tiprankstipranks
Trending News
More News >
Worksport (WKSP)
NASDAQ:WKSP
US Market
Advertisement

Worksport (WKSP) AI Stock Analysis

Compare
375 Followers

Top Page

WKSP

Worksport

(NASDAQ:WKSP)

Rating:50Neutral
Price Target:
$3.00
▼(-2.60% Downside)
Worksport's strong revenue growth and strategic initiatives are promising, but challenges with profitability, cash flow, and bearish technical indicators weigh heavily on the stock's outlook. The company's optimistic guidance and strategic focus on new products and market expansion provide potential upside.
Positive Factors
Financial Performance
WKSP reported 2Q25 results above expectations with revenue of $4.1M, up 114% year-over-year, and a gross profit margin of 26.4%, which exceeded forecasts.
Product Development
New product initiatives, including the SOLIS Solar Tonneau Cover and COR Portable Energy System, are expected to be material drivers of new revenue over time.
Negative Factors
Dilution Risk
WKSP plans to sell up to $10M of preferred equity convertible into common shares, which could dilute existing shareholders.
Earnings Guidance
Worksport reduced its 2025 revenue guidance due to lower-than-expected initial results, impacting near-term projections.

Worksport (WKSP) vs. SPDR S&P 500 ETF (SPY)

Worksport Business Overview & Revenue Model

Company DescriptionWorksport Ltd. (WKSP) is a cutting-edge technology company focused on the development and manufacturing of innovative accessories for the pickup truck market. The company specializes in designing and producing advanced tonneau covers, solar panels, and other related products that enhance the functionality and sustainability of pickup trucks. By integrating renewable energy solutions into their offerings, Worksport targets environmentally conscious consumers while also appealing to traditional truck owners looking for enhanced utility.
How the Company Makes MoneyWorksport generates revenue primarily through the sale of its products, which include premium tonneau covers and solar technology accessories. The company employs a direct-to-consumer sales model, leveraging e-commerce platforms and its own website to reach customers. Additionally, Worksport forms strategic partnerships with automotive retailers and distributors to expand its market reach. The company may also explore licensing agreements or collaborations with automotive manufacturers to incorporate its technology into new vehicle models, further diversifying its revenue streams. Seasonal promotions and marketing campaigns also play a role in driving sales, particularly during peak truck-buying seasons.

Worksport Earnings Call Summary

Earnings Call Date:Aug 13, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong growth trajectory with record revenue, improved gross margins, and significant expansion in distribution networks. However, challenges remain with increased operating expenses and cash flow management. The company is optimistic about its ability to achieve cash flow positivity and profitability in the near future.
Q2-2025 Updates
Positive Updates
Record Quarterly Revenue
Q2 2025 was the highest revenue quarter in company history with net sales reaching $4.1 million, representing a 114% year-over-year growth and an 83% sequential increase from Q1 2025.
Gross Margin Expansion
Gross margin improved by 800 basis points to 26.4%, up from 17.7% in Q1 2025 and 15.4% in Q2 2024, marking the third consecutive quarter of margin expansion.
Dealer and Distribution Network Growth
Added two national distributors, expanding the dealer network significantly with the potential to support over $21.5 million in annual revenue.
Production Scaling
Production targeting 200 units per day by late Q3 2025, up from 50 units per day at the start of the year.
New Product Developments
Launch plans for HD3, SOLIS, and COR products in the second half of 2025 with potential new revenue streams.
Improved Operational Efficiency
Operational loss improved to $3.62 million from $4.26 million in Q1 2025. Operating cash usage in Q2 was approximately $3.1 million, a 19% improvement from Q1 2025.
Negative Updates
Increased Operating Expenses
Operating expenses rose to $4.7 million, up from $4.21 million in Q2 2024, although remaining flat compared to Q1 2025.
Cash and Liquidity Concerns
Cash and cash equivalents decreased to $1.39 million from $5.08 million on March 31, 2025, with operating cash usage being a concern despite an improvement.
Tariff and Inflationary Pressures
Tariff-related pressures have contributed to a 5-10% inflationary increase in costs, although these have been offset by operational efficiencies.
Company Guidance
In the recent earnings call for Q2 2025, Worksport provided comprehensive guidance on its financial outlook and strategic initiatives. The company achieved record quarterly revenues of $4.1 million, marking a 114% year-over-year growth and an 83% increase from Q1 2025. Gross profit rose by 173% to $1.08 million, with gross margins improving by 800 basis points to 26.4%. Operating expenses were $4.7 million, slightly up from $4.21 million in Q2 2024 but flat compared to Q1 2025. The company aims to reach operational cash flow breakeven by late Q4 2025 or early Q1 2026, with a full-year revenue target of at least $20 million. Worksport's strategic focus includes expanding its dealer network, enhancing production capabilities, and launching new products such as the HD3, SOLIS, and COR, expected to contribute significantly to future growth and profitability. The company also highlighted a strong inventory position and a robust $6 million in total liquidity to support ongoing sales growth. Additionally, Worksport's long-term debt declined to $2.09 million, reflecting disciplined financial management. Overall, the company is poised for continued expansion with a focus on operational efficiencies, product innovation, and strategic market positioning.

Worksport Financial Statement Overview

Summary
Worksport shows significant revenue growth potential but struggles with profitability and cash flow management. The balance sheet is stable with low leverage, yet the company needs to convert revenue growth into sustainable profits and positive cash flow.
Income Statement
45
Neutral
Worksport's revenue has shown significant growth, evidenced by the impressive revenue growth rate from 2023 to 2024 and continuing into TTM (Trailing-Twelve-Months). However, the company struggles with profitability, as indicated by negative net profit margins and EBIT margins. Despite revenue growth, the firm is yet to achieve operational efficiency, reflected in continued losses at the EBIT and EBITDA levels.
Balance Sheet
50
Neutral
The balance sheet reveals a moderate financial position. The company has a relatively low debt-to-equity ratio, indicating manageable leverage levels. However, the return on equity remains negative due to persistent net losses. The equity ratio shows a decent proportion of assets financed by equity, which suggests financial stability despite ongoing losses.
Cash Flow
40
Negative
Worksport's cash flow situation is concerning, with negative free cash flow persisting over the years. Operating cash flow is negative, and there is a high reliance on financing activities to cover cash shortfalls. The free cash flow to net income ratio reflects the company's struggle to generate cash from operations, highlighting a need for improved cash management and cost control.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue10.21M8.48M1.53M116.50K303.75K346.14K
Gross Profit1.26M905.65K240.51K59.53K-46.95K47.15K
EBITDA-14.74M-13.68M-13.20M-11.56M-7.39M-774.41K
Net Income-16.91M-16.16M-14.93M-12.53M-7.90M-1.19M
Balance Sheet
Total Assets26.66M25.74M25.95M32.76M36.29M1.90M
Cash, Cash Equivalents and Short-Term Investments5.08M4.88M4.86M15.32M28.57M1.11M
Total Debt781.87K5.62M6.24M6.62M857.06K712.79K
Total Liabilities6.54M8.32M7.78M8.65M2.11M1.73M
Stockholders Equity20.13M17.41M18.18M24.12M34.18M169.47K
Cash Flow
Free Cash Flow-11.96M-10.67M-15.62M-19.13M-5.18M-734.27K
Operating Cash Flow-11.18M-10.14M-11.93M-7.98M-4.05M-726.30K
Investing Cash Flow-773.61K-528.24K-3.76M-11.15M-1.13M-16.73K
Financing Cash Flow13.50M12.18M4.43M5.18M32.64M1.81M

Worksport Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3.08
Price Trends
50DMA
3.42
Negative
100DMA
3.21
Negative
200DMA
5.26
Negative
Market Momentum
MACD
-0.14
Positive
RSI
44.50
Neutral
STOCH
36.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WKSP, the sentiment is Negative. The current price of 3.08 is below the 20-day moving average (MA) of 3.26, below the 50-day MA of 3.42, and below the 200-day MA of 5.26, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 44.50 is Neutral, neither overbought nor oversold. The STOCH value of 36.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$17.75B12.56-5.49%3.02%1.43%-14.12%
55
Neutral
$131.41M-222.90%-23.62%71.09%
50
Neutral
$19.99M-91.21%232.13%41.77%
50
Neutral
$65.09M1.82-27.62%-27.36%-218.40%
45
Neutral
$46.89M-12.94%-6.71%37.34%
44
Neutral
$29.90M3.58-266.79%
41
Neutral
$9.91M-103.81%-12.27%57.49%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WKSP
Worksport
3.08
-2.83
-47.88%
CVGI
Commercial Vehicle Group
1.78
-1.78
-50.00%
SYPR
Sypris
2.00
0.46
29.87%
FRSX
Foresight Autonomous Holdings
2.39
-3.14
-56.78%
LIDR
AEye Inc
3.02
1.77
141.60%
MKDW
MKDWELL Tech
0.21
-0.99
-82.50%

Worksport Corporate Events

Business Operations and StrategyFinancial Disclosures
Worksport Announces Record Q2 2025 Financial Results
Positive
Aug 13, 2025

On August 13, 2025, Worksport Ltd. announced record financial results for Q2 2025, with a 173% increase in gross profit and an 83% rise in revenue. The company also reaffirmed its revenue target of at least $20 million for 2025 and highlighted its path to achieving operational cash flow positivity. Worksport achieved its highest quarterly revenue in company history, with net sales of $4.10 million, and expanded its gross margin to 26.4%. The company is focusing on launching new products and managing costs effectively to drive future growth and profitability.

Product-Related AnnouncementsBusiness Operations and Strategy
Worksport Announces Doubling of Bitcoin Holdings
Positive
Aug 7, 2025

On August 7, 2025, Worksport Ltd. announced significant corporate developments, including the doubling of its Bitcoin holdings as part of its treasury strategy, expansion of production capacity with new manufacturing equipment, and new discussions with automotive OEMs. These initiatives are aimed at enhancing the company’s operational efficiency and market presence. Worksport is also engaging in brand visibility efforts and anticipates a strong performance in the latter half of 2025, with a focus on launching new products targeting a $13 billion market.

Product-Related AnnouncementsBusiness Operations and Strategy
Worksport Sets New Production Record in July
Positive
Aug 5, 2025

On August 5, 2025, Worksport Ltd. announced a new 4-week production record, having produced 2,499 tonneau covers in July, more than doubling its March output. This achievement highlights the company’s operational efficiency and scaling capabilities, as it was accomplished without increasing headcount. The growth is driven by strong market demand for Worksport’s AL4 premium tonneau cover, positioning the company to potentially surpass $20 million in revenue this year. Additionally, Worksport plans to launch its SOLIS solar-integrated tonneau cover and COR portable power system later in 2025, targeting a $13 billion market in clean energy and portable power. A major U.S. construction company is piloting these products, indicating potential for significant future revenue contributions.

Business Operations and StrategyFinancial Disclosures
Worksport to Announce Q2 2025 Financial Results
Positive
Jul 31, 2025

On July 31, 2025, Worksport Ltd. announced that it will report its Q2 2025 financial results on August 13, 2025, with a conference call led by CEO Steven Rossi. The company is experiencing record growth in margins and revenue, and is nearing cash flow positivity, with plans to launch a major clean-tech division. This announcement highlights Worksport’s transformative year and its focus on multiple growth verticals, which could strengthen its position in the clean energy market.

Product-Related AnnouncementsBusiness Operations and Strategy
Worksport Partners with Frankie Muniz for Promotion
Positive
Jul 24, 2025

On July 24, 2025, Worksport Ltd. announced a brand partnership with actor and NASCAR driver Frankie Muniz, who will promote the company’s American-made energy solutions. Muniz’s endorsement comes as Worksport prepares for the mass production of its SOLIS solar tonneau cover and COR portable battery system, aiming to enhance its presence in the motorsport and consumer energy markets. The collaboration reflects a shared commitment to innovation and sustainability, aligning with Worksport’s mission to empower off-grid independence and mobile energy accessibility.

Product-Related AnnouncementsBusiness Operations and StrategyFinancial Disclosures
Worksport Expands R&D and Clean-Tech Efforts
Positive
Jul 16, 2025

On July 16, 2025, Worksport Ltd. announced significant expansions in its R&D and clean-tech commercialization efforts following a record-setting Q2 with $4.1M in top-line results, marking an 83% increase from the previous quarter. The company has doubled its R&D facilities in Missouri and is preparing for the fall launch of its SOLIS solar-integrated tonneau cover and COR portable nano-grid system, which are expected to generate $2-3 million in revenue in 2025. Additionally, Worksport’s subsidiary, Terravis Energy, is advancing its AetherLux Pro heat pump technology, which is attracting interest from major corporations and government entities, potentially impacting the company’s 2026 balance sheet.

Business Operations and StrategyFinancial Disclosures
Worksport Reports 83% Revenue Increase in Q2 2025
Positive
Jul 10, 2025

On July 10, 2025, Worksport Ltd. reported a significant increase in Q2 2025 revenue, achieving $4.1 million, an 83% rise from Q1, signaling a successful strategic pivot towards higher-margin products. The company is poised for sustainable profitability with expanding gross margins and the upcoming launch of its SOLIS Solar Tonneau Cover and COR Portable Energy System, which are expected to tap into high-margin, multi-billion-dollar markets.

Product-Related AnnouncementsBusiness Operations and StrategyFinancial Disclosures
Worksport Announces Major Production and Margin Growth
Positive
Jul 7, 2025

On July 7, 2025, Worksport Ltd. announced a significant leap in production and margin growth, achieving a 50% increase in monthly production volume since March 2025 and more than doubling its gross margins over the past five months. The company is on track to reach $20 million in revenue for 2025, driven by increased demand, expanded dealer partnerships, and operational efficiency. Worksport’s upcoming launch of the SOLIS solar-integrated tonneau cover and COR portable nano-grid power system in Fall 2025 is expected to further enhance its market position in the clean-tech sector, targeting a $13 billion market with high-margin, high-growth potential.

Product-Related AnnouncementsBusiness Operations and Strategy
Worksport Launches Pilot with US Construction Firm
Positive
Jun 25, 2025

On June 25, 2025, Worksport Ltd. announced a pilot project with a leading US construction firm to test its SOLIS solar tonneau cover and COR portable energy system. This collaboration marks Worksport’s first major project with a large construction industry stakeholder and aims to validate the performance of its clean-tech solutions in real-world environments. The pilot, involving a fleet of over 1,000 trucks, could lead to broader adoption and significant revenue opportunities. The construction firm, known for its work with institutional and government clients, provides Worksport with valuable exposure and potential future commercial opportunities.

Business Operations and StrategyFinancial Disclosures
Worksport Announces Record-Breaking Revenues for May 2025
Positive
Jun 23, 2025

In June 2025, Worksport Ltd. announced record-breaking revenues for April and May 2025, with May sales reaching $1.28 million and a 25% improvement in gross margins compared to Q1 2025. This growth is attributed to the company’s focus on higher-value branded products and operational efficiency at its New York facility. Worksport’s active dealer network expanded significantly, and the company expects continued strong performance with the launch of its SOLIS and COR clean-tech products later in the year. The company projects reaching approximately $20 million in revenue by the end of 2025, aiming for cash flow positivity and sustained profitability.

Private Placements and FinancingBusiness Operations and Strategy
Worksport Completes Initial Closing of Regulation A Offering
Neutral
Jun 18, 2025

On June 13, 2025, Worksport Ltd. completed the initial closing of its Regulation A offering, issuing 49,335 units consisting of Series C Convertible Preferred Stock and warrants, raising net proceeds of $149,115.04. This move is part of Worksport’s strategy to strengthen its financial position, with the offering allowing for future conversions into common stock and providing limited voting rights, potentially impacting its market operations and investor relations.

Product-Related AnnouncementsBusiness Operations and Strategy
Worksport Expands U.S. Dealer Network Significantly
Positive
Jun 10, 2025

On June 10, 2025, Worksport Ltd. announced the addition of a second national automotive distributor, expanding its dealer network to over 550 locations across the U.S., a nearly sixfold increase since the start of 2025. This strategic move is expected to generate over $21.5 million in repeatable B2B revenue, with the company reaffirming its full-year 2025 revenue guidance of $20-$25 million, representing a 2.5-3x increase year-over-year. The expansion is part of Worksport’s strategy to capture greater market share and enhance operational efficiencies, with the upcoming launch of its SOLIS solar-integrated tonneau cover and COR portable energy storage system poised to unlock new revenue streams in the clean-tech market.

Product-Related AnnouncementsBusiness Operations and Strategy
Worksport Announces Fall 2025 Launch of SOLIS and COR
Positive
Jun 5, 2025

On June 5, 2025, Worksport Ltd. announced the upcoming Fall 2025 launch of its SOLIS and COR Nano-Grid System, following the completion of significant engineering milestones. The SOLIS solar tonneau cover and COR portable power system are designed to serve various markets, including vehicles, jobsites, and portable power sectors, with a projected total addressable market expansion from $4 billion to over $13 billion. The company anticipates generating $2-3 million in new revenue in 2025, with expectations for rapid scaling and long-term growth in the mobile power and clean energy markets. The SOLIS system is already in assembly at Worksport’s ISO-certified facility, and the COR system is progressing towards market readiness, with both products set to challenge market leaders in their respective industries.

Product-Related AnnouncementsBusiness Operations and StrategyFinancial Disclosures
Worksport Achieves Record Sales with AL4 Launch
Positive
Jun 2, 2025

In April 2025, Worksport Ltd. achieved record-high monthly sales of approximately $1.22 million, largely driven by the launch of its AL4 tonneau cover, which accounted for 40% of sales. The rapid uptake of the AL4, which is made with over 90% domestic content, has bolstered Worksport’s revenue base and strengthened its market position. With 80% of the AL4 product line already rolled out, Worksport anticipates continued growth through Q2 and beyond, supported by expanding dealer relationships and upcoming clean-tech innovations like the SOLIS solar-integrated tonneau cover and the COR portable power system.

Business Operations and StrategyRegulatory Filings and Compliance
Worksport Achieves ISO 9001:2015 Certification Milestone
Positive
May 28, 2025

On May 28, 2025, Worksport Ltd. announced that its U.S. production facility achieved ISO 9001:2015 certification, a significant milestone expected to enhance its manufacturing credentials and open new OEM and global supply chain opportunities. This certification is anticipated to strengthen Worksport’s reputation for quality and operational excellence, enabling the company to pursue supply opportunities with top-tier OEMs and national retailers, and positioning it for substantial growth in the global auto manufacturing ecosystem.

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.Date of analysis: Aug 20, 2025