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Globe and Mail
5 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
23-06-2025
- Automotive
- Yahoo
Worksport Reports Consecutive Months of Record-Breaking Revenues, Gross Margin Improves by 25%
Company Reports All-Time-High Revenue in May 2025 (Following Record April 2025 Sales) as Gross Margins Rise 25% from Q1 2025 Levels; Growth Momentum Expected to Continue West Seneca, New York, June 23, 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 that May 2025 sales reached $1.28 million, marking the Company's second consecutive month of record-breaking revenue (non-audited). Gross Margins continue to improve notably, as Worksport's Made-in-USA cover line continues to gain significant traction. Worksport's April and May 2025 revenues alone have surpassed total Q1 2025 revenue, signaling strong momentum entering the second half of the year. Gross Margin Expansion: May gross margins improved 25% over Q1 2025 levels, bringing margins closer to 23%, driven by the Company's focus on higher-value branded products and greater operational efficiency at its New York manufacturing facility, where products use over 90% domestic content. Management projects gross margins to trend toward 30% by year-end, reflecting expected scale benefits and continued cost optimizations. Company expects cash-flow positivity to be achieved towards year-end. Distribution Network and Growth Outlook: Worksport's active dealer network has expanded from 94 in Q4 2024 to over 550 today, including two major national distributors added this spring. Management expects June 2025 to deliver another strong month as two recently onboarded national distributors ramp up ordering. Steven Rossi, CEO of Worksport Ltd., commented: 'The month of May marks another record, reinforcing that our American-made tonneau covers and strategic B2B expansion are delivering real, repeatable results. We expect June 2025 to be even stronger as our newest national distributors ramp up orders. With our SOLIS and COR clean-tech products launching this fall, we believe 2025 will prove to be another breakout year that firmly sets Worksport on a path to long-term growth with a keen focus on strong EBITA.' 2025 Revenue and Profitability Outlook Building on revenue of $1.5 million in 2023 and $8.5 million in 2024, Worksport projects reaching approximately $20 million by year-end 2025 — a scale designed to deliver cash flow positivity and support sustained profitability. Notably, the Company's current market capitalization remains below this year's projected revenue, highlighting what management views as a meaningful investment opportunity. Further upside is expected with the anticipated fall 2025 launch of the SOLIS solar tonneau cover and COR portable nano-grid power system, targeting multi-billion-dollar clean energy and portable power markets. Management believes these high-margin, IP-protected products will accelerate significant consistent growth for the years ahead. For further information:Investor Relations, Worksport Ltd. T: 1 (888) 554-8789 -128 W: W: E: investors@ Join: Worksport's Newsletter 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 in to access your portfolio
