Worksport (WKSP) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 revenue of $1.92M, up 860% year-over-year and 275% sequentially, surpassing full-year 2023 revenue.

• Growth driven by new Buffalo factory, expanded dealer/e-commerce channels, and new product launches, including the AL3 tonneau cover, with AL4 and SOLIS launches planned for Q4 2024.

• Net loss for Q2 2024 was $4.01M, a 6% increase from Q2 2023, due to higher operating expenses.

• Management anticipates continued rapid growth with premium product introductions, improved production efficiency, and strong brand establishment in the truck bed market.

• Company remains unprofitable and continues to rely on external financing.

Financial highlights

• Q2 2024 net sales reached $1.92M, a 275% sequential increase and 860% year-over-year growth.

• Gross profit margin for Q2 2024 was 15.4%, up 111% from Q1 2024.

• Net loss for Q2 2024 was $4.01M, compared to $3.80M in Q2 2023.

• Cash at June 30, 2024: $3.43M; working capital: $8.49M.

• Inventory investment totaled $6.39M by Q2, with $3.63M invested since the start of 2024.

Outlook and guidance

• On track to meet or exceed 2024 revenue guidance of $6–$8M, excluding potential sales from AL4, SOLIS, and COR products.

• FY 2025 tonneau cover revenue expected at $15–20M, with potential upside from new product launches.

• Clean-tech COR and SOLIS products to launch in September, with initial sales outlook to be provided in Q3 2024.

• Anticipates cash flow positivity and EBITDA earnings within 2025 as operational efficiencies improve.

• No significant equipment investment expected in next 12 months.