Workhorse Group (WKHS) Q3 2025 earnings summary

Executive summary

• Announced a definitive merger agreement with Motiv, aiming to create a leading North American medium-duty electric truck OEM, with shareholder vote scheduled for November 12, 2025.

• Completed sale of 15 trucks in Q3 2025, with positive customer feedback, repeat business, and ongoing efforts to expand the customer base and dealer network.

• Maintained financial discipline and cost management, reducing operating expenses by $1.2 million year-over-year for Q3 and $17.5 million year-to-date.

• Completed a $20 million sale-leaseback of the Union City facility, recognizing a $13.8 million gain, and issued a $5 million convertible note to a Motiv affiliate.

• Advanced product roadmap with the launch of the Utilimaster Aeromaster body for the W56 platform, enhancing flexibility and performance.

Financial highlights

• Q3 2025 net sales were $2.4 million, down $0.1 million year-over-year, mainly due to fewer truck deliveries, partially offset by deferred revenue recognition.

• Cost of sales increased to $10.1 million from $6.6 million, driven by a $3.3 million rise in inventory excess and obsolescence reserve.

• Q3 2025 net loss was $7.8 million, compared to $25.1 million in Q3 2024, with a net loss per share of $0.50 (adjusted for reverse stock splits).

• Cash and cash equivalents at September 30, 2025, were $12.7 million, with $25.5 million in restricted cash.

• Recognized a $13.8 million gain on sale of assets and a $4.8 million gain from deferred revenue upon termination of the Tropos Assembly Services Agreement.

Outlook and guidance

• Expects the Motiv merger to close in Q4 2025, providing a simplified capital structure and improved liquidity.

• Anticipates up to $20 million in new debt financing at closing, with $10 million for general purposes and $10 million for vehicle manufacturing.

• Preparing for the W56 140 kWh production launch in 2026 and developing a consolidated R&D and product roadmap.

• Focused on fulfilling existing fleet orders, converting inventory to cash, and reducing operating costs.

• Substantial doubt exists about the ability to continue as a going concern due to recurring losses, accumulated deficit, and limited access to additional financing.