Worksport Secures Second National Distributor & Projects $21.5M in Repeatable B2B Revenue
- Secured second national distributor, expanding dealer network to 550+ locations from 94 at start of year
- Projects $21.5M in annual repeatable B2B revenue at full activation
- Strong DTC performance with ~$1M in monthly e-commerce revenue
- 157% year-over-year increase in gross margin in Q1 2025
- 2025 revenue guidance of $20-$25M represents 2.5-3x growth YoY
- New clean energy products SOLIS and COR launching Fall 2025
- Only 187 out of 550 dealer partners currently active in sales
- Profitability and positive cash flow not yet achieved
Insights
Worksport's expanded distribution network creates meaningful revenue visibility with 550 dealer locations potentially generating $21.5M in repeatable B2B sales.
Worksport's distribution expansion represents a pivotal scaling milestone that transforms its market reach. The nearly 6x increase in dealer locations since early 2025 (from 94 to 550) creates a substantial foundation for repeatable revenue - the most valuable type of income for manufacturing businesses. What's particularly noteworthy is that the company is only actively selling to 187 of 550 potential dealers, indicating significant untapped capacity within already-secured channels.
The $21.5 million projection in repeatable B2B revenue provides concrete visibility into Worksport's growth trajectory. With only 34% of secured dealers currently activated, there's substantial embedded growth potential without requiring additional partnership agreements. When analyzing the distribution strategy, Worksport's decision to partner with national distributors rather than individual dealers creates exponential scaling efficiency - each agreement instantly unlocks hundreds of potential sales channels.
The dual-channel approach combining B2B distribution with direct-to-consumer sales (generating approximately $1 million monthly) creates revenue diversification that insulates against channel-specific disruptions. This distribution foundation positions Worksport to efficiently launch their higher-margin SOLIS solar tonneau cover and COR energy storage system through established channels, potentially accelerating adoption of these innovative products when they launch in Fall 2025.
Worksport's distribution expansion provides clear path to 2.5-3x revenue growth in 2025, with improving gross margins and multiple growth catalysts ahead.
The expansion to 550 dealer locations provides Worksport with a concrete pathway to achieve its $20-25 million revenue guidance for 2025 - representing 2.5-3x growth from 2024. What makes this particularly compelling is that the $21.5M projected annual repeatable revenue from these channels alone could sustain the high end of guidance, while the company's $1M monthly direct-to-consumer business provides additional upside potential.
The 157% year-over-year improvement in gross margin reported for Q1 2025 signals that Worksport is successfully achieving economies of scale as volumes increase. This margin expansion while rapidly growing revenue is a powerful combination that should accelerate the company's path toward positive cash flow and profitability, which management expects to achieve in fiscal 2025.
The upcoming Fall 2025 launch of SOLIS solar covers and COR energy storage systems represents a potential step-change in the company's revenue mix toward higher-margin products. Worksport now has the distribution infrastructure to efficiently bring these innovative products to market at scale. With only 550 dealer locations secured out of a potential 17,000 nationwide, Worksport has penetrated just 3.2% of its addressable dealer market, suggesting substantial headroom for continued distribution expansion beyond current projections.
Dealer Network Expands now to over 550 U.S. Locations; Recurring Revenue Expected to Further Accelerate in 2025.
West Seneca, New York, June 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 a significant milestone: the addition of a second national automotive distributor. This strategic agreement expands the Company’s partnered dealer network to over 550 locations across the United States—representing a nearly 6x increase since the beginning of 2025.
This momentum marks Worksport’s second national distribution agreement in under two months, following its April 2025 partnership with Patriot Auto Group, which brought over 200 dealers under the Worksport dealer network. The newest agreement adds access to approximately 250 additional dealer accounts, further accelerating the Company’s penetration into high-value retail markets through strategically aligned partners.
Repeatable Revenue at Scale Projected to Exceed
With more than 450 new accounts added year-to-date, up from 94 at the start of the year, Worksport’s U.S. dealer network is expanding rapidly. As of today, the Company actively sells to 187 of its 550 dealer partners, with new accounts joining weekly.
At full activation, Worksport estimates these channels can support over
Management reaffirms full-year 2025 revenue guidance of
“Our strategic focus on supporting U.S. brick-and-mortar retailers with Made-in-America products continues to prove itself,” said Steven Rossi, Chief Executive Officer of Worksport. “This milestone validates the strength of our distribution model and the surging demand for competitively priced, high-quality truck accessories. With more than 17,000 potential dealer locations across the country, we’ve only begun to tap into our total addressable market. Following a
Momentum Accelerates Across All Sales Channels
In parallel with its expanding wholesale network, Worksport is maintaining strong performance in its direct-to-consumer (DTC) segment, generating approximately
These developments come ahead of the anticipated Fall 2025 commercial launch of SOLIS, Worksport’s patented solar-integrated tonneau cover, and COR, its portable energy storage system. Together, these products are positioned to unlock new, higher-margin revenue streams in multi-billion-dollar clean-tech and off-grid power markets—well beyond the Company’s core automotive footprint.
Strategic Outlook: Positioned for Multi-Vector Growth
With two national distributors onboard, scalable B2B infrastructure in place, and high-impact clean energy products nearing launch, Worksport is now executing across multiple growth vectors. The Company remains focused on capturing greater market share, enhancing operational efficiencies, and advancing toward sustainable profitability and positive cash flow in fiscal 2025 and beyond. Worksport’s sales team is actively working to establish additional meaningful, strategic B2B reseller accounts within the US and Canadian markets.
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
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
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