Worksport Reports Consecutive Months of Record-Breaking Revenues, Gross Margin Improves by 25%

Rhea-AI Summary

Worksport (NASDAQ: WKSP) reported record-breaking revenues for May 2025 at $1.28 million, marking their second consecutive month of all-time-high sales. The company's gross margins improved by 25% compared to Q1 2025, reaching 23%, with projections to hit 30% by year-end. Their dealer network expanded significantly from 94 in Q4 2024 to over 550 currently, including two major national distributors. Worksport projects 2025 revenue of approximately $20 million, up from $8.5 million in 2024 and $1.5 million in 2023. The company expects to achieve cash-flow positivity by year-end 2025. Their Made-in-USA cover line, using over 90% domestic content, continues gaining traction. Additionally, Worksport plans to launch SOLIS solar tonneau cover and COR portable nano-grid power system in fall 2025, targeting clean energy and portable power markets.

Positive

• Record-breaking revenue of $1.28 million in May 2025, with April-May revenues surpassing entire Q1 2025
• Gross margins improved 25% to 23%, with projected increase to 30% by year-end
• Dealer network expanded nearly 6x from 94 to over 550, including two major national distributors
• Projected revenue growth from $8.5M in 2024 to $20M in 2025
• Expected cash-flow positivity by year-end 2025
• Upcoming launch of high-margin SOLIS and COR clean-tech products in fall 2025

Negative

• Current market capitalization remains below projected 2025 revenue
• Company not yet cash-flow positive

Insights

Financial Analyst

Worksport's back-to-back record months with 25% margin improvement signals transformation to profitable growth amid successful B2B expansion.

Worksport's consecutive record-breaking revenue months mark a significant operational inflection point. May's $1.28 million revenue follows April's record performance, with both months already exceeding total Q1 2025 revenue. The 25% gross margin improvement (reaching ~23%) demonstrates the company's successful shift toward higher-margin branded products and manufacturing efficiencies.

The sixfold expansion of Worksport's dealer network from 94 to over 550 dealers, including two major national distributors, provides strong evidence of increasing market acceptance and distribution leverage. This rapid channel expansion explains the revenue acceleration and suggests potential for sustainable growth momentum.

Financial trajectory appears increasingly positive with management projecting 30% gross margins by year-end and forecasting $20 million in 2025 revenue (up from $8.5 million in 2024 and $1.5 million in 2023). This 135% projected annual growth combined with expanding margins indicates the company is approaching an important scale threshold.

Most significantly, management expects to achieve cash-flow positivity by year-end 2025, representing a pivotal transition from growth-phase to sustainable operations. The upcoming SOLIS solar tonneau cover and COR portable power system launches in fall 2025 could provide additional growth catalysts in higher-margin product segments with intellectual property protection.

The company's mention that market capitalization remains below projected 2025 revenue suggests potential valuation inefficiency if growth and margin trends continue as projected.

Company Reports All-Time-High Revenue in May 2025 (Following Record April 2025 Sales) as Gross Margins Rise 25% from Q1 2025 Levels; Growth Momentum Expected to Continue

West Seneca, New York, June 23, 2025 (GLOBE NEWSWIRE) -- 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 that May 2025 sales reached $1.28 million, marking the Company’s second consecutive month of record-breaking revenue (non-audited). Gross Margins continue to improve notably, as Worksport’s Made-in-USA cover line continues to gain significant traction.

Worksport’s April and May 2025 revenues alone have surpassed total Q1 2025 revenue, signaling strong momentum entering the second half of the year.

• Gross Margin Expansion: May gross margins improved 25% over Q1 2025 levels, bringing margins closer to 23%, driven by the Company’s focus on higher-value branded products and greater operational efficiency at its New York manufacturing facility, where products use over 90% domestic content. Management projects gross margins to trend toward 30% by year-end, reflecting expected scale benefits and continued cost optimizations. Company expects cash-flow positivity to be achieved towards year-end.
  
  
• Distribution Network and Growth Outlook: Worksport’s active dealer network has expanded from 94 in Q4 2024 to over 550 today, including two major national distributors added this spring. Management expects June 2025 to deliver another strong month as two recently onboarded national distributors ramp up ordering.
  

Steven Rossi, CEO of Worksport Ltd., commented:

“The month of May marks another record, reinforcing that our American-made tonneau covers and strategic B2B expansion are delivering real, repeatable results. We expect June 2025 to be even stronger as our newest national distributors ramp up orders. With our SOLIS and COR clean-tech products launching this fall, we believe 2025 will prove to be another breakout year that firmly sets Worksport on a path to long-term growth with a keen focus on strong EBITA.”

2025 Revenue and Profitability Outlook

Building on revenue of $1.5 million in 2023 and $8.5 million in 2024, Worksport projects reaching approximately $20 million by year-end 2025 — a scale designed to deliver cash flow positivity and support sustained profitability. Notably, the Company’s current market capitalization remains below this year’s projected revenue, highlighting what management views as a meaningful investment opportunity.

Further upside is expected with the anticipated fall 2025 launch of the SOLIS solar tonneau cover and COR portable nano-grid power system, targeting multi-billion-dollar clean energy and portable power markets. Management believes these high-margin, IP-protected products will accelerate significant consistent growth for the years ahead.

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

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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.

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.

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; 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 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.

FAQ

What was Worksport's (WKSP) revenue in May 2025?

Worksport reported record-breaking revenue of $1.28 million in May 2025, marking their second consecutive month of all-time-high sales.

How much did Worksport's gross margins improve in 2025?

Worksport's gross margins improved by 25% compared to Q1 2025 levels, reaching 23%, with projections to reach 30% by year-end.

What is Worksport's revenue projection for 2025?

Worksport projects reaching approximately $20 million in revenue by year-end 2025, up from $8.5 million in 2024 and $1.5 million in 2023.

How many dealers does Worksport currently have in their network?

Worksport's active dealer network has expanded from 94 in Q4 2024 to over 550 currently, including two major national distributors added in spring 2025.

When will Worksport launch its SOLIS and COR products?

Worksport plans to launch its SOLIS solar tonneau cover and COR portable nano-grid power system in fall 2025.