Worksport (NASDAQ:WKSP) Announces Earnings Results, Misses Expectations By $0.17 EPS

Worksport (NASDAQ:WKSP) announced 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. Worksport had a negative net margin of 120.20% and a negative return on equity of 101.46%. The company had revenue of $4.74 million for the quarter, compared to the consensus estimate of $8.90 million.

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 Down 22.9%

Shares of NASDAQ WKSP opened at $1.03 on Friday. Worksport has a one year low of $0.90 and a one year high of $4.90. The company has a debt-to-equity ratio of 0.05, a current ratio of 2.04 and a quick ratio of 0.91. The firm’s 50 day simple moving average is $1.55 and its two-hundred day simple moving average is $2.38. The stock has a market capitalization of $10.06 million, a P/E ratio of -0.32 and a beta of 0.13.

Analyst Upgrades and Downgrades

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

Institutional Investors Weigh In On Worksport

A number of institutional investors have recently made changes to their positions in WKSP. Armistice Capital LLC bought a new position in shares of Worksport during the 4th quarter valued at $2,058,000. Steward Partners Investment Advisory LLC raised its position in Worksport by 255.0% in the 4th quarter. Steward Partners Investment Advisory LLC now owns 71,000 shares of the company’s stock worth $151,000 after purchasing an additional 51,000 shares during the period. Geode Capital Management LLC lifted its stake in Worksport by 23.1% in the fourth quarter. Geode Capital Management LLC now owns 68,205 shares of the company’s stock worth $145,000 after purchasing an additional 12,779 shares during the last quarter. LPL Financial LLC boosted its position in Worksport by 225.2% during the fourth 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 during the period. Finally, Centiva Capital LP purchased a new stake in Worksport during the third quarter valued at about $63,000. Hedge funds and other institutional investors own 16.11% of the company’s stock.

About Worksport

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.