Worksport Delivers Breakout Q4: Revenue Up 65% YoY, Gross Profit Up 380%

Rhea-AI Summary

Worksport (NASDAQ:WKSP) reported preliminary Q4 2025 results with Q4 revenue of $4.84M (up 65% YoY) and FY2025 revenue of $16.2M (up 91% YoY). Gross margin expanded to 32% versus 11% prior year and Q4 gross profit rose to ~$1.5M (+380% YoY). The company highlighted domestic manufacturing scale-up and a shift from R&D to commercialization for SOLIS™, COR™, and Aetherlux™, with commercial launches beginning January 2026 and a FY2026 guidance update planned later this quarter.

Positive

• Full-year revenue +91% to $16.2M
• Q4 revenue $4.84M, up 65% YoY
• Gross margin expanded to 32% (up 2,100 bps)
• Q4 gross profit ~$1.5M, +380% YoY
• Domestic production volume >2x by year-end, improving fixed-cost absorption

Negative

• Domestic aluminum input costs rose by more than 35%
• Results reported as preliminary/unaudited
• No full-year 2026 revenue guidance yet; update expected later this quarter

News Market Reaction – WKSP

-3.18% 1.8x vol

11 alerts

-3.18% News Effect

-21.8% Trough in 5 hr 58 min

-$474K Valuation Impact

$14M Market Cap

1.8x Rel. Volume

On the day this news was published, WKSP declined 3.18%, reflecting a moderate negative market reaction. Argus tracked a trough of -21.8% from its starting point during tracking. Our momentum scanner triggered 11 alerts that day, indicating notable trading interest and price volatility. This price movement removed approximately $474K from the company's valuation, bringing the market cap to $14M at that time. Trading volume was above average at 1.8x the daily average, suggesting increased trading activity.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Q4 2025 net sales: $4.84 million Q4 gross margin: 32% Q4 gross profit: ~$1.5 million +5 more

8 metrics

Q4 2025 net sales $4.84 million Preliminary Q4 2025, up 65% from $2.93M in Q4 2024

Q4 gross margin 32% Quarterly gross margin vs 11% in prior-year Q4

Q4 gross profit ~$1.5 million Versus $0.3M in Q4 2024, a 380% increase

FY2025 revenue $16.2 million Full-year 2025 revenue, up 91% from $8.5M in 2024

Aluminum price increase more than 35% Domestic aluminum prices rose during 2025

HVAC market size $148 billion Target market size for Aetherlux heat pump

Inducement warrants 3,840,421 shares Shares covered by S-3 resale registration for Armistice Capital

Potential warrant proceeds $11.5 million If all inducement warrants exercised for cash at $3.00 per share

Market Reality Check

Price: $1.30 Vol: Volume 104,155 is below 2...

low vol

$1.30 Last Close

Volume Volume 104,155 is below 20-day average 153,708, suggesting limited pre-news positioning. low

Technical Shares at $1.57 sit at the 52-week low and trade below the $2.96 200-day MA despite accelerating growth.

Peers on Argus

WKSP is down 5.42% while peers show mixed, mostly modest moves: GTEC up 0.87%, R...

WKSP is down 5.42% while peers show mixed, mostly modest moves: GTEC up 0.87%, REE up 0.5%, PRTS up 0.35%, with SYPR and WPRT down 1.76% and 3.45%. This points to stock-specific dynamics around the earnings update rather than a broad auto-parts sector move.

Historical Context

5 past events · Latest: Feb 03 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 03	Strategic partnership	Positive	+0.0%	Partnership to open federal, infrastructure and commercial channels for clean-energy products.
Jan 27	Manufacturing partner	Positive	+1.0%	Asian partner selected to mass-produce Aetherlux Pro Zerofrost heat pump in 2026.
Jan 27	Commercialization path	Positive	+1.0%	Mass manufacturing and certification plan for no-defrost Aetherlux heat pump technology.
Jan 13	Business update	Positive	+6.0%	2026 business update highlighting shipments, distribution deals and triple-digit revenue growth.
Dec 18	Record revenue month	Positive	-3.1%	Highest monthly revenue and rising gross margins from U.S. manufacturing efficiencies.

Pattern Detected

Recent news has generally been positive, with three prior updates prompting mild to strong gains and two showing flat-to-negative reactions, indicating that strong fundamentals and milestones have not always translated into consistent price strength.

Recent Company History

Over the past few months, Worksport has reported record monthly revenue, significant gross margin expansion, and accelerating growth tied to its U.S. manufacturing ramp. It highlighted clean-energy products shipping, OEM discussions, and distribution build-out on Jan 13, followed by manufacturing and commercialization milestones for Aetherlux on Jan 27, and a government-focused partnership on Feb 03. Today’s breakout Q4 and FY2025 metrics reinforce that earlier operational momentum with concrete financial results.

Regulatory & Risk Context

Active S-3 Shelf · $11.5 million

Shelf Active

Active S-3 Shelf Registration 2026-01-20

$11.5 million registered capacity

An effective S-3 resale registration filed on Jan 20, 2026 covers up to 3,840,421 shares issuable upon exercise of Armistice Capital inducement warrants at $3.00 per share. Worksport itself is not selling shares, but could receive $11.5 million in proceeds if all warrants are exercised for cash, which would increase common shares outstanding from 9,814,865 to 13,655,286.

Market Pulse Summary

This announcement highlights a sharp financial inflection, with FY2025 revenue reaching a record $16...

Analysis

This announcement highlights a sharp financial inflection, with FY2025 revenue reaching a record $16.2 million and Q4 gross margin expanding to 32%. It also marks a pivot from heavy R&D toward monetizing SOLIS, COR, and Aetherlux across automotive and HVAC markets. Recent filings show an effective S-3 resale registration tied to inducement warrants, which could add shares if exercised. Investors may watch upcoming 2026 guidance, commercialization progress, and margin sustainability.

Key Terms

basis points, HVAC

2 terms

basis points financial

"Gross margin for the quarter reached 32%, compared to 11%... An expansion of 2,100 basis points."

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

HVAC technical

"Aetherlux is positioned as a high-value asset targeting the $148 billion HVAC market..."

HVAC stands for heating, ventilation and air conditioning — the systems that control temperature, airflow and indoor air quality in buildings. Investors care because HVAC drives operating costs, energy use, tenant comfort and regulatory compliance; like the engine and insulation of a building, efficient modern systems can lower bills, reduce repair and replacement spending, and preserve property value, while outdated units can create unexpected expenses and vacancy risk.

AI-generated analysis. Not financial advice.

FY2025 Revenue Climbs 91% to Record $16.2M as Margin Expansion Accelerates and Clean Energy Portfolio Enters Monetization Phase

WEST SENECA, NY / ACCESS Newswire / February 11, 2026 / Worksport Ltd. (NASDAQ:WKSP) ("Worksport" or the "Company"), a U.S.-based technology and manufacturing company focused on clean energy solutions and automotive accessories for consumer and reseller channels, today announced preliminary top-line results for the fourth quarter ended December 31, 2025. The Company closed fiscal 2025 with its strongest operational performance to date, delivering 65% year-over-year revenue growth in the fourth quarter and 91% full-year revenue growth, while validating the scalability of its domestic manufacturing platform through substantial gross margin and gross profit expansion.

Q4 2025 Financial Highlights (Unaudited)

• Quarterly Revenue Growth: Q4 2025 Net Sales increased to $4.84 million; A 65% increase compared to $2.93million in Q4 2024.

• Structural Margin Expansion: Gross margin for the quarter reached 32%, compared to 11% in the prior year period; An expansion of 2,100 basis points.

• Gross Profit Surge: Gross profit for the quarter rose to ~$1.5 million, representing a 380% increase year-over-year ($0.3 million in Q4 2024)

• Fiscal Year Performance: Full-year 2025 revenue reached a record $16.2 million, up 91% from $8.5 million in 2024.

"Our Q4 results demonstrate that our U.S. manufacturing engine is not just operational, but highly resilient," said Steven Rossi, CEO of Worksport. "We have proven we can expand margins above 31% even in a rising cost environment. This 'manufacturing alpha' provides the stable financial foundation required to support our next phase of growth."

Aluminum Price Increases; Margin Expansion

A key highlight of the Company's 2025 performance was its ability to expand gross margins despite significant increases in raw material costs. During the year, domestic aluminum prices rose by more than 35%, driven by supply constraints and tariff-related pressures. For most industrial manufacturers, particularly those where aluminum is a primary input for products such as the AL3, HD3, and AL4, cost inflation would typically result in margin compression. Worksport, however, successfully grew gross margins despite aluminum price volatility.

By transitioning production to its West Seneca, NY facility, the Company successfully offset rising commodity costs through:

• Advanced Manufacturing: Utilizing latest technology and production machinery to create a lean and scalable operation.

• Scrap Reduction: Implementing precision engineering to minimize aluminum waste per unit.

• Fixed Cost Absorption: Spreading overhead costs across a daily production volume that more than doubled by the end of the year.

Strategic Pivot: From R&D Spend to Monetization Phase

As Worksport enters 2026, the Company is executing a deliberate shift in how it allocates capital across its clean-energy portfolio. The majority of the capital expenditures and Research & Development investments required to design, validate, and de-risk the SOLIS^™ Solar Tonneau Cover, COR^™ Portable Energy System, and Aetherlux^™ Heat Pump have now been incurred.

With core development substantially complete, management expects R&D intensity to decline meaningfully. These technologies are no longer being treated as ongoing cost centers, but as invested assets transitioning into their commercial monetization phase, where incremental spending is increasingly directed toward certification, manufacturing scale-up, sales infrastructure, and revenue generation rather than foundational engineering.

• COR^™ & SOLIS^™: With commercial launch beginning in January 2026, these products are transitioning from development projects to revenue-generating inventory. The infrastructure to manufacture and distribute these units is fully deployed, marketing will now scale up.

• Aetherlux^™ (Terravis Energy): Following the validation of its ZeroFrost^™ technology and the selection of a manufacturing partner, Aetherlux is positioned as a high-value asset targeting the $148 billion HVAC market, with minimal additional CapEx required for scaling. Aetherlux has received attention from Governments and several multi-national businesses.

2026 Outlook Update

Worksport is currently finalizing its order book and production schedules for the coming year. The Company expects to issue an update on forward guidance for Fiscal Year 2026, including specific revenue and cash flow positivity targets, later this quarter.

CONTACT:

Investor Relations, Worksport Ltd. T: 1 (888) 554-8789-128
W: investors.worksport.com W: www.worksport.com E: investors@worksport.com

SOURCE: Worksport Ltd.

View the original press release on ACCESS Newswire

FAQ

What were Worksport's (WKSP) Q4 2025 revenue and gross profit figures?

Worksport reported Q4 2025 net sales of $4.84M and gross profit of ~$1.5M. According to the company, these represent a 65% increase in revenue and a 380% jump in gross profit versus Q4 2024, reflecting margin expansion and higher production volumes.

How much did Worksport's (WKSP) fiscal 2025 revenue grow compared to 2024?

Fiscal 2025 revenue reached $16.2M, a 91% increase versus 2024. According to the company, growth was driven by higher sales volume, margin expansion from domestic manufacturing, and initial commercialization of product lines transitioning from R&D to revenue.

What caused Worksport's (WKSP) gross margin to expand to 32% in Q4 2025?

Gross margin widened to 32% largely from domestic manufacturing scale-up and waste reduction. According to the company, advanced production technology, scrap reduction, and fixed-cost absorption from doubled daily output offset rising aluminum input costs.

When will Worksport (WKSP) launch SOLIS and COR products commercially?

Commercial launch for SOLIS and COR began in January 2026, transitioning these lines to inventory and sales. According to the company, manufacturing and distribution infrastructure is deployed and marketing will scale to support initial commercial sales and revenue generation.

Has Worksport (WKSP) provided fiscal 2026 guidance or targets for cash flow positivity?

Worksport has not yet provided full-year 2026 guidance; an update is expected later this quarter. According to the company, it is finalizing order books and production schedules before issuing specific revenue and cash-flow-positivity targets.