Worksport Ltd (WKSP)
NASDAQ:WKSP
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Worksport
(NASDAQ:WKSP)
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Rating:43Neutral
Price Target:
$0.79
▼(-26.07% Downside)
Action:Reiterated
Date:05/15/26
The score is held down primarily by heavy ongoing losses and significant cash burn with near-term liquidity pressure, despite strong revenue growth and improving gross margins. Technical indicators also remain bearish with the stock below major moving averages. Reaffirmed FY2026 revenue guidance and the H2 cash-flow positivity target provide some upside, but execution and financing risks are material.
Positive Factors
Revenue & margin expansion
Sustained top-line scaling and material gross-margin improvement indicate improving unit economics and product-market fit. If the company sustains higher margins while scaling revenue, this supports durable operating leverage and a credible path to eventual profitability over months.
Negative Factors
Heavy cash burn & low liquidity
Deep, persistent cash outflows and a very low cash balance create a structural financing and execution risk. Continued burn without durable cash-flow conversion forces dilutive raises or constrained operations, threatening the firm's ability to execute multi-quarter commercialization plans.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & margin expansion
Sustained top-line scaling and material gross-margin improvement indicate improving unit economics and product-market fit. If the company sustains higher margins while scaling revenue, this supports durable operating leverage and a credible path to eventual profitability over months.
Read all positive factors
Worksport (WKSP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.88M
Dividend YieldN/A
Average Volume (3M)415.47K
Price to Earnings (P/E)―
Beta (1Y)1.98
Revenue Growth68.18%
EPS Growth47.83%
CountryUS
Employees80
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)-2.71
Shares Outstanding12,531,540
10 Day Avg. Volume594,015
30 Day Avg. Volume415,466
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 Cap0.61
Enterprise Value/Revenue0.35
Enterprise Value/Gross Profit1.23
Enterprise Value/Ebitda-0.32
Forecast
1Y Price Target
$6.75Price Target Upside530.84% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-1.28
Revenue Forecast (FY)$34.77M
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:May 13, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 19, 2026
Earnings Call Sentiment Neutral
The call presented a balanced picture: clear operational progress with multiple product launches (SOLIS, COR, NEXUS), certifications, distribution wins, meaningful year-over-year revenue and gross-profit improvement, and a sizeable asset/inventory base and IP portfolio. Offsetting these positives are material near-term liquidity and cash-burn concerns (cash fell to $566k, ~$8.2M cash used in operations in Q1), elevated operating and marketing spend, reliance on converting inventory and new channel relationships to generate cash, and a prior going-concern disclosure. Management emphasizes conversion in H2 2026 toward operational cash-flow positivity, but execution risk and the need for external funding remain key issues.Positive Updates
Strong Revenue Growth
Net sales for Q1 2026 increased ~47.9% year-over-year to $3.3 million (Q1 2025: $2.2 million), driven by expanded product launches and channel development.
Negative Updates
Significant Cash Burn and Low Cash Balance
Cash and cash equivalents declined to $566,000 as of March 31, 2026 from ~$5.9M at December 31, 2025 (≈90% decline); net cash used in operating activities for Q1 2026 was ~$8.2M.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Revenue Growth
Net sales for Q1 2026 increased ~47.9% year-over-year to $3.3 million (Q1 2025: $2.2 million), driven by expanded product launches and channel development.
Read all positive updates
Company Guidance
Management reaffirmed the FY2026 revenue target disclosed in the 2025 Form 10‑K of $35–$42 million (vs. $16.1M in 2025) and said it expects revenue to increase substantially year‑over‑year while targeting operational cash‑flow positivity in fiscal 2026 (with the second half of the year key), moving to annual (not quarterly) guidance going forward. Near‑term execution will focus on converting $11.6M of inventory (raw goods $5.3M, raw materials $5.4M) and $13.3M of net PPE into revenue, growing dealer reach (>500 today, targeting >1,500 by year‑end), converting Q1 momentum (Q1 net sales $3.3M, +47.9% YoY; gross profit ~$0.9M, +115.5% YoY; gross margin ~26% vs ~18% in Q1 2025; B2C margin ~34%), and reducing Q1 operating cash use (~$8.2M) from a cash balance of $566k (down from $5.9M) and working capital of ~$6.6M (vs $10.1M at 12/31/25). They raised ~$2.2M in Q1 (issued 1.46M shares via ATM), do not expect AetherLux revenue in 2026 (commercial opportunities targeted within ~12 months), and expect no significant material purchases until Q3 2026.Worksport Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
52
Neutral
Cash Flow
14
Very Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 17.17M | 16.10M | 8.48M | 1.53M | 116.50K | 303.75K |
| Gross Profit | 4.93M | 4.47M | 905.65K | 240.51K | 59.53K | -46.95K |
| EBITDA | -19.06M | -16.69M | -13.68M | -13.20M | -11.56M | -7.54M |
| Net Income | -20.72M | -19.35M | -16.16M | -14.93M | -12.53M | -7.90M |
Balance Sheet | ||||||
| Total Assets | 27.88M | 30.77M | 25.74M | 25.95M | 32.76M | 36.29M |
| Cash, Cash Equivalents and Short-Term Investments | 566.58K | 5.95M | 4.88M | 4.86M | 15.32M | 28.57M |
| Total Debt | 3.66M | 2.91M | 5.62M | 6.24M | 6.62M | 857.06K |
| Total Liabilities | 7.90M | 7.84M | 8.32M | 7.78M | 8.65M | 2.11M |
| Stockholders Equity | 19.98M | 22.93M | 17.41M | 18.18M | 24.12M | 34.18M |
Cash Flow | ||||||
| Free Cash Flow | -22.52M | -18.10M | -10.67M | -15.62M | -19.13M | -5.18M |
| Operating Cash Flow | -21.71M | -17.31M | -10.14M | -11.93M | -7.98M | -4.05M |
| Investing Cash Flow | -764.80K | -1.12M | -528.24K | -3.76M | -11.15M | -1.13M |
| Financing Cash Flow | 17.96M | 19.50M | 12.18M | 4.43M | 5.18M | 32.64M |
Worksport Technical Analysis
Negative
1.07
Price Trends
1.09
Negative
1.48
Negative
2.26
Negative
Market Momentum
-0.07
Positive
28.18
Positive
11.20
Positive
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 1.07 is above the 20-day moving average (MA) of 1.02, below the 50-day MA of 1.09, and below the 200-day MA of 2.26, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 28.18 is Positive, neither overbought nor oversold. The STOCH value of 11.20 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WKSP.
Worksport Risk Analysis
Worksport disclosed 43 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% | |
59 Neutral | $185.64M | 32.31 | -12.93% | ― | -11.44% | 50.49% | |
43 Neutral | $9.88M | -0.49 | -102.94% | ― | 68.18% | 47.83% | |
42 Neutral | $5.63M | -0.36 | ― | ― | ― | ― | |
42 Neutral | $69.03M | -3.49 | -33.62% | ― | -14.48% | -268.82% |
* Consumer Cyclical Sector Average
WKSP
Worksport
0.79
-2.00
-71.68%
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3.59
247.59%
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Worksport Corporate Events
Business Operations and StrategyFinancial Disclosures
Worksport posts strong Q1 growth amid expansion investments
Positive
May 13, 2026
On May 13, 2026, Worksport reported first-quarter 2026 results showing net sales rising 47.9% year over year to $3.3 million and gross profit more than doubling to $854,000, lifting gross margin to 26% from 18%. Revenue was driven almost entirely ...
Business Operations and StrategyFinancial Disclosures
Worksport Announces Q1 2026 Earnings Call and Townhall
Positive
May 7, 2026
On May 7, 2026, Worksport Ltd. announced it will hold its first-quarter 2026 earnings conference call on May 13, 2026, at 4:30 p.m. Eastern Time as a live webcast for investors, analysts, media, and other stakeholders. Management plans to review Q...
Business Operations and StrategyProduct-Related Announcements
Worksport Expands U.S. Reach With New Tri-State Partnership
Positive
Apr 29, 2026
On April 29, 2026, Worksport announced it had secured Tri-State Enterprises, Inc., a major family-operated automotive aftermarket distributor in the South and Central U.S., as a new cross-regional distribution partner for its tonneau cover lineup,...
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...
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.