Workhorse Group 2025 Q3 Earnings 97.4% EPS Improvement as Net Loss Narrows to $7.8M

Workhorse Group (WKHS) reported Q3 2025 earnings, with results showing a significant EPS improvement despite a revenue decline. The company narrowed its net loss to $7.8 million, a 68.9% reduction from the $25.14 million loss in Q3 2024, while revenue fell 5.2% to $2.38 million. The strategic merger with Motiv Electric Trucks remains a key focus, with shareholders voting on the deal ahead of the Nov 12 deadline.

Revenue

Total revenue for Workhorse Group in Q3 2025 was $2.38 million, down from $2.51 million in the same period last year, driven by a 5.2% year-over-year decline in sales. The company attributed the drop to reduced truck deliveries but noted gains from deferred revenue recognition.

Earnings/Net Income

The company significantly improved its net loss, reducing it to $7.8 million for Q3 2025 compared to $25.14 million in Q3 2024. Earnings per share (EPS) improved from -$19.00 to -$0.50, a 97.4% reduction in losses. This substantial improvement reflects cost-cutting measures and operational efficiency gains, though the EPS remains negative due to ongoing financial challenges.

Post-Earnings Price Action Review

The strategy of purchasing shares on the day of the earnings announcement and holding for 30 days has historically underperformed, with a cumulative return of -58.2% over three years. This poor performance suggests that the market did not respond positively to the earnings news, possibly due to broader market trends or company-specific factors not captured in the revenue figures.

CEO Commentary

CEO Richard Dauch emphasized progress in Q3, including 15 truck sales and the expansion of the W56 platform with the Utilimaster Aeromaster body. He highlighted a $1.2 million reduction in operating expenses and a $38.2 million cash balance post-financing. Strategic priorities include completing the Motiv merger to accelerate growth and accessing $20 million in post-merger debt financing.

Guidance

Workhorse outlined plans to launch the W56 140-kW model in 2026, aiming for a 120-mile range and 10% lower acquisition costs. The Motiv merger is expected to close in Q4 2025 post-shareholder approval, with $20 million in additional financing anticipated. The company also aims to reduce bill-of-material costs through volume-driven contracts and achieve ICE parity in EV costs over 2–3 years.

Additional News

Workhorse’s proposed merger with Motiv Electric Trucks is a pivotal strategic move, expected to simplify its capital structure and provide $20 million in financing at closing. CEO Richard Dauch emphasized leveraging the merger to expand market presence and access state incentives, particularly in Washington and New York. The company also reported a $1.2 million reduction in operating expenses year-over-year, reinforcing its focus on financial discipline. Additionally, the sale-leaseback of the Union City facility contributed $13.8 million in gains, bolstering liquidity.