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

Workhorse Group (WKHS) reported a narrowed net loss of $7.83M in Q3 2025, a 68.9% improvement from $25.14M in the prior-year period. Revenue fell 5.0% to $2.38M, below expectations, while the stock price plummeted across daily, weekly, and monthly metrics. CEO Richard Dauch highlighted strategic moves, including a proposed merger with Motiv and cost-cutting initiatives.

Revenue

Workhorse Group’s total revenue for Q3 2025 declined by 5.0% year-over-year to $2.38 million, driven by lower truck deliveries. The company’s sales, net of returns and allowances, accounted for the entire revenue, reflecting a focus on core vehicle sales amid operational challenges.

Earnings/Net Income

The company reduced its net loss to $-7.83 million in Q3 2025, a 68.9% improvement from $-25.14 million in Q3 2024. Earnings per share narrowed to -$0.50 from -$19.00, signaling better cost management. The 68.9% reduction in net losses highlights improved financial management despite the revenue decline.

Price Action

WKHS shares fell 11.21% on the day of the earnings report, with a 19.26% drop over the subsequent week and a 31.70% decline month-to-date. The stock’s post-earnings performance underscores investor skepticism about the company’s short-term recovery.

Post-Earnings Price Action Review

The strategy of buying WKHS shares on the revenue announcement date and holding for 30 days resulted in a significant loss. The stock price plummeted on the announcement day, and the 30-day holding period failed to recover the decline, indicating poor short-term momentum. No positive price action was observed, suggesting the announcement did not boost investor confidence.

CEO Commentary

Richard Dauch emphasized the sale of 15 Class 4 and 5/6 trucks and the W56 platform’s market reception. Strategic priorities include the $20 million sale-leaseback of the Union City facility, a $5 million convertible note, and the Motiv merger to accelerate growth. Dauch cited $1.2 million in year-over-year operating expense reductions and a $13.8 million gain from the sale-leaseback as key financial discipline measures.

Additional News

1. Merger with Motiv Electric Trucks: The proposed merger aims to create a leading North American medium-duty EV OEM, enhancing product offerings and operational efficiency.

2. Facility Sale-Leaseback: A $13.8 million gain from the Union City facility’s sale-leaseback improved liquidity.

3. Product Expansion: The W56 step van’s eligibility for California’s HVIP vouchers and the Utilimaster Aeromaster body integration expand market opportunities.

Workhorse Group’s Q3 results reflect progress in cost control and strategic partnerships despite revenue challenges. The merger with Motiv and state incentives position the company for long-term growth in the EV transition.