Latest news with #WKSP
Globe and Mail
2 days ago
- Automotive
- Globe and Mail
Worksport Q2 Revenue Jumps 114 Percent
Worksport (NASDAQ:WKSP) reported fiscal Q2 2025 results on August 13, 2025, delivering record quarterly revenue of $4.1 million, up 114% year over year. Gross margin improved to 26.4%, an increase of nearly 800 basis points. Management reaffirmed its revenue target of at least $20 million for fiscal 2025, highlighted the upcoming launch of new high-margin products, and projected operating cash flow breakeven by late Q4 2025 or early Q1 2026, positioning the company for near-term profitability and further scalability. Record sales and margin gains propel Worksport expansion The tonneau cover division accounted for all current revenue, but new product segments are expected to contribute starting in fiscal Q4 2025. Operating expenses remained essentially flat compared to the prior quarter despite significantly higher revenues, and inventory levels were stable at $5.88 million, with demand outpacing production. "Net sales reached $4.1 million, representing a 114% year-over-year growth compared to $1.92 million in 2024 and an 83% sequential increase from 2025. This growth was driven by the continued ramp-up of our flagship AL4 premium tonneau cover, expanding dealer adoption and order frequency, and sustained strength in e-commerce sales across our direct-to-consumer channels. Gross profit for the quarter rose 173% to $1.8 million compared to $396,000 in 2025. Gross margin improved under 800 basis points to 26.4%, up from 17.7% in Q1 and 15.4% in Q2 of last year, marking our third consecutive quarter of market margin expansion. This sustained improvement reflects continued operational efficiencies and a favorable mix of new B2B and B2C sales." -- Michael Johnston, CFO Worksport's margin trajectory and strong sales momentum demonstrate operational leverage and channel diversification, reducing execution risk against breakeven and growth targets while highlighting a scalable model that can absorb further volume without proportionate cost escalation. Dealer network growth accelerates Worksport's addressable revenue The dealer network expanded by over 450 accounts year to date as of fiscal Q2 2025, up from 94 at the end of the previous year, supported by the addition of two national distributors. At current levels, network capacity supports more than $21.5 million in potential annual B2B revenue, excluding direct-to-consumer e-commerce sales. "In Q2 2025, we added two national distributors to our dealer network. In April, we added Patriot Auto Group, which brought with them 200 dealers under the Worksport dealer network. In June, we added another national distributor with access to approximately an additional 250 dealer accounts. At full activation, Worksport estimates that our distribution network as of Q2 can support over $21.5 million in repeatable annual revenue alone, not including business-to-consumer direct sales via our online platforms. Driven by ongoing B2B traction and demand for our premium American-made tonneau." -- Steven Rossi, CEO This rapid increase in B2B network scale significantly broadens Worksport's baseline revenue potential, improves recurring sales visibility, and strengthens its position for both organic and future product-driven growth initiatives. Clean energy product pipeline positions Worksport for 2026 profitability inflection Early pilot adoption by a U.S. construction agency and substantial inbound corporate and government interest in AetherLux highlight strong market receptivity to the clean energy portfolio. TerraVise Energy, a Worksport subsidiary, advanced AetherLux from lab to commercial testing and began manufacturer selection for product certification in fiscal Q2 2025. "Core and Solis together function as Worksport's portable nano grid. In 2025, this system was selected by a multi-dollar US construction agency for a pilot project for fleet use. Testing and use are ongoing. Together, Core and Solis position Worksport within the fast-growing broader portable energy market, a space the company believes will be a key to long-term profitability. A little bit about AetherLux. On February 11, 2025, we introduced AetherLux, a cold climate heat pump featuring two industry-first innovations. First, zero frost, no defrost cycles. Continuous operation without the traditional defrost interruptions that reduce efficiency in freezing conditions. And ultra-low temperature performance. The Aetherlux operates in ambient temperatures as low as negative 59.6 degrees Fahrenheit, which is about 51 degrees Celsius. Far beyond the capabilities of typical commercial heat pumps, enabling its use in extreme arctic environments. Since the launch of AetherLux, we have attracted significant interest from major global corporations, federal governments, and numerous distributors with inbound inquiries potentially surpassing hundreds of millions of dollars in revenue opportunities. In Q2 2025, TerraVise Energy, our subsidiary company, had achieved numerous milestones on this disruptive technology. It has advanced Aetherlux heat pumps from lab testing to commercial testing, initiated manufacturer selection for product certification, continued R&D optimization of Zero Frost technology, and began evaluating strategic business opportunities. Management believes Aetherlux could have a meaningful impact on Worksport's 2026 balance sheet supported by its position in the $123 billion global market." -- Steven Rossi, CEO The imminent commercialization of proprietary clean energy products diversifies Worksport's revenue streams, accelerates the pathway to profitability in 2026, and establishes the company as a differentiated player at the intersection of automotive and portable energy markets. Looking Ahead Management reaffirmed its full-year 2025 revenue target of at least $20 million and projects operating cash flow breakeven by late Q4 2025 or early Q1 2026. AetherLux is anticipated to deliver a meaningful positive financial impact in 2026, with more detailed forecasts forthcoming in Q4 2025. The ongoing Regulation A offering may fully fund operations through the remainder of 2025 and into 2026, with future capital needs expected to be met through existing warrants or non-dilutive financing. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,060%* — a market-crushing outperformance compared to 182% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. See the stocks » *Stock Advisor returns as of August 13, 2025
![Worksport Posts Q2 2025 Results: Gross Profit Increases 173%, Revenue Jumps 83%, Margin Expands 870 bps, Operating Loss Improves 15% [QoQ].](/_next/image?url=https%3A%2F%2Fwww.theglobeandmail.com%2Fpf%2Fresources%2Fassets%2Fmeta%2Ftwitter-summary-240x240.png%3Fd%3D735&w=3840&q=100)
Globe and Mail
3 days ago
- Business
- Globe and Mail
Worksport Posts Q2 2025 Results: Gross Profit Increases 173%, Revenue Jumps 83%, Margin Expands 870 bps, Operating Loss Improves 15% [QoQ].
Company Reaffirms ≥$20 Million 2025 Revenue Target and Highlights Clear Path to Near-Term Operational Cash Flow Positivity West Seneca, New York, Aug. 13, 2025 (GLOBE NEWSWIRE) -- Worksport Ltd. (NASDAQ: WKSP) ('Worksport' or the 'Company'), a U.S. based manufacturer and innovator of hybrid and clean energy solutions for the light truck, overlanding, and global consumer goods sectors, today announced record financial and operational results for the quarter ended June 30, 2025 ('Q2 2025') and reaffirmed full-year 2025 revenue guidance of at least $20 million. Q2 2025 Highlights Worksport delivered its highest quarterly revenue in Company history, with net sales of $4.10 million, up 114% year-over-year and 83% sequentially. Gross margin expanded 8.7 percentage points from Q1 to 26.4%, driving a 173% increase in gross profit to $1.08 million. Operating loss improved 15% QoQ to $(3.62) million, while net loss narrowed ~16% to $(3.73) million. Operating cash use improved 19% to $(3.10) million, and total liquidity stood at ~$6.1 million. Inventory remained stable at $5.88 million, with ~90% in raw materials to support production ramp-up. The Company achieved three consecutive monthly sales records in Q2 — April $1.22M, May $1.28M, and June $1.60M — equating to a $19.2M annualized run rate (non-GAAP). Year-to-date, Worksport has added 450+ new dealer accounts, with its network at full activation capable of generating ~$21.5M in annual repeatable revenue (excluding B2C and new dealer accounts). Additional Operational Highlights: Production: Q3 2025 output is expected to be notably stronger than Q2. July output averaged 115-130 units/day, peaking at 160 units/day and by late Q3 targeting ~200 units/day. Innovation Pipeline: HD3 heavy-duty tonneau cover on track for Q3 launch; SOLIS (solar tonneau) and COR (portable power) on track for Q4 launch; AetherLux cold-climate heat pump advancing to commercial testing. Tariff Management: Estimated 5-10% inflationary cost impact offset by operational efficiencies; the Company is evaluating additional strategies to further mitigate effects across upcoming clean-tech products. Management Commentary Steven Rossi, Founder & CEO of Worksport, said: 'Q2 shows our model working at scale - demand is outpacing supply, margins are expanding, and our U.S. facility continues to ramp efficiently. With three straight monthly sales records and gross margin now at 26.4%, we're executing toward operational cash-flow positivity while preparing to launch HD3, SOLIS, and COR. We believe our American-made tonneau business alone can carry Worksport to profitability in 2026, with clean-tech adding meaningful upside.' Michael Johnston, CFO, added: 'We delivered strong sequential leverage, including gross profit up 173% with operating loss improved 15%, and we tightened operating cash use by 19%. Liquidity remains stable with approximately $6.1 million available, and our inventory profile supports growth without significant near-term working capital. We reaffirm our target of at least $20 million in revenue this year and expect gross margin to approach 30% by year-end, with operating cash-flow breakeven targeted for late Q4 2025 or early Q1 2026.' Outlook & Guidance 2025 Revenue: Reaffirmed at ≥$20 million. Margins: Expect continued expansion toward ~30%+ gross margin by year-end. Cash Flow: Targeting operating cash-flow breakeven by Q4 2025 / Q1 2026. 2026 Profitability Drivers: Initial $2-3M revenue expected from first batches of COR & SOLIS; AetherLux expected to contribute meaningfully in 2026. Capital & Liquidity: Reg A Offering: Company expects to close the current Regulation A offering by end of August 2025; if fully subscribed ($10M), management believes Worksport is fully funded through 2025 and into 2026. Warrants: Outstanding warrants ($4.50-$6.70 exercise ranges) may provide 2026 growth capital. While currently not in the money, the Company believes current share price is undervalued and may be better reflected as the year goes on. Per the current business plan, Worksport intends to limit notable equity dilution while pursuing disciplined growth. Worksport Q2 2025 Conference Call For detailed insights on the quarter, and management commentary, please attend our scheduled conference call. It will occur at 1PM ET on Wednesday August 13, 2025. You may attend with this registration link: [ Conference Call Registration ] Accompanying prepared remarks and deck will be available at 1pm ET: [ here ] Below is a summary excerpt from the Financial Statements section of Worksport 10-Q [June 30, 2025] covering the quarter ending June 30, 2025. Investors are encouraged to review the complete 10-Q filing and the accompanying prepared remarks, both linked above, for full context and analysis. Worksport Ltd. (Unaudited) June 30, 2025 (Unaudited) December 31, 2024 ASSETS Current assets Cash and cash equivalents $ 1,393,140 $ 4,883,099 Accounts receivable, net 295,961 42,589 Other receivable 228,086 169,728 Inventory (Note 3) 5,881,513 5,190,054 Prepaid expenses and deposits (Note 6) 692,292 192,192 Total current assets 8,490,992 10,477,662 Investments (Note 11) 122,681 66,308 Property and equipment, net (Note 4) 13,218,121 13,644,226 Operating lease right-of-use assets (Note 12) 731,633 595,415 Intangible assets, net (Note 5) 1,016,710 953,049 Total assets $ 23,580,137 $ 25,736,660 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable $ 1,973,131 $ 1,526,630 Accrued liabilities and other 682,781 800,283 Accrued compensation 517,475 377,112 Long-term debt, current portion (Note 13) 235,865 222,992 Lease liability, current portion (Note 12) 323,698 246,535 Total current liabilities 3,732,950 3,173,552 Lease liability, excluding current portion (Note 12) 437,266 368,472 Long-term debt, excluding current portion (Note 13) 2,093,363 4,781,005 Total liabilities 6,263,579 8,323,029 Shareholders' Equity Series A, B & C Preferred stock, $0.001 par value, 10,000,000 shares authorized, 100 Series A, 0 Series B, and 49,335 Series C issued and outstanding, respectively (Note 7) 49 - Common stock, $0.001 par value, 45,000,000 shares authorized, 5,519,130 and 4,016,205 shares issued and outstanding, respectively (Note 7) 5,518 4,016 Additional paid-in capital 87,970,432 79,781,674 Share subscriptions receivable (1,577) (1,577) Share subscriptions payable 2,022,630 2,115,064 Accumulated deficit (72,671,914) (64,476,966) Cumulative translation adjustment (8,580) (8,580) Total shareholders' equity 17,316,558 17,413,631 Total liabilities and shareholders' equity $ 23,580,137 $ 25,736,660 The accompanying notes form an integral part of these condensed consolidated financial statements. Please click here to download the full 10-Q. Three Months ended June 30, Six Months ended June 30, 2025 2024 2025 2024 Net sales $ 4,104,958 $ 1,921,539 $ 6,344,963 $ 2,434,176 Cost of sales 3,022,846 1,624,910 4,866,630 2,100,091 Gross profit 1,082,112 296,629 1,478,333 334,085 Operating Expenses Research and development 304,833 1,045,864 674,434 1,415,465 General and administrative 2,454,055 1,900,522 5,442,835 4,205,239 Sales and marketing 1,305,355 478,792 2,175,104 545,569 Professional fees 637,493 766,563 1,063,534 1,710,341 (Gain) loss on foreign exchange (1,993) 15,636 (3,638) 7,685 Total operating expenses 4,699,743 4,207,377 9,352,269 7,884,299 Loss from operations (3,617,631) (3,910,748) (7,873,936) (7,550,214) Other income (expense) Interest expense (128,156) (134,164) (323,594) (257,762) Interest income 11,303 - 19,437 3,054 Rental income - 31,513 - 76,866 Other - - (16,855) - Total other income (expense) (116,853) (102,651) (321,012) (177,842) Net loss $ (3,734,484) $ (4,013,399) $ (8,194,948) $ (7,728,056) Loss per share (basic and diluted) $ (0.71) $ (1.55) $ (1.71) $ (3.28) Weighted average number of shares (basic and diluted) 5,285,705 2,595,863 4,778,426 2,357,335 The accompanying notes form an integral part of these condensed consolidated financial statements. Please click here to download the full 10-Q. About Worksport Worksport Ltd. (Nasdaq: WKSP), through its subsidiaries, designs, develops, manufactures, and owns the intellectual property on a variety of tonneau covers, solar integrations, portable power systems, and clean heating & cooling solutions. Worksport has an active partnership with Hyundai for the SOLIS Solar cover. Additionally, Worksport's hard-folding cover, designed and manufactured in-house, is compatible with all major truck models and is gaining traction with newer truck makers including the electric vehicle (EV) sector. Worksport seeks to capitalize on the growing shift of consumer mindsets towards clean energy integrations with its proprietary solar solutions, mobile energy storage systems (ESS), and Cold-Climate Heat Pump (CCHP) technology. Terravis Energy's website is Connect with Worksport Please follow the Company's social media accounts on X (previously Twitter), Facebook, LinkedIn, YouTube, and Instagram (collectively, the 'Accounts'), the links of which are links to external third-party websites, as well as sign up for the Company's newsletters at Social Media Disclaimer The Company does not endorse, ensure the accuracy of, or accept any responsibility for any content on these third-party websites other than content published by the Company. Investors and others should note that the Company announces material financial information to our investors using our investor relations website, press releases, Securities and Exchange Commission (SEC') filings, and public conference calls and webcasts. The Company also uses social media to announce Company news and other information. The Company encourages investors, the media, and others to review the information the Company publishes on social media. The Company does not selectively disclose material non-public information on social media. If there is any significant financial information, the Company will release it broadly to the public through a press release or SEC filing prior to publishing it on social media. Forward-Looking Statements The information contained herein may contain 'forward‐looking statements.' Forward‐looking statements reflect the current view about future events. When used in this press release, the words 'anticipate,' 'believe,' 'estimate,' 'scheduled,' 'expect,' 'future,' 'intend,' 'plan,' 'project,' 'envisioned,' 'should," or the negative of these terms and similar expressions, as they relate to us or our management, identify forward‐looking statements. These statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial situation may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) supply chain delays; (ii) acceptance of our products by consumers; (iii) delays in or nonacceptance by third parties to sell our products; and (iv) competition from other producers of similar products. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the SEC, including, without limitation, our latest Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC's web site at As a result of these matters, changes in facts, assumptions not being realized or other circumstances, the Company's actual results may differ materially from the expected results discussed in the forward-looking statements contained in this press release. The forward-looking statements made in this press release are made only as of the date of this press release, and the Company undertakes no obligation to update them to reflect subsequent events or circumstances.
Yahoo
26-06-2025
- Automotive
- Yahoo
Worksport announces commercial-use pilot project with U.S. construction firm
Worksport (WKSP) announces a commercial-use pilot project with a leading US construction firm that has a fleet comprising over 1,000 trucks. Under this initial engagement, the construction firm has agreed to purchase units of the Worksport's SOLIS solar tonneau cover and COR portable energy system to use and evaluate for broader application to their large truck fleet. Steven Rossi, CEO of Worksport, commented: 'We believe our COR and SOLIS systems will be an excellent fit for large commercial work fleets. We are excited to have a reputed; well-known construction Company purchase test units of our COR & SOLIS system to test within their network. We believe this collaboration underscores Worksport's underlying excitement for the upcoming product line, set for public release in Fall 2025. We believe this relationship can be meaningful with significant revenue upside opportunities in the future.' Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See the top stocks recommended by analysts >> Read More on WKSP: Disclaimer & DisclosureReport an Issue Worksport Announces Record-Breaking Revenues for May 2025 Worksport announces May sales of $1.28M Worksport Completes Initial Closing of Regulation A Offering Worksport Expands U.S. Dealer Network Significantly Worksport secures second national automotive distributor Sign in to access your portfolio
