Worksport 2025 Q3 Earnings Revenue Surges 60.6% Despite Widening Net Loss

Worksport (WKSP) reported fiscal 2025 Q3 earnings on Nov 14, 2025, delivering a 60.6% year-over-year revenue increase to $5.01 million, exceeding the $5.58 million consensus estimate. However, the company’s GAAP EPS of -$0.75 missed expectations by $0.13. Management outlined a 2026 revenue target of $27M–$35M from tonneau sales, with additional contributions from SOLIS and COR product launches, while emphasizing a path to cash flow positivity.

Revenue

Hard Tonneau Covers drove the majority of revenue at $4.88 million, while Soft Tonneau Covers contributed $131,890. Corporate/Eliminations reported $0 in revenue, reflecting a streamlined segment structure. The 60.6% year-over-year growth underscores strong demand for Worksport’s core truck accessory products, despite a challenging market environment.

Earnings/Net Income

The company narrowed losses to $0.75 per share in Q3 2025, a 46.4% improvement from Q3 2024, but net losses widened to $4.93 million, up 19.2% year-over-year. While the per-share loss reflects operational efficiency gains, the absolute net loss highlights ongoing financial challenges. The EPS improvement is a positive sign, though the net loss increase raises concerns about long-term profitability.

Price Action

The stock price edged down 0.00% during the latest trading day, plummeted 20.96% during the most recent full trading week, and declined 36.95% month-to-date. The strategy of buying Worksport shares on the date of its revenue raise and holding for 30 days yielded positive returns over the past three years, with a cumulative 17.5% gain and a maximum drawdown of 22.6%. However, the recent 18.3% decline in the last quarter underscores the need for caution, particularly if revenue growth is not sustained.

CEO Commentary

Steven Rossi, CEO, emphasized Worksport’s focus on building a high-margin, scalable platform in truck accessories and clean tech. He highlighted Q3 operational execution, tariff cost management, and the upcoming November 28 launch of SOLIS and COR products. Rossi noted, “We are very confident in our ability to manage tariff-related cost inflations while advancing toward near-term cash flow positivity and maintaining our 2026 profitability target.” The tone was cautiously optimistic, balancing production scaling achievements with risks from supply chain volatility.

Guidance

Management projects year-end 2025 revenues of $17M–$21M, with 2026 U.S. tonneau sales targeting $27M–$35M. Gross margins are expected to approach 35% by year-end 2025, with operating cash flow turning positive in H1 2026. The guidance reflects confidence in margin expansion and product launch execution but acknowledges execution risks and dependency on demand for new offerings.

Additional News

1. Product Launches: Worksport launched the SOLIS solar tonneau cover and COR portable power system on Nov 28, 2025, with a $2.5M near-term revenue opportunity.

2. Regulation A Funding: Closed a $10M Regulation A offering on Oct 15, 2025, to fund commercialization and production scaling.

3. SEMA Show Participation: Exhibited SOLIS and COR at the 2025 SEMA Show, targeting global distribution and partnerships with OEMs.

The company’s strategic focus on clean energy and U.S. manufacturing positions it to capitalize on market trends, though sustained profitability hinges on execution risks and demand visibility for new products. Investors should monitor quarterly cash burn, margin sustainability, and the timing of SOLIS/COR revenue recognition to validate the 2026 profitability path.