Worksport (WKSP) Q1 2026 earnings summary

Executive summary

• Q1 2026 net sales rose 48% year-over-year to $3.31 million, with gross profit up 116% to $854,000 and gross margin improving to 26% as the company transitioned from launch readiness to commercialization.

• Major product launches included SOLIS, COR, and NEXUS, all receiving certifications and expanding distribution, notably through a partnership with Tri-State Enterprises.

• Strategic investments focused on inventory, product launches, marketing, and distribution, positioning for improved margin efficiency and reduced cash burn.

• Net loss widened to $5.83 million, reflecting increased operating expenses for growth and brand promotion.

• Terravis Energy's Aetherlux heat pump technology advanced toward certification, targeting the $150 billion HVACR market.

Financial highlights

• Net sales for Q1 2026 were $3.31 million, up 48% from Q1 2025, with U.S. accounting for 99% of sales.

• Gross margin improved to 26% from 18% year-over-year, though down from 30% in Q4 2025 due to sales channel mix.

• Operating expenses increased to $6.6 million, driven by higher G&A and sales/marketing costs for product launches.

• Net loss was $5.83 million, with a cash-based operating loss of $4.7 million after non-cash items.

• Cash and equivalents declined to $566,000 as of March 31, 2026, reflecting inventory build and launch costs.

Outlook and guidance

• Fiscal 2026 revenue guidance reaffirmed at $35–$42 million, with a focus on achieving operational cash flow positivity.

• Guidance updates will shift to annual rather than quarterly to emphasize long-term strategy.

• Management expects continued sales growth from new product launches and expanded distribution, with margin improvement and lower operational cash burn in the second half.