Worksport (WKSP) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached $3.12M, up 63% sequentially and 581–588% year-over-year, marking the highest quarterly sales in company history, driven by online, dealer, and private label channels.

• Online retail sales surged to 51% of Q3 revenue, up from 5% last year, with B2C sales at $1.59M.

• Secured a $2.8M innovation grant, launched first full production line, and began U.S. government sales.

• Company continues to expand product lines, ramp up manufacturing, and strengthen sales channels, including new product launches and government partnerships.

• Net loss for Q3 2024 was $4.1M, a 4.7% increase from Q3 2023, with ongoing cost-saving initiatives and Nasdaq compliance extension.

Financial highlights

• Q3 2024 revenue: $3,122,359, up 63% sequentially and 581–588% YoY; nine-month sales: $5.6M, up 705% YoY.

• Gross profit for Q3 was $247K (8% margin), with temporary margin erosion due to production optimization.

• Inventory increased to $6.14M, supporting production and demand.

• Cash at September 30, 2024: $1.86M; working capital: $5.88M.

• Cost of sales as a percentage of net sales increased to 92% in Q3 2024, mainly due to discounting and overhead allocation.

Outlook and guidance

• 2025 revenue projected at $20M from current products, with potential to reach $25–34.5M including new launches.

• Expects to exceed previous 2024 revenue guidance of $6–8M, with a likely range of $8–9M.

• Anticipates cash flow positivity in 2025, with continued growth into 2026 and beyond.

• AL4 tonneau cover launch in late Q4 2024 and commercial launch of COR, SOLIS, and Aetherlux products in 2025 expected to drive growth and margin improvement.

• Focus remains on transitioning to revenue-driven liquidity and expanding customer base.