Polar’s 2025 accounts: losses widen, demand holds steady

Polar’s financial position deteriorated in 2025. Turnover fell slightly, while its losses widened significantly.

But the fuller picture is more complicated. According to its latest accounts, demand for Polar’s products remained fairly steady despite weak consumer confidence and cautious retailers. The company says Polar Loop’s launch was very successful, while registrations for Polar Flow continued to grow.

At the same time, Polar is cutting costs, restructuring its Finnish operations, and trying to earn more from the technology behind its products by licensing its sensors and Smart Coaching technology to other wearable brands.

The company is betting these changes will return it to profitability in 2026. The accounts show how much work remains.

Metric	2024	2025	Change
Group turnover	€115.4m	€112.2m	-2.75%
Operating loss	€7.7m	€11.0m	+42.8%
Net loss	€12.4m	€14.8m	+20%
R&D spending	—	€20.2m	17.9% of turnover
Average headcount	972	937	-3.6%
Group equity	€29.4m	€13.4m	-54.3%
Inventory	€29.3m	€19.3m	-33.9%
Cash	€11.1m	€12.5m	+12.6%
Short-term borrowing	€14.5m	€16.7m	+15.2%
Operating cash flow	-€6.5m	+€0.77m	—

The financial picture got worse.

Group turnover fell 2.75%, from €115.4 million in 2024 to €112.2 million in 2025.

The operating loss widened 42.8%, from €7.7 million to €11.0 million. The net loss grew 20%, from €12.4 million to €14.8 million.

The parent company, Polar Electro Oy, looks worse still on paper. It swung from a €983,000 profit in 2024 to a €5.2 million loss in 2025.

Its own trading loss barely moved, from €10.7 million to €12.5 million. Dividend income from its subsidiaries fell 31%, from €11.7 million to €8.1 million, meaning less cash moved up from Polar’s foreign operations to the Finnish parent that year.

But customers don’t seem to have gone away

Consumer confidence was weak in 2025, and retailers restocked cautiously. Even so, Polar says its products continued to sell well, which it takes as evidence that underlying demand held up.

Polar cites Polar Loop‘s September 2025 launch as one example, calling it very successful and tying it to interest from its growing business-to-business operations. Whoop has separately sued Polar, alleging that Loop copies its trade dress, the protected look of a product, and seeking to block US sales, a dispute the accounts do not mention.

Other signs of customer interest held up too. Regard for Polar’s products stayed high through 2025, the Net Promoter Score for its wrist devices stayed excellent, and new users kept registering devices with Polar Flow. Going into 2026, Polar expects that regard to continue, a large share of its customers to be new to the brand, and retailer inventories to stay very low.

What Polar is cutting

Average group headcount fell 3.6%, from 972 to 937, following negotiations with employees in Finland and temporary layoffs affecting both regular and senior staff.

Other operating expenses fell 20.3%, from €32.6 million to €26.0 million. Personnel costs barely changed, falling from €46.7 million to €46.2 million, while the cost of materials and services actually rose, from €45.7 million to €47.3 million.

Polar left research and development spending untouched.

Polar is trying to sell more than Polar devices

Polar spent €20.2 million on R&D in 2025, 17.9% of group turnover, even though it cut other operating expenses substantially elsewhere. Polar says more of that investment now goes into technology that works across its product range, and into new ways to make money from it.

Powered by Polar means Polar’s technology reaches consumers who never buy a Polar-branded watch. It names licensing its Smart Coaching training features and sensor technology to third-party wearable brands and services an explicit 2026 priority.

Polar’s sensor technology already powers the Sennheiser Momentum Sport earbuds and the Motorola Moto Watch 2026, and a partnership with GreenTEG supplies core body temperature data to compatible Polar watches.

The accounts do not disclose what Powered by Polar or licensing revenue is actually worth, nor do they give meaningful geographic splits.

Polar is restructuring in Finland

In February 2026, Polar Electro Oy opened negotiations in Finland to reorganise the business and cut costs. Two subsidiaries, PE Austria and PE Norge, were wound up during 2025.

The balance sheet is harder to ignore

Cash rose from €11.1 million to €12.5 million during 2025, and operating cash flow improved from a €6.5 million outflow in 2024 to a positive €768,000. Most of that came from releasing cash tied up in inventory, which fell 33.9%, from €29.3 million to €19.3 million, rather than from improved profitability. Short-term bank borrowing rose from €14.5 million to €16.7 million.

Accumulated losses cut group equity by more than half, from €29.4 million to €13.4 million, a 54.3% fall in one year. The equity ratio fell from 39.6% to 21.8% of total assets, and the current ratio slipped from 1.61 to 1.23.

KPMG’s audit report includes an emphasis of matter that highlights the going-concern discussion in the notes, where Polar says its financial situation remains challenging. The opinion itself remains unmodified, a milder signal than a qualified opinion, but still a genuine flag from the auditor. Polar’s optimism about 2026 comes with a real financial limit attached.

Where are the new products?

Polar entered 2026 with stronger signs from its customers and product pipeline, but with a financial cushion that has fallen by more than half and an auditor highlighting the group’s going-concern discussion.

The dearth of new products at the time of writing in September 2026 is striking. There are some leaks of some interesting things coming from them but nothing Earth-shattering. Is the company really focussing on licencing and subscriptions, or perhaps skipping incremental launches to focus on a newer generation of tech, or something else? What do you think?

Quick answers

How much money did Polar Electro lose in 2025?
Group net loss was 14.8 million euros in 2025, up from 12.4 million euros in 2024, on turnover of 112.2 million euros.

Did Polar's revenue actually fall in 2025?
Yes, but only modestly. Group turnover fell 2.75%, from 115.4 million euros to 112.2 million euros.

How much did Polar's operating loss widen in 2025?
Group operating loss widened 42.8%, from 7.7 million euros in 2024 to 11.0 million euros in 2025.

Why did Polar Electro Oy's own result swing to a 5.2 million euro loss?
Mostly because dividend income received from its foreign subsidiaries fell from 11.7 million euros to 8.1 million euros. The parent’s own trading loss barely moved, from 10.7 million euros to 12.5 million euros.

How many people does Polar Electro employ?
Average group headcount fell 3.6% in 2025, from 972 to 937, following negotiations with employees in Finland and temporary layoffs.

Did Polar cut its operating costs in 2025?
Yes. Other operating expenses fell 20.3%, from 32.6 million euros to 26.0 million euros. Personnel costs stayed nearly flat, while materials and services costs actually rose, from 45.7 million euros to 47.3 million euros.

Is Polar cutting research and development spending?
No. R&D spending held at 20.2 million euros, 17.9% of group turnover, even as other operating costs fell 20.3%.

What is Powered by Polar?
Polar plans to license its Smart Coaching training features and sensor technology to other wearable brands and services, an explicit 2026 priority in the accounts. It already covers products such as the Sennheiser Momentum Sport earbuds and the Motorola Moto Watch 2026.

Does Polar already license its technology to other companies?
Yes. Polar’s sensor technology powers the Sennheiser Momentum Sport earbuds and the Motorola Moto Watch 2026, and a partnership with GreenTEG supplies core body temperature data to compatible Polar watches.

How much does Powered by Polar earn the company?
The accounts do not say. Polar names licensing an explicit 2026 priority, but discloses no separate revenue figure for Powered by Polar or licensing income.

Is Polar Electro Oy financially at risk?
Group equity fell 54%, from 29.4 million euros to 13.4 million euros, in a single year, and its auditor KPMG flagged the company’s going-concern discussion in its report. However, the audit opinion itself remains unmodified.

What is Polar's equity ratio?
Polar’s group equity ratio fell from 39.6% to 21.8% of total assets between 2024 and 2025, calculated from the group’s own balance sheet figures.

What is Polar's current ratio?
Polar’s group current ratio slipped from 1.61 to 1.23 between 2024 and 2025, based on the group’s balance sheet figures.

Did Polar's cash position improve in 2025?
Yes, cash on hand rose to 12.5 million euros from 11.1 million euros, but mainly because Polar released cash tied up in inventory, which fell 33.9%, and increased short-term bank borrowing.

Did Polar's operating cash flow improve in 2025?
Yes. Operating cash flow turned positive at 768,000 euros, up from negative 6.5 million euros the year before.

Did Polar increase its borrowing in 2025?
Yes. Short-term bank borrowing rose from 14.5 million euros to 16.7 million euros.

What did KPMG say in its audit of Polar's 2025 accounts?
KPMG’s audit report includes an emphasis of matter that draws attention to the going-concern discussion in the notes, where Polar says its financial situation remains challenging. The opinion itself remains unmodified.

Is an unmodified audit opinion with an emphasis of matter the same as a qualified opinion?
No. An unmodified opinion with a flagged emphasis of matter is milder than a qualified opinion, though it does draw attention to a specific risk in the notes.

When did Polar Loop launch?
Polar Loop launched in September 2025. Polar’s board calls the launch very successful and ties it to interest from its growing business-to-business operations.

Is Polar Loop involved in a legal dispute?
Yes. Whoop filed a lawsuit alleging Polar Loop copies its trade dress and seeking to block U.S. sales. The accounts do not mention the dispute.

Is Polar's Net Promoter Score still strong?
Polar says the Net Promoter Score for its wrist devices stayed at an excellent level throughout 2025, and that regard for its products stayed high all year.

Is Polar Flow still growing?
Yes. Polar says new users kept registering devices with Polar Flow, its companion app and platform, throughout 2025.

What does Polar expect from retailers in 2026?
Polar expects a large share of its 2026 customers to be new to the brand, and says inventory levels at third-party retailers are very low heading into the year.

When did Polar start its Finnish restructuring?
Polar Electro Oy opened negotiations in Finland in February 2026 to reorganise the business and cut costs.

Did Polar close any subsidiaries in 2025?
Yes. Polar wound up two subsidiaries, PE Austria and PE Norge, in 2025.

Will Polar pay a dividend for 2025?
No dividend is mentioned for 2025 in the material covered here.

Does Polar expect to return to profit in 2026?
The board says it expects a positive result in 2026, citing cost efficiency, low retailer inventory, and a large share of new-to-brand customers. However, the accounts include no guarantee of this.

Last Updated on 12 September 2026 by the5krunner