Worksport (WKSP) investor relations material

Executive summary

• Net sales nearly doubled year-over-year to $16.1 million in FY 2025, driven by new product launches, expanded dealer network, and transition from development to commercialization.

• Gross margin improved from 11% in FY 2024 to 28% in FY 2025, reaching 30% in Q4.

• Major product launches included the HD3 hard tonneau cover, SOLIS solar-integrated cover, and COR portable energy storage system.

• Dealer network expanded sixfold to over 550 locations, with ISO 9001 certification achieved, positioning for OEM partnerships.

• Strategic focus shifted to proprietary branded products, reducing reliance on private label sales and enhancing margin profile.

Financial highlights

• Net sales increased 89.8% year-over-year to $16.1 million from $8.5 million in 2024; hard covers contributed $15.7 million, soft covers $0.5 million.

• Gross margin improved to 28% for the year, up from 10.7% in 2024; Q4 gross margin was 30.1%.

• Online retailer sales rose 142% to $11.9 million, representing 74% of total net sales; distributor and jobber sales increased to $4.2 million from $400,000 year-over-year.

• General and administrative expenses rose 26% to $14.8 million, mainly due to operational expansion.

• Net loss for 2025 was $19.4 million, compared to $16.2 million in 2024.

Outlook and guidance

• Fiscal 2026 revenue guidance is $35–$42 million with targeted gross margins of 35%.

• Guidance includes full-year impact of new product launches and assumes stable aluminum prices.

• Path to operational cash flow positivity expected in the second half of 2026, driven by margin expansion and sales growth.

• Aggressive dealer network expansion to 1,500 locations and international market entry planned.

• Next-generation hard tonneau cover launch and "Game Changer" product planned for early Q2 2026.