Worksport (WKSP) Q3 2025 earnings summary

Executive summary

• Q3 2025 net sales reached $5.0 million, up 61% year-over-year and 22% sequentially, marking the third consecutive quarter of growth and record sales, driven by new product launches and expanded distribution.

• Gross margin expanded to 31.3% from 7.9% a year ago, reflecting operational efficiencies, scale, and a stronger product mix.

• Net loss was $4.9 million for Q3, driven by ongoing investments in product expansion, manufacturing scale-up, and marketing, positioning for profitability in 2026.

• Year-to-date sales reached $11.4 million, more than double the $5.6 million for the same period in 2024.

• The tonneau cover division is the near-term economic engine, funding clean-tech initiatives and supporting new product launches.

Financial highlights

• Gross profit for Q3 was $1.6 million, with a year-to-date gross margin of 26.7%–26.8% versus 10.5% in 2024.

• Operating expenses in Q3 totaled $6.4 million, up from $4.2 million in Q3 2024, mainly due to growth investments and marketing.

• Net cash used in operations for the first nine months was $11.2 million, up from $8 million last year.

• Cash at quarter-end was $3.8 million, with $3.3 million available on a credit line; total indebtedness reduced to $2.9 million as of September 30, 2025.

• Annualized sales run rate for Q3 was $20.4 million.

Outlook and guidance

• Projected 2025 year-end revenues of $17–$21 million, depending on timing of SOLIS and COR revenue recognition.

• 2026 revenue target set at $45M+, with $27M–$35M from tonneau cover sales and additional contributions from SOLIS and COR.

• Full-year 2026 expected to benefit from 35–40% gross margins and first full-year commercialization of Core and Solis.

• Targeting positive operating cash flow in early 2026, with no major step-up in fixed costs anticipated and OpEx growth below revenue growth.

• Management expects further margin improvement as scale and operational maturity increase.