Workhorse Group (WKHS) Q1 2026 earnings summary

Executive summary

• Completed merger with Motiv Power Systems, making Motiv the accounting acquirer, and fully integrated operations at Union City, Indiana, including facility consolidation and production line relocation.

• Expanded product portfolio with next-generation modular chassis, Class 5/6 cab chassis, and new battery configurations, targeting ICE-competitive pricing and margins.

• Secured major purchase orders, including 100 vehicles each from Gateway Fleets and Purolator, and growing adoption among FedEx service providers, driving contracted backlog over 200 vehicles.

• Resolved two legacy legal matters, including a $4.3 million settlement with Coulomb Solutions, simplifying capital structure and removing operational overhangs.

• Management identified substantial doubt about the ability to continue as a going concern due to recurring losses, limited liquidity, and restricted access to capital markets.

Financial highlights

• Q1 2026 revenue was $4.3 million, up from $1.1 million in Q1 2025, with 21 vehicles delivered versus 5 last year.

• Cost of sales rose to $11.8 million, including a $1.5 million warranty charge for a retrofit campaign, resulting in a gross loss of $7.5 million.

• Net loss was $19.9 million ($1.99 per share) compared to $12.7 million ($1.36 per share) in Q1 2025.

• SG&A expenses increased to $9.5 million and R&D expenses rose to $4.1 million year-over-year.

• Cash and cash equivalents at March 31, 2026, were $0.6 million, with $0.7 million in restricted cash.

Outlook and guidance

• Deliveries expected to increase throughout 2026 as production ramps at Union City and order pipeline converts to revenue.

• Targeting $20 million annualized cost synergy run rate by end of 2026, with new modular chassis and Class 5/6 cab chassis validation in 2026 and production start in early 2027.

• Revenues from operations are not expected to meet liquidity needs for the next twelve months; continued reliance on external financing is anticipated.