Worksport Ltd. Reports Fiscal Year 2024 Results, Achieves 455% Year-Over-Year Revenue Growth

Rhea-AI Summary

Worksport (NASDAQ: WKSP) reported exceptional financial results for fiscal year 2024, with net sales reaching $8.48 million, marking a 455% increase from $1.53 million in 2023. The company's Q4 2024 performance was particularly strong, with net sales of $2.93 million, up 250% year-over-year.

Key financial metrics include increased cash and equivalents of $4.88 million, plus an additional $6.7 million raised through warrant inducement in March 2025. The company's inventory stands at $5.19 million, with working capital improved to $7.3 million.

Looking ahead to 2025, Worksport projects net sales between $20-34.5 million, with anticipated gross margins of 25-30% by late 2025. The company aims for breakeven and potential cash-flow positivity by year-end 2025. New product launches include the AL4 tonneau cover in Q4 and SOLIS and COR products scheduled for Q2/Q3 launch.

Positive

• 455% year-over-year revenue growth to $8.48 million
• Q4 2024 sales up 250% to $2.93 million
• Strong cash position of $4.88 million plus $6.7 million from warrant inducement
• B2C sales grew from $21,599 to $1.59 million, now 51% of total revenue
• Gross margins increased nearly 3x in Q4 compared to Q3 2024

Negative

• Additional share dilution through warrant inducement transaction
• Profitability still not achieved, targeting breakeven by end of 2025
• High inventory levels at $5.19 million could impact working capital

Insights

Financial Analyst

Worksport's FY2024 results showcase exceptional transformation with 455% revenue growth to $8.48 million, substantially outperforming the previous year's $1.53 million. This remarkable growth trajectory continued through Q4, which delivered $2.93 million in net sales, exceeding management's previous guidance of $6-8 million for the full year.

The company's margin profile is particularly encouraging. Gross margins in Q4 increased nearly threefold compared to Q3, validating the strategic pivot toward higher-margin branded products. This shift from lower-margin private label business fundamentally improves the company's unit economics and sets the stage for potential profitability.

Financially, Worksport has strengthened its position with $4.88 million in cash plus an additional $6.7 million recently raised through warrant inducement. With $7.3 million in working capital, the company appears adequately capitalized to execute its aggressive growth plan.

The FY2025 guidance of $20-34.5 million in revenue represents potential growth between 136% and 307% - ambitious targets that will require flawless execution. The projected gross margin improvement to 25-30% by late 2025 would mark substantial progress toward sustainable profitability.

The dramatic shift in business mix is noteworthy, with B2C sales now comprising 51% of revenue, up from minimal levels a year ago. This direct channel typically delivers better margins and customer relationships, creating a more resilient business model.

Manufacturing Operations Specialist

Worksport's operational execution in 2024 demonstrates successful scaling of its U.S. manufacturing capabilities. The company has effectively transitioned from concept to commercial production across multiple product lines, a significant hurdle that many manufacturing startups fail to clear.

The strategic inventory buildup to $5.19 million represents a calculated risk. While this ties up working capital, it positions the company to meet anticipated demand growth while buffering against supply chain disruptions. This inventory strategy indicates management's confidence in future sales projections.

The product roadmap shows promising diversification. Beyond traditional tonneau covers, the Alpha testing of SOLIS solar-integrated covers and COR mobile battery systems represents entry into higher-value energy solution segments. These products require sophisticated manufacturing processes and quality control systems that create significant barriers to entry if executed properly.

The mention of initial government sales is particularly significant from a manufacturing perspective. Government contracts typically require rigorous quality standards and compliance certifications, suggesting Worksport's manufacturing processes have reached mature reliability levels.

The 250% year-over-year increase in Q4 production output demonstrates manufacturing scalability. However, to achieve the projected $20-34.5 million in 2025 revenue, Worksport must continue expanding production capacity without compromising quality or efficiency. The margin improvement target of 25-30% will require optimized manufacturing processes, strategic sourcing, and effective cost controls throughout their operations.

Company Outlines Strong Momentum in Margins, Revenue, and Business Growth Entering 2025

West Seneca, New York--(Newsfile Corp. - March 27, 2025) - Worksport Ltd. (NASDAQ: WKSP) ("Worksport" or the "Company"), a U.S.-based manufacturer and innovator of hybrid and clean energy solutions for the light truck, overlanding, and global consumer goods sectors, today announced financial results and significant operational achievements for fiscal year 2024. Marking a transformational year with record revenue growth, expanded product lines, and provided an optimistic outlook for fiscal year 2025.

Highlights from Fiscal Year 2024:

• Record-Breaking Revenue Growth: Worksport reported net sales of $8.48 million, a remarkable increase of 455% from $1.53 million in 2023, driven by robust direct-to-consumer online sales, expanding business-to-business deals, and successful U.S. manufacturing ramp-up.

• Margin Expansion and Profitability Path: Strategic shifts toward higher-margin, Worksport-branded products significantly enhanced profitability metrics, particularly evident in the end of Q4 2024 with gross margins rising nearly 3x that of Q3. Worksport expects fiscal 2025 gross margins to align more closely with those achieved in December 2024, supporting a continued growth trajectory.

• Quarterly Milestone: Q4 2024 net sales were $2.93 million, an approximately 250% year-over-year increase from $839,000 in Q4 2023. The strong holiday season demand across e-commerce and distribution networks pushed results above the Company's previous FY 2024 revenue guidance of $6-$8 million.

Financial Position Strengthened:

• Year-end cash and equivalents increased to $4.88 million, with an additional $6.7 million raised through a warrant inducement transaction in March 2025.

• Inventory strategically increased to $5.19 million to meet anticipated 2025 demand, while strengthen resiliency against macroeconomic supply chain uncertainties. Working capital improved to $7.3 million, offering greater flexibility for growth.

Steven Rossi, Founder & CEO of Worksport, stated: "Our 2024 results show a remarkable transformation. We expanded U.S. manufacturing, accelerated top-line growth, and repositioned our product lineup for higher margins. As we enter 2025, we have multiple catalysts-from advanced tonneau covers like the AL4 and HD3 to our highly anticipated SOLIS and COR energy solutions. Our focus is to scale production efficiently, drive robust revenue expansion, and chart a clear path to profitability for the benefit of our shareholders."

2025 Outlook & Guidance

• Projected Revenue: Worksport expects FY 2025 net sales in the range of $20 million to $34.5 million, driven by growing demand for its premium hard-folding covers, the upcoming SOLIS solar-integrated tonneau, and COR mobile battery system.

• Margin Expansion: With production scaling, a shift away from lower-margin private-label lines, and the launch of higher-value products, the Company anticipates gross margins reaching 25%-30% by late 2025.

• Path to Profitability: Management is focused on operational efficiency and cost discipline to target breakeven and potential cash-flow positivity by year-end 2025, contingent on achieving the upper range of its revenue and margin targets.

Additional Highlights Include:

• B2C Sales Growth: Online sales skyrocketed from $21,599 in Q3 2023 to $1.59 million in Q3 2024, now making up 51% of total revenue.

• Government Sales Traction: Worksport initiated sales to a U.S. government agency, positioning itself for future business development.

• New Product Launches: The highly anticipated AL4 tonneau cover is set to debut in Q4 this year and is expected to become a revenue-driving force in 2025, while the SOLIS and COR products are in Alpha testing, with a full market launch slated for Q2/Q3 next year.

Worksport FY & Q4 Conference Call

For detailed insights on the quarter, and management commentary, please attend our scheduled conference call. It will occur at 8:am ET on Thursday March 27, 2025. You may attend with this link: [Worksport FY & Q4 2024 Conference Call]

Investors are highly encouraged to review the prepared remarks and conference call deck will be available at Worksport's Investor Relations website.

Worksport Full-Year 2024 Report: Balance Sheet & Income Statement

Below is a summary excerpt from the Financial Statements section of 'Worksport 10-K 2024' covering the fiscal year ended December 31, 2024. Investors are encouraged to review the complete 10-K filing and the accompanying Prepared Remarks, both linked above, for full context and analysis.

Worksport Ltd.
Consolidated Balance Sheets
December 31, 2024 and 2023

		2024			2023
ASSETS
Current assets
Cash and cash equivalents		$	4,883,099		$	3,365,778
Accounts receivable, net			42,589			463,122
Other receivable			169,728			165,865
Inventories, net (Note 3)			5,190,054			3,631,492
Prepaid expenses and deposits (Note 6)			192,192			1,497,249
Total Current assets			10,477,662			9,123,506
Investment (Note 11)			66,308			90,731
Property and equipment, net (Note 4)			13,644,226			14,483,436
Operating lease right-of-use assets (Note 12)			595,415			917,354
Intangible assets, net (Note 5)			953,049			1,338,889
Total assets		$	25,736,660		$	25,953,916
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable		$	1,526,630		$	1,260,285
Accrued liabilities and other			800,283			190,896
Accrued compensation			377,112			85,010
Related party loan			-			2,192
Long-term debt, current portion (Note 13)			222,992			5,300,000
Lease liability, current portion (Note 12)			246,535			328,229
Total current liabilities			3,173,552			7,166,612
Lease liability, excluding current portion (Note 12)			368,472			608,761
Long-term debt, excluding current portion (Note 13)			4,781,005			-
Total liabilities			8,323,029			7,775,373
Shareholders' equity
Series A & B Preferred Stock, $0.001 par value, 10,010 shares authorized, 100 Series A and 0 Series B issued and outstanding, respectively (Note 7)			-			-
Common stock, $0.001 par value, 29,900,000 shares authorized, 4,016,205 and 2,032,050 shares issued and outstanding, respectively (Note 7)			4,016			2,032
Additional paid-in capital			79,781,674			64,685,693
Share subscriptions receivable			(1,577	)		(1,577	)
Share subscriptions payable			2,115,064			1,814,152
Accumulated deficit			(64,476,966	)		(48,313,177	)
Cumulative translation adjustment			(8,580	)		(8,580	)
Total shareholders' equity			17,413,631			18,178,543
Total liabilities and shareholders' equity		$	25,736,660		$	25,953,916

 

The accompanying notes form an integral part of these condensed consolidated financial statements. Please click here to download the full 10-K.

Worksport Ltd.
Consolidated Statements of Operations and Comprehensive Loss
December 31, 2024 and 2023

		2024			2023
Net sales		$	8,484,379		$	1,529,632
Cost of sales			7,578,729			1,289,118
Gross profit			905,650			240,514
Operating expenses
Research and development			2,289,940			1,669,318
General and administrative			8,678,994			7,974,362
Sales and marketing			2,386,504			1,483,054
Professional fees			3,030,931			3,853,134
Gain on foreign exchange			(14,885	)		(2,693	)
Total operating expenses			16,371,484			14,977,175
Loss from operations			(15,465,834	)		(14,736,661	)
Other income (expense)
Interest expense			(726,095	)		(616,214	)
Interest income			37,492			239,353
Rental income (Note 17)			76,413			184,564
Other			(85,765	)		-
Total other income (expense)			(697,955	)		(192,297	)
Net loss			(16,163,789	)		(14,928,958	)
Loss per share (basic and diluted)		$	(5.84	)	$	(8.44	)
Weighted average number of shares (basic and diluted)			2,768,732			1,768,991

 

The accompanying notes form an integral part of these condensed consolidated financial statements. Please click here to download the full 10-K.

The link below will take you to the Worksport Investor Relations Website. You may download the accompanying earnings call prepared remark and deck there, investors are highly encouraged to review this material:

• FY & Q4 2024- Earnings Call Prepared Remarks - Download Here

Stay Connected

• Investor Newsletter: Investors and customers are invited to follow Worksport's progress as it builds on this momentum and strives to redefine industry standards with each new corporate development. Link to Newsletter

• Contact Information

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

About Worksport

Worksport Ltd. (NASDAQ: WKSP), through its subsidiaries, designs, develops, manufactures, and owns the intellectual property on a variety of tonneau covers, solar integrations, portable power systems, and clean heating & cooling solutions. Worksport has an active partnership with Hyundai for the SOLIS Solar cover. Additionally, Worksport's hard-folding cover, designed and manufactured in-house, is compatible with all major truck models and is gaining traction with newer truck makers including the electric vehicle (EV) sector. Worksport seeks to capitalize on the growing shift of consumer mindsets towards clean energy integrations with its proprietary solar solutions, mobile energy storage systems (ESS), and Cold-Climate Heat Pump (CCHP) technology. Terravis Energy's website is terravisenergy.com.

For more information, please visit investors.worksport.com.

Connect with Worksport

Please follow the Company's social media accounts on X (previously Twitter), Facebook,

LinkedIn, YouTube, and Instagram (collectively, the "Accounts"), the links of which are links to external third party websites, as well as sign up for the Company's newsletters at investors.worksport.com. The Company does not endorse, ensure the accuracy of, or accept any responsibility for any content on these third-party websites other than content published by the Company.

Product social media	Investor social media
Instagram	X (formerly Twitter)
Facebook	LinkedIn
YouTube	Link to Newsletter

 

Investors and others should note that the Company announces material financial information to our investors using our investor relations website, press releases, Securities and Exchange Commission ("SEC") filings, and public conference calls and webcasts. The Company also uses social media to announce Company news and other information. The Company encourages investors, the media, and others to review the information the Company publishes on social media.

The Company does not selectively disclose material non-public information on social media. If there is any significant financial information, the Company will release it broadly to the public through a press release or SEC filing prior to publishing it on social media.

For additional information, please contact:

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

Forward-Looking Statements

The information contained herein may contain "forward‐looking statements." Forward‐looking statements reflect the current view about future events. When used in this press release, the words "anticipate," "believe," "estimate," "expect," "future," "intend," "plan," "project," "should," or the negative of these terms and similar expressions, as they relate to us or our management, identify forward‐looking statements. These statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) supply chain delays; (ii) acceptance of our products by consumers; (iii) delays in or nonacceptance by third parties to sell our products; and (iv) competition from other producers of similar products. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the SEC, including, without limitation, our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC's web site at www.sec.gov. As a result of these matters, changes in facts, assumptions not being realized or other circumstances, the Company's actual results may differ materially from the expected results discussed in the forward-looking statements contained in this press release. The forward-looking statements made in this press release are made only as of the date of this press release, and the Company undertakes no obligation to update them to reflect subsequent events or circumstances.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/246289

FAQ

What was Worksport's (WKSP) revenue growth in fiscal year 2024?

Worksport achieved 455% revenue growth in FY2024, with net sales of $8.48 million compared to $1.53 million in 2023.

What is Worksport's (WKSP) revenue guidance for 2025?

Worksport projects FY2025 net sales between $20 million to $34.5 million, with expected gross margins of 25-30% by late 2025.

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

Worksport plans to launch SOLIS and COR products in Q2/Q3 of 2025, currently in Alpha testing phase.

What was Worksport's (WKSP) Q4 2024 performance?

Q4 2024 net sales were $2.93 million, representing a 250% increase from $839,000 in Q4 2023.

How much cash does Worksport (WKSP) have as of year-end 2024?

Worksport had $4.88 million in cash and equivalents, plus raised an additional $6.7 million through warrant inducement in March 2025.