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, 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 "may", "should", "expect", "intend", "will", "estimate", "anticipate", "believe", "predict", "potential", "forecast", "plan", "seek", "future", "propose" or "continue", 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.
These 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's 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's 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's ability to raise additional funding; (4) Polestar's ability to successfully execute cost-cutting activities and strategic efficiency initiatives; (5) Polestar's estimates of expenses, profitability, gross margin, cash flow, and cash reserves; (6) Polestar's 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's 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's vehicles and Polestar's 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's 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's offerings; (15) risks related to Polestar's 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's future business; (17) changes in regulatory requirements (including environmental laws and regulations and regulations related to connected vehicles and Polestar's response to the U.S. government's denial of a specific authorization for the U.S.), governmental incentives, tariffs and fuel and energy prices; (18) Polestar's 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's 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, government and regulatory proceedings, tax audits, investigations and inquiries; (21) Polestar's 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 "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" in Polestar's 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 MD&A 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.
Certain defined terms
Unless otherwise stated in this MD&A, or the context otherwise requires, references to:
•
"Polestar," "the Company" or the "Group" means Polestar Automotive Holding UK PLC together with its subsidiaries.
•
"Geely" means Zhejiang Geely Holding Group Company Limited, together with its subsidiaries, excluding Volvo Cars.
•
"Renault Korea Co Ltd", "Renault Korea Motors", "Renault Korea", "RK" or "RKM" refers to Geely's joint venture involved in the production of Polestar 4.
•
"Volvo Cars" means Volvo Car AB (publ) and its subsidiaries.
•
"Snita" means Snita Holding B.V., a corporation organized under the laws of the Netherlands and a wholly owned subsidiary of Volvo Car AB (publ).
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•
"H1 2026" means the six months ended June 30, 2026.
•
"H1 2025" means the six months ended June 30, 2025.
•
"PS2", "PS3", "PS4", "PS5", "PS6" and "PS7" refer to car models Polestar 2, Polestar 3, Polestar 4, Polestar 5, Polestar 6 and Polestar 7 respectively.
Currencies
All references to "U.S. dollar", "USD" and "$" are to the currency of the United States of America ("U.S."). All references to "EUR" refer to the currency issued by the European Central Bank. All references to "SEK", "GBP" and "CNY" refer to the currencies issued by the central banks of Sweden, the United Kingdom, and the People's Republic of China, respectively.
Unless otherwise stated, Polestar's financial information is presented in USD. All amounts in all currencies are rounded to the nearest thousand unless otherwise stated.
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Key financial highlights
For the six months ended June 30,
Change
2026
2025
%
Revenue
1,360,091
1,422,605
(4.4)
Gross loss
(114,810)
(703,124)
83.7
Gross margin %
(8.4)
%
(49.4)
%
41.0
Adjusted Gross Profit / (Loss)
1
(115,964)
20,400
(668.5)
Adjusted Gross Margin
1
(8.5)
%
1.4
%
(9.9)
Net loss
(842,448)
(1,193,079)
29.4
Adjusted EBITDA
1
(521,438)
(302,301)
(72.5)
As of June 30,
Change
2026
2025
%
Cash and cash equivalents
887,577
718,625
23.5
1 - Adjusted EBITDA, Adjusted Gross Profit / (Loss) and Adjusted Gross Margin are non-GAAP measures. For further details on their calculation, see the Non-GAAP Financial Measures section in this MD&A.
For the six months ended June 30,
Change
2026
2025
%
Business metrics
Retail sales
1
30,423
30,289
0.4
Including external vehicles with repurchase obligations
2
1,384
979
41.4
Including internal vehicles
2,166
1,906
13.6
As of June 30,
Change
2026
2025
%
Markets
3
29
28
3.6
Sales points
4
235
170
38.2
of which sales points, excluding China
235
169
39.1
Service points
5
1,255
1,237
1.5
1 - Retail 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' channels across all markets irrespective of their market model and setup and may, or may not, directly generate revenue for Polestar. Figures for external vehicles with repurchase obligations and internal vehicles are provided on an estimated basis and subject to future revision.
2 - In the six months ended June 30, 2025, includes 177 cars that were handed-over as security under a financing arrangement. There were no arrangements of this type in the six months ended June 30, 2026.
3 - Represents the number of markets in which Polestar is present, whether currently active or not yet active.
4 - Represents 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 but that have started selling Polestar cars.
5 - Represents Volvo Cars service centers to provide access to customer service points worldwide in support of Polestar's international expansion.
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Key factors affecting performance
Polestar's historic and future financial performance depends on numerous factors and trends. While these factors and trends provide opportunities for Polestar, they also pose risks and challenges as discussed in item 3.D
Risk Factors
in the 2025 20-F. The following paragraphs explain the key factors that impacted Polestar's financial performance during the six months ended June 30, 2026, as well as the key factors and trends which are expected to have a material effect on Polestar's financial condition and results of operations in future periods.
Market trends and competition
Polestar is a pure play, premium electric performance car brand, designing products engineered to excite consumers and drive change. Global consumer demand for Polestar's vehicles is primarily driven by:
•
The speed and scale of the transition to electric vehicles from internal combustion engine cars ("ICEs") in general, which is driven by a number of factors, among which are affordability, range covered by an electric car on a single charge, availability of a sufficiently dense charging network, the general public's perception and concerns relating to electric vehicles, the scope and size of government incentives, availability of alternative mobility solutions, quality and availability of after-sales services, and the cost of electricity and alternative fuels as well as the overall cost of car ownership.
•
Demand for premium performance vehicles in general, which is impacted by, among other things, changes in disposable income, the cost and availability of financing arrangements and customer preferences.
•
Customer preferences within the luxury car segment and breadth and depth of available options.
Polestar competes with other pure play electric vehicle manufacturers, such as Tesla, as well as established premium automotive manufacturers that also sell vehicles with ICEs.
According to the annual publication "Global EV outlook 2026", released in May 2026, the International Energy Agency forecasts global sales of electric vehicles ("EVs"), which include battery electric vehicles ("BEVs") and plug-in hybrid vehicles ("PHEVs"), to reach 23 million in 2026. This represents an increase of approximately 10% from the agency's estimate of more than 20 million electric cars sold in 2025. EV sales represented a quarter of cars sold globally in 2025. A new factor in 2026 that highlights the economic benefits of driving EVs is the volatile and high oil price environment due to the conflict in the Middle East, although longer-term impacts of this trend are yet to be understood. The key factors driving the adoption of EVs still remain important, such as emissions targets and falling EVs prices.
In the first six months of 2026, Benchmark Mineral Intelligence estimates that global EV sales reached 9.6 million vehicles, an increase of 2.4% year-on-year, which reflected different dynamics across regions.
EV sales in Europe grew by 27% year-on-year supported by high gasoline prices due to the conflict in the Middle East, updated or new consumer incentives in some EU countries, and the increasing availability of more affordable EV models.
Polestar sold approximately 80% of its volumes in the first half of the year in the European markets.
The expiration of federal tax credits for used and new electric vehicles at the end of the third quarter of 2025 held back sales in the U.S., which declined 20% year-on-year;
Polestar sold approximately 6% of its vehicles in this market in the period
. Sales in China were down 14% reflecting policy changes impacting the purchase price of electric vehicles. The rest of the world, excluding China, demonstrated a healthy growth year-on-year. Polestar's sales in the rest of the world represented 14% of its volumes.
Uncertainty around tariffs and import duties poses downside risks to the automotive industry. Overall, continued government support, improving affordability of BEVs, higher density of the charging network and the level of fossil fuel prices will continue to determine the pace of adoption of BEVs.
Sales performance
In the first half of 2026, Polestar achieved an increase in retail sales volumes of approximately 0.4% compared to the same period in 2025. This growth was driven by the continued rollout of an even stronger product range compared to the previous period and the strong market performance of the Polestar 4. Additionally, the strategic shift toward "active selling" significantly contributed to higher volumes across all key markets with noticeable growth in Korea and the Southern European region.
Polestar's sales and distribution model
Polestar is present across key markets in Europe, North America, and the Asia Pacific region and sells its vehicles to both retail and fleet customers. Of the bra
nd's 28 mark
ets active throughout the first half of 2026, 19 are operated through Polestar's own dedicated sales units and, in nine, the Company leveraged strategic partnerships with importers. Towards the end of the first half of 2026, Polestar launched sales activities in Estonia in the Baltic region.
During the first half of 2026, Polestar has also significantly expanded its global retail network, enhancing customer access and strengthening its presence in both established and emerging markets with a further 24 sales points opened with a total of 235 sales points as of June 30, 2026, predominantly in Europe. Since the start of 2026, Polestar signed up 20 new retail partners.
Market demand and response
Against the backdrop of a persisting challenging geopolitical environment and intensifying competition, Polestar continues to implement targeted actions to support sales of its models. These measures included pricing optimization, product and channel mix development, inventory management, and strategic marketing campaigns.
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Product portfolio and model mix
As of June 30, 2026, Polestar's portfolio consisted of the following models open for orders:
•
Polestar 2 - As the most established model in the lineup, Polestar 2 continues to enjoy strong demand and maintains a competitive position in its segment.
•
Polestar 3 - Since its launch in the late first half of 2024, Polestar 3 has steadily increased its segment share, fueled by positive media coverage, multiple industry accolades, and strong performance in range tests, including the winter El Prix 2025 range test.
•
Polestar 4 coupé - A key strategic focus ever since Polestar started ramp-up of deliveries of the car in Q3 2024, Polestar 4 has made a significant contribution to overall volumes and enhanced brand visibility.
•
Polestar 5 - A halo car for the brand, designed around the bespoke Polestar Performance Architecture ("PPA") platform, which is available to order now with first deliveries expected in Q3 2026. At the start of June 2026, the model received highly positive reviews during the global press drive boosting the brand's visibility and credibility in the premium performance EV segment.
Each Polestar model has a number of variants, and the list price varies for each variant of each model, as well as for the same variant in different markets. Therefore, Polestar's new car gross sales revenues are driven by the volume of cars sold, the mix of models and variants in those sales, the channel mix, as well as the market where those sales occur.
In the first half of 2026, Polestar received several awards and accolades, with the most significant being:
•
ECO Car Magazine's Used Car award for Polestar 2.
•
The European Centre for Architecture, Art and Design's Green GOOD Design Award for Polestar 4.
•
Gentleman's Journal's Design award for Polestar 5.
•
Drive Car of the Year's best EV under $90,000 (Aus) for Polestar 5.
Costs of sales and gross profit (loss)
The following is a summary of the status of production of each of our announced vehicle models in production and under development:
Model
Production location
Plant operator
Status
Polestar 2
Taizhou, China
Volvo Cars
In production since H1 2020
Polestar 2
successor
TBA
TBA
In development - launch planned for H1 2027
Polestar 3
Chengdu, China / Charleston, U.S.
Volvo Cars / Volvo Cars
In production since H1 2024 / In production since H2 2024
Polestar 4 coupé
Hangzhou Bay, China / Busan, South Korea
Geely / RK
In production since H2 2023 / In production since H2 2025
Polestar 4 SUV
Busan, South Korea
RK
In development - start of production Q3 2026
Polestar 5
Wuhan and Chongqing, China
Geely
In production since January 2026
Polestar 6
TBC, China
Geely
In development
Polestar 7
Kosice, Slovakia
Under assessment (Memorandum of Understanding signed)
In development - launch planned for 2028
Polestar's ability to leverage the manufacturing footprint of both Volvo Cars and Geely provides it with access to a substantial combined installed production capacity. Polestar also plans to expand its production capacity to Europe, having signed a memorandum of understanding with Volvo Cars to have Polestar 7 manufactured in Kosice, Slovakia.
The most significant component of Polestar's cost of sales is the inventory cost of vehicles sold. Inventory cost is composed of all the costs directly related to the manufacture of Polestar's vehicles and the costs to bring the cars to their present location. This includes, among other expenditures, the amounts paid for materials, components and production cost (e.g. labor, overhead and depreciation and amortization) under the manufacturing and vehicle supply agreements with Volvo Cars and Geely and contracts with other third-party suppliers, costs of freight and any tariffs payable on the import of components and / or vehicles.
Other components of costs of sales include, when applicable: (i) impairment of tangible assets (property, plant and equipment), intangible assets and leased assets when there are indicators of impairment and the recoverable amount of one or more of Polestar's cash-generating units ("CGU") is below its carrying amount, which may be a result of, among other things, changes in forecasts of lifecycle volumes, prices, manufacturing costs and / or interest rates; (ii) changes in the net realizable value ("NRV") of inventory which is primarily driven by changes in the margin between the expected sales price of vehicles in inventory and their cost as well as the volume of this inventory; and (iii) warranty costs.
Polestar's gross margins are dependent upon its ability to grow sales of its vehicles and manage these costs as well as implement cost savings initiatives.
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Macroeconomic and geopolitical factors
Inflation and price risk
Polestar's costs and expenses are impacted by, among other things, the prices of components, materials, labor and equipment used in the production of Polestar vehicles as well as the cost of freight. Historically the prices of lithium, cobalt, and nickel, which are used in car batteries, and oil, which has a significant impact on freight costs, have been volatile. The cost of labor and other inputs are generally linked to inflation.
Interest rates and foreign exchange rates
Polestar faces interest rate risks from its exposure to floating and variable interest rates primarily on its borrowings. The majority of Polestar's borrowings have floating rates and, therefore, its finance costs are linked to movements in interest rates as well as the volume of the borrowings. The most relevant interest rates are: 1-, 6- and 12-month Term SOFR, 3-month EURIBOR and 1-year LPR which are shown in the table below:
Index
Daily average rate in H1 2026
(% per year)
Daily average rate in H1 2025
(% per year)
1-month Term SOFR
3.65
4.32
6-month Term SOFR
3.68
4.22
12-month Term SOFR
3.67
4.05
3-month EURIBOR
2.15
2.33
1-year LPR
3.00
3.07
The global nature of Polestar's business exposes the Group's financial performance to risks arising from fluctuations in currency exchange rates ("FX rates"). Changes in FX rates primarily impact the Group's profit or loss when a Group entity has a monetary item denominated in a currency different from its functional currency, such as a foreign currency borrowing or a trade payable in a foreign currency. The Group presents foreign currency gains or losses related to its borrowings as part of finance income or finance expense. All other foreign currency gains or losses are presented as part of other operating income.
The most relevant currency pairs for Polestar are:
Rate as of
End of day average rate in
Currency pair
June 30, 2026
December 31, 2025
H1 2026
H1 2025
CNY – SEK
1.43
1.32
1.35
1.40
USD – SEK
9.74
9.21
9.25
10.18
CNY – USD
0.15
0.14
0.15
0.14
EUR – USD
1.14
1.18
1.17
1.09
EUR – SEK
11.09
10.82
10.79
11.10
GBP – SEK
12.87
12.40
12.44
13.18
USD – GBP
0.76
0.74
0.74
0.77
KRW – SEK
0.0063
0.0064
0.0062
0.0071
Tariffs and trade policies
The implementation of higher tariffs by the U.S. in 2025 and the EU in October 2024 on BEVs, components, and raw materials imported from China has introduced new headwinds for globally integrated manufacturers such as Polestar. Given Polestar's utilization of manufacturing resources in China and many car-makers' reliance on components from China, these tariffs are increasing cost pressures on Polestar, and the industry as a whole.
For Polestar, elevated tariffs may impact pricing flexibility, volume and margin performance. The Company is actively advancing its manufacturing diversification strategy, including North America, Asia and Europe (e.g., Polestar 3 in the U.S., Polestar 4 in South Korea and Polestar 7 in Slovakia), to mitigate medium- to long-term exposure.
In the U.S. Polestar is currently importing vehicles manufactured in South Korea but will not be able to import new vehicles when transitioning to model year 2027. This is due to the new U.S. Information and Communications Technology and Services ("ICTS") regulation.
Polestar continues to monitor the geopolitical trade environment and is taking proactive measures to preserve profitability, safeguard delivery timelines, and ensure alignment with long-term electrification strategies.
Other key factors impacting performance
During the first half of 2026
,
Polestar has continued to implement changes and headcount reductions to its cost structure in order to maintain competitiveness and improve its financial results. This includes restructuring efforts initiated in 2025 (mainly the R&D and Procurement departments in the UK and manufacturing in China), that continued into the first half of 2026, mainly impacting the R&D department in Sweden.
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Polestar has also continued the cost discipline program implemented in 2025 towards reductions in general and administrative activities through continuous improvements in operational efficiency, resulting in reduced costs during the first half of 2026.
Going forward, the benefits of the R&D, Procurement and Manufacturing restructuring are expected to impact positively towards the end of the fourth quarter 2026 with the full financial benefit to come in 2027.
U.S. Restructuring
On June 25, 2026, Polestar announced that it was informed by the U.S. Department of Commerce's Bureau of Industry and Security of its decision to not grant Polestar an authorization under the current Connected Vehicle Rule to sell vehicles in the U.S. from model year 2027 onwards. The Company expects to continue selling previous model years in the U.S. from its inventory after which it will cease the sale of new vehicles, with its remaining activities in the U.S. then expected to focus on supporting customers in the U.S., including providing access to its service network and honoring warranty and other product commitments.
As a result of the Bureau of Industry and Security decision, Polestar has implemented a number of measures affecting its U.S. new vehicles sales operations, including actions relating to employees, dealers and other commercial arrangements (the "U.S. Restructuring"). While Polestar will continue to perform certain activities in the U.S. to support its existing customers, the aforementioned actions, together with the resulting effects on vehicles and related assets, led to material adjustments that are included in the Company's interim financial statements for the six-month period ended June 30, 2026. For more information on the nature of these adjustments please see
Note 1 - Overview and basis of preparation
in the Unaudited Condensed Consolidated Interim Financial Statements included elsewhere in this report.
Noting the significant judgement and subjectivity involved in arriving at these calculations, in aggregate the Company estimates that the U.S. operations increased its consolidated operating loss by approximately $211 million during the six months ended June 30, 2026, compared to an increase of approximately $110 million in the six months ended June 30, 2025, and that the U.S. operations increased its consolidated net loss by approximately $211 million during the six months ended June 30, 2026, compared to an increase of approximately $104 million in the six months ended June 30, 2025.
Based on current estimates, approximately $130 million of negative adjustments related to U.S. operations arose as a result of the decision from the U.S. Department of Commerce's Bureau of Industry and Security and are included in the Company's consolidated operating loss and net loss for the six months ended June 30, 2026. These adjustments primarily related to residual value guarantees costs, net realizable value of inventory and restructuring provisions related to employees and suppliers / partners incurred in the U.S in the reporting period. While these adjustments reflect the Company's assessment of the U.S. Restructuring based on current information, further negative adjustments should be expected in future periods to reflect additional costs related to personnel and inventory as the U.S. Restructuring proceeds through its phases.
Results of operations
Polestar conducts business under one operating segment with commercial operations in Europe, North America, China, Asia-Pacific, and various importer markets. Refer to
Note 1 - Overview and basis of preparation
in the Unaudited Condensed Consolidated Interim Financial Statements included elsewhere in this report for more information on the basis of presentation. Refer to
Note 2 - Material accounting policies and judgements
in the Consolidated Financial Statements included in the 2025 20-F for more information related to segment reporting
.
Comparison of the six months ended June 30, 2026 and 2025
The following table summarizes Polestar's Unaudited Condensed Consolidated Statement of Loss and Comprehensive Loss for the six months ended June 30, 2026 and 2025.
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For the six months ended June 30,
Variance
2026
2025
$
%
Revenue
1,360,091
1,422,605
(62,514)
(4.4)
Cost of sales
(1,474,901)
(2,125,729)
650,828
30.6
Impairment reversal (expense), net
1,154
(723,524)
724,678
100.2
Other cost of sales
(1,476,055)
(1,402,205)
(73,850)
(5.3)
Gross loss
(114,810)
(703,124)
588,314
83.7
Selling, general and administrative expense
(430,908)
(431,283)
375
0.1
Research and development expense
(15,332)
(31,262)
15,930
51.0
Other operating income
12,799
41,087
(28,288)
(68.8)
Other operating expense
(50,538)
(20,333)
(30,205)
(148.6)
Foreign exchange (losses) gains on operating activities, net
(30,077)
49,321
(79,398)
(161.0)
Operating loss
(628,866)
(1,095,594)
466,728
42.6
Finance income
5,256
3,415
1,841
53.9
Finance expense
(205,162)
(185,319)
(19,843)
(10.7)
Foreign exchange (losses) gains on financial activities, net
(14,795)
49,382
(64,177)
(130.0)
Fair value changes - Earn-out rights and Class C shares
6,374
15,813
(9,439)
(59.7)
Share of losses in associates
—
(24,261)
24,261
(100.0)
Loss before income taxes
(837,193)
(1,236,564)
399,371
32.3
Income tax (expense) benefit
(5,255)
43,485
(48,740)
(112.1)
Net loss
(842,448)
(1,193,079)
350,631
29.4
Revenue
The following table summarizes the components of revenue and related changes between interim periods:
For the six months ended June 30,
Variance
2026
2025
$
%
Sales of vehicles
1,278,805
1,317,756
(38,951)
(3.0)
Sales of carbon credits
52,414
72,155
(19,741)
(27.4)
Sales of licenses and royalties
19,907
10,920
8,987
82.3
Vehicle leasing revenue
4,338
7,579
(3,241)
(42.8)
Sales of software and performance engineered kits
2,515
5,628
(3,113)
(55.3)
Other revenue
2,112
8,567
(6,455)
(75.3)
Total
1,360,091
1,422,605
(62,514)
(4.4)
The decrease in revenue from Sales of vehicles was primarily due to pressures on pricing, and the increase in the reversal of revenue for the additional amounts expected to be paid out under the residual value guarantees due to the U.S. Restructuring. This was partially offset by improved foreign exchange rates in some of our markets and an improved carline mix with a higher contribution from PS4 more than compensating for a lower share of PS3.
The decrease in revenue from Sales of carbon credits was primarily driven by increased competition and a changed regulatory environment in the EU that caused a shift in the demand/supply curve that negatively impacted the demand and pricing.
The increase in Sales of licenses and royalties was mainly due to an increase in royalties received from Volvo Cars under the license enabling Volvo Cars to source and sell parts and accessories for Polestar's vehicles. This increase was due to the increase in the cumulative volume of Polestar vehicles in circulation (the "car park") which results in more demand for parts and accessories.
The decrease in Sales of software and performance engineered kits was primarily a result of Polestar's continued emphasis on its own vehicles, coupled with a continued decline in Volvo Cars' sales of Polestar's performance engineered kits.
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Cost of sales
Th
e decrease was primarily due to the impairment expense, net of reversals of $724.7 million
recognized in H1 2025 with no equivalent in H1 2026 and a positive impact on the net realizable value on inventory outside of the U.S. This was partially offset by a higher cost carline mix with higher duties (increased tariffs for imported cars, parts and components for the EU and the U.S.), smaller product costs reduction due to higher raw materials costs (mainly in batteries), negative impacts relating to the net realizable value of the U.S. inventory due to the U.S. Restructuring, and H1 2025 one-off positive impacts, which did not repeat in H1 2026, mainly due to reversals of costs related to Polestar terminating commercial operations of its investment in Polestar Times Technology.
Gross loss
The decrease in gross loss is primarily due to impairment expense, net of reversals recognized in H1 2025 and not in H1 2026 of $724.7 million and margin improvement due to model mix, partially offset by decreased vehicle sales revenue of $39.0 million, an increase in Other cost of sales of $73.9 million and decreased sales of carbon credits revenue of $19.7 million. No associated cost of sales was recognized upon the sale of these carbon credits.
Selling, general and administrative expense
The decrease was primarily due to lower other general and administrative costs resulting from cost discipline measures and restructuring with reduced headcount, mostly offset by increased advertising, selling and promotion activities expense connected especially with the impact of the France market launched in June 2025 and those related to the launch of the Polestar 5, amounting to $10.0 million and increased sales agent remuneration expense of $9.7 million mainly due to volumes and changes in carline and sales channel mix.
Research and development expense
The decrease from $31 million to $15 million was primarily driven by higher spending in H1 2025 on vehicle development programs not yet eligible for capitalization and reduced headcount.
Other operating income
The decrease was mainly related to Polestar terminating the commercial operations of its investment in Polestar Times Technology, and the related rendering of transition services, in 2025 and, therefore, having no equivalent income in H1 2026 compared to $13.2 million in H1 2025 as well as a lower carbon credit related income of $13.3 million.
Other operating expense
The increase was mainly related to U.S. Restructuring costs mainly related to the U.S Polestar organizational changes, investments and suppliers / partners. This was partially offset by a reduction of expense due to other restructuring expenses recognized in H1 2025 and not in H1 2026.
Foreign exchange (losses) gains on operating activities, net
The decrease is primarily due to a devaluation of the Swedish krona/Chinese yuan exchange rate during H1 2026 as compared to an strengthening of the Swedish krona/Chinese yuan exchange rate during H1 2025.
Finance income
The increase was the result of increased interest income of $1.8 million.
Finance expense
The increase was primarily the result of higher interest expense on non-related and related parties financing of $15.4 million due to an increase in outstanding loans, partially offset by a decrease in benchmark interest rates.
Foreign exchange (losses) gains on financial activities, net
The decrease was primarily due to negative changes in foreign exchange rates of $64.2 million mainly driven by Chinese yuan and U.S. dollar fluctuations.
Fair value changes - Earn-out rights and Class C shares
The decrease was primarily attributable to the further declines in Polestar's share price over H1 2026 which have a relatively lower negative impact on the fair value of these instruments than the declines in Polestar's share price over H1 2025 as they move further out-of-the-money.
Share of losses in associates
The $24.3 million decrease in loss was primarily attributable to Polestar terminating commercial operations of its investment in Polestar Times Technology in 2025 and therefore having no investment, and no share of loss, in H1 2026 when compared to H1 2025.
9
Income tax (expense) benefit
The movement from an income tax benefit in H1 2025 to an income tax expense in H1 2026 was primarily driven by reduced deferred tax asset recognition in the UK, no further deferred tax recognition in the U.S., and the absence of prior-year tax expense reversals related to UK Group Relief compared with H1 2025.
10
Liquidity and capital resources
Overview
Polestar's principal uses for liquidity and capital are for funding of operations, repayment of debt, market expansion, and investments in the tangible and intangible assets required to develop and manufacture Polestar's vehicles and related technologies.
Polestar finances its operations primarily through debt and equity. As it relates to debt, Polestar procures some long-term committed finance, but also shorter-term bilateral loans and inventory financing. Polestar may, on occasion, also engage with related parties to extend payment terms.
As of June 30, 2026, Polestar had net current liabilities of $4,701.9 million. In the six months ended June 30, 2026, Polestar generated negative operating and investing cash flows of $849.9 million and $210.9 million, respectively, primarily as a result of scaling up commercialization efforts globally along with more challenging market conditions and with continuing capital expenditure optimization for its vehicles and related technologies. In the six months ended June 30, 2026, Polestar generated positive cash flows of $768.7 million from financing activities, including $400.0 million equity investment by Feathertop Funding Limited, a special purpose vehicle consolidated to Sumitomo Mitsui Banking Corporation, and Standard Chartered Bank (Hong Kong) Limited, with each investor contributing $200.0 million in February 2026, and an additional $300.0 million equity investment by various purchasers including Crédit Agricole CIB, Vida Finance S.A., Innovator Limited and Proximastar Holdings Company Limited in March 2026.
Managing Polestar's liquidity profile and funding needs remains one of management's key priorities. Management's plans to ensure it has sufficient liquidity for the Company's present and future requirements are described further in this section.
Going concern
Refer to
Note 1 - Overview and basis of preparation
in the accompanying Unaudited Condensed Consolidated Interim Financial Statements for further details on management's going concern assessment, including its conclusion that a material uncertainty related to the execution of management's liquidity and funding plan casts significant doubt upon Polestar's ability to continue as a going concern.
Evaluation of sources and amounts of cash flows
The following table summarizes Polestar's cash flows for the periods presented:
For the six months ended June 30,
Variance
2026
2025
$
Cash used for operating activities
(849,906)
(497,652)
(352,254)
Cash used for investing activities
(210,853)
(321,675)
110,822
Cash provided by financing activities
768,725
687,455
81,270
Cash used for operating activities
The increase in Cash used for operating activities in H1 2026 when compared to H1 2025 was primarily a result of:
•
A net negative change in operating assets and liabilities of $261.5 million in H1 2026 compared to a net negative change of $148.7 million in H1 2025, primarily due to:
◦
A negative change in Trade payables, accrued expenses, and other liabilities of $340.1 million in H1 2026, mainly due to payments made to Volvo Cars and Geely, compared to a negative change of $335.3 million in H1 2025.
◦
A negative change in restricted cash in H1 2026 of $17.7 million compared to a negative change of $2.6 million in H1 2025, partially offset by;
◦
A net positive change in Trade receivables, prepaid expenses, and other assets of $64.1 million in H1 2026 compared to a net negative change of $149.3 million in H1 2025; and
◦
A positive change in Inventories of $37.6 million in H1 2026 compared to $345.2 million in H1 2025, primarily due to the normalization of inventory levels after the significant reduction achieved in 2025.
•
Partially offset by:
◦
The decrease in net loss of $350.6 million.
◦
An increase in the net negative value of reconciling items of $583.8 million, primarily due to:
▪
the non-cash impairment expense of $723.5 million
in H1 2025, offset by:
▪
a net increase of $67.4 million related to financial income and expense; and
▪
a net increase of $73.1 million
in the Exchange rate income (loss), net in H1 2026 when compared to H1 2025.
Cash used for investing activities
The decrease in Cash used for investing activities in H1 2026 when compared to H1 2025 was primarily a result of:
•
A decrease of $56.4 million in cash investments in intangible assets.
11
•
A decrease of $21.7 million in cash investments in property, plant and equipment.
•
A decrease in investment in associates of $38.8 million.
•
Partially offset by lower proceeds from sale of PPE of $6.3 million.
Cash provided by financing activities
The increase in Cash provided by financing activities in H1 2026 when compared to H1 2025 was primarily the result of:
•
An increase of $500.0 million in proceeds from equity issuances, from $200.0 million in H1 2025 to $700.0 million in H1 2026.
Partially offset by:
•
A decrease of $225.9 million in proceeds from short-term borrowings.
•
An increase
of
$167.0 million in repayments of borrowings in H1 2026 when compared to H1 2025; and
•
An increase of $33.3 million in transaction costs.
Contractual obligations and commitments
In addition to the liabilities recognized in its Unaudited Condensed Consolidated Statement of Financial Position, Polestar has contractual commitments of $0.8 million for capital expenditure and $392.8 million in other commitments, primarily related to vehicle manufacturing. Refer to
Note 15 - Commitments and contingencies
in the Company's Unaudited Condensed Consolidated Interim Financial Statements included elsewhere in this report.
Management expects to meet these requirements through existing cash balances, operating cash flows, and available credit facilities.
Cash and cash equivalents
Cash and cash equivalents are held by different entities in the Group. The following table summarizes Polestar's cash and cash equivalents as of June 30, 2026 and the currencies in which it is held, converted to U.S. dollars and presented in thousands:
Currency held
Cash and cash equivalents
SEK
362,432
USD
358,907
EUR
57,398
GBP
28,642
KRW
24,458
NOK
15,354
Other
40,386
Total
887,577
Legal and regulatory requirements in certain of the countries in which the Group operates may restrict or limit the ability to transfer funds, whether in the form of cash dividends, loans or advances, from the entities in those countries to other entities of the Group.
As of June 30, 2026, the Group had restricted cash of $73.2 million which is presented under current and non-current other assets in the Unaudited Condensed Consolidated Statement of Financial Position and is primarily related to its financial obligations under its syndicated multi-currency green term loan facility ("Club Loan") and under its residual value guarantees in its contracts with financial institutions in North America which provide leases to customers purchasing Polestar's vehicles, and cash collateral pledged in connection with bank guarantees and other regulatory requirements.
Funding types, maturity, currency and interest rate structure
Polestar finances itself through debt arrangements with credit institutions and related parties as further detailed below.
Credit institutions
Financing arrangements with credit institutions can be categorized as follows:
Type
Characteristics
Chinese loan facilities
Facilities provided by Chinese banks which are denominated in CNY or USD. Drawdowns have a maturity of 12 months or less. Bullet payment at maturity. Fixed or floating interest rates based on SOFR or LPR.
International loan facilities
Facilities provided by international banks which are denominated in EUR or USD. Drawdowns have a maturity of 12 months or less. Bullet payment at maturity. Floating interest rates are based on SOFR or EURIBOR.
12
Type
Characteristics
Trade finance facility ("TFF")
EUR denominated secured, syndicated green trade facility entered into on February 28, 2022 and subsequently amended on February 27, 2023 and renewed on February 27, 2025 and on February 25, 2026. On June 5, 2026, Fubon Bank Hong Kong was onboarded with an additional EUR 50 million, increasing the total facility from EUR 400 million to EUR 450 million. All outstanding principal is 100% secured by the new vehicle inventory financed via this facility in accordance with first-ranking English law charge. Drawdowns have a maturity of 6 months. Floating rates indexed to EURIBOR.
Market RCFs and Buy-Back facilities
Multiple credit facilities with various financial service providers to finance vehicles at the sales locations. The facilities are secured by the underlying assets, and financial terms and legal form vary from market to market.
Club Loan
Syndicated multicurrency green term loan facility entered into on February 22, 2024. The facility consists of two tranches: Facility A (EUR denominated at €340.0 million with an interest rate at the relevant EURIBOR plus 2.85%) and Facility B (USD denominated at $583.5 million, with an interest rate at the Chicago Mercantile Exchange Term SOFR plus 3.35%). Both facilities have a 36-month repayment period with repayment of all drawdowns due in full at the end of the term, including any unpaid interest and other fees.
As of June 30, 2026, Polestar had an equivalent amount of $4,468.9 million in drawn working capital facilities, bilateral and/or syndicated loans from credit institutions, and an uncommitted financing from credit institutions equivalent to $696.4 million available for drawdown.
Related party financing
Term credit facilities
The Group's term credit facilities with its related parties which were fully drawn as of June 30, 2026 are summarized as follows:
Counterparty
Total facility
Maturity
Interest rate
Snita
1
$665.3 million
December 31, 2031
SOFR rate plus 5.40% per annum
Geely
2
$300.0 million
June 30, 2027
SOFR rate plus 3.20% per annum
1 - Under the terms of this term credit facility, if Polestar announces an offering of shares of any class of share capital, with a proposed capital raising of at least $350.0 million, and no fewer than five institutional investors participating in the offering, then Snita has the right to convert the principal amount of any outstanding loans into equity.
2 - Under the terms of this term credit facility, Geely can request all or portion of the outstanding loan principal into Polestar equity at a price calculated on the average closing price of the Class A American Depositary Shares on NASDAQ for the 5 trading days immediately preceding the date of the equity conversion exercise notice.
Asset transfer agreement
On December 8, 2023, Polestar and Geely entered into an asset transfer arrangement which was designed to provide financing to Polestar in exchange for Polestar transferring legal ownership of certain Polestar unique tooling and equipment that will be used in the manufacturing of the PS3 (the "PS3 Tooling and Equipment") to Geely. In 2025, Polestar executed two separate tooling transfer arrangements at fixed interest rates with Geely entities for the PS4 and PS5 unique vendor tooling.
Market RCFs
Polestar maintains a Market RCF facility in the UK with its related party Volvo Cars Financial Services, a joint venture between Banco Santander ES and Polestar related party, Volvo Car Corporation SE.
Other
Polestar may also delay payments on its related party trade payables, allowing additional liquidity to remain available for other working capital and financial needs. Delays in trade payables usually incur 'interest for late payment' and may result in further collection actions by the supplier.
Funding maturity
The following table (presented in thousands of U.S. dollars) summarizes the maturity of the Group's primary funding instruments as of June 30, 2026:
13
0-3 months
3-6 months
6-12 months
1-2 years
2-5 years
More than 5 years
Total
Loans and borrowings
1,822,044
884,155
2,250,356
112,814
168,661
665,345
5,903,375
Lease liabilities
7,363
7,269
14,009
28,108
45,966
10,386
113,101
Funding currency
The following table (presented in thousands of U.S. dollars) summarizes the currency of the Group's primary funding instruments as of June 30, 2026:
USD
CNY
EUR
SEK
GBP
Other
Total
Loans and borrowings
3,699,109
1,287,867
851,927
—
—
64,472
5,903,375
Lease liabilities
7,117
902
7,291
65,924
25,569
6,298
113,101
Funding interest rate structure
The following table (presented in thousands of U.S. dollars) summarizes the interest rate structures of the Group's primary funding instruments as of June 30, 2026:
Fixed
Floating - SOFR
Floating - EURIBOR
Floating - LPR
Floating - Other
Total
Loans and borrowings
2,331,566
2,656,533
852,042
—
63,234
5,903,375
Lease liabilities
113,101
—
—
—
—
113,101
Covenants
Polestar's syndicated Club Loan is subject to covenant requirements including, but not limited to, a defined minimum annual revenue, a defined range for Polestar's debt-to-asset ratio (calculated on a quarterly basis), minimum quarterly cash levels of €400.0 million and maximum quarterly financial indebtedness (as defined in the Club Loan facilities agreement) of $5,500.0 million. Polestar was not in default related to the syndicated loan as of June 30, 2026.
On March 31, 2026, Standard Chartered Bank and the syndicated lenders agreed to amend the debt-to-asset ratio range for all test periods for 2026, including an increase from 0.85:1 to 1.50:1 for the second quarter of 2026. The outcome of the debt-to-asset ratio as of Q2 2026 was 1.47:1, and, as a result, Polestar was not in default related to the syndicated loan as of June 30, 2026.
Polestar's TFF is subject to certain covenant requirements and shares the same minimum quarterly cash covenant as the syndicated Club Loan. As of June 30, 2026, Polestar was not in breach of these covenants.
Some of Polestar's Chinese loan facilities are subject to covenant requirements, including, but not limited to, a 300% liability-to-asset ratio of any single borrowing entity within the Group. Additionally, one specific loan facility required Polestar to reach a retail sales volume of 30,000 units in H1 2026, otherwise allowing the lender to claim repayment from Polestar of 25% of the outstanding amount of the loan per month thereafter. Polestar reported a retail sales volume of 30,423 cars in H1 2026. As of June 30, 2026, Polestar was not in breach of its Chinese loan covenants.
Funding and treasury policies and objectives
Polestar has established a liquidity risk management framework for management of its short-term and long-term funding and liquidity requirements and prepares long-term planning in order to mitigate funding and re-financing risks. Polestar's liquidity management takes into account the maturities of financial assets and financial liabilities and estimates of cash flows from business operations. Certain key stakeholders engage in a weekly meeting to discuss Polestar's current and forecasted liquidity position to determine the Group's funding needs. Polestar prepares long-term planning to mitigate funding and re-financing risks. Depending on the liquidity needs, Polestar will assess the most appropriate financing option – entering into financing or debt agreements or procuring equity investments to reinforce its capital structure. All drawdowns on loans are evaluated against future liquidity needs, investment plans and the restrictions on debt levels arising from financial covenants on certain of its borrowings.
Liquidity and funding plan – Short term (<12 months)
In the short term, the Group works with a series of financing alternatives, which includes, in addition to opportunistic equity financing, the use of credit lines for general corporate purposes, lines that can be utilized in relation to working capital needs (Chinese loan facilities), lines that can finance the cars while the cars are on transport (TFF), Market RCFs for cars in Polestar's inventories, non-recourse factoring of its receivables and may, from time to time, defer related party payments.
Liquidity and funding plan – Long term (>12 months)
For the long-term, the Group looks to optimize and extend credit lines as detailed in
Funding types, maturity, currency and interest rate structure.
The Group also looks for opportunities for additional equity offerings such as the $400.0 million and $300.0 million signed in February and March, respectively.
14
In this regard, the Group continues to expect its long-term financing lines to be provided by a pool of banks and credit lines provided by Chinese and International counterparties.
For many of its short- and long-term credit lines provided by Chinese and International counterparties, the Group benefits from either a comfort letter or security that is provided by Geely.
Non-GAAP Financial Measures
Polestar uses both generally accepted accounting principles ("GAAP", i.e., IFRS) and non-GAAP (i.e., non-IFRS) financial measures to evaluate operating performance and for other strategic and financial decision-making purposes. Polestar believes non-GAAP financial measures are helpful to investors as they provide useful perspective on underlying business trends and assist in period-on-period comparisons. These measures also improve the ability of management and investors to assess and compare the financial performance and position of Polestar with those of other companies.
These non-GAAP measures are presented for supplemental information purposes only and should not be considered a substitute for financial information presented in accordance with GAAP. The measures are not presented under a comprehensive set of accounting rules and, therefore, should only be read in conjunction with financial information reported under GAAP when assessing Polestar's operating performance.
The measures may not be the same as similarly titled measures used by other companies due to possible differences in calculation methods and items or events being adjusted. A reconciliation between non-GAAP financial measures and the most comparable GAAP performance measures is provided below.
Non-GAAP financial measures used by management are
Adjusted EBITDA
,
Free Cash Flow
,
Adjusted Gross Profit / (Loss)
and
Adjusted Gross Margin
.
Adjusted EBITDA
is calculated as net loss, adjusted to exclude:
•
Fair value change - Earn-out rights and Class C Shares.
•
Finance expense.
•
Finance income.
•
Foreign exchange gains (losses) on financial activities, net.
•
Income tax benefit (expense).
•
Depreciation and amortization
1.
•
Impairment of property, plant and equipment, vehicles under operating leases, and intangible assets, net of reversals.
•
Gains (losses) on disposals of investments
2
.
•
Restructuring costs
3
; and
•
Unusual other operating income and expenses that are considered rare or discrete events and are infrequent in nature.
1 - Depreciation and amortization include (a) depreciation and amortization capitalized into the carrying value of inventory sold (i.e., part of inventory costs) and (b) depreciation and amortization expense.
2 - Disposals of investments include disposals, by sales or otherwise, of: (a) debt or equity financial instruments issued by another entity that are held as investments, (b) intangible assets, (c) property, plant, and equipment, and (d) groups of assets and liabilities representing disposal groups that were transferred together as part of individual transactions.
3 - Restructuring costs include expenses associated with programs that were planned and controlled by management and materially changed either (a) the scope of a business undertaken by the Group or (b) the manner in which business is conducted including actions undertaken in response to significant regulatory events.
Management reviews this measure and believes it provides meaningful insight into the core business's underlying operating performance and trends, before the effect of any adjusting items.
Free Cash Flow
Free Cash Flow is calculated as cash used for operating activities
plus
cash used to acquire property, plant and equipment and intangible assets. This measure is reviewed by management and management considers it to be a relevant measure for assessing cash generated by operating activities that are available to repay debts and spend on other strategic initiatives.
Adjusted Gross Profit / (Loss) and Adjusted Gross Margin
Adjusted Gross Profit / (Loss) is calculated as gross loss, adjusted to exclude: (i) expenses arising from the impairment of property, plant and equipment, vehicles under operating leases, and intangible assets; and (ii) unusual other items of income or expense that are considered rare or discrete events and are infrequent in nature. Adjusted Gross Margin is calculated as Adjusted Gross Profit / (Loss) divided by revenue. These measures are reviewed by management and management considers them to be useful measures for assessing Polestar's historical operating performance as they facilitate comparison between periods by excluding the non-cash impairment expense, the measurement of which includes significant assumptions related to future periods.
15
Reconciliation of GAAP and Non-GAAP Measures
For the six months ended June 30,
2026
2025
Adjusted EBITDA
Net loss
(842,448)
(1,193,079)
Fair value changes on Earn-out rights and Class C shares
(6,374)
(15,813)
Finance expense
205,162
185,319
Finance income
1
(5,256)
(3,415)
Foreign exchange losses (gains) on financial activities, net
1
14,795
(49,382)
Income tax expense (benefit)
5,255
(43,485)
Depreciation and amortization
62,431
75,772
Impairment (reversal) expense, net
(1,154)
723,524
Losses on disposals of investments
1,904
4,629
Restructuring costs
44,247
13,629
Adjusted EBITDA
(521,438)
(302,301)
1 - The
Foreign exchange (losses) gains on operating activities, net
were previously presented under
Finance income
in the six months ended June 30, 2025. Refer to Volu
ntary re-presentation from previous year in Note 2 - Material accounting policies and judgements)
in the
Unaudited Condensed Consolidated Interim Financial Statements for further information.
For the six months ended June 30,
2026
2025
Free Cash Flow
Net cash used for operating activities
(849,906)
(497,652)
Additions to property, plant, and equipment
(66,358)
(88,032)
Additions to intangible assets
(145,216)
(201,581)
Free Cash Flow
(1,061,480)
(787,265)
For the six months ended June 30,
2026
2025
Adjusted Gross Profit / (Loss)
Gross Loss
(114,810)
(703,124)
Impairment (reversal) expense, net
(1,154)
723,524
Adjusted Gross Profit / (Loss)
(115,964)
20,400
For the six months ended June 30,
2026
2025
Adjusted Gross Margin
Adjusted Gross (Loss) Profit (a)
(115,964)
20,400
Revenue (b)
1,360,091
1,422,605
Adjusted Gross Margin (a/b)
(8.5)%
1.4%
16

----- polestar_prxq2-h1x2026.pdf -----
Polestar reports second quarter select and H1 2026 financial results
•

Record H1 2026 retail sales of 30,423 cars supported by 39% growth of retail network year-onyear

•

Intensified competition and regulatory headwinds, especially in the U.S., impacting financial
performance

•

Operating loss reduced by 43% year-on-year, with no impairment expenses recognized in H1
2026

•

Continued cost discipline measures and lower headcount spend

•

Strengthened capital structure and improved liquidity position

•

Cash position of approx. USD 888 million as of June 30, 2026

•

2026 guidance: low-to-mid single-digit volume growth

GOTHENBURG, SWEDEN – September 3, 2026 – Polestar (Nasdaq: PSNY) presents its
consolidated financial results and operational metrics for the three-month and six-month periods ended
June 30, 2026.
Michael Lohscheller, Polestar CEO, said: “The operational improvements being implemented across
the business are starting to show results. We cut our reported operating loss by 43% in the first half of
2026 versus last year, when a significant net impairment expense impacted our results. Working in a
challenging environment, we continue to be disciplined in our execution and focused on improving
the business.
"Following the opening of orders for Polestar 4 SUV, production has ramped up in Busan, South Korea.
The first cars have been shipped from the factory and are set to be delivered to customers during the
fourth quarter. The first Polestar 5s are expected to reach customers in the coming weeks - setting us
up for an exciting end to the year."
Key financial and operational highlights for H1 2026 (year-on-year comparison)
•

Retail sales volumes above the comparable period, supported by continued transition to an
active selling model, retail expansion, attractive model line-up and a growing share of Polestar
4

•

Revenues down (4)% to USD 1,360 million, mainly due to pressure on pricing, residual value
guarantee costs, mainly in the U.S. and related to U.S. Restructuring measures following the
decision by the U.S. department of Commerce's Bureau of Industry and Security ("the BIS"), and
lower carbon credit sales

•

Gross margin of (8)% improved from (49)%, which reflected net impairment expense
recognized in H1 2025

•

Adjusted Gross Margin of (9)% driven by decrease in revenues, the U.S. Restructuring
measures and H1 2025 one-off positive impacts

•

Selling, general and administrative expenses stable year-on-year with a decrease in general
and administrative expenses

•

Operating loss of USD (629) million and Net loss of USD (842) million improved year-on-year
by 43% and 29%, respectively, mainly due to the impairment expense recognized in the prior
period

•

Adjusted EBITDA loss of USD (521) million mainly due to higher adjusted gross loss and
foreign exchange impacts

•

Cash position of approx. USD 888 million as of June 30, 2026

•

New equity of USD 700 million raised from external investors

•

Debt-to-equity conversions of approx. USD 640 million of loans outstanding to Geely Sweden
and Volvo Cars into Polestar's equity completed

•

Extension of maturity of remaining USD 660 million of Volvo Cars' shareholder loan from
December 2028 to December 2031

•

Largest model offensive in Polestar’s history: four new cars planned in three years, starting in
2026 with Polestar 5 and Polestar 4 SUV

•

Polestar announces launch of sales in the Baltic region

•

2026 volume guidance updated to low-to-mid single-digit volume growth

Guidance
Polestar has continued to expand its retail network at pace. The upcoming launch of Polestar 4 SUV in
the fourth quarter of 2026, followed by the launch of the successor to Polestar 2 in 2027, are expected
to further strengthen the Company's product portfolio.
Looking ahead to the second half of 2026, the market environment is expected to remain highly
competitive and volatile. Polestar remains focused on delivering quality growth and is updating its 2026
volume guidance to low-to-mid single-digit volume growth from previous low double-digit volume
growth. This reflects the performance in the first half of 2026 as well as the expected portfolio transition
with the current Polestar 2 approaching the end of its lifecycle and the planned launch of Polestar 4
SUV in the fourth quarter of 2026. The sales mix and channel mix are expected to continue positively
evolving, reflecting our stated strategy of entering fast-growing, high-value segments and growing the
retail channel through the introduction of four new vehicles over a three-year period beginning in 2026.
U.S. Restructuring
On June 25, 2026, Polestar announced that it was informed by the U.S. Department of Commerce's
Bureau of Industry and Security of its decision to not grant Polestar an authorization under the current
Connected Vehicle Rule to sell vehicles in the U.S. from model year 2027 onwards. The Company
expects to continue selling previous model years in the U.S. from its inventory after which it will cease
the sale of new vehicles, with its remaining activities in the U.S. then expected to focus on supporting

customers in the U.S., including providing access to its service network and honoring warranty and
other product commitments.
As a result of the Bureau of Industry and Security's decision, Polestar has implemented a number of
measures affecting its U.S. new vehicles sales operations, including actions relating to employees,
dealers and other commercial arrangements (the "U.S. Restructuring"). While Polestar will continue to
perform certain activities in the U.S. to support its existing customers, the aforementioned actions,
together with the resulting effects on vehicles and related assets, led to material adjustments that are
included in the Company’s interim financial statements for the six-month period ended June 30, 2026.
Noting the significant judgement and subjectivity involved in arriving at these calculations, in aggregate
the Company estimates that the U.S. operations increased its consolidated operating loss by
approximately USD 211 million during the six-month period ended June 30, 2026, compared to an
increase of approximately USD 110 million in the six-month period ended June 30, 2025, and that the
U.S. operations increased its consolidated net loss by approximately USD 211 million during the sixmonth period ended June 30, 2026, compared to an increase of approximately USD 104 million in the
six-month period ended June 30, 2025. For the three-month period ended June 30, 2026, in aggregate
the Company estimates that the U.S. operations increased its consolidated operating loss by
approximately USD 170 million, compared to an increase of approximately USD 84 million in the threemonth period ended June 30, 2025, and that the U.S. operations increased its consolidated net loss by
approximately USD 165 million during the three-month period ended June 30, 2026, compared to an
increase of approximately USD 78 million in the three-month period ended June 30, 2025.
Based on current estimates, approximately USD 130 million of negative adjustments related to the U.S.
operations arose as a result of the decision from the U.S. Department of Commerce's Bureau of
Industry and Security and are included in the Company's consolidated operating loss and net loss for
the three-month and six-month periods ended June 30, 2026. These adjustments primarily related to
residual value guarantees costs, net realizable value of inventory, and restructuring provisions related
to employees and suppliers/partners costs incurred in the U.S in the reporting period. While these
adjustments reflect the Company's assessment of the U.S. Restructuring based on current information,
further negative adjustments should be expected in future periods to reflect additional costs related to
personnel and inventory as the U.S. Restructuring proceeds through its phases.
Key financial highlights
The table below summarizes key financial results for the six months ended June 30, 2026:

(in millions of U.S. dollars)

For the six months ended
June 30,
2026
2025

Change, %

Retail sales, units

30,423

30,289

0.4

Revenue
Cost of sales
Impairment reversal (expense), net
Other cost of sales
Gross Loss
Gross margin, %
Adjusted Gross (Loss) / Profit (non-GAAP) 1
Adjusted Gross Margin (non-GAAP) 1, %
Selling, general and administrative expense
Research and development expense
Other operating income
Other operating expense
Foreign exchange (losses) gains on operating
activities, net
Operating loss
Net loss
Adjusted EBITDA (non-GAAP) 1

1,360
(1,475)
1
(1,476)
(115)
(8.4)
(116)
(8.5)
(431)
(15)
13
(51)

1,423
(2,126)
(724)
(1,402)
(703)
(49.4)
20
1.4
(431)
(31)
41
(20)

(4.4)
30.6
100.2
(5.3)
83.7
41.0 ppts
(668.5)
(9.9) ppts
0.1
51.0
(68.8)
(148.6)

(30)
(629)
(842)
(521)

49
(1,096)
(1,193)
(302)

(161.0)
42.6
29.4
(72.5)

(1) Non-GAAP measure. See Appendix B for details and a reconciliation of non-GAAP metrics to the nearest GAAP measure.

•

Retail sales totaled 30,423 cars, representing an increase of 0.4% year-on-year (YoY) from
30,289 cars in the comparable period, driven by continued transition to an active selling model,
retail expansion and attractive model line-up and a growing share of Polestar 4.

•

Revenue of USD 1,360 million, down by (4.4)% from USD 1,423 million a year earlier, was driven
by volumes and product mix, as well as positive foreign exchange impact, which were more than
offset mainly by pressure on pricing, residual value guarantee costs mainly in the U.S. and
related to the restructuring measures as a result of the BIS's decision, and lower carbon credit
sales. Carbon credits sales totaled USD 57 million in the period from USD 90 million a year
earlier mainly due to the increased competition in the EU, including USD 4 million worth of carbon
credits sales booked in other operating income (H1 2025: USD 18 million) mainly due to
regulatory changes in the U.S.

•

Cost of sales decreased to USD (1,475) million, an improvement of 30.6% from USD (2,126)
million in H1 2025 primarily driven by net impairment expense of USD (724) million recognized
in the first half of 2025. Other cost of sales grew (5.3)% due to higher production costs associated
with the carline mix, higher duties on imported cars, parts and components for the EU and the
U.S., and smaller product costs reduction due to higher raw materials costs, mainly in batteries.
There were as well negative impacts from the U.S. Restructuring measures leading to

adjustment of the U.S. inventory to net realizable value and H1 2025 one-off positive impacts,
which did not repeat in H1 2026, partially offset by positive adjustment of inventory, outside of
the U.S., to net realizable value.
•

Gross margin was a negative (8.4)%, an improvement from (49.4)% in the comparable period,
with the H1 2025 gross margin primarily impacted by net impairment expense of USD (724)
million.

•

Adjusted Gross Margin at (8.5)%, from 1.4% a year earlier, due to Adjusted Gross Loss of USD
(116) million in the period due to lower revenues and higher other cost of sales as detailed above,
partially offset by positive margin development due to the carline mix, especially from a growing
share of Polestar 4 in the sales mix.

•

Selling, General and Administrative (SG&A) expenses of USD (431) million were a combination
of an increase in selling expenses related to sales agent remuneration due to volume and carline
mix and higher advertising, selling and promotion activities in the period following launch in
France in June 2025 and launch of Polestar 5 in different markets fully compensated by strict
cost discipline and positive impact of continued headcount reduction in General and
Administrative expenses.

•

Research and development (R&D) expenses decreased to USD (15) million from USD (31)
million in the comparable period, driven by reduced headcount and higher capitalization rate on
vehicle development programs.

•

Operating loss was USD (629) million, an improvement of 42.6% compared to USD (1,096)
million in H1 2025, primarily due to factors described above. Other operating income decreased
due to the termination in 2025 of commercial operations of Polestar's investment in Polestar
Times Technology, and the related rendering of transition services, as well as lower carbon
credits income. Other operating expense was higher due to the U.S. Restructuring measures,
mainly related to the U.S. Polestar organizational changes, investments and suppliers. Net
foreign exchange losses in H1 2026 versus gains in H1 2025 on operating activities were due to
foreign exchange movements: depreciation and appreciation of Swedish krona against Chinese
yuan in the first half of 2026 and 2025, respectively.

•

Net loss of USD (842) million improved by 29.4% compared to net loss of USD (1,193) million in
H1 2025, driven by factors described above; finance expense was higher on higher levels of
outstanding external financing; net foreign exchange losses in H1 2026 versus gains in H1 2025
on financial activities arose from negative FX movements of Chinese yuan and U.S. dollar.

•

Adjusted EBITDA of USD (521) million, increased by USD (219) million from USD (302) million
in the comparable period, reflecting the Adjusted Gross Loss in the period impacted by the U.S.
Restructuring measures, H1 2025 positive one-off impacts, adverse foreign exchange
movements and negative other operating income impacts.

•

Further details are provided in the reconciliation tables for non-GAAP measures in Appendix B.

Select results for Q2 2026
The table below summarizes key operational and financial results and provides the year-on-year (YoY)
comparison for Q2 2026 results:
(in millions of U.S. dollars)

Retail sales, units
Revenue
Gross Loss
Gross margin, %
Adjusted Gross Profit / (Loss) (non-GAAP) 1
Adjusted Gross Margin (non-GAAP) 1, %
Net loss
Adjusted EBITDA (non-GAAP) 1,2

For the three months
ended June 30,
2026

2025

Change, %

17,296

18,026

(4.0)

727
(95)
(13.1)
(95)
(13.1)
(459)
(286)

791
(768)
(97.1)
(44)
(5.6)
(1,027)
(206)

(8.1)
87.6
84.0 ppts
(115.9)
(7.5) ppts
55.3
(38.8)

(1) Non-GAAP measure. See Appendix B for details and a reconciliation of non-GAAP metrics to the nearest GAAP measure.
(2) Some values for the three-month period ended June 30, 2025 were re-presented.

For the three months ended June 30, 2026:
•

Retail sales totaled 17,296 cars, down (4.0)% YoY from 18,026 cars a year earlier.

•

Revenue of USD 727 million, down by (8.1)% from USD 791 million in the comparable period,
driven predominantly by lower retail sales volumes, pressure on pricing, residual value
guarantee costs mainly in the U.S. and related to the U.S. Restructuring measures as a result of
the BIS's decision, as well as lower carbon credits sales. Carbon credits sales totaled USD 36
million in the period from USD 61 million a year earlier, there were no carbon credits sales
booked in other operating income in the period (Q2 2025: USD 19 million) mainly due to
regulatory changes in the U.S.

•

Gross margin at (13.1)%, an improvement of 84.0 ppts from (97.1)% a year earlier, mainly due
to net impairment expense of USD (724) million recognized in Q2 2025.

•

Adjusted Gross Margin at (13.1)%, from (5.6)% in the comparable period, mainly due to lower
revenue, negative impact from the U.S. Restructuring measures resulting in adjustment of the
U.S. inventory to net realizable value and Q2 2025 positive one-off impacts, offset by positive
margin development due to the carline mix, especially from a growing share of Polestar 4 in the
sales mix, and positive adjustment of inventory to net realizable value, excluding in the U.S.
market.

•

Net loss of USD (459) million, an improvement of 55.3% compared to net loss of USD (1,027)
million for Q2 2025, is mainly due to net impairment expense of USD (724) million recognized in
Q2 2025.

•

Adjusted EBITDA Loss of USD (286) million, compared to USD (206) million in Q2 2025, due to
Adjusted Gross Loss of USD (95) million impacted by the U.S. Restructuring measures, adverse
foreign exchange movements and negative other operating income impacts offset by lower
SG&A expenses driven by cost discipline and reduced headcount despite higher sales agent
remuneration driven by the carline mix and higher capitalization rate on spend on vehicle
development programs.

Key operational highlights
The table below summarizes key operational results as of and for the three and six months ended June
30, 2026:
For the six
months ended
June 30,

Retail sales1
• including external vehicles with
repurchase obligations2
• including internal vehicles
Markets3
Sales points4
of which sales points, excluding China
Service points5

2026
30,423

For the three
months ended
June 30,

Change,
2025
%
30,289
0.4

2026
17,296

Change,
2025
%
18,026
(4.0)

1,384

979

41.4

1,034

797

29.7

2,166
29
235
235
1,255

1,906
28
170
169
1,237

13.6
3.6
38.2
39.1
1.5

1,442

1,500

(3.9)

(1) Retail 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’ channels across all markets irrespective
of their market model and setup and may or may not generate directly revenue for Polestar. Figures for external vehicles with
repurchase obligations and internal vehicles are provided on an estimated basis and subject to future revision.
(2) In the six months ended June 30, 2025, this metric includes 177 cars that were handed over as security under a financing
arrangement. There were no arrangements of this type in the six months ended June 30, 2026.
(3) Represents the markets in which Polestar is present, whether currently active or not yet active.
(4) Represents 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.
(5) Represents Volvo Cars service centers to provide access to customer service points worldwide in support of Polestar’s
international expansion.

•

Retail sales totaled 30,423 cars in H1 2026, representing an increase of 0.4%, compared with
30,289 new cars sold in H1 2025, driven by the transition to an active selling model, retail
expansion and Polestar's attractive model line-up and a growing share of Polestar 4.

•

Sales points, excluding China, grew by 39.1%. In H1 2026, Polestar opened 24 new retail sales
points with a total of 235 sales points at the end of H1 2026. During H1 2026, Polestar signed

up 20 new retailer partners with a total of 178 retail partners, representing an increase of 13%,
from the end of 2025.
•

The increase in external sales with a repurchase obligation is primarily related to Polestar 4 cars
in Germany, France and the United Kingdom.

•

Polestar increased sales of internal cars to support its retail network expansion.

Key cash flow highlights
The table below summarizes cash flow for the six months ended June 30, 2026:

(in millions of U.S. dollars)
Beginning cash
Operating
Investing
Financing
Foreign exchange effect on cash and cash equivalents
Ending cash

For the six months
ended June 30,
2026
1,159
(850)
(211)
769
20
888

•

Operating cash outflow of USD (850) million, mainly driven by the operating loss net of non-cash
adjustments, financial interest expenses and a net negative movement in working capital mainly
due to negative changes in trade payables partially offset by positive changes in inventory and
trade receivables.

•

Investing cash outflow of USD (211) million included additions to property, plant, and equipment
as well as intangible assets; investments were predominantly driven by investments in
intellectual property and tangible assets related mainly to model year Polestar 3 and Polestar 4
updates, Polestar 5, the new Polestar 4 variant and future car lines.

•

Financing cash inflow of USD 769 million, driven by the new equity raises of a total of USD 700
million in February and March 2026 and net increase in proceeds from borrowings partially offset
by repayment of debt financing.

•

Cash position of USD 888 million, compared to the H1 2025 cash position of USD 719 million.

Key loan facilities and funding highlights
•

During H1 2026, approx. USD 1.7 billion worth of facilities were either renewed (approx. USD
1.7 billion) or newly secured (approx. USD 60 million).
• New facilities include the restructuring and renewal of the EUR 400 million Trade Finance
Facility ("TFF") in February 2026, and subsequent increase from EUR 400 million to EUR
450 million, with new participation of Fubon Bank (Hong Kong) Limited in June 2026.
Standard Chartered Bank continues to act as Structuring Bank and Facility Agent for the
TFF.

•

From January to March 2026, Polestar secured USD 0.7 billion of new equity.

•

Since the start of 2026, Geely Sweden and Volvo Cars converted approx. USD 300 and 340
million of loans outstanding to Polestar into Polestar's equity. Volvo Cars extended the maturity
of the remaining shareholder loan of USD 660 million to December 2031.

•

On 3 June 2026, Polestar Geely Sweden Holdings AB agreed to extend the term of the
outstanding amount of the subordinated term loan facility, which was initially provided to Polestar
in December 2025, to 30 June 2027.

The Company was in compliance with its covenants as of June 30, 2026.
The Company continues to have a constructive dialogue with lenders of the Company’s 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 June 30, 2026.
With the support from Geely Holding Group, we have implemented significant steps to strengthen
balance sheet and improve our debt and liquidity positions, and we continue to consider new equity
and debt funding.
Key recent developments and business highlights
•

Polestar 4 SUV started sales on September 2

•

Polestar expands retail presence in Europe through new markets in the Baltics

•

Google Gemini launches in select models and regions

•

Polestar 3 gets 800V upgrade for new model year

•

Polestar 5 receives Autobest award

•

Polestar 5 LCA published

•

Polestar Charge expands offer and grid rewards

•

Polestar 3 named safest Executive Car of 2025

Conference call
Management will host a conference call at 14:00 Central European Time (08:00 US Eastern Time)
today, accessible via the Polestar Investor Relations website. To join the call, please use this link
https://edge.media-server.com/mmc/p/czg84qrx/ or follow the instructions available under Events on
the Polestar Investor Relations website.
Calendar
Polestar expects to report its retail sales volumes for Q3 2026 on October 8, 2026.
Polestar expects to publish Q3 2026 select financial results on November 5, 2026 and host an audio
call; further details will be available on Polestar's Investor Relations website in due course.
Notes

All financial figures are in millions of U.S. dollars (USD). Unless otherwise stated, the performance
shown in this press release covers the three-month period ended June 30, 2026 (Q2 2026) and is
compared to performance during and as of three-month period ended to June 30, 2025 (Q2 2025) and
the six-month period ended June 30, 2026 (H1 2026) and is compared to performance during and as
of six-month period ended to June 30, 2025 (H1 2025).
Contacts
Anna Gavrilova
Head of Investor Relations
anna.gavrilova@polestar.com
Ellen Broomé
Head of PR
ellen.broome@polestar.com

About Polestar
Polestar (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 29 markets globally
across North America, Europe, and Asia Pacific.
Polestar has four models in its line-up: Polestar 2, Polestar 3, Polestar 4, and Polestar 5. Planned
models include Polestar 4 SUV (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.
Polestar 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 climateneutral across its value chain by 2040. Polestar’s comprehensive sustainability strategy covers the four
areas of Climate, Transparency, Circularity, and Inclusion.
Statement regarding unaudited financial and operational results
The 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’s 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’s Annual Reports on
Form 20-F.
Forward-looking statements
Certain statements in this press release (“Press Release”) may be considered “forward-looking
statements” 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 “may”, “should”, “expect”, “intend”, “will”, “estimate”, “anticipate”, “believe”, “predict”, “potential”,
“forecast”, “plan”, “seek”, “future”, “propose” or “continue”, 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.
These 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's 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's 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's ability to raise additional funding; (4) Polestar's ability to successfully execute costcutting activities and strategic efficiency initiatives; (5) Polestar's estimates of expenses, profitability,
gross margin, cash flow, and cash reserves; (6) Polestar's 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's 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's vehicles and Polestar's 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's 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's offerings; (15) risks related to Polestar's 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's future business; (17) changes in regulatory requirements (including
environmental laws and regulations and regulations related to connected vehicles and Polestar's
response to the U.S. government's denial of a specific authorization for the U.S.), governmental
incentives, tariffs and fuel and energy prices; (18) Polestar's 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's 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, government and regulatory
proceedings, tax audits, investigations and inquiries; (21) Polestar's 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 "Risk Factors" and "Cautionary Note Regarding ForwardLooking Statements" in Polestar's Form 20-F, and other documents filed, or to be filed, with the SEC
by Polestar.
Nothing in this Press Release should be regarded as a representation by any person that the forwardlooking 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.

Appendix A
Polestar Automotive Holding UK PLC
Unaudited Consolidated Statement of Income (Loss)
(in millions of U.S. dollars unless otherwise stated)

Revenue
Cost of sales
Impairment reversal (expense), net
Other cost of sales
Gross loss
Selling, general and administrative expense
Research and development expense
Other operating income
Other operating expense
Foreign exchange (losses) gains on operating activities, net
Operating loss
Finance income
Finance expense
Foreign exchange (losses) gains on financial activities, net
Fair value changes - Earn-out rights and Class C shares
Share of losses in associates
Loss before income taxes
Income tax (expense) benefit
Net loss

For the six months ended
June 30,
2026
20251
1,360
1,423
(1,475)
(2,126)
1
(724)
(1,476)
(1,402)
(115)
(703)
(431)
(431)
(15)
(31)
13
41
(51)
(20)
(30)
49
(629)
(1,096)
5
3
(205)
(185)
(15)
49
6
16
—
(24)
(837)
(1,237)
(5)
43
(842)
(1,193)

(1) Certain figures and descriptions were re-presented (see 'Voluntary re-presentation from previous year' in Note 2 Material accounting policies and judgements in our Unaudited Condensed Consolidated Interim Financial
Statements).

Polestar Automotive Holding UK PLC
Unaudited Consolidated Statement of Financial Position
(in millions of U.S. dollars unless otherwise stated)

Assets
Non-current assets
Intangible assets and goodwill
Property, plant and equipment
Vehicles under operating leases
Other assets
Deferred tax assets
Total non-current assets
Current assets
Cash and cash equivalents1
Trade receivables and other receivables
Inventories
Current tax assets
Other assets
Total current assets
Total assets
Equity
Share capital
Other contributed capital
Foreign currency translation reserve
Accumulated deficit
Total equity
Liabilities
Non-current liabilities
Contract liabilities
Deferred tax liabilities
Provisions
Other liabilities
Earn-out liability
Loans and borrowings
Lease liabilities
Total non-current liabilities
Current liabilities
Trade payables
Accrued expenses

June 30, 2026

December 31,
2025

663
305
130
83
95
1,276

700
293
101
55
92
1,241

888
364
720
18
251
2,241
3,517

1,159
342
853
11
323
2,689
3,930

(49)
(5,436)
106
10,111
4,732

(28)
(4,133)
15
9,269
5,122

(71)
—
(120)
(83)
—
(947)
(84)
(1,306)

(76)
(1)
(134)
(37)
(4)
(2,499)
(94)
(2,844)

(895)
(321)

(1,107)
(425)

Advance payments from customers
Provisions
Loans and borrowings
Current tax liabilities
Lease liabilities
Contract liabilities
Class C Shares liability
Other liabilities
Total current liabilities
Total liabilities
Total equity and liabilities
(1) Excludes restricted deposits.

(10)
(115)
(4,957)
(11)
(29)
(34)
(2)
(569)
(6,942)
(8,248)
(3,517)

(16)
(121)
(3,861)
(12)
(37)
(37)
(5)
(587)
(6,208)
(9,052)
(3,930)

Polestar Automotive Holding UK PLC
Unaudited Consolidated Statement of Cash Flows
(in millions of U.S. dollars unless otherwise stated)
For the six months ended
June 30,
2026
2025
Cash flows from operating activities
Net loss
Adjustments to reconcile net loss to net cash flows:
Depreciation and amortization
Warranty provisions
Impairment of inventory
Impairment (reversal) expense of property, plant, and equipment,
vehicles under operating leases, and intangible assets, net
Finance income
Finance expense
Fair value change - Earn-out rights and Class C Shares
Income tax benefit (expense)
Share of losses in associates
Net losses (gains) on derecognition and disposal of property, plant
and equipment and intangible assets
Litigation provisions, net of insurance
Other provisions
Exchange rate income (loss), net
Other non-cash expense and income
Changes in operating assets and liabilities:
Inventories
Contract liabilities
Trade receivables, prepaid expenses, and other assets
Trade payables, accrued expenses, and other liabilities
Restricted deposits
Interest received
Interest paid
Taxes paid
Cash used for operating activities
Cash flows from investing activities
Additions to property, plant, and equipment
Additions to intangible assets
Additions to investment in associates
Reductions to other non-current assets
Proceeds from sale of property, plant and equipment
Cash used for investing activities
Cash flows from financing activities

(842)

(1,193)

12
35
88

32
41
81

(1)
(5)
205
(6)
5
—

724
(53)
185
(16)
(43)
24

13
—
65
35
(16)

—
(1)
36
(39)
41

38
(5)
64
(340)
(18)
2
(164)
(12)
(850)

345
(7)
(149)
(335)
(3)
2
(147)
(24)
(498)

(66)
(145)
—
1
—
(211)

(88)
(202)
(39)
—
6
(322)

Proceeds from short-term borrowings
Proceeds from long-term borrowings
Repayments of borrowings
Proceeds from equity issuance
Repayments of lease liabilities
Transaction costs
Cash provided by financing activities
Effect of foreign exchange rate changes on cash and cash equivalents
Net decrease in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period

1,728
13
(1,623)
700
(16)
(33)
769
20
(272)
1,159
888

1,954
—
(1,456)
200
(11)
—
687
111
(21)
739
719

Appendix B
Polestar Automotive Holding UK PLC
Non-GAAP Financial Measures
Polestar uses both generally accepted accounting principles ("GAAP", i.e., IFRS) and non-GAAP (i.e.,
non-IFRS) financial measures to evaluate operating performance and for other strategic and financial
decision-making purposes. Polestar believes non-GAAP financial measures are helpful to investors as
they provide useful perspective on underlying business trends and assist in period-on-period
comparisons. These measures also improve the ability of management and investors to assess and
compare the financial performance and position of Polestar with those of other companies.
These non-GAAP measures are presented for supplemental information purposes only and should not
be considered a substitute for financial information presented in accordance with GAAP. The measures
are not presented under a comprehensive set of accounting rules and, therefore, should only be read
in conjunction with financial information reported under GAAP when assessing Polestar's operating
performance.
The measures may not be the same as similarly titled measures used by other companies due to
possible differences in calculation methods and items or events being adjusted. A reconciliation
between non-GAAP financial measures and the most comparable GAAP performance measures is
provided below.
Non-GAAP financial measures used by management are Adjusted EBITDA, Free Cash Flow, Adjusted
Gross Profit / (Loss) and Adjusted Gross Margin.
Adjusted EBITDA is calculated as net loss, adjusted to exclude:
•

Fair value change - Earn-out rights and Class C Shares.

•

Finance expense.

•

Finance income.

•

Foreign exchange gains (losses) on financial activities, net.

•

Income tax benefit (expense).

•

Depreciation and amortization1.

•

Impairment of property, plant and equipment, vehicles under operating leases, and intangible
assets, net of reversals.

•

Gains (losses) on disposals of investments2.

•

Restructuring costs3; and

•

Unusual other operating income and expenses that are considered rare or discrete events
and are infrequent in nature.

1 - Depreciation and amortization include (a) depreciation and amortization capitalized into the carrying
value of inventory sold (i.e., part of inventory costs) and (b) depreciation and amortization expense.
2 - Disposals of investments include disposals, by sales or otherwise, of: (a) debt or equity financial
instruments issued by another entity that are held as investments, (b) intangible assets, (c) property,
plant, and equipment, and (d) groups of assets and liabilities representing disposal groups that were
transferred together as part of individual transactions.
3 - Restructuring costs include expenses associated with programs that were planned and controlled
by management and materially changed either (a) the scope of a business undertaken by the Group or
(b) the manner in which business is conducted including actions undertaken in response to significant
regulatory events.
Management reviews this measure and believes it provides meaningful insight into the core business's
underlying operating performance and trends, before the effect of any adjusting items.
Free Cash Flow
Free Cash Flow is calculated as cash used for operating activities plus cash used to acquire property,
plant and equipment and intangible assets. This measure is reviewed by management and
management considers it to be a relevant measure for assessing cash generated by operating activities
that are available to repay debts and spend on other strategic initiatives.
Adjusted Gross Profit / (Loss) and Adjusted Gross Margin
Adjusted Gross Profit / (Loss) is calculated as gross loss, adjusted to exclude: (i) expenses arising from
the impairment of property, plant and equipment, vehicles under operating leases, and intangible
assets; and (ii) unusual other items of income or expense that are considered rare or discrete events
and are infrequent in nature. Adjusted Gross Margin is calculated as Adjusted Gross Profit / (Loss)
divided by revenue. These measures are reviewed by management and management considers them
to be useful measures for assessing Polestar's historical operating performance as they facilitate
comparison between periods by excluding the non-cash impairment expense, the measurement of
which includes significant assumptions related to future periods.

Unaudited reconciliation of Non-GAAP measures
Adjusted EBITDA

(in millions of U.S. dollars)
Adjusted EBITDA
Net loss
Fair value changes on Earn-out rights and Class C shares
Finance expense
Finance income1
Foreign exchange losses (gains) on financial activities, net1
Income tax expense (benefit)
Depreciation and amortization
Impairment (reversal) expense, net
Losses on disposals of investments
Restructuring costs
Adjusted EBITDA

For the six months ended
June 30,
2026
2025
(842)
(6)
205
(5)
15
5
62
(1)
2
44
(521)

(1,193)
(16)
185
(3)
(49)
(43)
76
724
5
14
(302)

(1) The Foreign exchange (losses) gains on operating activities, net were previously presented under Finance
income in the six months ended June 30, 2025. Refer to Voluntary re-presentation from previous year in Note 2 Material accounting policies and judgements in the Unaudited Condensed Consolidated Interim Financial
Statements for further information.

(in millions of U.S. dollars)
Adjusted EBITDA
Net loss
Fair value changes on Earn-out rights and Class C shares
Finance expense
Finance income
Foreign exchange gains (losses) on financial activities, net
Income tax benefit
Depreciation and amortization
Impairment expense, net
Losses on disposals of investments
Restructuring costs
Adjusted EBITDA
1 - Some values for the three-month period ended June 30, 2025 were re-presented.

For the three months
ended June 30,
2026
20251
(459)
(3)
106
(3)
1
(6)
29
—
3
46
(286)

(1,027)
(4)
92
3
(18)
(42)
45
724
9
14
(206)

Adjusted Gross Profit / (Loss)

(in millions of U.S. dollars)
Adjusted Gross Profit / (Loss)
Gross Loss
Impairment (reversal) expense, net
Adjusted Gross Profit / (Loss)

(in millions of U.S. dollars)
Adjusted Gross Profit / (Loss)
Gross Loss
Impairment reversal (expense), net
Adjusted Gross Profit / (Loss)

For the six months ended
June 30,
2026
2025
(115)
(1)
(116)

(703)
724
20

For the three months
ended June 30,
2026
2025
(95)
—
(95)

(768)
724
(44)

Adjusted Gross Margin

(in millions of U.S. dollars)
Adjusted Gross Margin
Adjusted Gross (Loss) Profit (a)
Revenue (b)
Adjusted Gross Margin (a/b)

(in millions of U.S. dollars)
Adjusted Gross Margin
Adjusted Gross Loss (a)
Revenue (b)
Adjusted Gross Margin (a/b)

For the six months ended
June 30,
2026
2025
(116)
1,360
(8.5)%

20
1,423
1.4%

For the three months
ended June 30,
2026
2025
(95)
727
(13.1)%

(44)
791
(5.6)%

Free Cash Flow
(in millions of U.S. dollars)
Free Cash Flow
Net cash used for operating activities
Additions to property, plant, and equipment
Additions to intangible assets
Free Cash Flow

For the six months ended
June 30,
2026
2025
(850)
(66)
(145)
(1,061)

(498)
(88)
(202)
(787)

----- psny-20260630.htm -----
The Polestar Group
Unaudited Condensed Consolidated Interim Financial Statements as of June 30, 2026 and for
the six months ended June 30, 2026 and 2025
F-1
Polestar Automotive Holding UK PLC
INDEX TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2026 AND 2025
Unaudited Condensed Consolidated Statement of Loss and Comprehensive Loss for the six months ended June 30, 2026 and 2025
F-3
Unaudited Condensed Consolidated Statement of Financial Position as of June 30, 2026 and December 31, 2025
F-4
Unaudited Condensed Consolidated Statement of Changes in Equity for the six months ended June 30, 2026 and 2025
F-6
Unaudited Condensed Consolidated Statement of Cash Flows for the six months ended June 30, 2026 and 2025
F-7
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
F-8
F-2
Polestar Automotive Holding UK PLC
Unaudited Condensed Consolidated Statement of Loss and Comprehensive Loss
(in thousands of U.S. dollars except per share data and unless otherwise stated)
For the six months ended June 30,
Note
2026
2025
1
Revenue
3
1,360,091
1,422,605
Cost of sales
4
(
1,474,901
)
(
2,125,729
)
Impairment reversal (expense), net
4
1,154
(
723,524
)
Other cost of sales
4
(
1,476,055
)
(
1,402,205
)
Gross loss
(
114,810
)
(
703,124
)
Selling, general and administrative expense
4
(
430,908
)
(
431,283
)
Research and development expense
4
(
15,332
)
(
31,262
)
Other operating income
5
12,799
41,087
Other operating expense
5
(
50,538
)
(
20,333
)
Foreign exchange (losses) gains on operating activities, net
(
30,077
)
49,321
Operating loss
(
628,866
)
(
1,095,594
)
Finance income
5,256
3,415
Finance expense
(
205,162
)
(
185,319
)
Foreign exchange (losses) gains on financial activities, net
(
14,795
)
49,382
Fair value changes - Earn-out rights and Class C shares
9
6,374
15,813
Share of losses in associates
—
(
24,261
)
Loss before income taxes
(
837,193
)
(
1,236,564
)
Income tax (expense) benefit
(
5,255
)
43,485
Net loss
(
842,448
)
(
1,193,079
)
Net loss per share (in U.S. dollars)
6
Class A - Basic and Diluted
(
0.21
)
(
0.56
)
Class B - Basic and Diluted
(
0.21
)
(
0.56
)
Consolidated Statement of Comprehensive Loss
Net loss
(
842,448
)
(
1,193,079
)
Other comprehensive loss
Items that may be subsequently reclassified to the Consolidated Statement of Loss:
Exchange rate differences from translation of foreign operations
(
91,595
)
34,876
Total other comprehensive (loss) income
(
91,595
)
34,876
Total comprehensive loss
(
934,043
)
(
1,158,203
)
1 -
Certain figures and descriptions were re-presented (see
Voluntary re-presentation from previous year
in
Note 2 - Material accounting policies and judgements).
The accompanying notes are an integral part of these Unaudited Condensed Consolidated Interim Financial Statements.
F-3
Polestar Automotive Holding UK PLC
Unaudited Condensed Consolidated Statement of Financial Position (in thousands of U.S. dollars)
Note
June 30, 2026
December 31, 2025
Assets
Non-current assets
Intangible assets and goodwill
7
663,420
700,326
Property, plant and equipment
8
304,958
292,993
Vehicles under operating leases
130,137
100,535
Other assets
82,901
54,943
Deferred tax assets
94,529
92,345
Total non-current assets
1,275,945
1,241,142
Current assets
Cash and cash equivalents
9
887,577
1,159,300
Trade receivables and other receivables
363,885
341,881
Inventories
10
719,986
853,079
Current tax assets
17,995
11,119
Other assets
251,174
323,294
Total current assets
2,240,617
2,688,673
Total assets
3,516,562
3,929,815
Equity
Share capital
(
49,349
)
(
27,817
)
Other contributed capital
(
5,436,424
)
(
4,133,458
)
Foreign currency translation reserve
106,256
14,661
Accumulated deficit
10,111,283
9,268,835
Total equity
11
4,731,766
5,122,221
Liabilities
Non-current liabilities
Contract liabilities
(
70,719
)
(
76,091
)
Deferred tax liabilities
—
(
577
)
Provisions
12
(
120,492
)
(
133,536
)
Other liabilities
(
82,938
)
(
37,228
)
Earn-out liability
9
(
422
)
(
3,579
)
Loans and borrowings
13
(
946,820
)
(
2,499,230
)
Lease liabilities
(
84,460
)
(
93,514
)
Total non-current liabilities
(
1,305,851
)
(
2,843,755
)
Current liabilities
Trade payables
(
894,797
)
(
1,107,162
)
Accrued expenses
(
320,875
)
(
424,577
)
Advance payments from customers
(
9,915
)
(
16,062
)
Provisions
12
(
115,313
)
(
120,791
)
Loans and borrowings
13
(
4,956,555
)
(
3,860,675
)
Current tax liabilities
(
11,219
)
(
12,276
)
Lease liabilities
(
28,641
)
(
37,210
)
Contract liabilities
(
33,836
)
(
37,183
)
Class C Shares liability
9
(
2,091
)
(
5,308
)
Other liabilities
(
569,235
)
(
587,037
)
Total current liabilities
(
6,942,477
)
(
6,208,281
)
Total liabilities
(
8,248,328
)
(
9,052,036
)
Total equity and liabilities
(
3,516,562
)
(
3,929,815
)
F-4
The accompanying notes are an integral part of these Unaudited Condensed Consolidated Interim Financial Statements.
F-5
Polestar Automotive Holding UK PLC
Unaudited Condensed Consolidated Statement of Changes in Equity
(in thousands of U.S. dollars)
Note
Share capital
Other contributed capital
Foreign currency translation reserve
Accumulated deficit
Total
Balance as of January 1, 2026
(
27,817
)
(
4,133,458
)
14,661
9,268,835
5,122,221
Net loss
—
—
—
842,448
842,448
Other comprehensive loss
—
—
91,595
—
91,595
Total comprehensive loss
—
—
91,595
842,448
934,043
Equity issuances
11
(
10,857
)
(
669,017
)
—
—
(
679,874
)
Equity-settled share-based payment
11
(
17
)
(
3,350
)
—
—
(
3,367
)
Debt-to-equity conversion - Snita Term Loan Facility
11
(
6,004
)
(
335,253
)
—
—
(
341,257
)
Debt-to-equity conversion - Geely Term Loan Facility
11
(
4,654
)
(
295,346
)
—
—
(
300,000
)
Balance as of June 30, 2026
(
49,349
)
(
5,436,424
)
106,256
10,111,283
4,731,766
Balance as of January 1, 2025
(
21,169
)
(
3,625,027
)
63,152
6,911,604
3,328,560
Net loss
—
—
—
1,193,079
1,193,079
Other comprehensive income
—
—
(
34,876
)
—
(
34,876
)
Total comprehensive loss
—
—
(
34,876
)
1,193,079
1,158,203
Equity issuance - Securities Purchase Agreement
—
(
200,000
)
—
—
(
200,000
)
Equity-settled share-based payment
(
89
)
(
5,406
)
—
—
(
5,495
)
Related party capital contribution
—
(
15,265
)
—
—
(
15,265
)
Balance as of June 30, 2025
(
21,258
)
(
3,845,698
)
28,276
8,104,683
4,266,003
The accompanying notes are an integral part of these Unaudited Condensed Consolidated Interim Financial Statements.
F-6
Polestar Automotive Holding UK PLC
Unaudited Condensed Consolidated Statement of Cash Flows
(in thousands of U.S. dollars)
For the six months ended June 30,
Note
2026
2025
Cash flows from operating activities
Net loss
(
842,448
)
(
1,193,079
)
Adjustments to reconcile net loss to net cash flows:
Depreciation and amortization
4, 7, 8
12,137
32,333
Warranty provisions
12
35,414
40,828
Impairment of inventory
4, 10
87,752
81,056
Impairment (reversal) expense of property, plant, and equipment, vehicles under operating leases, and intangible assets, net
2, 4, 7, 8
(
1,154
)
723,524
Finance income
(
5,256
)
(
52,797
)
Finance expense
205,162
185,319
Fair value change - Earn-out rights and Class C Shares
9
(
6,374
)
(
15,813
)
Income tax benefit (expense)
5,255
(
43,485
)
Share of losses in associates
—
24,261
Net losses (gains) on derecognition and disposal of property, plant and equipment and intangible assets
8
12,908
(
286
)
Litigation provisions, net of insurance
12
—
(
583
)
Other provisions
12
64,775
35,993
Exchange rate income (loss), net
34,504
(
38,546
)
Other non-cash expense and income
(
16,217
)
40,931
Changes in operating assets and liabilities:
Inventories
10
37,641
345,169
Contract liabilities
(
5,461
)
(
6,720
)
Trade receivables, prepaid expenses, and other assets
64,070
(
149,266
)
Trade payables, accrued expenses, and other liabilities
(
340,108
)
(
335,281
)
Restricted deposits
(
17,689
)
(
2,565
)
Interest received
1,629
1,867
Interest paid
(
164,338
)
(
146,545
)
Taxes paid
(
12,108
)
(
23,967
)
Cash used for operating activities
(
849,906
)
(
497,652
)
Cash flows from investing activities
Additions to property, plant, and equipment
8
(
66,358
)
(
88,032
)
Additions to intangible assets
7
(
145,216
)
(
201,581
)
Additions to investment in associates
—
(
38,816
)
Reductions to other non-current assets
702
460
Proceeds from sale of property, plant and equipment
8
19
6,294
Cash used for investing activities
(
210,853
)
(
321,675
)
Cash flows from financing activities
Proceeds from short-term borrowings
13
1,728,328
1,954,240
Proceeds from long-term borrowings
12,873
—
Repayments of borrowings
13
(
1,622,852
)
(
1,455,817
)
Proceeds from equity issuance
11
700,000
200,000
Repayments of lease liabilities
(
16,301
)
(
10,968
)
Transaction costs
(
33,323
)
—
Cash provided by financing activities
768,725
687,455
F-7
For the six months ended June 30,
Note
2026
2025
Effect of foreign exchange rate changes on cash and cash equivalents
20,311
111,260
Net decrease in cash and cash equivalents
(
271,723
)
(
20,612
)
Cash and cash equivalents at the beginning of the period
1,159,300
739,237
Cash and cash equivalents at the end of the period
887,577
718,625
The accompanying notes are an integral part of these Unaudited Condensed Consolidated Interim Financial Statements.
F-8
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
(in thousands of U.S. dollars unless otherwise stated)
Note 1 - Overview and basis of preparation
General information
Polestar Automotive Holding UK PLC (the "Parent"), together with its subsidiaries, hereafter referred to as "Polestar", the "Company", "Polestar Group" or the "Group", is a public limited company incorporated in the United Kingdom. Polestar Group operates principally in the automotive industry, engaging in the research and development, branding and marketing, and commercialization and selling of battery electric vehicles. Polestar Group has a presence in
29
markets across Europe, North America, and Asia Pacific. Polestar Group has its management headquarters located at Assar Gabrielssons väg 9, 41878 Göteborg, Sweden.
At the end of June, 2026, Polestar was notified of the decision from the U.S. Department of Commerce's Bureau of Industry and Security not to grant Polestar an authorization under the current Connected Vehicle Rule to sell vehicles in the U.S. from model year 2027 onwards. The Company will continue selling previous model years in the U.S. from its inventory after which it will cease the sale of new vehicles in the U.S.. Following this, Polestar intends to continue to support customers in the U.S., including providing access to its service network and honoring the warranties and other product commitments given to customers when they purchased their vehicles. These activities are expected to reduce over time as these commitments expire and vehicles are retired.
As a result of this decision, Polestar has implemented a number of measures affecting its U.S. new vehicles sales operations, including actions relating to employees, dealers and other commercial arrangements. These actions (the "U.S. Restructuring"), together with the resulting effects on vehicles and related assets, led to material provisions, accruals and other adjustments that are included in the six months ended June 30, 2026 results, primarily:
•
Increase in the negative adjustment for net realizable value ("NRV") in cost of sales reflecting the sell-down of inventory;
•
Increase in the reversal of revenue for the additional amounts expected to be paid out under the residual value guarantees ("RVGs") reflecting the expected fall in residual values; and
•
Recognition of a provision for restructuring costs including employee severance costs and other obligations to suppliers/ partners.
Basis of preparation
These Unaudited Condensed Consolidated Interim Financial Statements are prepared in accordance with International Accounting Standard 34,
Interim Financial Reporting
("IAS 34"), as issued by the International Accounting Standards Board ("IASB"), and are presented in thousands of U.S. dollars, unless otherwise stated. These Unaudited Condensed Consolidated Interim Financial Statements should be read in conjunction with the Consolidated Financial Statements of Polestar Automotive Holding UK PLC, as of December 31, 2025 and 2024, and for the three years ended December 31, 2025 as presented in Form 20-F filed with the United States Securities and Exchange Commission ("SEC") on April 17, 2026 ("2025 Consolidated Financial Statements"). They do not include all of the information required for a complete set of financial statements prepared in accordance with IFRS Accounting Standards; however, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group's financial position and performance since the last annual financial statements.
These Unaudited Condensed Consolidated Interim Financial Statements were authorized for issue by the Company's Board of Directors on September 3, 2026.
Seasonality
Polestar's business is subject to seasonal fluctuations, consistent with patterns observed in the general automotive industry. Demand is typically lower in the first quarter and stronger during the spring and fall. The impact of seasonality on the Group's financial performance has been less visible in the past due to rapid growth, but as the operations expand, seasonal effects may become more pronounced. Consequently, interim results may not be indicative of the full-year performance.
Going concern
These Unaudited Condensed Consolidated Interim Financial Statements have been prepared on a basis that assumes Polestar Group will continue as a going concern.
Management assessed the Group's ability to continue as a going concern and evaluated whether there are events or conditions, considered in the aggregate, that may cast significant doubt about Polestar's ability to continue as a going concern. As a result of this assessment, management identified material uncertainties that cast significant doubt on the Group's ability to continue as a going concern. These material uncertainties relate to the successful execution of management's planned financing actions, including the renegotiation of the Club Loan financing due to expire in early 2027, which will allow the Group to obtain sufficient financing to support its cash flow needs and ensure on-going compliance with its debt covenants. In performing this assessment, management considered a broad range of relevant information, including cash flow forecasts, liquidity forecasts and operational forecasts pertaining to the twelve-month period following the issuance date of these Unaudited Condensed Consolidated Interim Financial Statements, as well as other risks related to Polestar's business. In making these forecasts, management was required to make judgements relating to the Group's future operations as well as macroeconomic and geopolitical factors. These include judgements relating to car sale volumes and prices, operating expenses, required capital expenditure and market demand for debt refinancing and debt and / or equity issuances by Polestar.
F-9
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
(in thousands of U.S. dollars unless otherwise stated)
As a result of scaling up commercialization and continued capital expenditure related to developing its line-up of vehicles, managing the Company's liquidity profile and funding needs remains one of management's key priorities. If Polestar is not able to raise the necessary funds through its operations, equity issuances, debt financings and refinancing or other means, the Group may be required to delay, limit, reduce, or, in the worst case, terminate research and development and / or commercialization efforts. As of June 30, 2026, Polestar has net current liabilities of $
4,701,860
. Since inception, Polestar has generated net losses and negative operating and investing cash flows. Net losses for the six months ended June 30, 2026 and 2025 amounted to $
842,448
and $
1,193,079
, respectively. Negative operating cash flows for the six months ended June 30, 2026 and 2025 amounted to $
849,906
and $
497,652
, respectively. Negative investing cash flows for the six months ended June 30, 2026 and 2025 amounted to $
210,853
and $
321,675
, respectively. Management's liquidity and funding plan forecasts that Polestar will generate negative operating cash flows in the short-term and that investing cash flows will continue to be negative in the short- and long-term due to the high capital expenditure demands of Polestar's business. Securing financing to support operating and development activities represents an ongoing challenge for the Group.
The Group primarily finances its operations through short-term (i.e., 12 months or less) working capital loan arrangements with credit institutions, contributions from shareholders, long-term financing arrangements with related parties and, in certain circumstances, by delaying payment on its trade payables to related parties.
Management's liquidity and funding plan indicates that Polestar depends on rolling over current financing arrangements as well as obtaining additional financing that is expected to be funded via one of, or a combination of, new short-term working capital loan arrangements, long-term loan arrangements, loans with related parties, and executing capital market transactions through offerings of debt and/or equity. Until Polestar begins generating sufficient positive operating cash flows, the timely realization of these financing endeavors, which are, to a significant extent, contingent on the provision of credit enhancements by Geely, is essential for the Group's ability to continue as a going concern. Management cannot guarantee that Polestar will be successful in securing the funds necessary to continue operating and developing activities as planned. During the six months ended June 30, 2026, Polestar continued to demonstrate its ability to obtain financing and proactively manage its liquidity through a combination of debt refinancing, debt-to-equity conversions, equity transactions, covenant amendments and shareholder support. Significant financing activities during the period included:
•
Renewal and extension of multiple working capital and trade finance facilities with existing banking partners, including the extension of the Group's syndicated trade finance facility and the renewal of secured bank loan facilities with Banco Bilbao Vizcaya Argentaria, Standard Chartered Bank, East Asia Bank and SG Asset Finance, together with additional working capital facilities entered into with Bank of China and East Asia Bank.
•
Completion of two equity issuances in February and March 2026 for aggregate gross proceeds of approximately $
700.0
million, including investments from both existing and new institutional investors.
•
Conversion of approximately $
274.0
million of the outstanding Snita Term Loan into equity in March 2026 and a further $
66.0
million on June 30, 2026.
•
Completion, on June 30, 2026, of a debt-to-equity conversion by Geely Sweden Automotive Investment AB totaling approximately $
300.0
million, bringing total debt-to-equity conversions completed during the six months ended June 30, 2026 to approximately $
640.0
million.
•
Extension of the remaining maturity of the Snita Term Loan to December 2031, maintaining its subordinated position within the Group's capital structure and supporting the planned renewal of the Club Loan.
•
Extension of the $
300.0
million outstanding subordinated Geely shareholder term loan to June 30, 2027.
•
Increase of the Green Trade Finance Facility from €
400.0
million to €
450.0
million through the addition of Fubon Bank (Hong Kong) Limited as a new member of the lending syndicate.
•
Successful negotiation with lenders to amend the Club Loan financial covenants, including revised minimum revenue and debt-to-asset ratio thresholds aligned with management's updated business plan.
Management believes that these financing activities demonstrate the Group's continued access to capital funding and provide evidence supporting management's expectation that future financing activities can be successfully executed. Nevertheless, because future financing activities remain subject to factors outside management's control, material uncertainties continue to exist that cast significant doubt upon the Group's ability to continue as a going concern.
Polestar is party to financing instruments that contain financial covenants with which it must comply during, and beyond, the 12 months following the issuance date of these Unaudited Condensed Consolidated Interim Financial Statements including, but not limited to, a minimum quarterly cash level of €
400.0
million, minimum annual revenue amounts, quarterly debt-to-asset ratio thresholds and maximum quarterly financial indebtedness of $
5.5
billion. A failure to comply with these financial covenants could result in an event of default and acceleration of the related borrowings, which could have a material adverse effect on the Group's liquidity. Due to the factors discussed above, there is significant doubt as to whether Polestar will be able to comply with all covenants in future periods. Remedies to a potential event of default include proactively applying for a covenant waiver prior to such event of default occurring and active management of its debt profile, including optimizing the balance between senior and subordinated debt. During 2025, Polestar identified that it was at risk of breaching certain Club Loan covenants and, prior to any breach occurring, successfully obtained lender approval to amend the applicable covenant thresholds. In March 2026, the Group received further lender approval to amend the 2026 minimum annual revenue and debt-to-asset ratio covenant thresholds to align with management's updated business plan. Based on these amended thresholds, management's current forecasts and, assuming the successful execution of management's liquidity and funding plan, which includes the replacement of certain non-subordinated financings with subordinated financing arrangements in the near term, the Group expects to remain in compliance with its financial covenants throughout the twelve-month period following issuance of these Unaudited Condensed Consolidated Interim Financial Statements. However, there remains material uncertainty as to whether Polestar will comply with all covenants in future periods. Continued covenant compliance depends upon the successful execution of management's liquidity and funding plan and, if this does not occur, management cannot guarantee that future covenant waivers or amendments would be available if required.
F-10
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
(in thousands of U.S. dollars unless otherwise stated)
Management forecasts sufficient liquidity throughout the twelve-month period following the issuance date of these Unaudited Condensed Consolidated Interim Financial Statements, assuming the successful execution of its planned financing actions. Under this forecast, the Group expects to meet its forecast cash flow requirements and remain in compliance with its applicable financial covenants. However, because the successful execution of certain financing activities is not entirely within management's control, material uncertainties related to events and conditions remain that may cast significant doubt upon the Group's ability to continue as a going concern. Nevertheless, management concluded that the going concern basis of accounting remains appropriate in preparing these Unaudited Condensed Consolidated Interim Financial Statements. Accordingly, these Unaudited Condensed Consolidated Interim Financial Statements do not include any adjustments that might result should the Group be unable to continue as a going concern.
Note 2 - Material accounting policies and judgements
Except for the changes described below, Polestar Group continues to apply the same accounting policies as described in
Note 2 - Material accounting policies and use of significant judgements and estimates
of the 2025 Consolidated Financial Statements.
Provisions and contingent liabilities
Restructuring provisions
Restructuring provisions relate to planned reorganization or restructuring that materially change either the scope of Polestar's business or the manner in which it is conducted. Costs related to restructuring generally comprise employee severance packages, facility closure costs, and other costs related to business reorganization. A restructuring provision is recognized when Polestar has a detailed formal plan for the restructuring and has raised a valid expectation in those affected that the restructuring will be carried out by starting to implement the plan or announcing its main features.
Adoption of new and amended standards
Effects of new and amended IFRS
In December 2024, the IASB issued amendments to IFRS 9,
Financial Instruments
, and IFRS 7,
Financial Instruments: Disclosures
, as well as
Annual Improvements to IFRS Accounting Standards-Volume 11
. These amendments became effective for annual periods beginning on or after January 1, 2026. Management assessed the impact of adopting these amendments and concluded that they did not have a material impact on the Unaudited Condensed Consolidated Interim Financial Statements.
New and amended IFRS issued but not yet effective
Management has assessed the new and amended accounting standards issued during the six months ended June 30, 2026 but not yet effective and concluded that their adoption will not have a material impact on the Group when they become effective. Management's assessment of the other new and amended IFRS issued has not changed from that described in
Note 2 - Material accounting policies and use of significant judgements and estimates
of the 2025 Consolidated Financial Statements.
Use of estimates and judgements
In preparing these Unaudited Condensed Consolidated Interim Financial Statements, management has made judgements and estimates about the future that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
The significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were materially the same as those described in the 2025 Consolidated Financial Statements with the following additional considerations / modifications:
•
Revenue - in addition to the judgements and estimates related to revenue described in the 2025 Consolidated Financial Statements, as of June 30, 2026 further estimates were necessary in relation to residual value guarantees. Following the decision of the U.S. Department of Commerce's Bureau of Industry and Security not to grant Polestar an authorization under the current Connected Vehicle Rule to sell vehicles in the U.S. from model year 2027 onwards (refer to
Note 1 - Overview and basis of preparation
), management determined that the residual value information obtained from third-party sources at June 30, 2026 did not yet reflect the potential negative impact of this decision on the residual values of the vehicles in the U.S. lease portfolio. Therefore, management made an estimate of this potential impact and adjusted down the residual values used to calculate the refund liability and revenue adjustment related to the residual value guarantees. Changes in expected residual values could result in changes to the amount recognized in future periods.
•
Impairment of PPE, intangible assets and goodwill - as described in the 2025 Consolidated Financial Statements. Polestar conducts routine evaluations of its PPE, intangible assets, and goodwill for evidence of impairment indicators.
◦
Judgements
: Polestar applies judgement in assessing whether events or changes in circumstances indicate that the carrying amount of its non-financial assets may not be recoverable. As of June 30, 2026, management considered, among other factors, changes in the market for battery electric vehicles and the impact these have on management's updated forecasts and the effects of the decision of the U.S. Department of Commerce's Bureau of Industry and Security not to grant Polestar an authorization under the current Connected Vehicle Rule to sell vehicles in the U.S. from model year 2027 onwards (refer to
Note 1 - Overview and basis of preparation
). Management concluded that there were no indicators of impairment for the Group's cash-generating units with material long-term assets.
F-11
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
(in thousands of U.S. dollars unless otherwise stated)
Voluntary re-presentation from previous year
In order to improve the clarity and consistency of the presentation of the Group's profit and loss, during the current reporting period, the Group has altered the presentation of certain financial statement line items in the Condensed Consolidated Statement of Loss and Comprehensive Loss. The presentation of the comparative information has been adjusted accordingly to ensure consistency with the current period's presentation.
Unaudited Condensed Consolidated Statement of Loss and Comprehensive Loss
The comparative period ended June 30, 2025
in the
Unaudited Condensed Consolidated Statement of Loss and Comprehensive Loss has been presented considering the changes described above.
For the six months ended June 30, 2025
Ref.
As previously reported
Impact of presentation changes
As revised
Revenue
1,422,605
—
1,422,605
Cost of sales
(
2,125,729
)
—
(
2,125,729
)
Impairment expense, net of reversals
(
723,524
)
—
(
723,524
)
Other cost of sales
(
1,402,205
)
—
(
1,402,205
)
Gross loss
(
703,124
)
—
(
703,124
)
Selling, general, and administrative expense
(
431,283
)
—
(
431,283
)
Research and development expense
(
31,262
)
—
(
31,262
)
Other operating income (expense), net
(a)
70,075
(
70,075
)
—
Other operating income
(a)
—
41,087
41,087
Other operating expense
(a)
—
(
20,333
)
(
20,333
)
Foreign exchange gains (losses) on operating activities, net
(a)
—
49,321
49,321
Operating loss
(
1,095,594
)
—
(
1,095,594
)
Finance income
(b)
52,797
(
49,382
)
3,415
Finance expense
(
185,319
)
—
(
185,319
)
Foreign exchange gains (losses) on financial activities, net
(b)
—
49,382
49,382
Fair value change - Class C Shares and Earn-out rights
(c)
15,813
—
15,813
Share of losses in associates
(
24,261
)
—
(
24,261
)
Loss before income taxes
(
1,236,564
)
—
(
1,236,564
)
Income tax benefit
43,485
—
43,485
Net loss
(
1,193,079
)
—
(
1,193,079
)
Operational results (a)
The other income and expense were previously presented net, and the revised change presents the other operating income, other operating expense and the foreign exchange results separately. This breakdown improves transparency, allowing the reader to clearly distinguish income, expense, and currency impacts within the Company's operating results.
Financial results (b)
Foreign exchange results were segregated in the revised consolidated profit and loss to provide a clearer view of financial gains and losses from currency fluctuations.
Results of fair value changes (c)
The lines of fair value changes from Earn-out rights and Class C Shares were previously disclosed separately. Given their nature and materiality, those lines were aggregated in one line item, called "Fair value changes - Earn-out rights and Class C shares".
F-12
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
(in thousands of U.S. dollars unless otherwise stated)
Note 3 - Revenue
The following table shows the Group's revenue disaggregated by source:
For the six months ended June 30,
2026
2025
Sales of vehicles
1
1,278,805
1,317,756
Sales of carbon credits
52,414
72,155
Sales of licenses and royalties
19,907
10,920
Vehicle leasing revenue
4,338
7,579
Sales of software and performance engineered kits
2,515
5,628
Other revenue
2,112
8,567
Total
1,360,091
1,422,605
1 - Revenue related to sale of vehicles is inclusive of services sold with vehicles that are recognized over time.
For the six months ended June 30, 2026 and 2025, no single customer that was not a related party exceeded 10% of total revenue.
The following table shows the breakdown of the Group's revenue by geographical location of the Group entity recognizing the revenue:
For the six months ended June 30,
2026
2025
United Kingdom
385,462
373,173
Sweden
255,982
275,529
Germany
107,825
90,830
Korea
100,716
54,828
Norway
98,824
98,451
Belgium
69,424
76,432
Australia
62,263
50,170
Denmark
52,140
52,098
Finland
35,811
41,062
Switzerland
35,764
32,726
Netherlands
31,327
54,759
Spain
27,614
19,078
Austria
25,068
15,915
Italy
19,560
13,921
Portugal
17,939
14,215
France
13,524
205
Canada
10,252
27,560
Luxembourg
5,273
8,244
United States
1
3,488
93,836
Other regions
1,835
29,573
Total
1,360,091
1,422,605
1 - For the six months ended June 30, 2026, the amount was impacted by the increase in the residual value guarantees relating to the U.S. Restructuring as described in
Note 1 - Overview and basis of preparation.
F-13
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
(in thousands of U.S. dollars unless otherwise stated)
Note 4 - Expenses by nature
The following table illustrates the Group's expenses by nature:
For the six months ended June 30, 2026
Cost of sales
Selling, general and administrative expense
Research and development expense
Total
Inventory costs
1,408,579
—
—
1,408,579
Impairment reversal, net
(
1,154
)
—
—
(
1,154
)
Professional services and consultant costs
—
80,562
10,405
90,967
Advertising, selling, and promotion costs
—
134,033
—
134,033
Employee benefit costs
1,859
121,070
6,279
129,208
Warranties and costs associated with settling contract liabilities
62,872
1,019
—
63,891
Depreciation and amortization expense
2,431
9,234
472
12,137
Sales agent costs
—
61,672
—
61,672
Maintenance and insurance service costs
—
7,913
—
7,913
Other costs
314
15,405
(
1,824
)
13,895
Total
1,474,901
430,908
15,332
1,921,141
For the six months ended June 30, 2025
Cost of sales
Selling, general and administrative expense
Research and development expense
Total
Inventory costs
1,325,998
—
—
1,325,998
Impairment of property, plant and equipment, vehicles under operating leases, and intangible assets
723,524
—
—
723,524
Professional services and consultant costs
—
109,821
17,219
127,040
Advertising, selling, and promotion costs
—
120,329
—
120,329
Employee benefit costs
3,847
105,431
2,840
112,118
Warranties and costs associated with settling contract liabilities
55,649
1,053
—
56,702
Sales agent costs
—
51,999
—
51,999
Depreciation and amortization expense
13,755
12,823
5,755
32,333
Maintenance and insurance service costs
—
9,861
—
9,861
Other costs
2,956
19,966
5,448
28,370
Total
2,125,729
431,283
31,262
2,588,274
Note 5 - Other operating income and expense
The following table details the Group's other operating income and expense:
For the six months ended June 30,
2026
2025
Other operating income
Sales of carbon credits
4,349
17,621
Transition services to Polestar Times Technology
3,132
16,285
Sales of plant operation services to a related party
—
1,661
Other operating income
5,318
5,520
Total other operating income
12,799
41,087
Other operating expense
F-14
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
(in thousands of U.S. dollars unless otherwise stated)
For the six months ended June 30,
2026
2025
Restructuring costs
1
44,247
13,629
Property tax and other state and local tax expenses
994
1,235
Transition services to Polestar Times Technology
—
947
Other operating expenses
5,297
4,522
Total other operating expense
50,538
20,333
1 - For the six months ended June 30, 2026, the amounts are primarily related to severance costs and other restructuring costs arising from the U.S. Restructuring as described in
Note 1 - Overview and basis of preparation
. For the six months ended June 30, 2025, the amounts are primarily related to severance costs.
Note 6 - Net loss per share
The following table presents the
computation of basic and diluted net loss per share:
For the six months ended June 30,
2026
2025
Class A and B Common Shares
Net loss attributable to shareholders of the parent entity
(
842,448
)
(
1,193,079
)
Weighted-average number of common shares outstanding:
Basic and diluted
3,978,760
2,114,848
Net loss per share (in ones):
Basic and diluted
(
0.21
)
(
0.56
)
On December 9, 2025, Polestar's Class A, Class B, Class C-1 and Class C-2 ADS's ratio changed from the current ADS ratio of one (1) ADS to one (1) ordinary share to the underlying ADS Ratio of one (1) ADS to thirty (30) ordinary shares. There were no changes to the Company's Class A, Class B, Class C-1 or Class C-2 ordinary shares, therefore, the shares used in the net loss per share calculations have not been impacted by the change in the ratio of ADSs to ordinary shares to 1:30. For further information on the ADS ratio change, refer to
Note 21 - Equity
included in the 2025 Consolidated Financial Statements.
F-15
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
(in thousands of U.S. dollars unless otherwise stated)
Note 7 - Intangible assets and goodwill
The changes in Polestar Group's intangible assets, goodwill and trademarks are as follows:
Internally developed IP
Software
Acquired IP
Goodwill
Trademarks
Total
Acquisition cost
Balance as of January 1, 2026
682,645
17,177
2,311,582
52,386
2,602
3,066,392
Additions
1
38,658
—
60,143
—
—
98,801
Derecognition due to program changes
(
10,558
)
—
—
—
—
(
10,558
)
Effect of foreign currency exchange differences
(
35,509
)
(
628
)
(
85,906
)
(
2,672
)
(
133
)
(
124,848
)
Balance as of June 30, 2026
675,236
16,549
2,285,819
49,714
2,469
3,029,787
Balance as of January 1, 2025
455,029
11,665
1,811,120
43,793
2,175
2,323,782
Additions
1
73,747
760
83,887
—
—
158,394
Derecognition due to program changes
—
—
—
—
—
—
Reclassifications
—
(
3
)
3
—
—
—
Effect of foreign currency exchange differences
77,232
1,874
236,539
7,001
348
322,994
Balance as of June 30, 2025
606,008
14,296
2,131,549
50,794
2,523
2,805,170
Accumulated amortization and impairment
Balance as of January 1, 2026
(
536,890
)
(
7,498
)
(
1,821,678
)
—
—
(
2,366,066
)
Amortization expense
—
(
1,155
)
(
48
)
—
—
(
1,203
)
Amortization capitalized into inventory
(
2,279
)
—
(
30,917
)
—
—
(
33,196
)
Effect of foreign currency exchange differences
7,481
337
26,280
—
—
34,098
Balance as of June 30, 2026
(
531,688
)
(
8,316
)
(
1,826,363
)
—
—
(
2,366,367
)
Balance as of January 1, 2025
(
332,488
)
(
4,380
)
(
946,065
)
—
—
(
1,282,933
)
Amortization expense
—
(
931
)
(
3,210
)
—
—
(
4,141
)
Amortization expense capitalized into inventory
(
1,193
)
—
(
31,765
)
—
—
(
32,958
)
Impairment loss
(
13,708
)
—
(
480,798
)
—
—
(
494,506
)
Effect of foreign currency exchange rate differences
(
52,214
)
(
588
)
(
100,165
)
—
—
(
152,967
)
Balance as of June 30, 2025
(
399,603
)
(
5,899
)
(
1,562,003
)
—
—
(
1,967,505
)
Carrying amount as of June 30, 2026
143,548
8,233
459,456
49,714
2,469
663,420
Carrying amount as of December 31, 2025
145,755
9,679
489,904
52,386
2,602
700,326
1 – Of $
98,801
in additions for the six months ended June 30, 2026, $
57,418
was settled in cash. In the Unaudited Condensed Consolidated Statement of Cash Flows, this $
57,418
is included as investing activities in the $
145,216
additions to intangible assets, and the remaining $
87,798
relates to additions from prior periods which were settled in cash during the six months ended June 30, 2026.
Of $
158,394
in additions for the six months ended June 30, 2025, $
71,152
has been settled in cash. These $
71,152
are included in the $
201,581
cash used for investing activities related to additions to intangible assets, and the remaining $
130,429
relates to additions from prior periods which were settled in cash during the six months ended June 30, 2025
.
The significant additions in the six months ended June 30, 2026 related to:
•
Additions to Internally developed IP are primarily related to the Polestar 4, Polestar 5 and various other internal programs, such as model year updates.
•
Additions to Acquired IP are primarily related to acquisitions of Polestar 2, Polestar 4 and Polestar 5 model year updates.
F-16
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
(in thousands of U.S. dollars unless otherwise stated)
Note 8 - Property, plant and equipment
The table below shows the changes to the carrying amount of tangible assets and right-of-use assets that comprise Property, plant and equipment:
Tangible assets
Right-of-use assets
Buildings and land
Machinery and equipment
Assets under construction
Buildings and land
Machinery and equipment
Total
Acquisition cost
Balance as of January 1, 2026
9,449
607,199
144,996
112,195
93,043
966,882
Additions
1
135
32,869
13,139
6,808
2,794
55,745
Derecognition due to program changes
—
—
(
504
)
—
—
(
504
)
Divestments and disposals
(
2
)
(
170
)
(
1,840
)
—
—
(
2,012
)
Reclassifications
—
142,486
(
142,486
)
—
—
—
Cancellations
—
—
—
(
3,919
)
(
1,461
)
(
5,380
)
Remeasurement
—
—
—
(
8,081
)
(
282
)
(
8,363
)
Effect of foreign currency exchange differences
40
(
2,758
)
2,696
(
3,108
)
(
1,885
)
(
5,015
)
Balance at June 30, 2026
9,622
779,626
16,001
103,895
92,209
1,001,353
Balance at January 1, 2025
10,866
476,162
166,196
108,725
83,075
845,024
Additions
1
213
1,519
48,535
6,665
4,357
61,289
Divestments and disposals
(
2,167
)
(
1,013
)
(
47
)
—
—
(
3,227
)
Reclassifications
200
1,305
(
1,505
)
—
—
—
Cancellations
—
—
—
(
10,905
)
(
1,845
)
(
12,750
)
Remeasurement
—
—
—
—
(
1,095
)
(
1,095
)
Effect of foreign currency exchange differences
720
15,125
15,480
12,410
6,824
50,559
Balance at June 30, 2025
9,832
493,098
228,659
116,895
91,316
939,800
Depreciation and impairment
Balance as of January 1, 2026
(
5,065
)
(
412,337
)
(
108,573
)
(
58,733
)
(
89,181
)
(
673,889
)
Depreciation expense
(
584
)
(
1,625
)
—
(
6,817
)
(
118
)
(
9,144
)
Depreciation capitalized into inventory
—
(
17,973
)
—
—
—
(
17,973
)
Divestments and disposals
2
164
—
—
—
166
Depreciation expense employee benefits
—
—
—
—
(
2,086
)
(
2,086
)
Cancellations
—
—
—
5,466
1,130
6,596
Impairment loss
—
(
106,456
)
106,456
308
—
308
Effect of foreign currency exchange differences
(
21
)
(
2,696
)
(
1,118
)
1,827
1,635
(
373
)
Balance at June 30, 2026
(
5,668
)
(
540,923
)
(
3,235
)
(
57,949
)
(
88,620
)
(
696,395
)
Balance at January 1, 2025
(
4,154
)
(
142,883
)
(
72,700
)
(
38,169
)
(
49,375
)
(
307,281
)
Depreciation expense
(
1,185
)
(
2,516
)
—
(
10,449
)
(
532
)
(
14,682
)
Depreciation capitalized into inventory
—
(
7,356
)
—
—
(
1,698
)
(
9,054
)
Divestments and disposals
741
805
—
—
—
1,546
Depreciation expense employee benefits
—
—
—
—
(
1,823
)
(
1,823
)
Cancellations
—
—
—
7,427
1,692
9,119
Impairment loss
—
(
215,715
)
(
874
)
—
(
28,891
)
(
245,480
)
Effect of foreign currency exchange differences
(
176
)
(
4,826
)
(
1,460
)
(
4,462
)
(
1,156
)
(
12,080
)
Balance at June 30, 2025
(
4,774
)
(
372,491
)
(
75,034
)
(
45,653
)
(
81,783
)
(
579,735
)
Carrying amount at June 30, 2026
3,954
238,703
12,766
45,946
3,589
304,958
Carrying amount at December 31, 2025
4,384
194,862
36,423
53,462
3,862
292,993
1 - Of $
55,745
in additions for the six months ended June 30, 2026, $
26,844
was settled in cash. In the Unaudited Condensed Consolidated Statement of Cash Flows the amount of $
26,844
is included as investing activities in the $
66,358
to additions to property, plant and equipment, and the remaining $
39,514
relates to additions to
trade payables
from prior years which were settled in cash during the six months ended June 30, 2026.
F-17
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
(in thousands of U.S. dollars unless otherwise stated)
Of $
61,289
in additions for the six months ended June 30, 2025, $
38,296
was settled in cash. In the Unaudited Condensed Consolidated Statement of Cash Flows $
38,296
is included as investing activities in the $
88,032
of additions to property, plant and equipment, and the remaining $
49,736
relates to additions to
trade payables
from prior years which were settled in cash during the six months ended June 30, 2025.
The significant additions in the six months ended June 30, 2026 were related to additions to machinery and equipment, mainly due to acquisitions of vendor tooling for Polestar 5.
Note 9 - Financial instruments
Fair values
The following table shows the carrying amounts of financial assets and liabilities measured at amortized cost. The carrying amounts of these financial assets and liabilities approximate their fair value.
As of June 30, 2026
As of December 31, 2025
Current
Non-Current
Current
Non-Current
Financial assets
Cash and cash equivalents
887,577
—
1,159,300
—
Trade receivables and other receivables
363,885
—
341,881
—
Restricted deposits
5,898
67,257
19,188
38,934
Other financial assets
26,089
14,481
49,079
14,340
Total financial assets measured at amortized cost
1,283,449
81,738
1,569,448
53,274
Financial liabilities
Loans and borrowings
(
4,956,555
)
(
946,820
)
(
3,860,675
)
(
2,499,230
)
Trade payables
(
894,797
)
—
(
1,107,162
)
—
Accrued expenses
(
319,045
)
—
(
424,152
)
—
Refund liabilities
(
171,734
)
(
73,212
)
(
167,642
)
(
30,875
)
Lease liabilities
(
28,641
)
(
84,460
)
(
37,210
)
(
93,514
)
Liabilities related to repurchase commitments
(
131,083
)
(
4,256
)
(
124,633
)
(
722
)
Advance payments from customers
(
9,915
)
—
(
16,062
)
—
Other financial liabilities
(
20,111
)
—
(
11,582
)
—
Total financial liabilities measured at amortized cost
(
6,531,881
)
(
1,108,748
)
(
5,749,118
)
(
2,624,341
)
F-18
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
(in thousands of U.S. dollars unless otherwise stated)
The following table shows the maturities for the Group's non-derivative financial assets and liabilities as of June 30, 2026 and as of December 31, 2025:
As of June 30, 2026
Due within 1 year
Due between 1 and 5 years
Due beyond 5 years
Total
Financial assets
Cash and cash equivalents
887,577
—
—
887,577
Trade receivables and other receivables
363,885
—
—
363,885
Restricted deposits
5,898
67,257
—
73,155
Other financial assets
26,089
11,710
2,771
40,570
Total financial assets measured at amortized cost
1,283,449
78,967
2,771
1,365,187
Financial liabilities
Loans and borrowings
(
4,956,555
)
(
281,475
)
(
665,345
)
(
5,903,375
)
Trade payables
(
894,797
)
—
—
(
894,797
)
Accrued expenses
(
319,045
)
—
—
(
319,045
)
Refund liabilities
(
171,734
)
(
73,212
)
—
(
244,946
)
Lease liabilities
(
28,641
)
(
74,074
)
(
10,386
)
(
113,101
)
Liabilities related to repurchase commitments
(
131,083
)
(
4,256
)
—
(
135,339
)
Advance payments from customers
(
9,915
)
—
—
(
9,915
)
Other financial liabilities
(
20,111
)
—
—
(
20,111
)
Total financial liabilities measured at amortized cost
(
6,531,881
)
(
433,017
)
(
675,731
)
(
7,640,629
)
As of December 31, 2025
Due within 1 year
Due between 1 and 5 years
Due beyond 5 years
Total
Financial assets
Cash and cash equivalents
1,159,300
—
—
1,159,300
Trade receivables and other receivables
341,881
—
—
341,881
Restricted deposits
19,188
38,934
—
58,122
Other financial assets
49,079
11,482
2,858
63,419
Total financial assets measured at amortized cost
1,569,448
50,416
2,858
1,622,722
Financial liabilities
Loans and borrowings
(
3,860,675
)
(
2,499,230
)
—
(
6,359,905
)
Trade payables
(
1,107,162
)
—
—
(
1,107,162
)
Accrued expenses
(
424,152
)
—
—
(
424,152
)
Refund liabilities
(
167,642
)
(
30,875
)
—
(
198,517
)
Lease liabilities
(
37,210
)
(
67,621
)
(
25,893
)
(
130,724
)
Liabilities related to repurchase commitments
(
124,633
)
(
722
)
—
(
125,355
)
Advance payments from customers
(
16,062
)
—
—
(
16,062
)
Other financial liabilities
(
11,582
)
—
—
(
11,582
)
Total financial liabilities measured at amortized cost
(
5,749,118
)
(
2,598,448
)
(
25,893
)
(
8,373,459
)
F-19
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
(in thousands of U.S. dollars unless otherwise stated)
The following table shows the carrying amounts of financial liabilities measured at fair value through profit and loss on a recurring basis:
Quoted prices in active markets
(Level 1)
Significant observable inputs
(Level 2)
Significant unobservable inputs
(Level 3)
Total
As of June 30, 2026
Earn-out rights
—
—
422
422
Class C-1 Shares
1,715
—
—
1,715
Class C-2 Shares
—
376
—
376
Total
1,715
376
422
2,513
As of December 31, 2025
Earn-out rights
—
—
3,579
3,579
Class C-1 Shares
4,353
—
—
4,353
Class C-2 Shares
—
955
—
955
Total
4,353
955
3,579
8,887
There were no transfers between Level 1 and Level 2 in the six months ended June 30, 2026 and 2025.
Significant unobservable inputs to valuation of the contingent earn-out rights
As of June 30, 2026, the valuation technique for determining the fair value of the earn-out rights and the inputs used were unchanged from those described in the Group's 2025 Consolidated Financial Statements.
The following table presents the variables considered in the valuation and the earn-out fair value:
As of June 30, 2026
As of December 31, 2025
Term in years
1.48
1.98
Volatility
85
%
90
%
Risk-free rate
4.0
%
3.4
%
The volatility represents the most significant unobservable input utilized in this Level 3 valuation technique. As of June 30, 2026, a 1% increase in the volatility would have resulted in a decrease in fair value of $
3
, and a 1% decrease in the volatility would have resulted in a decrease in fair value of $
86
.
The table that follows shows the changes in the fair value of the earn-out rights in the periods presented:
Earn-out rights
As of January 1, 2026
3,579
Change in fair value measurement
(
3,157
)
As of June 30, 2026
422
As of January 1, 2025
28,778
Change in fair value measurement
(
15,813
)
As of June 30, 2025
12,965
The earn-out liability is presented in non-current liabilities within the Unaudited Condensed Consolidated Statement of Financial Position to align with the expected timing of the underlying earn-out payments.
Risk management
As a result of its business and the global nature of its operations, Polestar Group is exposed to market risks, primarily from changes in foreign currency exchange rates and interest rate risk, credit risk and liquidity risk. As of June 30, 2026, there were no significant changes in the risks to which the Group is exposed or in its management of risk from December 31, 2025.
During the six months ended June 30, 2026 Polestar began discussions with the syndicate of lenders for its Club Loan (refer to
Note 13 - Loans and borrowings
for further information) in relation to its covenants. Prior to June 30, 2026, the required majority of lenders agreed to amend the debt-to-asset ratio range for the calculation as of June 30, 2026. As a result, Polestar was in compliance with this covenant as of June 30, 2026.
The lenders also agreed to amend the debt-to-asset ratio range for the calculation as of September 30, 2026 from
0.85
:1 to
1.40
:1 and December 31, 2026 from
0.80
:1 to
1.30
:1, respectively, as well as the minimum revenue requirement for the calendar year 2026 from $
8,670.2
million to $
3,300.0
million.
F-20
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
(in thousands of U.S. dollars unless otherwise stated)
Note 10 - Inventories
The Group's inventory primarily consisted of vehicles as follows:
As of June 30, 2026
As of December 31, 2025
Finished goods and goods for resale
862,886
1,024,942
NRV adjustment (inventory impairment provision)
(
142,900
)
(
171,863
)
Total
719,986
853,079
Inventory costs recognized in cost of sales during the six months ended June 30, 2026 and 2025 amounted to $
1,408,910
and $
1,244,942
, respectively.
During the six months ended June 30, 2026 and 2025, the write-down of inventories to net realizable value amounted to $
87,752
and $
81,056
, respectively. The write-downs were recognized as an expense in Cost of sales.
Note 11 - Equity
Changes in the Group's equity were as follows:
Quantity
In US$ (thousands)
Class A
Shares
Class B
Shares
Share
capital
Other contributed capital
Balance as of January 1, 2026
2,745,232,339
29,892,575
(
27,817
)
(
4,133,458
)
Equity issuance - February
1
620,475,660
—
(
6,203
)
(
379,106
)
Equity issuance - March
1
465,356,730
—
(
4,654
)
(
289,911
)
Equity-settled share-based payment
1,661,490
—
(
17
)
(
3,350
)
Debt-to-equity conversion - Snita Term Loan Facility
2
600,429,000
—
(
6,004
)
(
335,253
)
Debt-to-equity conversion - Geely Term Loan Facility
2
465,356,760
—
(
4,654
)
(
295,346
)
Cancellation of surplus shares
3
(
679
)
(
5
)
—
—
Balance as of June 30, 2026
4,898,511,300
29,892,570
(
49,349
)
(
5,436,424
)
Balance as of January 1, 2025
2,060,461,997
49,892,575
(
21,169
)
(
3,625,027
)
Securities Purchase Agreement
—
—
—
(
200,000
)
Equity-settled share-based payment
8,937,392
—
(
89
)
(
5,406
)
Related party capital contribution
—
—
—
(
15,265
)
Balance as of June 30, 2025
2,069,399,389
49,892,575
(
21,258
)
(
3,845,698
)
1 - Refer to
Equity issuances
below for further information.
2 - Refer to
Related party debt-to-equity conversions
below for further information.
3 - Related to surplus ordinary shares resulting from the prior year ADS ratio change being transferred to the Company for no consideration and cancelled.
Equity issuances
On February 2, 2026, Polestar entered into a Securities Purchase Agreement with each of Feathertop Funding Limited, a special purpose vehicle consolidated to Sumitomo Mitsui Banking Corporation, and Standard Chartered Bank (Hong Kong) Limited (each, a "Purchaser" and collectively, the "Purchasers"), pursuant to which Polestar sold an aggregate of
20,682,522
Class A ADS to the Purchasers for an aggregate purchase price of $
400.0
million. Neither Purchaser owned more than 10% of the outstanding equity of Polestar following the closing. The price per Class A ADS was $
19.34
.
On March 16, 2026, Polestar entered into a Securities Purchase Agreement with four separate purchasers, including Crédit Agricole Corporate and Investment Bank, Vida Finance S.A., Innovator Limited and Proximastar Holdings Company Limited (each, a "Purchaser" and collectively, the "Purchasers"), pursuant to which Polestar sold an aggregate of
15,511,891
Class A ADS to the Purchasers for an aggregate purchase price of $
300.0
million. No Purchaser owned more than 5% of the outstanding equity of Polestar following the closing. The price per Class A ADS was $
19.34
.
F-21
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
(in thousands of U.S. dollars unless otherwise stated)
In parallel to these transactions, entities controlled by Polestar Group's ultimate controlling shareholder (related parties) entered into put option arrangements with the third party investors which allow the investors to sell the Class A ADSs acquired from Polestar to the related parties during an exercise period at the end of the term of the put option at a pre-determined price to the extent the investor has not disposed of such Class A ADSs before then. Polestar is not party to these contracts and has no obligation under them. However, these contracts were necessary to enable the transaction to close with the terms that it did, including a price per share above the market price on the date of the transactions, and, therefore, Polestar indirectly benefited from them. Polestar concluded that the related parties were acting as its shareholders by making these arrangements for its benefit and therefore accounted for this support as a capital contribution with a fair value of $
453.5
million.
Related party debt-to-equity conversions
On March 31, 2026, $
275.7
million of principal under the Snita Term Loan Facility was converted into equity (for further information, see
Note 13 - Loans and borrowings
)
. The conversion resulted in the issuance of
16,150,000
Class A ADSs, each representing 30 Class A ordinary shares, or
484,500,000
Class A ordinary shares in aggregate. The contractual conversion price was $
16.97
per ADS. The fair value of the ADSs issued was determined with reference to the quoted market price of the Company's ADSs immediately prior to announcement of the transaction.
On June 30, 2026, approximately $
65.6
million of additional principal under the Snita Term Loan Facility was converted into equity in accordance with the conversion agreement entered into on March 31, 2026. The conversion resulted in the issuance of
3,864,300
Class A ADSs, representing approximately
115,929,000
Class A ordinary shares. The contractual conversion price was $
16.97
per ADS.
Additionally, during the second quarter of 2026, Polestar and Geely Sweden Automotive Investment AB executed a debt-to-equity conversion of $
300.0
million of the outstanding principal and interest under the Geely Term Loan Facility, comprising $
250
million of outstanding principal and $
50
million of accrued interest. The conversion resulted in the issuance of
15,511,892
Class A ADSs, equivalent to approximately
465,356,760
Class A ordinary shares, at a contractual conversion price of $
19.34
per ADS.
Equity instrument
The following instruments of the Parent were issued and outstanding as of June 30, 2026:
•
4,898,511,300
Class A Shares with a par value of $
0.01
, of which
2,950,852,470
were owned by related parties;
•
29,892,570
Class B Shares with a par value of $
0.01
, of which all were owned by related parties;
•
20,499,960
Class C-1 Shares with a par value of $
0.10
;
•
4,499,970
Class C-2 Shares with a par value of $
0.10
; and
•
50,000
Redeemable Preferred Shares with a par value of GBP
1.00
.
As of June 30, 2026, there were an additional
101,488,700
Class A Shares and
1,747,474,169
Class B Shares with par values of $
0.10
authorized for issuance.
No
additional Class C Shares or Redeemable Preferred Shares were authorized for issuance.
Note 12 - Provisions
Changes in the Group's current and non-current provisions were as follows:
Warranties
Employee benefits
Litigation
1
Other
2
Total
Balance as of January 1, 2026
162,093
6,416
28,999
56,819
254,327
Additions
48,715
15,213
—
58,802
122,730
Utilization
(
54,850
)
(
9,367
)
(
26,372
)
(
21,648
)
(
112,237
)
Reversals
(
12,318
)
(
108
)
—
(
9,132
)
(
21,558
)
Unwinding of discount and effect of changes in discount rate
(
983
)
—
—
—
(
983
)
Effect of foreign currency exchange differences
(
5,052
)
(
527
)
—
(
895
)
(
6,474
)
Balance as of June 30, 2026
137,605
11,627
2,627
83,946
235,805
of which current
37,627
11,627
2,627
63,432
115,313
of which non-current
99,978
—
—
20,514
120,492
Balance as of January 1, 2025
128,591
902
27,135
10,898
167,526
Additions
56,724
5,373
—
31,411
93,508
Utilization
(
29,439
)
(
887
)
(
53
)
(
9,951
)
(
40,330
)
Reversals
(
15,440
)
(
648
)
(
583
)
(
143
)
(
16,814
)
Unwinding of discount and effect of changes in discount rate
(
456
)
—
—
—
(
456
)
Effect of foreign currency exchange differences
13,367
897
—
1,267
15,531
Balance as of June 30, 2025
153,347
5,637
26,499
33,482
218,965
of which current
59,702
5,637
26,499
22,926
114,764
of which non-current
93,645
—
—
10,556
104,201
F-22
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
(in thousands of U.S. dollars unless otherwise stated)
1 - In the six months ended June 30, 2026, the utilization of $
26,372
was primarily related to the settlement of the Gores Guggenheim ("GGI") litigation filed in August 2023, for which Polestar was obligated to indemnify the defendants under the terms of the Business Combination Agreement. For further information of the GGI litigation, see
Note 22 - Provisions
from the 2025 Consolidated Financial Statements.
2 - In the six months ended June 30, 2026, the additions of $
58,802
primarily relate to the U.S. Restructuring (refer to
Note 1 - Overview and basis of preparation
), and in the six months ended June 30, 2025, the additions of $
31,411
primarily relate to provisions for restructuring initiated in 2025 (mainly the R&D and Procurement departments in the UK and manufacturing in China).
Note 13 - Loans and borrowings
Working capital loans from banks
Convertible instruments
Club Loan
Borrowing collateralized with tooling
Market RCFs
Total
Balance as of January 1, 2026
3,250,586
1,621,975
998,840
333,696
154,808
6,359,905
New borrowings
1,600,385
—
—
14,274
126,542
1,741,201
Payments
(
1,426,590
)
—
—
(
13,460
)
(
182,802
)
(
1,622,852
)
Debt-to-equity conversion
—
(
639,641
)
—
—
—
(
639,641
)
Derecognition of debt
—
(
1,336,256
)
—
—
—
(
1,336,256
)
Recognition of debt
—
1,336,256
—
—
—
1,336,256
Debt modification
—
—
—
7,776
—
7,776
Transaction costs and amortization
639
(
1,165
)
2,414
—
—
1,888
Accrued interest
79,081
66,398
30,688
—
1,310
177,477
Interest payments
(
75,741
)
(
42,826
)
(
31,783
)
—
(
1,566
)
(
151,916
)
Effect of foreign currency exchange differences
31,572
—
(
11,288
)
9,152
101
29,537
Balance as of June 30, 2026
3,459,932
1,004,741
988,871
351,438
98,393
5,903,375
of which current
3,459,932
339,398
988,871
69,961
98,393
4,956,555
of which non-current
—
665,343
—
281,477
—
946,820
Balance as of January 1, 2025
2,427,194
1,300,406
933,175
124,878
153,248
4,938,901
New borrowings
1,782,031
—
—
—
172,208
1,954,239
Payments
(
1,266,167
)
—
—
(
15,934
)
(
173,715
)
(
1,455,816
)
Transaction costs and amortization
484
(
786
)
1,661
—
—
1,359
Debt modification
—
—
—
3,225
—
3,225
Accrued interest
76,278
58,337
32,970
—
3,785
171,370
Interest payments
(
66,926
)
(
47,668
)
(
16,802
)
—
(
3,691
)
(
135,087
)
Effect of foreign currency exchange differences
57,697
—
44,880
2,266
15,771
120,614
Balance as of June 30, 2025
3,010,591
1,310,289
995,884
114,435
167,606
5,598,805
of which current
3,010,591
53,438
22,107
16,451
167,606
3,270,193
of which non-current
—
1,256,851
973,777
97,984
—
2,328,612
Convertible instruments
On March 31, 2026, the Company entered into a conversion and amendment agreement in respect of its Snita Term Loan Facility. Under the agreement, approximately $
275.7
million of principal was converted into equity, resulting in the issuance of
16,150,000
ADSs representing
484,500,000
Class A ordinary shares, at a conversion price of $
16.97
per ADS (for further information, see
Note 11 - Equity
). Accrued interest related to the converted portion of the loan was settled in cash. In addition, the agreement provided for a second debt-to-equity conversion which occurred on June 30, 2026, when a further approximately $
65.6
million of principal was converted into equity, resulting in the issuance of approximately
3,900,000
ADSs representing approximately
115,900,000
Class A ordinary shares, at a conversion price of $
16.97
per ADS.
On March 31, 2026, the Company also amended the shareholder loan to extend its maturity date from December 29, 2028 to December 31, 2031 and amend the applicable interest rate from the floating six-month SOFR rate plus
4.97
% per annum to the floating six-month SOFR rate plus
5.40
% per annum, effective from the next interest payment date in 2026.
F-23
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
(in thousands of U.S. dollars unless otherwise stated)
Management concluded that the March 31, 2026 conversion and amendment constituted a substantial modification of the Snita Term Loan Facility under IFRS 9. Accordingly, the original financial liability was derecognized and the amended financial liability was recognized at fair value. The Company recognized a loss on substantial modification and extinguishment of debt of $
1.6
million within finance expense during the six months ended June 30, 2026, as the fair value of the consideration transferred exceeded the carrying amount of the original financial liability immediately prior to the modification.
On June 30, 2026, and upon satisfaction of the relevant closing conditions, the Company completed the previously announced conversion with Geely, originally agreed upon on December 19, 2025. An aggregate amount of $
300.0
million, consisting of $
250.0
million of principal and $
50.0
million of accrued interest under the Geely Term Loan Facility, was converted into equity. As a result, the Company issued
15,511,892
Class A ADSs, representing
465,356,760
Class A ordinary shares, at a conversion price of $
19.34
per ADS (see
Note 11 - Equity
).
On June 3, 2026, the Company amended its separate subordinated term loan facility with Geely, under which $
300.0
million was outstanding. The amendment extended the maturity date from June 17, 2026 to June 30, 2027, increased the interest rate from Term SOFR plus
3.00
% per annum to Term SOFR plus
3.20
% per annum, changed the interest period from one month to three months and provided for accrued interest to be paid at maturity. Management accounted for the June 3, 2026 amendment as a repayment of the original loan and simultaneous drawdown of a new loan. The new loan was recognized at fair value, which was determined to be equivalent to the carrying amount of the original loan and, accordingly, no gain or loss was recognized.
Note 14 - Related party transactions
The tables that follow show related party activity during the periods presented:
Sale of goods, services and other
For the six months ended June 30,
2026
2025
Volvo Cars
74,939
76,635
Ziklo Bank AB
75,953
53,385
Polestar Times Technology
—
21,858
Total revenue from related parties
150,892
151,878
% of total revenue
11.1
%
10.7
%
Purchases of goods, services and other
For the six months ended June 30,
2026
2025
Volvo Cars
460,784
535,968
Geely
504,340
405,261
RK
151,951
17,441
Other related parties
3,348
391
Total
1,120,423
959,061
F-24
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
(in thousands of U.S. dollars unless otherwise stated)
Related party balances
As of June 30, 2026
Volvo Cars
Geely
Polestar Times Technology
RK
Other related parties
Total
Amounts due from related parties
Trade receivables and other receivables
79,992
122,852
28
5,246
6,148
214,266
Other assets
35
2,918
—
—
—
2,953
Total
80,027
125,770
28
5,246
6,148
217,219
Amounts due to related parties
Loans and borrowings
(
674,664
)
(
681,531
)
—
—
(
46,308
)
(
1,402,503
)
Trade payables
(
484,352
)
(
229,109
)
—
(
68,509
)
(
3,382
)
(
785,352
)
Accrued expenses
(
54,966
)
(
123,573
)
(
54
)
(
6,440
)
(
244
)
(
185,277
)
Lease liabilities
(
65,706
)
—
—
—
—
(
65,706
)
Other liabilities
(
15,218
)
—
—
—
(
4,893
)
(
20,111
)
Total
(
1,294,906
)
(
1,034,213
)
(
54
)
(
74,949
)
(
54,827
)
(
2,458,949
)
As of December 31, 2025
Volvo Cars
Geely
Polestar Times Technology
RK
Other related parties
Total
Amounts due from related parties
Trade receivables and other receivables
104,996
77,017
29
8,349
7,406
197,797
Other assets
—
2,834
—
—
—
2,834
Total
104,996
79,851
29
8,349
7,406
200,631
Amounts due to related parties
Loans and borrowings
(
1,020,230
)
(
935,440
)
—
—
(
65,994
)
(
2,021,664
)
Trade payables
(
497,386
)
(
492,808
)
—
189
(
1,996
)
(
992,001
)
Accrued expenses
(
160,522
)
(
88,713
)
(
53
)
(
4,821
)
(
30
)
(
254,139
)
Lease liabilities
(
72,821
)
—
—
—
—
(
72,821
)
Other liabilities
(
8,098
)
—
—
—
(
3,484
)
(
11,582
)
Total
(
1,759,057
)
(
1,516,961
)
(
53
)
(
4,632
)
(
71,504
)
(
3,352,207
)
Polestar 3 operational arrangements with Volvo Cars and Snita
On March 31, 2026, the Company entered into a footprint consolidation agreement, as well as related amendments to its manufacturing, development and pricing arrangements, with Volvo Cars relating to the Polestar 3 program. With the objective of supporting and ensuring the commercial viability and sustainability of the manufacturing footprint, the agreement and related amendments provide for the consolidation of substantially all Polestar 3 manufacturing activities to be consolidated in Charleston, South Carolina, USA.
The amendments included:
•
Consolidation of substantially all Polestar 3 manufacturing activities in Charleston, South Carolina.
•
Amendments to specified volume commitments and manufacturing cost-sharing arrangements.
•
Settlement of certain disputed development deliverables, and
•
Modifications to future development and manufacturing pricing arrangements.
Note 15 - Commitments and contingencies
Commitments
Polestar has contractual obligations with certain suppliers including obligations to acquire intangible assets related to development of vehicles, non-cancelable manufacturing commitments, or minimum sales volume commitments. In the event of a shortfall in manufactured vehicles or sales, or Polestar's decision to terminate such contracts, these suppliers are entitled to compensation from Polestar.
The amounts in the table below represent the minimum amounts payable by Polestar under these commitments as of June 30, 2026:
F-25
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
(in thousands of U.S. dollars unless otherwise stated)
As of June 30, 2026
As of December 31, 2025
Acquisition of intangible assets commitments – related parties
784
12,634
Non-cancelable manufacturing commitments – related parties
330,889
287,065
PS4 license volume commitments – related parties
57,616
55,981
Logistics service and other third party commitments
4,277
28,022
Total
393,566
383,702
Contingencies
NHTSA investigation
On July 18, 2025, the Office of Defects Investigation of the National Highway Traffic Safety Administration ("NHTSA") issued an information request to Polestar Automotive USA, Inc as part of a 'Recall Query'
in relation to the functioning of the rearview camera in the Polestar 2. Polestar provided its initial response to NHTSA at the end of 2025 and deployed an over-the-air software update ("OTA") to affected US customers on April 20, 2026. On August 28, 2026 NHTSA notified Polestar that it was closing the 'Recall Query' following the roll-out of the OTA.
Note 16 - Subsequent events
Management has evaluated events subsequent to June 30, 2026 and through September 3, 2026, the date these Unaudited Condensed Consolidated Interim Financial Statements were authorized for issuance by the Board of Directors. The following events which occurred subsequent to June 30, 2026 merited disclosure in these Unaudited Condensed Consolidated Interim Financial Statements. Management determined that no adjustments were required to the figures presented as a result of these events.
•
On August 21, 2026, Polestar repaid principal and interest amounts due on its maturing working capital loan for ¥
1,104.5
million with Bank of China. This loan carried an interest rate of
2.4
% per annum due quarterly.
•
On August 21, 2026, Polestar repaid principal and interest amounts due on its maturing working capital loan for ¥
980.0
million with China CITIC Bank (CITIC). This loan carried an interest rate of
2.4
% per annum due quarterly.
F-26

----- psny-20260630_d2.htm -----
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of September 2026
Commission File Number:
001-41431
Polestar Automotive Holding UK PLC
Assar Gabrielssons Väg 9
405 31
Göteborg
,
Sweden
(Address of Principal Executive Office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F
☒
Form 40-F
☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
☐
1
INFORMATION CONTAINED IN THIS REPORT ON FORM 6-K
Attached as exhibits to this report on Form 6-K are (i) Polestar's Management's Discussion and Analysis of Financial Condition and Results of Operations for the six-month period ended June 30, 2026 and 2025 which is attached as Exhibit 99.1; (ii) Polestar's Unaudited Condensed Consolidated Interim Financial Statements as of June 30, 2026 and for the six months ended June 30, 2026 and 2025, which are attached as Exhibit 99.2, and (iii) a press release containing Polestar's preliminary unaudited financial and operational results for the fiscal quarter and six-month period ended June 30, 2026 and 2025. A copy of the press release is attached hereto as Exhibit 99.3.
The information contained in Exhibit 99.1 and Exhibit 99.2 shall be deemed to be incorporated by reference into Polestar's registration statements on Form S-8 (File No: 333-267146) and Form F-3 (File Nos. 333-274918 and 333-266101) and to be a part thereof from the date on which this report is submitted, to the extent not superseded by documents or reports subsequently filed or furnished.
Exhibit 99.3 to this report on Form 6-K shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act.
EXHIBIT INDEX
Exhibit No.
Description of Exhibit
99.1
Management's Discussion and Analysis of Financial Condition and Results of Operations for the
six-month period ended June 30, 2026
and 2025.
99.2
Unaudited Condensed Consolidated Interim Financial Statements as of June 30, 2026 and for the six-month period ended June 30, 2026 and 2025.
99.3
Press Release of Polestar Automotive Holding UK PLC, dated September 3, 2026.
101.INS
XBRL Instance Document.
101.SCH
XBRL Taxonomy Extension Schema Document.
101.CAL
XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF
XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB
XBRL Taxonomy Extension Label Linkbase Document.
101.PRE
XBRL Taxonomy Extension Label Linkbase Document.
104
Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
POLESTAR AUTOMOTIVE HOLDING UK PLC
Date: September 3, 2026
By:
/s/ Michael Lohscheller
Name: Michael Lohscheller
Title: Chief Executive Officer
By:
/s/ Jean-François Mady
Name: Jean-François Mady
Title: Chief Financial Officer
2