Worksport Q1 2025 Earnings Call Transcript

There are 5 speakers on the call.

Operator

Discussing key operational milestones and share an updated outlook for 2025. Q '1 of this year was a transformative period for Worksport. We released our flagship higher margin products, the AL four tunnel cover. We rapidly expanded our dealer network and strengthened our gross margins. We will be reviewing the financial results for the quarterly period ending ending 03/31/2025.

Operator

These results were filed today at 4PM eastern time in our Form 10 Q and can be downloaded from the link provided in the chat. At the end of today's call, we prepared our prepared remarks and presentation deck will be available for download at https:investors.worksport.com/reports. Our remarks will be accompanied by a slide presentation. After these remarks, we will open the line for questions. With that, let's begin.

Operator

During this call, we will make forward looking statements, including statements regarding our financial outlook for the full year 2025, our expectations regarding financial and business trends, impacts from these macroeconomic environments and market position, opportunities, go to market initiatives, growth strategy and business aspirations and project product initiatives and the expected benefits of such initiatives. These statements are only predictions that are based on our current beliefs, expectations, and assumptions. 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 and many of which are outside of our control. Actual results or events may differ materially. Therefore, you should not rely on any of these forward looking statements.

Operator

These forward looking statements are subject to risk and other factors that could affect our performance and financial results, which we discuss in detail in our filings with the SEC, including in our annual report Form 10 ks and quarterly reports Form 10 Q and other SEC filings. The forward looking statements made in this earnings call are only made as of today's date. Worksport assumes no obligation to update any forward looking statements we may make on today's webinar. We'll begin by highlighting Worksport's achievement from q one twenty twenty five, celebrating the milestones that propelled our impressive growth trajectory. Following that, we'll dive into our financial performance, emphasizing our margin growth and developments from our dealer network.

Operator

We'll then explore our operational successes, showcasing the growing success of our hard folding truck bed cover line proudly made right here in The USA. We'll also discuss our continued success, betting on ourselves shifting towards higher margin work sport only branded product sales. We'll also expand on highly anticipated upcoming product launches, including our Solas Solar Cover, CORE portable energy storage system, and innovations from Teravis Energy, our subsidiary, which has generated noteworthy industry interest. To wrap up, we'll share our vision on strategic plans for fiscal year twenty twenty five, provide fresh guidance and outline key financial goals for the rest of the year, paving a clear strategic roadmap for continued expansion and profitability. The first quarter of twenty twenty five marked a continuation of strong growth.

Operator

Revenue for the quarter reached $2,240,000 a 337% increase compared to $512,000 in Q1 of last year. While this figure is slightly lower than our Q4 twenty twenty four results, the decrease is this decrease is consistent with seasonal trends as Q4 typically represents our strongest sales period, for example, with Black Friday and the holidays, while Q1 tends to be slower. Importantly, we remain confident in achieving substantial year over year growth by the end of this year 2025. Our strategic shift towards branded high margin products highlighted by the late Q1 launch of our AL4 product line has meaningfully improved gross margins and set a constructive tone for the year ahead. Early indications show that AL4 sales are already contributing to a significant portion of our Q2 revenues, reinforcing our expectations for continued upward momentum.

Operator

With a very exciting road ahead as consumers adopt the newly released a l four, we're all working hard to achieve continued significant and exponential growth in the months ahead. Mike Johnson, our CFO, will now walk you through the financial details of q one twenty twenty five.

Speaker 1

Thanks, Steve. Please bear with me. I'm on a bit of a cold here, so my voice might be all over the place. We've reached significant financial milestones this quarter. Gross profit rose notably to 396,000, achieving a gross margin nearly 18%, which is up from 7% in the same quarter last year and 11% from Q4 of twenty twenty four.

Speaker 1

These improvements highlight the ongoing success of our strategic shift towards higher margin Worksport branded products and better operational efficiency. We expect margin to continue improving with the objective of reaching 25% to 30% later this year. We believe this will be achievable with increased production that will optimize overhead absorption along with continued sales growth of our AL4 plant. Furthermore, with core and Solis releasing later this year, we expect additional notable improvements in the company's gross profit and top line revenue profile. Total operating expenses for q one were 4,650,000.00, up from about 3,680,000.00 in q one of twenty twenty four.

Speaker 1

This 26% increase in operating expenses reflects targeted investments that directly support a 337% surge in revenues over the same period from last year, demonstrating scalability of our model and return on our strategic spending. This increase in operating cost reflects some onetime expenses, ongoing strategic investments in marketing, product development, and significant investment in expansion of our sales team. More specifically, sales and marketing expenses were 870,000, reflecting expanded digital marketing efforts. General and administrative expenses rose to approximately 2,990,000.00 from 2,290,000.00, driven primarily by increased staffing and facility related costs. Professional fees decreased to $426,000 to $944,000, highlighting effective cost control measures.

Speaker 1

For q one of twenty twenty five, our operating loss was approximately 4,460,000 compared to $3,710,000 in the prior year period. Our net loss was $4,460,000 reflecting the costs associated with scaling operations and continued strategic investments, specifically in sales and marketing expenses and nonrecurring corporate expenses. Despite the net loss, our improved gross margin operational efficiency lay a foundation for achieving profitability. We believe there's an adequate room to continue controlling expenses while continuing to accelerate expansion. The gap between expenses and gross profit is expected to decrease in future quarters.

Speaker 1

Importantly, the company is still targeting to achieve operational cash flow breakeven in Q4 of twenty twenty five or early Q1 of twenty twenty six. More on this to come later. Turning to the balance sheet. Cash and cash equivalents stood at $5,080,000 slightly up from $4,880,000 at year end of twenty twenty four. This increased Powell's capital raising efforts and is subsequent to a reduction of long term debt of approximately $2,000,000 this quarter.

Speaker 1

Working capital improved to $7,940,000 providing financial flexibility and operational readiness for continued growth. Our current liabilities decreased slightly, enhancing our liquidity position and preparing us to effectively manage our upcoming product launches. During Q1 of twenty twenty five, cash used in operating activities totaled $3,840,000 primarily reflecting our net loss and increased inventory to support projected demand. Investment activities consumed $269,000 primarily for property and equipment upgrades. Financing activities generated positive inflow of approximately 4,500,000.0, driven by proceeds from work exercises offsetting operational and capital investments.

Speaker 1

We had inventories of $5,700,000 as of 03/31/2025, a slight increase from 12/31/2024, representing roughly 50% of our current assets. Notably, 3,400,000.0 of our inventory balance is raw materials. This inventory includes components for our AL series covers and legacy products, and we deem it appropriately balanced. We have processes in place to monitor for any slow moving or obsolete stock or adjust production purchasing accordingly. We view our quarter end inventory level as a healthy support for our 2025 sales targets without needing substantial further investment in working capital.

Speaker 1

We also view this inventory level as sufficient to combat short term tariff related impacts on our business, while long term impacts are expected to be relatively minute for our for our made in America hardcovers. Now back to Steven for key insights on business operation.

Operator

Thank you, Michael. Beyond the financial numbers, q one marks the foundation of what we can expect for the year ahead. I'd like to highlight some of these key milestones we achieved that are setting the stage for our future. We started shipping AL four tunnel covers and listed the AL four for sale on our ecommerce platform only in late February twenty twenty five, just a few short months ago. The AL four launch is significant for Work Sport as it expands our product line at the high end with early feedback from customers being very positive on the quality, aesthetic, and functionality of this covered model.

Operator

The product will be a big part of our story for the rest of this year. We've had tremendous early interest and expect this product to be a significant revenue driver for us in the near term. The Worksport factory is targeting four times growth in monthly production by the end of q three twenty twenty five as compared to q four last year. In other words, we're targeting to produce over 200 units per day by the end of summer and have already made positive progress towards that goal in q one, but even more so in the early months of q two. A production rate of 200 units per day would represent upwards of $45,000,000 in annual top line revenues from our ecommerce channel, while earning strong economies of scale that will drive up gross margin towards our previously forecasted levels.

Operator

Our reseller sales network has grown significantly as well in q one twenty twenty five, and it continues to grow. Reseller network growth. WorkSports US network now totals 151 active dealers, a 64% increase from 92 at the end of last year. Worksport has added 35 new dealer accounts in March following 24 additions in January and February combined. March 2025 business to business sales grew nearly 70% from February, underscoring strong market momentum and heightened interest of the AL4 tunnel cover.

Operator

Worksport Dealer Partners are independent truck accessory retailers and installers, main street businesses that form the backbone of The US economy. WorkSports' mandate is to help these local businesses thrive by providing the best service, products, and profit margins possible. This mandate will be the reason that with over 17,000 addressable dealers nationwide, we expect to see significant continued growth and adoption of our products within the B2B markets. We anticipate dealers contributing to notable revenue growth this year. Worksport will look to strategically expand further by partnering with distributors and purchasing groups who value American made quality and pry prioritize dealer success.

Operator

These partnerships would bring many new dealers to the Worksport network as well. The company expects to provide additional updates in the near term. Again, the company's products are engineered to deliver healthy margins for dealers while offering exceptional performance and value to end users, makes making Worksport a win win solution for both sides of the market. WorkSport plans to release three new products this year, the HD three hard folding tunnel cover, the Solis solar integrated tunnel cover, and the CORE, our portable energy storage system. The HD3 is a heavy duty, business to business oriented tonneau cover under development for release this summer.

Operator

It builds on our AL3 design, but with enhanced materials, seals and latch mechanisms for greater durability. The key strategy with the HD three is to cater to commercial and fleet customers. For example, businesses outfitting work truck fleets with a product that can withstand rigorous use. While the product will be available both on our website and to wholesale customers, the intention of the HD3 would be to primarily support growth amongst our wholesale business to business customers. The HD3 is expected to begin production and sales in the coming months, adding another revenue stream for 2025 and more importantly, rounding out a full line of high quality, durable tonneau covers made right here in The USA.

Operator

Now on to our Solis. In q one of this year, Worksport advanced solar integrated tonneau cover, Solis, towards beta testing, selecting key customers to trial early units ahead of a planned commercial launch later this year. The Solis will be assembled in The USA using American aluminum and solar panels sourced from India, a country we view as tariff favorable. Early interest has been strong, particularly among pickup truck owners, including f one fifty drivers both in EV and traditional segments. Pricing is expected to align with existing premium tonneau covers, positioning our patented solar tonneau cover functionally as a and its functionality as a compelling value add within our market.

Operator

Now on to the core mobile power system. Along with Solis, Worksport's Portable Core Power System is nearing mass manufacturing and remains on schedule for a release later this year. Core is a modular, portable energy solution that can integrate with Solis, the solar tunnel cover, or function as a stand alone unit, offering reliable power for work sites, job sites, and emergency scenarios. Designed with the broader global consumer market in mind, Core represents WorkSports' first entry beyond the pickup truck segment, targeting a wider wider range of users. Together, Core and Solis position WorkSports within the fast growing multibillion dollar portable energy market, a space the company believes will be a key long term profitability driver.

Operator

Now on to innovation and clean energy. TerraVise Energy, Aetherlux heat pump breakthroughs. On 02/11/2025, we announced that TerraVise, WORKSBOARD's subsidiary, has developed a cold climate heat pump system named Aetherlux with two major innovations, the elimination of a defrost cycle and ultra low temperature innovation, the likes of with which does not exist in this world. The elimination of the defrost cycle. The AetherLux heat pump can operate without the need for traditional deep defrost cycles.

Operator

Defrost cycles are common drawbacks in heat pumps, where the system periodically stops heating to melt ice buildup. Eliminating this requirement means continuous efficient heating even in freezing conditions. In the ultra low temperature operation, the system can function in ambient temperatures as low as negative 57 degrees Fahrenheit or negative 49 degrees Celsius, far below the operational range of commercial heat pumps. This is a groundbreaking capability marking the AetherLux making the AetherLux potentially viable in extreme arctic environments or applications that were previously impossible for heat pumps. This is a huge global opportunity.

Operator

The AetherLux heat pump featuring our revolutionary ZeroFrost technology continues to generate substantial global interest from multiple major global corporations. We remain committed to monetizing this transformative technology and remain open to discussions on strategic licensing and manufacturing opportunities within this $123,000,000,000 market. Now on to intellectual property. WorkSport holds a robust and growing patent portfolio of over a 70 approved, registered, and pending patents and trademarks. On January 2025, we joined the LOT Network, a global consortium aimed at safeguarding innovations against patent trolls.

Operator

This move helps move helps protect our intellectual property and gives us access to broad cons to a broad community of tech companies committed to cross licensing for defensive purposes. Worksport believes it has it has strong, protection pipeline against competitors on its upcoming innovations, including the Solis Tonneau Covers core battery system and Aetherlux heat pump. I'm gonna pass it back to Mike with our updated fiscal year twenty twenty four outlook and guidance.

Speaker 1

Thanks, Steve. WorkSports hard tunnel covers led by the AL three now, AL four models are proudly manufactured in The US. Sourcing predominantly in The US provides a strong resilience against tariffs and geopolitical challenges. Soft covers currently sourced from China account for a relatively insignificant portion of our revenues, though domestic production is actively under review. The upcoming solar solar couple will be assembled in The US with solar panels expected to be sourced from India, country maintains relatively stable trade relations with The US.

Speaker 1

For the core portable power system, WorkSports is working with its international battery supplier and US based partners to mitigate tariff exposure and evaluate onshore manufacturing opportunities. Our made in USA advantage by sourcing locally and manufacturing in The US, Worksport believes it mitigates tariff risks on its tonneau cover products, supports American jobs, and delivers superior product consistency. The LM4's success proves that manufacturing in The US using American sourced material and strong American workforce is a proven strategy for growth and success within the world's largest economy. As we look ahead, we're still very optimistic about workforce trajectory in 2025. We expect to carry forward momentum in margins from q one of twenty twenty five to sustain an ex exponential growth and improved financial performance.

Speaker 1

Let me share our outlook and guidance for the year. We're forecasting another year of significant revenue expansion in 2025 driven by both our core Tonneau cover business and new product introductions. Based on our current visibility, we're targeting full year 2025 revenues in the range of 20 to $25,000,000. Pleased to share some insights on what drives this exciting forecast. While q one twenty twenty five revenue of 2,240,000 impacted by some expected seasonality, we're confident q two revenue will see further margin improvement and revenue growth.

Speaker 1

This will be driven especially by the launch of the higher margin AL4, which started sales late in Q1. This revenue projection reflects an approximate 2.5x to 3x increase from the twenty twenty four year end revenues. The Tonneau cover business is expected to carry this growth. We expect the Tonneau cover sales to improve in Q2 and notably ramp up in Q3 and Q4, allowing us to steer towards this target. We are initially targeting 2,000,000 to $3,000,000 in revenue from the core and Soleys product line by year end.

Speaker 1

However, as geopolitical conditions and global supply chain volatility, especially particularly in power electronics, improve, we remain optimistic about potentially raising this portion of our year end guidance later in Q3. We believe the upper end of this range, around $25,000,000 will usher us in cash flow breakeven and set a strong foundation for targeting profitability. While it's early to provide a comprehensive revenue projection for 2026, we target overall company profitability to help the revenue growth from 2025, largely driven by expanding market share in the multibillion dollar US tonneau cover market and aggressive growth of core and Solis. As mentioned, cash flow positivity are next is our next major goalpost. We're encouraged by the margin improvement seen in q one of twenty twenty five.

Speaker 1

We expect gross margin to continue to increase in 2025 as our product mix shifts further towards higher margin op items and as we benefit from economies of scale. By phasing out our lower margin private label offerings, we anticipate gross margin will step up each quarter, currently forecast gross margin reaching the 25% to 30% range or higher by late twenty twenty five. While we continue to invest in R and D and sales to support growth, we expect a more moderate increase in operating expenses relative to revenue growth in 2025, which should drive improved EBITDA. Our overall our overarching financial objective for 2025 remains to move significantly closer to cash flow breakeven and ultimately to achieve cash flow positivity by late twenty twenty five or early twenty twenty six. The revenue grew growth and margins just described, we believe works for reaching cash flow breakeven.

Speaker 1

This goal is becoming more practical day by day, and our team is dedicated to achieving. We intend to manage operating expenses carefully, balancing growth investments with efficiency. Should we outperform on sales and margins, we will pull ahead of the timing of reaching breakeven. Importantly, even as we strive for profitability, maintain sufficient cash reserves and access to capital to fund our growth initiatives, so we're not pursuing growth at the expense of liquidity. With respect to capital expenditures, we expect moderate capital expenditure needs in late twenty twenty five.

Speaker 1

Most of our required production equipment for tunnel covers is already in place, although management is considering additional equipment required for scaling operation. We'll also invest in additional tooling for production ramp up and possibly automation enhancements to improve throughput. Launch of sole lease and core might require some investment in production setup, but, again, we expect to manage this within our operating cash flow as the year progresses. In summary, our 2025 outlook remains very similar to our outlook projected in Q4 of twenty twenty four. '1 notable growth is improving financial performance.

Speaker 1

We set clear targets, progressively grow, expand margin, achieve a sustainable financial model by year's end. We will report our progress each quarter, and we're confident in our direction. Now back to Steve with our concluding remarks.

Operator

All set, and thank you, Mike. To conclude, our strategic priorities for 2025 remain well defined. Scale sales of our current products, including the AL4 and AL3 and upcoming HD3 tunnel covers successfully launch our Solace cover and core product lines drive continued innovation and strengthen intellectual property protections maintain operational excellence across manufacturing and supply chain, improve margins and continue ramping up revenue with a clear path towards achieving cash flow positivity. We remain focused on disciplined execution across these priorities to support sustained growth and a long term value creation. To our investors and analysts listening, thank you for your time today and for your interest in Worksport.

Operator

We are committed to transparent communications and delivering promises. We look forward to updating you on our progress in the quarters ahead as we work to create sustainable long term value.

Speaker 1

Thanks, everyone. This concludes our prepared remarks. Operator, please open the line for questions.

Operator

We're now opening go ahead. Go ahead, Fron.

Speaker 2

Thank you, Mike. We have two questions from an analyst at Maxim, Tate Sullivan. First question is, have you made sales of the a l four product this quarter?

Operator

So, yes, Tate. Thanks for that question. A l four, I it's flying off the shelves. We can't keep up. We were actually running low on stock last week.

Operator

We are we're we're not only selling it. We're selling the heck out of it. It's going extremely well, and and we we have a lot of new we have a lot of news flow relating to the product and its uptake specifically to the reseller network coming.

Speaker 2

Thanks, Steve. And the second question is, what are the raw materials that are within the inventory budget?

Operator

Raw materials within the inventory budget are are everything that's required from packaging, you know, packaging our product to plastic components, brackets, seals, weather stripping, everything required to manufacture the product. The product's majority of its inventory comprises of aluminum products. Probably, it's all domestically sourced aluminum. So it's aluminum ingot from American soil, extruded on by American extruders, or rolled into, you know, coils here in America painted with American paint. So I would say about 60, maybe 70% of our bill of material is consisting of aluminum products, which most of our products are all all aluminum.

Operator

That's for the a l three, a l four, and the upcoming h d three. The Solis will be all the same, but with the addition of relatively expensive solar technology that we're importing. So that the cost breakdown will be a little bit different, and it'll be about 20% aluminum and about 60% solar is the cost for these high performance panels, if that makes sense.

Speaker 2

Thanks, Steve. That's all the the questions we have from Tate. We do have two more analysts on the call, but I I don't see any questions for Tom.

Operator

We'll open the floor if if if anyone has any questions just by by all means.

Speaker 3

Hey, Steven. It's Scott Buck. Can you hear me?

Operator

Yes. I can. Hey, Scott.

Speaker 3

Hi. I appreciate the time, guys. I'm curious. What do you have in place currently for distribution with with Core and Solis? Will they be using the same dealer network that you use for the covers, or or how will that work?

Operator

The the the Core and the Solace is gonna be it's gonna be a moving target in terms of distribution of the product. Distribution is good, but the products are high technology, and we may reserve at least the initial launches for consumer direct sales exclusively, at least for, let's say, q three or q four of this year. That'll allow us to, you know, gauge feedback, also capitalize a little bit, you know, and and and recoup tooling and expenditures at with the higher margins. And then what we probably will do is release that to distribution, the same distribution network probably late late late this year or early next year on both sides. But what I will say is we've had a a very sincere amount of interest from, like, very large businesses with fleets of thousands of pickup trucks, oil and gas exploration, and obviously through our connections as disclosed in our previous press releases relating to government services of which there's hundreds of of of local and federal government agencies that that that that are exist, and and we've had already some sales into very key ones.

Operator

So I think that to answer summarize, you know, my explanation, I think that, you know, we're gonna go direct to consumer to start, get it stabilized, recoup some some of our expenditures over the R and D side of things, and then release it to the existing distribution network. But in in in addition, we have a lot of inbound interest from large fleets and government agencies.

Speaker 3

Great. That's helpful. And then my second one, the gross margin expectations through the remainder of the year, are the new products being launched? Do they have higher gross margin, or is this, you know, simply a benefit of scaling?

Operator

It's both. So, you know, the same production line that's that's gearing to make 200 units per day, with virtually the same amount of of staff, maybe, modestly higher, you know, was producing 40 or 50 units a day. So we're really reaching a strong amount of of efficiencies of production. We're gonna look to automate, key elements of our production, and then upscale those those those roles, from, you know, those individuals, to more like automation operators. So the we're reaching a very strong economy of scale.

Operator

And I have to say, Scott, the opportunity for efficiencies, as a cost reduction or margin increase is massive. It represents a strong almost all of the margin increase. But we're also gearing WorkSports to not, come out with cheaper products, to fill that that that white box or, you know, imported product market, but we're scaling we're we're ramping up Worksport to be a more premium, brand. It'll beg a higher price point, but with financing available, these days for individuals as well as through our website, I I think that we could sell more expensive products at higher margins that, drive strong value to the consumer, and they see the value there to spend that dollar. We earn that dollar through innovation.

Operator

So it's gonna be both. We're gonna raise our our profitability metrics, but we're also gonna increase the economies the margins through economies of scale. So it's actually both top and bottom.

Speaker 3

I appreciate the time, guys. Thank you very much.

Operator

Thank you, Scott. Great questions.

Speaker 4

Hey, Steven.

Operator

Hey, Paul.

Speaker 4

Hey. Yeah. Paul Fratt from AGP. Can you just clarify on the guidance? You know, you're using still 20 to 25 from tonneau covers.

Speaker 4

And then the sole is potential of 2 to 3,000,000 of sales, you know, hopefully, end of the year, maybe bleed into next year. But I just wanted clear to be clear whether that's in included in that 2025 of 20 to 25,000,000 guidance for 02/2025.

Operator

Well, no. We we've eliminated it. So what we're not doing, Poe, is we're not saying that we're not gonna sell any of them. What we are saying is that we're not gonna we're not gonna project it. So it'd be like a and as stated in in our remarks, we will augment or update our guidance when geopolitical matters settle.

Operator

So the battery supply chain and semiconductor supply chain are all from generally Asia region countries, And our solar panels for our Solis is also within the continent of Asia, but from India, a little bit more favorable in trade. So what we're doing is this quarter, we're removing the guidance of Solis and core sales altogether, although we intend to sell them, and we intend that they'll be a pleasant surprise in addition to the guidance that we've issued. We're strictly issuing guidance for traditional made in America tonneau covers. Again, while not admitting we won't sell anything, just we're gonna wait another quarter to see how things pan out.

Speaker 4

And am I correct in in looking at the queue and seeing pretty much that, you know, everything shifted to the hard to hard tonal covers, and the soft tonal covers are pretty much going to zero by the end of the year?

Operator

Yeah. So that's that's our our our money's where our mouth is, for lack of a better phrase. The the soft covers come from China. We, no way, are supporting, you know, business imported business any longer, and we're exploring very actively the production, the manufacturing of soft covers within North America. In fact, Po, we already have all the equipment necessary to cut and sew our own soft folding goods within our factory.

Operator

We just need to finalize the design of the product. So we're planning on restarting that product line as as following our made in America mandate.

Speaker 4

Great. Thank you.

Operator

Thank you, Paul. Any other questions?

Speaker 2

Thank you, Mike. I think that's all the questions we have for today. We'd like to thank everyone for attending. And if there's any more questions from the retail side, please send us an email or give us a call, and we'll be very happy to answer. Thank you so much.

Speaker 2

Have a

Operator

good everyone. Thank you.

Speaker 1

Everyone.

Key Takeaways

  • Worksport reported a 337% year‐over‐year jump in Q1 2025 revenue to $2.24 million, driven by the late‐Q1 launch of its higher‐margin AL4 tunnel cover and a strategic shift to branded products.
  • Gross margin expanded to nearly 18% in Q1 (up from 7% in Q1 2024), with management targeting 25–30% margins by late 2025 through economies of scale and new product introductions.
  • The dealer network grew 64% to 151 active dealers, and March B2B sales rose 70% month‐over‐month, highlighting the strength of reseller channels in supporting future revenue growth.
  • Key 2025 product launches include the HD3 heavy‐duty cover for commercial fleets, the Solis solar‐integrated tonneau cover, and the CORE portable energy system, designed to broaden the company’s high‐margin offerings.
  • For fiscal 2025, Worksport guides to $20–25 million in revenue (excluding Solis/CORE projections pending supply chain clarity) and aims to reach cash‐flow breakeven by Q4 2025 or early 2026.
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Earnings Conference Call
Worksport Q1 2025
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