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

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

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 Trading Down 22.9%

NASDAQ WKSP opened at $1.03 on Friday. The company has a debt-to-equity ratio of 0.05, a quick ratio of 0.91 and a current ratio of 2.04. Worksport has a one year low of $0.90 and a one year high of $4.90. The company has a 50-day simple moving average of $1.55 and a 200-day simple moving average of $2.38. The firm has a market capitalization of $10.06 million, a PE ratio of -0.32 and a beta of 0.13.

Hedge Funds Weigh In On Worksport

A number of hedge funds and other institutional investors have recently bought and sold shares of WKSP. XTX Topco Ltd acquired a new position in Worksport during the 4th quarter worth $38,000. Armistice Capital LLC acquired a new position in shares of Worksport during the fourth quarter valued at $2,058,000. State Street Corp acquired a new position in shares of Worksport during the fourth quarter valued at $34,000. Steward Partners Investment Advisory LLC raised its stake in shares of Worksport by 255.0% during the fourth 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 lifted its holdings in Worksport by 225.2% in the fourth quarter. LPL Financial LLC now owns 54,067 shares of the company’s stock worth $115,000 after purchasing an additional 37,440 shares during the period. 16.11% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

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

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.