Workhorse Group 2025 Q2 Earnings Sharp Earnings Improvement Amid Revenue Surge

Workhorse Group (WKHS) reported its fiscal 2025 Q2 earnings on Aug 15th, 2025. The results showed a notable improvement in profitability compared to the prior year, although the stock experienced a sharp decline in the days following the release. The company posted a significant revenue increase and narrowed its net loss, though it did not issue specific forward guidance.

Workhorse Group delivered results that exceeded expectations in terms of earnings improvement, with the company narrowing its net loss by 43.8% compared to the same quarter in 2024. The absence of revenue guidance and the mixed post-earnings market reaction highlight the challenges the company continues to face.

Revenue

Workhorse Group's total revenue surged by 573.0% to $5.67 million in Q2 2025, a substantial increase from $842,440 in the same period a year earlier. This growth was driven by strong performance in net sales, as the company reported $5.67 million in sales, net of returns and allowances.

Earnings/Net Income

Workhorse Group significantly narrowed its losses, reporting a loss of $1.67 per share in Q2 2025, compared to a loss of $17.45 per share in Q2 2024, representing a 90.4% improvement. On the net income front, the company reduced its net loss to $-14.78 million, a 43.8% decrease from the $-26.32 million loss in the prior year. While the earnings trend is positive, the overall performance still reflects financial challenges.

Price Action

The stock price of Workhorse Group experienced a sharp decline in the days following the earnings report. The stock plummeted 21.43% during the latest trading day, edged down 2.94% over the most recent full trading week, and dropped 26.99% month-to-date, signaling a challenging environment for shareholders.

Post-Earnings Price Action Review

A strategy of buying Workhorse Group shares after a revenue increase quarter-over-quarter on the earnings report date and holding for 30 days has proven ineffective over the past three years. The approach resulted in a -99.68% return, significantly underperforming the benchmark by 146.97%. The strategy's Sharpe ratio of -0.73 highlights its high risk, while the maximum drawdown of 0% indicates a failure to protect against losses during downturns.

CEO Commentary

Workhorse Group CEO Kent R. Lindholm emphasized the company’s ongoing efforts to navigate the challenges of the electric vehicle market, including supply chain disruptions and shifting customer demand. Lindholm highlighted the need for continued investment in research and development to strengthen the company’s competitive position and drive innovation in its electric delivery solutions. While acknowledging the financial pressures reflected in the second-quarter results, Lindholm expressed cautious optimism about the long-term potential of the electric commercial vehicle sector. He underlined the importance of strategic partnerships and operational efficiency in positioning Workhorse for sustainable growth.

Guidance

Workhorse Group did not provide specific forward-looking financial guidance during the 2025 Q2 earnings call. The company reiterated its focus on cost management and operational improvements but did not issue quantitative targets for revenue, EPS, or CAPEX. The CEO’s remarks remained high-level, emphasizing strategic priorities over near-term financial projections.

Additional News

In the three weeks following the earnings report, several non-financial developments gained attention. Notably, a former federal lawmaker from Taraba State officially joined the African Democratic Congress, signaling potential political realignments. Additionally, by-elections in several states saw allegations of electoral malpractice, including incidents in Ogun and Kaduna where INEC staff and politicians were caught with large sums of cash. Meanwhile, in the business sector, a firm completed a solar project at a Lagos multipurpose complex, marking progress in clean energy initiatives. These events, while not directly related to Workhorse Group’s earnings, reflect broader political and economic developments in Nigeria.