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Workhorse Group
(NASDAQ:WKHS)
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Rating:45Neutral
Price Target:
$3.50
▲(29.15% Upside)
Action:Reiterated
Date:07/29/26
WKHS scores low primarily due to persistently negative unit economics (negative gross margin), large operating losses, and significant cash burn alongside rising leverage and shrinking equity. Technicals remain weak on longer-term trend measures (well below the 200-day average), while valuation is difficult to support with negative earnings and no dividend. The earnings call provides some offset from improving deliveries, new orders, and stated cost-synergy goals, but near-term losses and reliance on financing keep the overall score constrained.
Positive Factors
Commercial traction (revenue & deliveries)
Sharp year-over-year revenue and delivery increases demonstrate early commercial validation and growing fleet adoption. Durable demand momentum helps absorb fixed production costs as Union City ramps, supporting a pathway to improved unit economics if scale continues over the next 2–6 months.
Negative Factors
Persistent negative unit economics
Sustained negative gross margins imply fundamental unit-economics problems: current production and material costs exceed selling prices. Without rapid, sustained cost reductions or higher realizations, losses per vehicle will persist, making profitability dependent on scale and structural cost improvements.
Read all positive and negative factors
Positive Factors
Negative Factors
Commercial traction (revenue & deliveries)
Sharp year-over-year revenue and delivery increases demonstrate early commercial validation and growing fleet adoption. Durable demand momentum helps absorb fixed production costs as Union City ramps, supporting a pathway to improved unit economics if scale continues over the next 2–6 months.
Read all positive factors
Workhorse Group Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue by different business units, highlighting which segments are driving growth and where the company might be facing challenges. This helps investors understand the company's strategic focus and operational strengths.
Breaks down revenue by different business units, highlighting which segments are driving growth and where the company might be facing challenges. This helps investors understand the company's strategic focus and operational strengths.
Data provided by:
The Fly
The FlyWorkhorse Group (WKHS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$33.22M
Dividend YieldN/A
Average Volume (3M)112.36K
Price to Earnings (P/E)―
Beta (1Y)1.31
Revenue Growth320.74%
EPS Growth94.41%
CountryUS
Employees148
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)-6.31
Shares Outstanding10,893,400
10 Day Avg. Volume79,196
30 Day Avg. Volume112,363
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)1.12
Price to Sales (P/S)2.27
P/FCF Ratio-1.33
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit>-0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)-4.73
Revenue Forecast (FY)$37.16M
Workhorse Group Business Overview & Revenue Model
Company Description
Workhorse Group, Inc. designs and manufactures electric trucks and related fleet charging solutions. The company provides electric trucks for medium-duty fleet applications, including the Argo electric truck and Argo chassis, which integrate propr...
How the Company Makes Money
Workhorse primarily makes money by selling commercial battery-electric vehicles to customers (typically fleet operators). A second revenue stream comes from selling replacement parts and providing service/support related to the vehicles it has del...
Workhorse Group Earnings Call Summary
Earnings Call Date:May 14, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 13, 2026
Earnings Call Sentiment Neutral
The call presented a mix of encouraging operational and commercial progress alongside meaningful near-term financial challenges. Positive factors include successful merger integration, increased revenue and deliveries, large new purchase orders (Purolator and Gateway), product roadmap initiatives (modular chassis and Class 5/6 cab chassis) with clear timelines, demonstrated TCO advantages, a customer-support partnership, resolution of legacy legal overhangs, and strengthened borrowing capacity. Offsetting these positives are significant near-term losses (gross loss of $7.5M; operating loss $21.1M; net loss $19.9M), sharply higher cost of sales and SG&A as the company transitions to owned manufacturing, a $1.5M warranty charge for retrofit work, and continued reliance on external financing to fund operations and settlements. Management expects synergies and scale to improve margins over 2026, but the current quarter reflects heavy transitional costs and cash use.Positive Updates
Revenue and Deliveries Growth
Revenue of $4.3M in Q1 2026 versus $1.1M in Q1 2025 (≈+291% YoY). Vehicle deliveries increased to 21 from 5 in the prior year period (+320% YoY), reflecting early commercial traction following the merger.
Negative Updates
Significant Gross Loss and Higher Cost of Sales
Cost of sales was $11.8M in Q1 2026 versus $2.2M in Q1 2025 (≈+436% YoY), producing a gross loss of $7.5M for the quarter. Management attributed higher costs to increased sales volume, owning manufacturing vs prior contract manufacturing, and temporary consolidation costs.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue and Deliveries Growth
Revenue of $4.3M in Q1 2026 versus $1.1M in Q1 2025 (≈+291% YoY). Vehicle deliveries increased to 21 from 5 in the prior year period (+320% YoY), reflecting early commercial traction following the merger.
Read all positive updates
Company Guidance
The company provided no formal numeric revenue or EPS guidance but said it expects deliveries to increase through 2026 as Union City production ramps and reiterated it still expects to exit 2026 with a $20 million annualized cost‑synergy run rate; near‑term operational metrics include three production lines in Union City (W56, new F59 chassis line, EPIC4), 21 vehicle deliveries and $4.3 million revenue in Q1 vs. 5 deliveries and $1.1 million a year ago, Q1 cost of sales $11.8 million (gross loss $7.5 million) including a $1.5 million warranty charge, SG&A $9.5 million, R&D $4.1 million, loss from operations $21.1 million and net loss $19.9 million ($0.99 per share) vs. a prior‑year net loss of $12.7 million ($1.36); liquidity actions include drawing $7.3 million on April 1 (bringing that facility to $12.3 million outstanding), an additional $10 million drawn under the cash‑flow facility after amending credit lines (cash‑flow capacity now $20 million, customer‑order capacity $30 million with $17.7 million available as of the 10‑Q), and a $4.3 million settlement payment for Coulomb; product and commercial milestones include POs for 100 Purolator step vans and 100 Gateway W56s, ~75 W56s deployed or on order to ISPs, a new 140 kW W56 variant and promotional pricing on the 210 kW model, plans to begin validation of a proprietary modular chassis and a Class 5/6 cab chassis in 2026 with initial production targeted in early 2027, and real‑world Stables data (2025: ~560,000 packages, ~250,000 miles, $76,000 gas vs. $10,800 electricity — ~$0.53/mile ICE vs. ~$0.10/mile EV in 2025, gap widening to ~$0.73/mile with current prices and ~$220,000 annual fuel savings for a 20‑vehicle fleet).Workhorse Group Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
36
Negative
Cash Flow
24
Negative
| Breakdown | Mar 2026 | Mar 2025 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 21.21M | 6.62M | 13.09M | 5.02M | -851.92K |
| Gross Profit | -9.55M | -22.23M | -25.26M | -32.65M | -126.54M |
| EBITDA | -45.43M | -71.76M | -100.34M | -115.00M | -176.40M |
| Net Income | -64.09M | -101.79M | -123.92M | -117.27M | -401.34M |
Balance Sheet | |||||
| Total Assets | 117.89M | 93.84M | 141.67M | 182.74M | 228.14M |
| Cash, Cash Equivalents and Short-Term Investments | 12.92M | 4.12M | 25.85M | 99.28M | 201.65M |
| Total Debt | 37.82M | 16.32M | 29.02M | 10.13M | 26.26M |
| Total Liabilities | 74.85M | 49.55M | 58.56M | 74.16M | 53.45M |
| Stockholders Equity | 43.04M | 44.29M | 83.11M | 108.59M | 174.69M |
Cash Flow | |||||
| Free Cash Flow | -36.16M | -51.65M | -141.71M | -111.32M | -137.89M |
| Operating Cash Flow | -35.55M | -47.59M | -123.02M | -93.82M | -132.58M |
| Investing Cash Flow | 9.83M | -4.06M | -18.69M | -20.02M | 99.81M |
| Financing Cash Flow | 32.02M | 20.45M | 78.28M | 11.47M | -6.82M |
Workhorse Group Technical Analysis
Neutral
2.71
Price Trends
3.04
Positive
3.02
Positive
4.94
Negative
Market Momentum
0.11
Negative
70.23
Negative
89.40
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WKHS, the sentiment is Neutral. The current price of 2.71 is below the 20-day moving average (MA) of 2.87, below the 50-day MA of 3.04, and below the 200-day MA of 4.94, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 70.23 is Negative, neither overbought nor oversold. The STOCH value of 89.40 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WKHS.
Workhorse Group Risk Analysis
Workhorse Group disclosed 1 risk factors in its most recent earnings report. Workhorse Group reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Workhorse Group Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
45 Neutral | $33.22M | -0.48 | -204.85% | ― | 320.74% | 94.41% | |
38 Underperform | $1.02M | -0.51 | -117.84% | ― | ― | ― | |
37 Underperform | $1.09M | ― | 195.51% | ― | ― | ― | |
28 Underperform | $1.86K | -96.27 | ― | ― | ― | ― |
* Consumer Cyclical Sector Average
WKHS
Workhorse Group
3.51
-17.25
-83.09%
BINI
Bollinger Innovations
0.05
-742.45
-99.99%
ZAPPF
Zapp Electric Vehicles
0.01
-0.05
-83.33%
PEVM
Phoenix Motor
0.71
-3.85
-84.48%
Workhorse Group Corporate Events
Business Operations and StrategyProduct-Related Announcements
Workhorse Plans Mobile AI Data Center Expansion
Positive
Jul 28, 2026
On July 28, 2026, Workhorse Group announced plans to enter the mobile AI data center market with a turnkey, compute-ready, containerized product designed for localized AI and edge-computing deployments worldwide. The planned systems will feature l...
Business Operations and StrategyExecutive/Board Changes
Workhorse Group Adopts New Executive Incentive Compensation Plan
Positive
Jul 23, 2026
On July 20, 2026, Workhorse Group Inc.’s Human Resource Management and Compensation Committee approved a new Short-Term Incentive Plan, effective January 1, 2026, covering the company’s principal executive, financial, and other named e...
Business Operations and StrategyExecutive/Board ChangesM&A Transactions
Workhorse Group Announces New CFO and Accounting Leadership
Neutral
Jul 13, 2026
Workhorse Group Inc. announced a planned leadership transition in its finance organization on July 13, 2026, tied to its previously disclosed acquisition of Motiv Power Systems, Inc., with Chief Financial Officer Robert M. Ginnan stepping down fro...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Workhorse Shareholders Approve Expanded Long-Term Incentive Plan
Positive
Jun 30, 2026
At its annual meeting on June 29, 2026, Workhorse Group stockholders approved an amended and restated 2023 Long-Term Incentive Plan, increasing the pool of shares available for equity awards by 1,089,340 shares, following prior adoption by the boa...
Business Operations and StrategyPrivate Placements and Financing
Workhorse Group Expands Cash Flow Credit and Alters Financing
Neutral
Jun 17, 2026
On June 16, 2026, Workhorse Group Inc. amended its existing credit arrangements with Motive GM Holdings II LLC, raising the commitment under its Cash Flow Credit Agreement from $20 million to $30 million while deferring interest payments on the ad...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.