Worksport (NASDAQ:WKSP) Achieves 35% May Gross Margin, Lands Meyer Distribution, Targets $36M+ Revenue Run-Rate
Rhea-AI Summary
Worksport (NASDAQ:WKSP) reported a preliminary May 2026 gross margin of about 35%, up from 28.4% in Q1 2026. The company secured Meyer Distributing as a multinational partner and sees a $36M+ 12‑month revenue opportunity based on B2C and B2B growth, while targeting 2026 operational cash-flow positivity.
Positive
- Preliminary May 2026 gross margin about 35%, up from 28.4% in Q1 2026
- Gross margin improved from about 11% in December 2024 to about 30% in December 2025
- Annualized revenue currently tracking above $20 million during second quarter 2026
- New multinational distribution agreement with Meyer Distributing and initial purchase order
- B2C sales tracking near $1 million per month, about $12 million annualized
- B2B sales tracking near $0.7 million per month, about $8.4 million annualized
- Management targets B2B annualized revenue potential of about $24 million over next 12 months
- Total annualized revenue opportunity estimated at approximately $36 million or more
- Management targets initial operational cash-flow positivity within 2026 at roughly $9 million quarterly revenue and 35% margin
Negative
- U.S. aluminum prices have risen about 50% in two years, pressuring input costs
- Operational cash-flow positivity is a future target; current revenue remains below the estimated $9 million per quarter threshold
News Market Reaction – WKSP
On the day this news was published, WKSP gained 11.13%, reflecting a significant positive market reaction. Argus tracked a peak move of +59.7% during that session. Argus tracked a trough of -9.0% from its starting point during tracking. Our momentum scanner triggered 51 alerts that day, indicating high trading interest and price volatility. This price movement added approximately $1M to the company's valuation, bringing the market cap to $14.48M at that time. Trading volume was very high at 3.2x the daily average, suggesting strong buying interest.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jun 18 | Premium financing | Positive | +50.1% | Premium-priced direct investment with potential follow-on institutional financing interest. |
| Jun 09 | Insider share election | Positive | -5.2% | CEO taking stock instead of cash compensation, citing long-term value focus. |
| May 26 | New patent grant | Positive | -15.7% | Terravis AetherLux ZeroFrost heat-pump patent with future commercialization potential. |
| May 13 | Q1 earnings beat | Positive | -8.3% | Strong Q1 sales and gross profit growth with improving gross margin profile. |
| May 07 | Earnings call date | Neutral | -0.9% | Announcement of Q1 2026 earnings call and new investor townhall series. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
WKSP has often traded weakly on positive operational news, with only the recent premium financing showing a clearly aligned upside reaction.
Key Terms
gross margin financial
basis points financial
b2c financial
b2b financial
operational cash-flow positivity financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Company announces three major operating inflections: preliminary May record breaking gross margin of approximately
The announcement follows last week's premium-priced direct investment and highlights the distribution scale, margin expansion, and revenue drivers that management believes lead the Company's path toward near-term operational cash-flow positivity.
WEST SENECA, NY / ACCESS Newswire / June 22, 2026 / Worksport Ltd. (NASDAQ:WKSP) ("Worksport" or the "Company"), a U.S.-based innovator and manufacturer of hybrid and clean energy solutions primarily for the light truck, overlanding, and global consumer goods markets, today announced three new commercial and operational developments that management believes mark a potential inflection point in Worksport's 2026 growth plan.
The Company announced that it has secured Meyer Distributing as a new national distribution partner, achieved
The announcement follows Worksport's recently completed premium-priced direct investment, which the Company believes reflected investor confidence in its strategic direction. With annualized revenue currently tracking above
Preliminary May Gross Margin Reaches Approximately
Worksport today announced that it achieved approximately
Management believes the improvement reflects continued progress in production efficiency, cost discipline, pricing strength, and operating scale. The margin milestone is important because, at higher gross margins, each incremental dollar of revenue can contribute more meaningfully toward covering fixed operating costs.
Management estimates that, assuming an approximate
New Meyer Distributing Relationship Expands Worksport's B2B Reach
Worksport also announced that it has secured Meyer Distributing as its first multinational distribution partner and has received an initial purchase order for Worksport tonneau covers. Meyer Distributing is one of North America's leading automotive aftermarket wholesale distribution networks, serving dealers across the United States, Canada, and international markets with over 3.5 million sq. ft. of warehouse space. Meyer was also recognized by the Specialty Equipment Market Association (SEMA) as Warehouse Distributor of the Year in 2010, 2015, and 2017.
For Worksport, the Meyer relationship represents more than an initial order. It marks a significant B2B milestone that gives the Company access to a larger base of recurring orders from thousands of dealers, installers, and aftermarket resellers across USA and Canada, at a time when Worksport is expanding production, launching new products, and targeting meaningful revenue growth in 2026.
The Company believes the addition of Meyer-combined with recently announced Tri-State Enterprises traction and existing wholesale and dealer relationships including Patriot Auto, and Worksport's expanding dealer network-strengthens its commercial platform and supports a larger recurring revenue opportunity as Worksport products move through established aftermarket sales channels.
Worksport's B2C activity is currently tracking near approximately
With the addition of Meyer Distributing, recent Tri-State momentum, existing channel relationships, and continued dealer network expansion, management believes B2B annualized revenue potential can expand toward
When combined with current B2C activity, this supports a total annualized revenue opportunity of approximately
CEO Commentary
"We believe Worksport is entering a very different phase of the business," said Steven Rossi, Founder and Chief Executive Officer of Worksport. "Last week's investment reflected external confidence in our direction. Today's update demonstrates an operating foundation: expanding distribution, improving gross margins, compelling B2C activity, and a clear revenue path toward near-term operational cash-flow positivity."
Mr. Rossi added, "The Meyer relationship is an important step for our B2B strategy. Meyer is a respected name in automotive aftermarket distribution, and we believe its reach can help Worksport products move through a much larger dealer and installer network over time. Combined with Tri-State, Patriot Auto, AllPro, our expanding dealer base, and our new Nexus cover, we believe the commercial architecture needed to scale is coming together."
Mr. Rossi concluded, "At approximately
Worksport intends to continue updating shareholders as B2B onboarding, distributor sell-through, NEXUS adoption, margin progression, and overall revenue conversion progress through 2026.
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Contacts
Investor Relations, Worksport Ltd.
T: 1 (888) 554-8789 ext. 128
W: investors.worksport.com
W: www.worksport.com
E: investors@worksport.com
Connect with Worksport Chief Executive Officer, Steven Rossi
Steven Rossi X (Twitter)
Steven Rossi LinkedIn
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'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.
Connect with Worksport
Please follow the Company's social media accounts on X (previously Twitter), Facebook,
LinkedIn, YouTube, and Instagram, 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.
Social Media Disclaimer
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. 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.
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," "scheduled," "expect," "future," "intend," "plan," "project," "envisioned," "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 situation 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; (iv) competition from other producers of similar products; and (v) with respect to any potential additional financing transactions, there can be no assurance that any such transactions will be consummated, and any such transactions would be subject to, among other things, market conditions, available shelf registration capacity, applicable regulatory requirements (including Nasdaq listing rules), negotiation and execution of definitive documentation on mutually acceptable terms, and approval by the Company's Board of Directors. 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 latest 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.
SOURCE: Worksport Ltd.
View the original press release on ACCESS Newswire