Polar Power (POLA) AI Stock Analysis

• Market Cap: $3.91M
• Dividend Yield: N/A
• Average Volume (3M): 61.54K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.69
• Revenue Growth: -44.32%
• EPS Growth: -49.47%
• Country: US
• Employees: 82
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): -1.63
• Shares Outstanding: 2,658,676
• 10 Day Avg. Volume: 53,213
• 30 Day Avg. Volume: 61,540
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 0.57
• P/FCF Ratio: -14.47
• Enterprise Value/Market Cap: 2.63
• Enterprise Value/Revenue: 1.23
• Enterprise Value/Gross Profit: -4.03
• Enterprise Value/Ebitda: -1.30
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: $1.50 ▼(-10.18% Downside)

POLA scores low primarily due to deteriorating fundamentals—sharp revenue decline, negative margins, deep losses, and ongoing cash burn with equity erosion. Technicals add pressure with a clear downtrend (price below all key moving averages and negative MACD). Valuation is constrained by losses (negative P/E), and recent corporate news reinforces near-term operational and demand headwinds despite some backlog optimism.

Positive Factors

Niche market focus (telecom, military, renewable)

Polar Power’s concentrated product fit for telecom, military and renewable end markets creates durable demand for reliable, off-grid and hybrid power. Those verticals have high reliability requirements, long sales cycles and higher switching costs, supporting persistent contract opportunities and differentiated positioning.

Aftermarket and service revenue streams

Maintenance and service contracts provide recurring revenue that cushions volatility in unit sales and supports customer stickiness. Over the medium term, predictable aftermarket revenues can improve gross margin stability, steady cash inflows and lifetime value per customer versus one-time equipment sales.

Backlog growth and strategic commercial expansion

A rising backlog alongside deliberate hiring of sales resources and product diversification denotes strengthening commercial execution and pipeline development. If sustained, this reduces concentration risk, broadens addressable markets and supports more stable future revenue streams after contract renegotiations and tariff mitigation.

Negative Factors

Persistent revenue declines

Sustained multi-year revenue contraction undermines scale economics and R&D leverage, pressuring margins and market share. Continued top-line erosion limits reinvestment capacity, elevates per-unit fixed cost burdens, and risks losing engineering and sales talent needed to regain growth in competitive segments.

Negative operating and free cash flow

Persistent cash burn reduces financial flexibility and forces reliance on external financing or equity raises. Over months, negative operating cash flow constrains investments in product development, global sales expansion, and working capital resilience, increasing execution risk and vulnerability to demand shocks.

Eroding equity and deep net losses

Shrinking equity alongside disproportionately large losses erodes the company’s capital base and weakens solvency metrics. If losses persist, lender and supplier confidence may deteriorate, cost of capital will rise, and ability to secure long-term contracts or sustain warranty liabilities will be materially impaired.

Polar Power Business Overview & Revenue Model

Company Description

Polar Power, Inc. designs, manufactures, and sells direct current (DC) power generators, renewable energy, and cooling systems in the United States and internationally. The company offers DC base power systems, DC hybrid power systems, DC solar hybrid power systems, and mobile power systems. Its DC power systems are available in diesel, natural gas, LPG/propane, and renewable fuel formats. The company serves customers in the telecommunications, military, commercial, industrial, and marine markets. It sells its products through a direct sales force, and a network of independent service providers and dealers. The company was formerly known as Polar Products, Inc. and changed its name to Polar Power, Inc. in October 1991. Polar Power, Inc. was incorporated in 1979 and is based in Gardena, California.

How the Company Makes Money

Polar Power generates revenue through the sale of its power generation systems and related services. Key revenue streams include the direct sale of hybrid power systems, which combine renewable energy sources with traditional generators, and DC generators utilized in various applications. Additionally, the company earns income from maintenance contracts and service agreements associated with its products. Significant partnerships with telecommunications companies and government agencies contribute to its earnings by providing stable, long-term contracts and expanding its market reach.

Polar Power Financial Statement Overview

Summary

Financial performance is weak: TTM revenue fell sharply (~30%), gross margin turned negative, losses deepened (net margin roughly -104%), and operating/free cash flow remain negative (about -$1.0M). Leverage is only moderate (debt-to-equity ~0.46), but continued losses are eroding equity and increasing risk.

Income Statement

Results remain weak. TTM (Trailing-Twelve-Months) revenue fell sharply (down ~30%), and profitability deteriorated meaningfully, with gross margin turning negative and losses deepening (net margin roughly -104% vs about -33% in 2024). While the company has reduced losses versus the extreme 2020 period, the multi-year pattern is still persistent operating losses and declining sales, which keeps the income statement quality low.

Balance Sheet

Leverage looks moderate on paper (TTM debt-to-equity ~0.46), but the balance sheet has weakened: equity dropped substantially versus 2024, and returns on equity are deeply negative in TTM, reflecting ongoing losses eroding the capital base. Debt is not extreme, yet continued losses and shrinking equity increase financial risk over time.

Cash Flow

Cash generation is consistently negative. TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are both negative (about -$1.0M), and free cash flow declined sharply versus the prior period. Although cash burn is smaller than in earlier years (e.g., 2021–2022), the company is still not self-funding operations, which limits flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.33M	13.97M	15.29M	16.06M	16.90M	9.03M
Gross Profit	-2.55M	1.31M	695.00K	2.13M	3.44M	-5.62M
EBITDA	-7.92M	-3.86M	-5.60M	-5.02M	-805.00K	-11.70M
Net Income	-8.67M	-4.68M	-6.55M	-5.58M	-3.22M	-10.87M
Balance Sheet
Total Assets	12.35M	17.55M	25.26M	24.19M	27.18M	17.80M
Cash, Cash Equivalents and Short-Term Investments	4.00K	498.00K	549.00K	211.00K	5.10M	1.65M
Total Debt	6.08M	6.92M	7.54M	2.42M	1.50M	4.15M
Total Liabilities	9.52M	9.03M	12.07M	6.01M	3.93M	6.31M
Stockholders Equity	2.82M	8.51M	13.19M	18.18M	23.25M	11.49M
Cash Flow
Free Cash Flow	-971.00K	-555.00K	-3.62M	-6.53M	-9.45M	-6.57M
Operating Cash Flow	-971.00K	-536.00K	-3.43M	-6.51M	-9.38M	-6.55M
Investing Cash Flow	-1.00K	-19.00K	-194.00K	-25.00K	-71.00K	-19.00K
Financing Cash Flow	478.00K	504.00K	3.96M	1.64M	12.91M	5.37M

Polar Power Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.67
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For POLA, the sentiment is Negative. The current price of 1.67 is below the 20-day moving average (MA) of 1.77, below the 50-day MA of 1.95, and below the 200-day MA of 2.36, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 43.22 is Neutral, neither overbought nor oversold. The STOCH value of 6.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for POLA.

Polar Power Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
IPWR	53 Neutral	$44.26M	-3.67	-74.44%	―	-69.65%	11.41%
SDST	51 Neutral	$39.96M	-1.03	―	―	―	61.78%
OPTT	49 Neutral	$93.09M	-2.54	-141.20%	―	-47.10%	41.03%
XPON	42 Neutral	$7.56M	-0.95	-35.47%	―	109.37%	99.34%
POLA	40 Underperform	$3.91M	-0.46	-119.92%	―	-44.32%	-49.47%

Polar Power Corporate Events

Polar Power Approves Key Proposals at Annual Meeting

On December 15, 2025, Polar Power held its Annual Meeting where several key proposals were approved. These included the election of four directors, the ratification of Weinberg & Company, P.A. as the independent accounting firm for 2025, and the approval of the 2026 Equity Incentive Plan. Additionally, a non-binding advisory vote approved the compensation for the company’s executive officers and determined that future votes on executive compensation will occur annually.

The most recent analyst rating on (POLA) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Polar Power stock, see the POLA Stock Forecast page.

Polar Power Reports Q3 2025 Financial Decline

Polar Power reported a significant decline in its financial performance for the third quarter of 2025, with net sales dropping by 74% compared to the same period last year, resulting in a net loss of $4.08 million. The company attributed these losses to geopolitical and tariff issues, as well as excess inventory held by its largest telecommunications customer. Despite these challenges, Polar Power is optimistic about future growth, with an increased backlog and plans to renegotiate contracts to mitigate tariff impacts. The company is also expanding its market presence by adding sales personnel in various regions and investing in product diversification and marketing strategies.

The most recent analyst rating on (POLA) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Polar Power stock, see the POLA Stock Forecast page.