Worksport (WKSP)
NASDAQ:WKSP
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Worksport
(NASDAQ:WKSP)
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Rating:44Neutral
Price Target:
$1.00
▼(-6.54% Downside)
Action:ReiteratedDate:04/21/26
The score is held down primarily by weak financial performance—large losses and significant cash burn despite improving gross margins and rapid revenue growth. Technicals remain broadly bearish with the stock below key longer-term moving averages. Guidance and operational progress from the latest earnings call provide a partial offset, but execution and liquidity risks remain material.
Positive Factors
Rapid revenue ramp & margin improvement
A near-term shift from development to commercialization produced sharp top-line scale and meaningful gross margin expansion, indicating improving unit economics and fixed-cost absorption. These durable trends increase the odds management can reach sustainable operating leverage as volumes grow.
Negative Factors
High operating cash burn
Persistent, large negative operating cash flow is a structural risk: consuming tens of millions annually forces reliance on external financing, dilutes equity, and can limit investments into sales/production. Without sustained cash‑flow turnaround, liquidity and execution are at material risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Rapid revenue ramp & margin improvement
A near-term shift from development to commercialization produced sharp top-line scale and meaningful gross margin expansion, indicating improving unit economics and fixed-cost absorption. These durable trends increase the odds management can reach sustainable operating leverage as volumes grow.
Read all positive factors
Worksport (WKSP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.07M
Dividend YieldN/A
Average Volume (3M)328.50K
Price to Earnings (P/E)―
Beta (1Y)2.11
Revenue Growth89.78%
EPS Growth45.51%
CountryUS
Employees80
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)-0.65
Shares Outstanding11,885,519
10 Day Avg. Volume296,051
30 Day Avg. Volume328,495
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)0.57
Price to Sales (P/S)0.81
P/FCF Ratio-0.72
Enterprise Value/Market Cap0.18
Enterprise Value/Revenue0.15
Enterprise Value/Gross Profit0.52
Enterprise Value/Ebitda-0.14
Forecast
1Y Price Target
$7.00Price Target Upside554.21% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-1.07
Revenue Forecast (FY)$36.85M
Worksport Business Overview & Revenue Model
Company Description
Worksport Ltd., through its subsidiary, designs, manufactures, and distributes truck tonneau covers in Canada and the United States. The company offers soft cover (SC) and tough cover (TC) tonneau covers, including SC3, a tri-fold cover that seals...
How the Company Makes Money
Worksport makes money primarily by selling pickup-truck tonneau covers and related accessories. Its core revenue stream is product sales, which can occur through (1) direct-to-consumer e-commerce transactions where the company captures the full re...
Worksport Earnings Call Summary
Earnings Call Date:Mar 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 14, 2026
Earnings Call Sentiment Neutral
The call presented a mixed but constructive picture: the company demonstrated substantial top-line growth, dramatic margin improvement, successful product commercialization, expanded distribution, ISO certification, and a strengthened IP portfolio. Those operational wins are balanced by meaningful near-term financial risks — elevated operating cash burn, increased G&A, large inventory, tariff-driven input-cost pressure (notably aluminum), and reliance on a concentrated U.S. and e-commerce sales mix. Management has raised incremental capital, set ambitious 2026 guidance (revenue $35M–$42M and ~35% gross margin), and articulated a path to operating cash flow positivity, but execution against supply-chain, commercialization, and cash-conversion risks will determine whether the positive operational momentum translates into sustained profitability.Positive Updates
Strong Revenue Growth
Net sales increased 89.8% year-over-year to $16.1M in fiscal 2025 (from $8.5M in 2024), following growth from $1.5M in 2023. Management projects 2026 revenue of $35M to $42M.
Negative Updates
High Operating Cash Burn & Going Concern Disclosure
Net cash used in operating activities increased to $17.2M in fiscal 2025 (from $10.1M in 2024). Management included an explanatory going-concern paragraph in the Form 10-K due to historical operating losses and growth-stage capital needs.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Revenue Growth
Net sales increased 89.8% year-over-year to $16.1M in fiscal 2025 (from $8.5M in 2024), following growth from $1.5M in 2023. Management projects 2026 revenue of $35M to $42M.
Read all positive updates
Company Guidance
Worksport guided fiscal 2026 revenue of $35.0–$42.0 million with target gross margins of ~35% and an expectation of initial operating cash‑flow positivity during 2026; management reiterated that sustaining quarterly revenue of roughly $9.0–$11.0 million at ~35% gross margin would produce company‑wide cash‑flow breakeven and they expect to reach $9.0M quarterly within the year. The guidance assumes full‑year impact of three products launched late in 2025 (and the early‑2026 rollout of a new “game‑changer” cover), excludes AetherLux contributions and upside from a faster SOLIS/CORE ramp, and assumes aluminum prices remain at current levels. Operational goals tied to the guidance include ramping SOLIS/CORE (initial near‑term opportunity ~1,000 CORE units + ~900 additional batteries ≈ $2.5M), expanding the dealer network from 550+ locations toward 1,500, and focusing on EBITDA and positive operating cash flow. Management enters 2026 with liquidity of ~$5.95M cash + $3.4M available on the revolver (~$9.3M total), $9.5M of inventory (56% raw materials), FY2025 net sales of $16.1M with FY2025 gross margin 28% (Q4 ~30%), and noted 2025 capital raises including ~ $500k ATM proceeds, an amended ATM capacity for up to an additional $4.0M, and $6.4M raised via a warrant inducement.Worksport Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
34
Negative
Cash Flow
22
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 16.10M | 8.48M | 1.53M | 116.50K | 303.75K |
| Gross Profit | 4.47M | 905.65K | 240.51K | 59.53K | -46.95K |
| EBITDA | -16.69M | -13.68M | -13.20M | -11.56M | -7.54M |
| Net Income | -19.35M | -16.16M | -14.93M | -12.53M | -7.90M |
Balance Sheet | |||||
| Total Assets | 30.77M | 25.74M | 25.95M | 32.76M | 36.29M |
| Cash, Cash Equivalents and Short-Term Investments | 5.95M | 4.88M | 4.86M | 15.32M | 28.57M |
| Total Debt | 2.91M | 5.62M | 6.24M | 6.62M | 857.06K |
| Total Liabilities | 7.84M | 8.32M | 7.78M | 8.65M | 2.11M |
| Stockholders Equity | 22.93M | 17.41M | 18.18M | 24.12M | 34.18M |
Cash Flow | |||||
| Free Cash Flow | -18.10M | -10.67M | -15.62M | -19.13M | -5.18M |
| Operating Cash Flow | -17.31M | -10.14M | -11.93M | -7.98M | -4.05M |
| Investing Cash Flow | -1.12M | -528.24K | -3.76M | -11.15M | -1.13M |
| Financing Cash Flow | 19.50M | 12.18M | 4.43M | 5.18M | 32.64M |
Worksport Technical Analysis
Neutral
1.07
Price Trends
1.27
Negative
1.80
Negative
2.55
Negative
Market Momentum
-0.10
Negative
46.46
Neutral
76.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WKSP, the sentiment is Neutral. The current price of 1.07 is above the 20-day moving average (MA) of 1.05, below the 50-day MA of 1.27, and below the 200-day MA of 2.55, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 46.46 is Neutral, neither overbought nor oversold. The STOCH value of 76.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WKSP.
Worksport Risk Analysis
Worksport disclosed 50 risk factors in its most recent earnings report. Worksport reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Worksport 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% | |
56 Neutral | $155.71M | -2.14 | -16.59% | ― | -18.57% | 19.05% | |
48 Neutral | $87.28M | -3.49 | -33.62% | ― | -14.48% | -268.82% | |
44 Neutral | $13.07M | -0.68 | -95.96% | ― | 89.78% | 45.51% | |
42 Neutral | $5.82M | -0.36 | ― | ― | ― | ― | |
40 Underperform | $3.70M | -0.08 | -121.52% | ― | -100.00% | -38.83% |
* Consumer Cyclical Sector Average
WKSP
Worksport
1.10
-1.98
-64.29%
CVGI
Commercial Vehicle Group
4.25
3.34
366.01%
SYPR
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3.79
2.11
125.60%
SBLX
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2.54
-5.56
-68.64%
FRSX
Foresight Autonomous Holdings
2.00
-12.75
-86.44%
Worksport Corporate Events
Business Operations and StrategyProduct-Related Announcements
Worksport Launches Nexus Tonneau Cover, Begins Commercial Sales
Positive
Apr 20, 2026
On April 20, 2026, Worksport Ltd. announced the commercial launch and start of sales for its Nexus Tonneau Cover, following initial production that began on April 13, 2026. The premium folding cover, featuring a proprietary single-side “Upla...
Business Operations and StrategyExecutive/Board ChangesFinancial DisclosuresPrivate Placements and Financing
Worksport Issues Shares to CEO in Equity Compensation
Positive
Apr 14, 2026
On April 13, 2026, Worksport issued 88,214 common shares to Founder and Chief Executive Officer Steven Rossi at a deemed price of $0.8502 per share, settling $75,000 of previously accrued and unpaid bonus compensation in equity rather than cash. T...
Business Operations and StrategyFinancial Disclosures
Worksport Reports Record 2025 Results and Strong 2026 Outlook
Positive
Mar 26, 2026
On March 26, 2026, Worksport reported record fiscal 2025 results, with net sales rising 89.8% year-on-year to $16.1 million and gross margin improving to 28% from 11% in 2024. The company cited stronger fourth-quarter margins of about 30%, a sixfo...
Business Operations and StrategyProduct-Related Announcements
Worksport Showcases New Premium Tonneau Cover at Keystone
Positive
Mar 19, 2026
On March 19, 2026, Worksport Ltd. unveiled a new premium tonneau cover model to industry buyers at the Keystone BIG Show, positioning the product as a “game changer” for professional and commercial truck users. Presented to Keystone Au...
Business Operations and StrategyProduct-Related AnnouncementsRegulatory Filings and Compliance
Worksport Gains Key Certifications for COR Energy System
Positive
Feb 19, 2026
On February 19, 2026, Worksport announced it has secured key transport, environmental and federal certifications for its COR portable energy system, clearing the product for global shipping and sale in tightly regulated markets such as the U.S. an...
Business Operations and StrategyProduct-Related Announcements
Worksport Advances Aetherlux Heat Pump Toward Commercial Rollout
Positive
Feb 12, 2026
On February 12, 2026, Worksport provided an operational update on its Terravis Energy subsidiary, saying a large government entity is currently evaluating performance data from its Aetherlux Pro heat pump with ZeroFrost anti-frosting technology as...
Business Operations and StrategyFinancial Disclosures
Worksport Reports Breakout Quarter, Shifts Toward Monetization Phase
Positive
Feb 11, 2026
On February 11, 2026, Worksport reported preliminary unaudited results showing a breakout fourth quarter and fiscal 2025, anchored by its U.S. manufacturing operations in West Seneca, N.Y. For Q4 2025, net sales rose 65% year over year to $4.84 mi...
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.