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Worksport (WKSP)
NASDAQ:WKSP
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Worksport (WKSP) AI Stock Analysis

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WKSP

Worksport

(NASDAQ:WKSP)

Rating:51Neutral
Price Target:
$3.50
â–¼(-2.23% Downside)
Worksport's overall score reflects strong revenue growth and strategic initiatives, tempered by challenges in profitability and cash flow management. Technical indicators suggest a cautious outlook, while recent corporate events provide a positive growth narrative.
Positive Factors
Market Opportunity
Analyst remains Buy-rated with an $11.50 price target, representing approximately 200.0% upside from recent trading levels.
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.
Revenue Growth
Record monthly sales driven by demand for premium AL4 tonneau cover.
Negative Factors
Capital Requirements
The company's cash burn was higher than expected, resulting in lower available cash and a need to potentially raise capital in 2026.
Financial Performance
Lower revenue and higher operating expenses resulted in an EBITDA loss of $3.7M versus a $2.6M loss estimate.
Revenue 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., 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 around the truck bed with a rubber gasket designed to protect cargo from moisture and debris; SC3pro that allows the operator to open the cover by pulling a release cable; and TC3, a thick aluminum tri-cover panel with a honey-comb core coated in a durable black scratch-resistant powder coating. It is also developing TerraVis, a solar cover tonneau cover that gives rechargeable portable power to pickup truck owners. The company distributes its products through wholesalers and online retail channels. It serves private labels and original equipment manufacturers. Worksport Ltd. has a collaboration agreement with Greatcell Energy Pty Ltd. The company was formerly known as Franchise Holdings International, Inc. and changed its name to Worksport Ltd. in May 2020. Worksport Ltd. is based in Vaughan, Canada.
How the Company Makes MoneyWorksport generates revenue through the sale of its tonneau covers and related accessories to both retail customers and commercial clients. The company leverages partnerships with automotive dealers, distributors, and e-commerce platforms to broaden its market reach. Additionally, Worksport aims to capitalize on its TerraVis solar-powered technology by offering standalone power solutions, potentially opening new revenue streams through licensing or partnerships with renewable energy and automotive companies.

Worksport Earnings Call Summary

Earnings Call Date:May 15, 2025
(Q1-2025)
|
% Change Since: 8.16%|
Next Earnings Date:Aug 13, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong revenue growth and improved gross margins, driven by strategic shifts and product launches. However, increased operating expenses and continued net losses presented challenges. The company's focus on innovation and expansion of its dealer network provides a positive outlook, though supply chain uncertainties pose potential risks.
Q1-2025 Updates
Positive Updates
Significant Revenue Growth
Revenue for Q1 2025 reached $2.24 million, a 337% increase compared to $512,000 in Q1 2024.
Improved Gross Margin
Gross margin improved to nearly 18%, up from 7% in Q1 2024 and 11% in Q4 2024.
Expansion of Dealer Network
Worksport's U.S. network now totals 151 active dealers, a 64% increase from 92 at the end of last year.
New Product Launches
Introduced AL4 tonneau cover and announced upcoming products like SOLIS solar cover and COR portable energy system.
Innovations in Clean Energy
Terravis Energy developed AetherLux heat pump capable of operating in ultra-low temperatures and eliminating defrost cycles.
Strong Financial Position
Cash and cash equivalents stood at $5.08 million, slightly up from $4.88 million at year-end 2024.
Negative Updates
Increased Operating Expenses
Operating expenses for Q1 2025 were $4.65 million, up from $3.68 million in Q1 2024, a 26% increase.
Continued Net Loss
Net loss for Q1 2025 was $4.46 million, reflecting costs associated with scaling operations and strategic investments.
Seasonal Revenue Decline
While revenue grew significantly year-over-year, it was slightly lower than Q4 2024 due to seasonal trends.
Uncertainty in Supply Chain
Geopolitical matters impacting battery and semiconductor supply chains, leading to cautious guidance on new product sales.
Company Guidance
During the call, Worksport provided financial guidance and shared several key metrics for 2025. In the first quarter, the company achieved revenue of $2.24 million, marking a significant year-over-year increase of 337% compared to $512,000 in Q1 2024. Gross profit rose to $396,000 with a gross margin of nearly 18%, up from 7% a year earlier. Operating expenses increased by 26% to $4.65 million, supporting revenue growth. The company maintains a cash position of $5.08 million and improved working capital of $7.94 million. Worksport projects full-year 2025 revenues between $20 million to $25 million, driven by the AL4 product line and new launches like the SOLIS and COR systems. They aim for a gross margin increase to 25-30% by year-end and expect to achieve operational cash flow breakeven by late 2025 or early 2026.

Worksport Financial Statement Overview

Summary
Worksport shows significant revenue growth potential but faces notable challenges in profitability and cash flow management. Despite a stable balance sheet with low leverage, the company must 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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue8.48M1.53M116.50K303.75K346.14K
Gross Profit905.65K240.51K59.53K-46.95K47.15K
EBITDA-13.68M-13.20M-11.56M-7.39M-774.41K
Net Income-16.16M-14.93M-12.53M-7.90M-1.19M
Balance Sheet
Total Assets25.74M25.95M32.76M36.29M1.90M
Cash, Cash Equivalents and Short-Term Investments4.88M4.86M15.32M28.57M1.11M
Total Debt5.62M6.24M6.62M857.06K712.79K
Total Liabilities8.32M7.78M8.65M2.11M1.73M
Stockholders Equity17.41M18.18M24.12M34.18M169.47K
Cash Flow
Free Cash Flow-10.67M-15.62M-19.13M-5.18M-734.27K
Operating Cash Flow-10.14M-11.93M-7.98M-4.05M-726.30K
Investing Cash Flow-528.24K-3.76M-11.15M-1.13M-16.73K
Financing Cash Flow12.18M4.43M5.18M32.64M1.81M

Worksport Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.58
Price Trends
50DMA
3.40
Positive
100DMA
3.25
Positive
200DMA
5.53
Negative
Market Momentum
MACD
-0.02
Positive
RSI
51.43
Neutral
STOCH
67.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WKSP, the sentiment is Positive. The current price of 3.58 is below the 20-day moving average (MA) of 3.66, above the 50-day MA of 3.40, and below the 200-day MA of 5.53, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 51.43 is Neutral, neither overbought nor oversold. The STOCH value of 67.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
$16.54B9.49-9.03%3.32%1.50%-24.21%
58
Neutral
$73.37M―-222.90%―-23.62%71.09%
55
Neutral
$70.35M1.82-27.62%―-27.36%-218.40%
51
Neutral
$18.51M―-86.65%―407.96%36.22%
48
Neutral
$44.12M―-1.87%―-3.83%89.89%
44
Neutral
$30.35M3.60-266.79%―――
41
Neutral
$10.64M―-103.81%―-12.27%57.85%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WKSP
Worksport
3.58
-2.62
-42.26%
CVGI
Commercial Vehicle Group
1.76
-1.44
-45.00%
SYPR
Sypris
1.96
0.48
32.43%
FRSX
Foresight Autonomous Holdings
0.36
-0.39
-52.00%
LIDR
AEye Inc
2.84
1.74
158.18%
MKDW
MKDWELL Tech
0.21
-0.90
-81.08%

Worksport Corporate Events

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.

The most recent analyst rating on (WKSP) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Worksport stock, see the WKSP Stock Forecast page.

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.

The most recent analyst rating on (WKSP) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Worksport stock, see the WKSP Stock Forecast page.

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.

The most recent analyst rating on (WKSP) stock is a Buy with a $17.50 price target. To see the full list of analyst forecasts on Worksport stock, see the WKSP Stock Forecast page.

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.

The most recent analyst rating on (WKSP) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Worksport stock, see the WKSP Stock Forecast page.

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.

The most recent analyst rating on (WKSP) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Worksport stock, see the WKSP Stock Forecast page.

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.

The most recent analyst rating on (WKSP) stock is a Buy with a $9.00 price target. To see the full list of analyst forecasts on Worksport stock, see the WKSP Stock Forecast page.

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.

The most recent analyst rating on (WKSP) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Worksport stock, see the WKSP Stock Forecast page.

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.

The most recent analyst rating on (WKSP) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Worksport stock, see the WKSP Stock Forecast page.

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.

The most recent analyst rating on (WKSP) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Worksport stock, see the WKSP Stock Forecast page.

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.

The most recent analyst rating on (WKSP) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Worksport stock, see the WKSP Stock Forecast page.

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.

The most recent analyst rating on (WKSP) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Worksport stock, see the WKSP Stock Forecast page.

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.

The most recent analyst rating on (WKSP) stock is a Buy with a $11.50 price target. To see the full list of analyst forecasts on Worksport stock, see the WKSP Stock Forecast page.

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.

The most recent analyst rating on (WKSP) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Worksport stock, see the WKSP Stock Forecast page.

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.

The most recent analyst rating on (WKSP) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Worksport stock, see the WKSP Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Worksport Reports Q1 2025 Revenue Surge and Growth Plans
Positive
May 15, 2025

On May 15, 2025, Worksport Ltd. announced its financial results for the first quarter of 2025, highlighting a significant 337% increase in revenue and a 157% improvement in gross margins compared to the previous year. The company is optimistic about its trajectory for the rest of the year, forecasting full-year revenue between $20 million and $25 million, and aims to achieve cash flow positive operations by year-end. The introduction of the high-margin AL4 cover and upcoming green energy product lines are expected to drive future growth.

The most recent analyst rating on (WKSP) stock is a Buy with a $1.50 price target. To see the full list of analyst forecasts on Worksport stock, see the WKSP Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Worksport to Announce Q1 2025 Financial Results Soon
Neutral
May 12, 2025

On May 12, 2025, Worksport Ltd. announced that it will release its financial results for the first quarter of fiscal year 2025 on May 15, 2025, after market close. The company plans to host a live webcast for investors, analysts, and media, where management will discuss the company’s recent financial performance and outlook for 2025. Worksport’s management has highlighted that the current market valuation may not fully reflect the company’s strengths, with a focus on achieving cash-flow positivity and significant growth in the coming year. The announcement is expected to provide valuable insights into Worksport’s strategic initiatives and financial trajectory, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (WKSP) stock is a Buy with a $1.50 price target. To see the full list of analyst forecasts on Worksport stock, see the WKSP Stock Forecast page.

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 08, 2025