Worksport (NASDAQ:WKSP) Announces Earnings Results

Worksport (NASDAQ:WKSP) posted its earnings results on Thursday. The company reported ($0.72) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.55) by ($0.17), Zacks reports. The firm had revenue of $4.74 million during the quarter, compared to the consensus estimate of $8.90 million. Worksport had a negative return on equity of 101.46% and a negative net margin of 120.20%.

Here are the key takeaways from Worksport’s conference call:

• Revenue and margin acceleration: Fiscal 2025 net sales nearly doubled to $16.1M and gross margins expanded to ~28% (Q4 ~30%), reflecting stronger product mix and higher factory utilization.
• Ongoing cash burn and going-concern disclosure: the company used $17.2M in operating cash in 2025, reported a going-concern explanatory paragraph, and has about $9.3M total liquidity (cash + available revolver) while supplementing capital via ATM and a $6.4M warrant raise.
• New product commercialization: SOLIS (solar-integrated tonneau) and COR (portable energy storage), plus the HD3 hard cover, launched commercially in late 2025 with limited initial units (e.g., ~1,000 COR) and are expected to ramp contribution in 2026.
• Ambitious 2026 targets and path to profitability: management guides revenue of $35M–$42M with ~35% gross margin and is targeting operational cash-flow positivity in H2 2026, aiming for quarterly breakeven at roughly $9M–$11M revenue at 35% gross margin.
• Material input-cost and tariff risks: domestic aluminum prices rose >35% in 2025 (≈50% since 2024), prompting price increases that caused a Q4 sequential sales decline and could pressure margins if costs remain elevated.

Worksport Stock Performance

WKSP traded down $0.31 during trading on Friday, hitting $1.03. 1,029,985 shares of the company traded hands, compared to its average volume of 353,273. The firm has a market cap of $10.06 million, a P/E ratio of -0.32 and a beta of 0.13. The stock’s fifty day moving average is $1.55 and its 200 day moving average is $2.38. The company has a quick ratio of 0.91, a current ratio of 2.04 and a debt-to-equity ratio of 0.05. Worksport has a one year low of $0.90 and a one year high of $4.90.

Analyst Ratings Changes

Several research analysts recently weighed in on WKSP shares. Maxim Group set a $3.00 price target on shares of Worksport in a report on Friday, February 13th. Weiss Ratings reissued a “sell (e+)” rating on shares of Worksport in a research report on Monday, December 22nd. Two research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and an average target price of $7.25.

Institutional Investors Weigh In On Worksport

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in WKSP. State Street Corp purchased a new stake in Worksport during the fourth quarter valued at about $34,000. XTX Topco Ltd purchased a new position in shares of Worksport in the second quarter worth about $50,000. Centiva Capital LP bought a new stake in shares of Worksport in the third quarter valued at approximately $63,000. Geode Capital Management LLC raised its position in shares of Worksport by 11.2% in the second quarter. Geode Capital Management LLC now owns 33,259 shares of the company’s stock valued at $94,000 after purchasing an additional 3,338 shares during the period. Finally, LPL Financial LLC lifted its stake in shares of Worksport by 225.2% during the 4th quarter. LPL Financial LLC now owns 54,067 shares of the company’s stock valued at $115,000 after buying an additional 37,440 shares in the last quarter. 16.11% of the stock is currently owned by institutional investors.

Worksport Company Profile

Worksport Ltd. is an Israeli-based designer, developer and global supplier of innovative automotive accessories, with a primary focus on pickup truck bed covers. The company’s core offerings include a range of hard and soft tonneau covers under brands such as ROLL, FLEXIT and SOLAR, engineered to provide truck owners with enhanced utility, security and weather protection. Worksport leverages advanced polymer materials and patented folding mechanisms to deliver lightweight, durable solutions that are easy to install and operate.

In recent years, Worksport has expanded its product portfolio to incorporate solar technology, introducing integrated solar tonneau covers capable of generating power for auxiliary truck systems or charging batteries for recreational and off-grid applications.