Polar Power narrows its first quarter 2026 net loss by 86% on flat sales as gross margin expands to 65.7%.

Polar Power reported first-quarter 2026 net sales of $1.73 million, which was flat year-over-year, and a net loss per share of ($0.05), a significant improvement from ($0.50) in the same period last year.

Key Highlights

• Gross margin dramatically expanded to 65.7% from 18.6% a year ago, primarily due to a one-time warranty reserve adjustment; excluding this item, the adjusted gross margin was approximately 41%.
• The company narrowed its net loss by 86% year-over-year to $178,000, benefiting from higher gross profit and lower operating expenses.
• Operating expenses were reduced by 22% to $1.1 million, reflecting progress on cost control initiatives.
• Sales backlog stood at $3.8 million as of May 30, 2026, which the company anticipates fulfilling in the coming months.