Worksport Expects $20M+ Revenue and 30% Margins in 2025 with New Products Driving Record Growth

Worksport Ltd. (WKSP) targets $20M+ revenue in 2025 and 30% margins, driven by new products and record growth. CEO Steven F. Rossi highlights the company's achievement of record quarterly revenues and expanded gross margins, positioning Worksport for sustained success in the remainder of 2025 and beyond.

Title: Worksport Ltd. (WKSP) Achieves Record Revenue Growth and Expands Gross Margins in Q2 2025

Worksport Ltd. (WKSP), a leading manufacturer and innovator of hybrid and clean energy solutions for the light truck, overlanding, and global consumer goods sectors, has announced record financial and operational results for the quarter ended June 30, 2025 (Q2 2025). The company reported its highest quarterly revenue in history, with net sales of $4.10 million, up 114% year-over-year and 83% sequentially [1]. This significant growth is driven by the company's expanding product portfolio and increasing demand for its clean energy solutions.

Key highlights from the Q2 2025 results include:

- Revenue Growth: Worksport's revenue jumped 83% sequentially, reaching $4.10 million, up from $2.24 million in the previous quarter.
- Gross Margin Expansion: The company's gross margin expanded by 8.7 percentage points to 26.4%, resulting in a 173% increase in gross profit to $1.08 million.
- Operating Loss Improvement: Operating loss improved by 15% quarter-over-quarter to $(3.62) million, while net loss narrowed by approximately 16% to $(3.73) million.
- Operational Cash Use: Operating cash use improved by 19% to $(3.10) million, and total liquidity stood at approximately $6.1 million.
- Inventory Management: Inventory remained stable at $5.88 million, with approximately 90% in raw materials to support production ramp-up.

The company also achieved three consecutive monthly sales records in Q2 — April $1.22M, May $1.28M, and June $1.60M — equating to a $19.2M annualized run rate (non-GAAP). Year-to-date, Worksport has added 450+ new dealer accounts, with its network at full activation capable of generating approximately $21.5M in annual repeatable revenue (excluding B2C and new dealer accounts).

CEO Steven Rossi commented on the company's performance, stating, "Q2 shows our model working at scale - demand is outpacing supply, margins are expanding, and our U.S. facility continues to ramp efficiently. With three straight monthly sales records and gross margin now at 26.4%, we’re executing toward operational cash-flow positivity while preparing to launch HD3, SOLIS, and COR. We believe our American-made tonneau business alone can carry Worksport to profitability in 2026, with clean-tech adding meaningful upside." Michael Johnston, CFO, added, "We delivered strong sequential leverage, including gross profit up 173% with operating loss improved 15%, and we tightened operating cash use by 19%. Liquidity remains stable with approximately $6.1 million available, and our inventory profile supports growth without significant near-term working capital. We reaffirm our target of at least $20 million in revenue this year and expect gross margin to approach 30% by year-end, with operating cash-flow breakeven targeted for late Q4 2025 or early Q1 2026."

Looking ahead, Worksport reaffirmed its 2025 revenue guidance of at least $20 million and expects continued expansion of gross margins toward ~30%+ by year-end. The company is also targeting operating cash-flow breakeven by Q4 2025 or Q1 2026. The company's innovation pipeline includes the HD3 heavy-duty tonneau cover, SOLIS (solar tonneau), and COR (portable power) set for Q3 and Q4 launches, respectively, along with AetherLux cold-climate heat pump advancing to commercial testing.

Worksport's strong performance in Q2 2025 positions the company for sustained success in the remainder of 2025 and beyond, driven by its expanding product portfolio and increasing demand for clean energy solutions.

References:
[1] https://www.globenewswire.com/news-release/2025/08/13/3132556/0/en/worksport-posts-q2-2025-results-gross-profit-increases-173-revenue-jumps-83-margin-expands-870-bps-operating-loss-improves-15-qoq.html