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

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 for the quarter, compared to analyst estimates 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 Down 22.9%

Shares of WKSP traded down $0.31 during midday trading on Friday, hitting $1.03. The company had a trading volume of 1,029,985 shares, compared to its average volume of 353,273. The company’s 50-day simple moving average is $1.55 and its 200-day simple moving average is $2.38. The company has a debt-to-equity ratio of 0.05, a quick ratio of 0.91 and a current ratio of 2.04. The firm has a market capitalization of $10.06 million, a P/E ratio of -0.32 and a beta of 0.13. Worksport has a 1 year low of $0.90 and a 1 year high of $4.90.

Analyst Upgrades and Downgrades

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

Institutional Trading of Worksport

Several hedge funds have recently added to or reduced their stakes in WKSP. XTX Topco Ltd purchased a new position in Worksport in the fourth quarter worth approximately $38,000. Armistice Capital LLC acquired a new position in Worksport during the 4th quarter worth approximately $2,058,000. State Street Corp purchased a new stake in shares of Worksport in the 4th quarter valued at approximately $34,000. Steward Partners Investment Advisory LLC raised its holdings in shares of Worksport by 255.0% in the 4th quarter. Steward Partners Investment Advisory LLC now owns 71,000 shares of the company’s stock valued at $151,000 after purchasing an additional 51,000 shares in the last quarter. Finally, LPL Financial LLC raised its holdings in shares of Worksport by 225.2% in the 4th quarter. LPL Financial LLC now owns 54,067 shares of the company’s stock valued at $115,000 after purchasing an additional 37,440 shares in the last quarter. Institutional investors and hedge funds own 16.11% of the company’s stock.

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.