Worksport (NASDAQ:WKSP) Posts Earnings Results, Beats Expectations By $0.11 EPS

Worksport (NASDAQ:WKSP) issued its earnings results on Tuesday. The company reported ($0.33) earnings per share for the quarter, topping the consensus estimate of ($0.44) by $0.11, Zacks reports. Worksport had a negative return on equity of 100.36% and a negative net margin of 114.49%.The business had revenue of $5.23 million for the quarter, compared to analyst estimates of $4.50 million.

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

• Q2 revenue reached a company-record $5.2 million, up 27% year over year and 58% sequentially, while gross profit rose 93% sequentially to approximately $1.6 million and gross margin expanded to about 32%.
• Operating leverage improved materially, with operating expenses falling 17% sequentially and operating cash use declining 58% to $3.4 million; management said it may achieve momentary operating cash-flow positivity in Q3 and remains focused on sustainable breakeven in 2026.
• The newly launched NEXUS tonneau cover generated approximately $1 million in sales within 10 weeks, with July-related orders approaching $1.5 million; two distributors, including multinational Meyer Distributing, were added during the quarter.
• Worksport plans to convert its $12.1 million inventory balance into working capital by selling finished goods and moving toward just-in-time production; management said July cover sales were about 30% above production, while promotions may be used to liquidate older AL3 and AL4 inventory.
• Liquidity remains a significant risk: the company had only about $1.2 million in cash and $820,000 of revolver availability at June 30, and its 10-Q continues to disclose substantial doubt about its ability to continue as a going concern. Management is exploring financing alternatives but hopes to avoid raising additional funds for the remainder of 2026.

Worksport Stock Up 0.7%

Shares of WKSP stock traded up $0.00 during trading hours on Thursday, reaching $0.68. The company had a trading volume of 78,143 shares, compared to its average volume of 2,512,260. The company has a market capitalization of $10.42 million, a P/E ratio of -0.29 and a beta of 0.22. The company has a debt-to-equity ratio of 0.04, a quick ratio of 0.27 and a current ratio of 1.95. Worksport has a twelve month low of $0.57 and a twelve month high of $4.30. The stock’s fifty day simple moving average is $0.76 and its 200 day simple moving average is $1.06.

Insider Buying and Selling

In related news, CEO Steven F. Rossi purchased 79,618 shares of the firm’s stock in a transaction on Friday, June 5th. The stock was purchased at an average price of $0.63 per share, for a total transaction of $50,159.34. Following the acquisition, the chief executive officer directly owned 2,693,703 shares in the company, valued at $1,697,032.89. The trade was a 3.05% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 5.84% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in WKSP. XTX Topco Ltd purchased a new stake in Worksport during the 4th quarter worth $38,000. Armistice Capital LLC purchased a new stake in shares of Worksport during the fourth quarter worth about $2,058,000. State Street Corp purchased a new stake in shares of Worksport during the fourth quarter worth about $34,000. Steward Partners Investment Advisory LLC lifted its stake in shares of Worksport by 255.0% in the fourth quarter. Steward Partners Investment Advisory LLC now owns 71,000 shares of the company’s stock worth $151,000 after acquiring an additional 51,000 shares in the last quarter. Finally, LPL Financial LLC boosted its holdings in Worksport by 225.2% in the fourth 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 during the last quarter. 16.11% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

WKSP has been the topic of a number of research reports. Weiss Ratings restated a “sell (e+)” rating on shares of Worksport in a report on Wednesday, July 8th. Maxim Group set a $2.00 target price on shares of Worksport and gave the stock a “buy” rating in a research report on Friday, May 15th. Finally, Wall Street Zen upgraded shares of Worksport from a “strong sell” rating to a “sell” rating in a report on Saturday, June 13th. Two analysts have rated the stock with a Buy rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $6.75.

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.