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.

• Year-to-date sales totaled $11.4 million, more than double the prior year's first nine months.

• Gross margin expanded to 31.3% from 7.9% a year ago, reflecting operational efficiencies 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.

• The company is transitioning from investment-heavy operations to a focus on profitability and cash flow positivity in 2026.

Financial highlights

• Net sales for Q3 2025 were $5.0 million, up from $3.1 million in Q3 2024; year-to-date sales reached $11.4 million, more than double the prior year.

• Gross profit for Q3 was $1.6 million, with a gross margin of 31.3%, up from 7.9% in Q3 2024 and 26.4% in Q2 2025.

• Operating expenses totaled $6.4 million, mainly due to growth investments and marketing for new product launches.

• Operating loss was $4.8 million, compared to $3.9 million in Q3 2024.

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

Outlook and guidance

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

• 2026 revenue drivers include U.S. tonneau cover net sales of $27–$35 million and additional tens of millions from SOLIS and COR.

• Full-year impact of new product launches expected in 2026, with gross margins targeted at 35–40%.

• Operating cash flow expected to turn positive in the first half of 2026.

• Management projects 2026 profitability with a $45M+ revenue target, driven by new product launches.