Workhorse Group 2025 Q3 Earnings 68.9% Reduction in Net Loss to $7.83M

Workhorse Group (WKHS) reported a 68.9% reduction in its net loss for Q3 2025, narrowing to $7.83M (-$0.50/share) from $25.14M (-$19.00/share) in the prior year. The company’s revenue declined 5.0% to $2.38M, missing expectations by $0.12M but showing resilience amid broader market volatility. Analysts noted the EPS beat of $0.95, though revenue weakness persisted.

Revenue

The company’s total revenue for Q3 2025 stood at $2.38 million, reflecting a 5.0% decline year-over-year. Sales, net of returns and allowances, accounted for the entirety of this revenue, underscoring the absence of diversification in income streams. The drop aligns with broader challenges in the EV manufacturing sector, though the company emphasized progress in executing its product roadmap.

Earnings/Net Income

Workhorse Group’s net loss improved significantly, falling to $7.83 million (-$0.50/share) in Q3 2025 compared to $25.14 million (-$19.00/share) in Q3 2024. While the EPS remains negative, the 97.4% reduction in per-share losses highlights the company’s progress in cost management and operational efficiency.

Post-Earnings Price Action Review

The strategy of buying Workhorse Group shares following its revenue raise announcement and holding for 30 days yielded mixed results. While the holding period offered some protection against short-term volatility, the overall return of -25.6% underperformed the SPY ETF’s -20.4%. WKHS shares declined -22.1% during the 30-day window, less severe than the immediate post-announcement drop but still indicative of heightened volatility. Comparative analysis with the SPY ETF revealed WKHS’s susceptibility to market-specific risks, particularly after earnings releases. This backtest underscores the challenges of holding WKHS shares post-earnings, even with modest revenue improvements. Investors may need to adopt shorter holding periods or leverage fundamental analysis to navigate the prolonged bearish trend.

Additional News

1. Strategic Merger with Motiv: Workhorse Group outlined a $20M synergy target through its merger with Motiv, aiming to accelerate growth in medium-duty electric vehicles.

2. Warrant Valuation: The company’s 2024 Warrants were valued at $10.0 million as of September 30, 2025, with a net fair value loss of $6.8 million recorded for the quarter.

3. Asset Sale Gains: A $13.8 million gain from the Sale Leaseback of its Union City, IN facility and a $4.8 million gain from the Tropos Assembly Services Agreement termination bolstered Q3 results.