Record 2025 growth as Worksport (NASDAQ: WKSP) guides to $35M–$42M

Rhea-AI Filing Summary

Worksport Ltd. reported record fiscal 2025 results and issued 2026 revenue guidance of $35 million–$42 million, while targeting initial operational cash-flow positivity in the second half of 2026. Net sales for 2025 were $16.1 million, up 89.8% from $8.5 million in 2024, with gross margin improving to 28% from 11%. Online sales rose to $11.9 million, or 74% of revenue, and distributor and jobber sales increased to $4.2 million from $0.4 million. The partnered dealer network expanded to more than 550 locations, with a goal of 1,500 by the end of 2026. Despite this growth, Worksport posted a net loss of $19.35 million for 2025, compared with $16.16 million in 2024. As of December 31, 2025, total liquidity was about $9.3 million, including $5.95 million in cash and $3.4 million available under its revolving credit facility.

Insights

Equity analyst

Worksport nearly doubled revenue in 2025, improved margins, but remains loss-making while guiding to much higher 2026 sales.

Worksport delivered strong top-line expansion, with 2025 net sales of $16.1 million, an 89.8% increase from 2024, and gross margin rising to 28% from 11%. Mix shifted toward online channels, which generated $11.9 million, or 74% of revenue.

Operating expenses grew to $23.3 million, driving a larger net loss of $19.35 million versus $16.16 million in 2024. Liquidity at December 31, 2025 totaled about $9.3 million, including cash and a revolving credit facility, against total liabilities of $7.84 million.

Management guided 2026 revenue to $35 million–$42 million and set a 35% gross margin target, while expecting initial operational cash-flow positivity in the second half of 2026. Execution on dealer expansion toward 1,500 locations and commercialization of new products, such as the SOLIS cover and COR system, will be critical to approaching these goals.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): March 26, 2026

WORKSPORT LTD.

(Exact name of registrant as specified in its charter)

Nevada		001-40681		35-2696895
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

2500 N America Dr

West Seneca, New York 14224

(Address of principal executive offices) (ZIP Code)

(888) 554-8789

Registrant’s telephone number, including area code

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbols		Name of each exchange on which registered
Common		WKSP		The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b -2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 7.01 Regulation FD Disclosure.

On March 26, 2026, Worksport Ltd. (the “Company”) issued a press release: “Worksport Reports Record FY 2025 Results, Issues $35M–$42M 2026 Revenue Guidance; Targets Initial Cash Flow Positivity”

A copy of the press release is attached hereto as Exhibit 99.1.

The information under Item 7.01 of this Current Report on Form 8-K and the exhibit attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, or incorporated by reference into any of the Company’s filings under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in any such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.		Description
99.1		Press Release dated March 26, 2026, “Worksport Reports Record FY 2025 Results, Issues $35M–$42M 2026 Revenue Guidance; Targets Initial Cash Flow Positivity”
104		Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	WORKSPORT LTD.
Date: March 26, 2026	By:	/s/ Steven Rossi
	Name:	Steven Rossi
	Title:	Chief Executive Officer (Principal Executive Officer)

Exhibit 99.1

Worksport Reports Record FY 2025 Results, Issues $35M–$42M 2026 Revenue Guidance; Targets Initial Cash Flow Positivity

Revenue Increases 90% YoY; Company Highlights Margin Expansion and Commercialization Milestones

West Seneca, New York, March 26, 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 financial results for the full year ended December 31, 2025, as filed in its Annual Report on Form 10-K.

Fiscal 2025 Highlights

	●	Record Net Sales: Net sales for fiscal 2025 reached $16.1 million, an 89.8% increase compared to $8.5 million in fiscal 2024.
	●	Significant Margin Expansion: Full-year gross margin improved to 28%, up from 11% in fiscal 2024.
	●	Strong Q4 Performance: Derived fourth-quarter gross margins reached approximately 30%, reflecting increased manufacturing efficiency and capacity utilization at the Company’s New York facility.
	●	Dealer Network Growth: The partnered dealer network expanded sixfold in 2025, now exceeding 550 locations across the U.S. and Canada.
	●	Online Sales Growth: Online sales grew 142% to $11.9 million, representing 74% of total revenue
	●	Business-to-Business Growth: Distributor and jobber sales increased to $4.2 million, up from $0.4 million in 2024
	●	Commercial Product Launches: Successfully launched the SOLIS solar-integrated cover and COR portable energy storage system in December 2025.
	●	Quality Certification: Achieved ISO 9001 certification in April 2025, a critical prerequisite for pursuing Tier-1 OEM relationships with major automotive manufacturers.

Management noted that 2025 marked a transition year, with multiple product lines moving from development into early-stage commercialization.

2026 Financial Guidance and Strategic Outlook

Following a year of foundational investment, Worksport is providing the following guidance for fiscal 2026:

● Revenue Guidance: The Company expects full-year 2026 revenue to be between $35 million and $42 million.

	●	Gross Margin Target: Management has set a stable target of 35% gross margin for fiscal 2026.
	●	Network Expansion: Management targets aggressive dealer network growth to 1,500 locations by the end of 2026. This dealer expansion is expected to be a leading revenue driver.
	●	Path to Profitability: Worksport expects to reach initial operational cash-flow positivity within the second half of 2026.
	●	“Game Changer” Product Launch: A next-generation hard tonneau cover featuring patented capabilities is expected to launch in early Q2 2026.

Balance Sheet and Liquidity

As of December 31, 2025, Worksport reported:

	●	$5.95 million in cash
	●	$3.4 million available under its revolving credit facility
	●	Total liquidity of approximately $9.3 million

The Company indicated that its capital deployment in 2025 was directed toward scaling production capacity and advancing commercialization efforts.

Management Commentary

“2025 was a transformative year where we successfully bridged the gap from product conceptualization to large-scale market delivery,” said Steven Rossi, Worksport Founder & CEO. “We nearly doubled our top-line growth while dramatically improving our margin profile. With our New York facility now capable of producing over 125 units per 8-hour shift and our R&D hub in Missouri de-risking our clean-energy product launches, we believe the heavy lifting of building the platform is complete. Our focus in 2026 is squarely on execution, throughput, and achieving sustained profitability”.

Steven added: “Our infrastructure is now built for scale. We ended 2025 with a total liquidity position of over $9.3 million, providing us the runway needed to reach our goal of initial operational cash-flow positivity in the second half of 2026”.

Conference Call & Materials

Investors, analysts, and media are invited to register in advance for the live webcast, today, March 26, 2026, at 4:30pm ET.

Live Link: [Worksport FY 2025 Earnings Call Link]

The earnings call transcript, deck, and audio reply from the conference call will be available on the Worksport website https://investors.worksport.com/#reports after the call.

Stay tuned for more information and join our mailing list to stay up to date with the latest: Join Worksport’s Newsletter

Worksport FY 2025 Report: Balance Sheet & Income Statement

Below is a summary excerpt from the Financial Statements section of ‘Worksport 10-K, March 26, 2026’ covering the fiscal year ending December 31, 2025. 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, 2025 and 2024

		2025				2024
ASSETS
Current assets
Cash and cash equivalents		$	5,945,894			$	4,883,099
Accounts receivable, net			503,971				42,589
Other receivable			278,027				169,728
Inventories, net (Note 3)			9,530,671				5,190,054
Prepaid expenses and deposits (Note 6)			530,861				192,192
Total Current assets			16,789,424				10,477,662
Investment (Note 11)			67,033				66,308
Property and equipment, net (Note 4)			12,688,488				13,644,226
Operating lease right-of-use assets (Note 11)			272,598				595,415
Intangible assets, net (Note 5)			896,531				953,049
Total assets		$	30,714,074			$	25,736,660
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable		$	3,107,085			$	1,526,630
Accrued liabilities and other			1,400,730				800,283
Accrued compensation			420,210				377,112
Long-term debt, current portion (Note 12)			1,686,809				222,992
Lease liability, current portion (Note 11)			113,012				246,535
Total current liabilities			6,727,846				3,173,552
Lease liability, excluding current portion (Note 11)			159,526				368,472
Long-term debt, excluding current portion (Note 12)			950,481				4,781,005
Total liabilities			7,837,853				8,323,029
Shareholders’ equity
Series A, B and Series C Preferred Stock, $0.001 par value, 10,000,000 shares authorized, 100 Series A, 0 Series B, and 427,812 Series C (for 2025) issued and outstanding, respectively (Note 7)			428				-
Common stock, $0.001 par value, 45,000,000 shares authorized, 9,814,665 and 4,016,205 shares issued and outstanding, respectively (Note 7)			9,814				4,016
Additional paid-in capital			101,357,686				79,781,674
Share subscriptions receivable			(55,684	)			(1,577	)
Share subscriptions payable			5,446,347				2,115,064
Accumulated deficit			(83,873,790	)			(64,476,966	)
Cumulative translation adjustment			(8,580	)			(8,580	)
Total shareholders’ equity			22,876,221				17,413,631
Total liabilities and shareholders’ equity		$	30,714,074			$	25,736,660

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, 2025 and 2024

		2025				2024
Net sales		$	16,101,738			$	8,484,379
Cost of sales			11,626,831				7,578,729
Gross profit			4,474,907				905,650
Operating expenses
Research and development			1,538,923				2,289,940
General and administrative			14,806,326				11,709,925
Sales and marketing			6,947,671				2,386,504
Gain on foreign exchange			(4,587	)			(14,885	)
Total operating expenses			23,288,333				16,371,484
Loss from operations			(18,813,426	)			(15,465,834	)
Other income (expense)
Interest expense			(592,755	)			(726,095	)
Other			53,884				28,140
Total other income (expense)			(538,871	)			(697,955	)
Net loss			(19,352,297	)			(16,163,789	)
Loss per share (basic and diluted) (Note 13)		$	(3.16	)		$	(5.84	)
Weighted average number of shares (basic and diluted)			6,143,122				2,768,732

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

The link below will take you to the Worksport Investor Relations Website. After 4:30pm ET, you may download the accompanying earnings call prepared remark and deck there; investors are highly encouraged to review this material:

● FY 2025- Earnings Call Prepared Remarks - Download Here

Contacts

Investor Relations, Worksport Ltd. T: 1 (888) 554-8789-128

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 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, 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

How did Worksport (WKSP) perform financially in fiscal 2025?

Worksport reported 2025 net sales of $16.1 million, an 89.8% increase from $8.5 million in 2024. Gross profit rose to $4.47 million with a 28% margin, but the company still recorded a net loss of $19.35 million for the year.

What 2026 revenue guidance did Worksport (WKSP) provide?

Worksport provided 2026 revenue guidance of $35 million–$42 million. Management also set a target of maintaining about 35% gross margin and expects initial operational cash-flow positivity in the second half of 2026, reflecting a focus on scaling and profitability.

How are Worksport’s (WKSP) margins and operating expenses trending?

Worksport’s full-year gross margin improved to 28% in 2025, up from 11% in 2024, driven by efficiency gains. However, total operating expenses increased to $23.29 million, contributing to a wider net loss despite the substantial revenue growth.

What is Worksport’s (WKSP) liquidity position as of year-end 2025?

As of December 31, 2025, Worksport reported cash of $5.95 million and $3.4 million available under its revolving credit facility, for total liquidity of about $9.3 million. Total liabilities stood at $7.84 million, against total assets of $30.71 million.

What growth initiatives is Worksport (WKSP) pursuing for 2026?

Worksport plans to expand its partnered dealer network to about 1,500 locations by the end of 2026, up from over 550. It also expects to launch a next-generation hard tonneau cover in early Q2 2026 and continue commercializing SOLIS and COR products.

Is Worksport (WKSP) profitable, and what is its path to profitability?

Worksport is not yet profitable, with a 2025 net loss of $19.35 million. Management expects to reach initial operational cash-flow positivity in the second half of 2026, supported by higher revenue, improved margins, and expanded dealer and product penetration.

Filing Exhibits & Attachments

4 documents

Press Releases

• EX-99.1 EX-99.1 76.1 KB

Other Documents

• EX-101 XBRL SCHEMA FILE 2.9 KB
• EX-101 XBRL LABEL FILE 33.4 KB
• EX-101 XBRL PRESENTATION FILE 21.8 KB