Worksport Reports Q2 2025 Top-Line Revenue, Signals Profitability on Horizon with Expanding Margins and Product Momentum

Rhea-AI Summary

Worksport (NASDAQ: WKSP) reported strong Q2 2025 results, with unaudited revenue reaching $4.1 million, an 83% increase from Q1 2025's $2.24 million. The company achieved significant margin expansion, with gross margins improving from 17.7% to 26.0% quarter-over-quarter.

The performance validates Worksport's strategic shift from lower-margin private label production to a Made in America brand focus. The company expects to exceed 30% gross margins by year-end and projects $20M in full-year revenue. Additionally, Worksport plans to launch its innovative SOLIS Solar Tonneau Cover and COR Portable Energy System in late 2025, targeting high-margin clean energy markets.

Positive

• None.

Negative

• Company not yet profitable, though moving towards profitability
• New SOLIS and COR products still in Beta testing phase

Insights

Financial Analyst

Worksport's Q2 results show 83% revenue growth with expanding margins, indicating successful strategic pivot toward profitability.

Worksport's Q2 2025 results represent a significant inflection point in the company's turnaround strategy. Revenue jumped to $4.1 million, an impressive 83% sequential increase from Q1's $2.24 million. More importantly, gross margins expanded substantially from 17.7% to 26% - a 47% improvement that demonstrates the company's strategic pivot away from lower-margin private label production is gaining traction.

The margin expansion trajectory is particularly noteworthy. June 2025 delivered their highest monthly gross margin to date, with management projecting margins exceeding 30% by year-end. This progression creates a clear path to profitability as the improved margins allow for greater operating leverage against fixed costs.

Management's $20 million full-year revenue projection now appears achievable given the Q2 momentum. The strategic focus on higher-margin, Made in America products with domestic supply chains appears to be paying dividends in both top-line growth and profitability metrics.

The upcoming SOLIS Solar Tonneau Cover and COR Portable Energy System represent significant potential catalysts. These proprietary clean-energy products, currently in beta testing, target high-margin markets including portable power, overlanding, grid-resilient utility, and EV charging. The SOLIS cover has demonstrated solar production exceeding 500W, while the COR system has shown Level 1 EV charging capability, including Tesla compatibility - critical technical validations that suggest the products are commercially viable.

Company Achieves Breakout Quarter as Turnaround Strategy Gains Traction; Clean-Tech Product Launches Poised to Accelerate Growth

West Seneca, New York, July 10, 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 unaudited Q2 2025 topline results, delivering a breakout quarter that is expected to position the Company for sustainable profitability and long-term growth.

The Company delivered unaudited revenue of $4.1 million in Q2 2025, marking an 83% increase over Q1 2025 revenue of $2.24 million.The results mark a major validation of the Company’s strategic pivot away from lower-margin private label production, underscoring management’s strategic focus on a strong Made in America brand with a robust supply chain substantially within the USA.

In parallel, gross margins increased 47%, rising from 17.7% in Q1 to 26.0% in Q2. June 2025 recorded the Company’s highest monthly gross margin to date, with Worksport on track to exceed 30% gross margins by year-end, setting the stage for strong operating leverage.

Momentum Building Toward Strong EBITA

“This quarter’s topline and margin performance validates the steps we’ve taken over the last year,” said Steven Rossi, CEO of Worksport. “We’re executing on all cylinders - sales are scaling, margins are improving, and we’re laying the groundwork for sustainable profitability. The real catalyst lies just ahead with the launch of our innovative SOLIS and COR nano-grid system.

Flagship Product Launches to Unlock Additional Revenue Streams

Worksport’s upcoming SOLIS Solar Tonneau Cover and COR Portable Energy System—both in Beta testing in North America—are scheduled for commercial launch in late 2025. Together, these proprietary technologies will form a modular clean-energy nano-grid, targeting high margin multi-billion-dollar markets, ranging from portable power to overlanding, grid-resilient utility, and EV range top-up.

As previously reported, Worksport’s patented SOLIS cover successfully produced more than 500W of solar power, while the COR system demonstrated Level 1 EV charging capabilities, including for Tesla vehicles. Market response to early testing has been strong, with additional updates expected in the Company’s Q3 2025 earnings call.

Full Q2 Report and Earnings Call Coming Mid-August

“As we turn the corner on our strategy for strong EBITA and profitability, we are seeing impressive alignment of the Company’s fundamentals in a way that unlocks shareholder value,” added Rossi. “With strong revenue growth, expanding margins, and disruptive new products launching in 2025, Worksport is emerging as one of the most exciting stories on the small-cap growth radar. The best is yet to come and just around the corner.”

The full Q2 2025 financial statements and earnings call are scheduled for mid-August. The Company also recently announced record production output and further traction in B2C and B2B sales, reinforcing its revenue trajectory. Management has previously projected $20M in full-year revenue, with a clear anticipated path to cash flow positivity.

More information will be made available in the near future regarding the Company’s COR Portable Energy System & SOLIS Solar Tonneau Cover commercial launches, including final release specifications, pricing, and go to market strategy, among other topics.

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

Join: Worksport’s Newsletter

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 Q2 2025?

Worksport reported unaudited revenue of $4.1 million in Q2 2025, representing an 83% increase from Q1 2025's $2.24 million.

How much did Worksport's gross margins improve in Q2 2025?

Worksport's gross margins increased by 47%, rising from 17.7% in Q1 to 26.0% in Q2 2025, with expectations to exceed 30% by year-end.

When will Worksport launch its SOLIS Solar Tonneau Cover and COR system?

Worksport plans to commercially launch both the SOLIS Solar Tonneau Cover and COR Portable Energy System in late 2025, following current Beta testing in North America.

What is Worksport's revenue projection for 2025?

Worksport management has projected $20 million in full-year revenue for 2025, with a clear anticipated path to cash flow positivity.

How much power can Worksport's SOLIS solar cover generate?

Worksport's patented SOLIS cover has successfully demonstrated the ability to produce more than 500W of solar power and includes Level 1 EV charging capabilities.