Exhibit
99.1
Worksport
(NASDAQ: WKSP) Achieves 35% May Gross Margin, Lands Meyer Distribution, Targets $36M+ Revenue Run-Rate
Company
announces three major operating inflections: preliminary May record breaking gross margin of approximately 35% (up 660 Basis
Points), a new Meyer Distributing relationship, , and a $36M+ 12-month revenue opportunity supported by accelerating B2C and
B2B growth.
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, New York, 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 35% gross margin
in May 2026 (up from 28.4% in Q1 2026), and is now targeting a $36 million+ 12-month revenue opportunity supported
by increasing B2C activity, expanding B2B distribution, newly launched products, and improving operating leverage.
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 $20 million and momentum continuing to
build during the second quarter, management believes the Company is entering the second half of 2026 with a significantly stronger commercial
and operating foundation.
Preliminary
May Gross Margin Reaches Approximately 35%
Worksport
today announced that it achieved approximately 35% gross margin in May 2026, representing a new record margin metric for the company,
based on preliminary unaudited internal results. This represents continued margin improvement from approximately 11% gross margin
in December 2024 and approximately 30% gross margin in December 2025. Gross margin has increased despite U.S. aluminum prices
rising approximately 50% in two years. Management believes any future decline in aluminum prices could provide additional gross margin
expansion. .
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 35% gross margin level, Worksport would need to generate roughly $9 million in quarterly revenue
to achieve operational cash-flow positivity. Worksport continues to target initial operational cash-flow positivity within 2026,
supported by increased sales velocity and gross margins, expanding B2B distribution, ongoing B2C demand, and execution across its product
portfolio.
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.
$36M+
Annualized Revenue Opportunity Supported by B2C and B2B Growth
Worksport’s
B2C activity is currently tracking near approximately $1 million per month, or approximately $12 million annualized. Separately,
B2B sales were recently tracking near approximately $0.7 million per month, or approximately $8.4 million annualized.
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 $24 million or more over the next 12 months following activation
and ramp-up of these relationships.
When
combined with current B2C activity, this supports a total annualized revenue opportunity of approximately $36 million or more. Management
believes this opportunity aligns with Worksport’s previously stated near-term cash-flow positivity goals and reflects a more scalable
commercial base than the Company had entering the year.
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 35% gross margin, Worksport looks very different than it did a year ago. Each additional
dollar of revenue has more potential impact. Our objective remains clear: increase sales velocity, expand margins, convert inventory,
grow distribution, and pursue initial operational cash-flow positivity within 2026. We believe the inflection point we have been working
toward is beginning to take shape.”
Worksport
intends to continue updating shareholders as B2B onboarding, distributor sell-through, NEXUS adoption, margin progression, and
overall revenue conversion progress through 2026.
Stay
tuned for more information and join our mailing list to stay up to date with the latest: Join Worksport’s Newsletter
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.
