Workhorse Group (NASDAQ:WKHS) reported second-quarter revenue of $3.6 million as the company continued integrating its December 2025 merger with Motiv and outlined plans to expand beyond electric commercial vehicles into mobile AI data centers.
Chief Executive Officer Scott Griffith said the combined company is completing the final stages of integration and is repositioning itself as an industrial technology company serving commercial, government, defense and infrastructure markets. Workhorse is continuing to develop medium-duty electric trucks while seeking additional growth opportunities that can use its engineering, testing, validation and manufacturing capabilities.
Integration and Vehicle Cost Reduction
The company is also pursuing bill-of-materials cost reductions for its electric truck platforms. Griffith said Workhorse is discussing lower-cost options with existing and prospective suppliers and redesigning vehicle systems to reduce cost, weight and assembly complexity. Among those efforts is the consolidation of previously distributed high-voltage modules into an integrated power electronics system called Smart Hub.
Management said the goal is to bring electric-truck purchase prices closer to comparable internal-combustion vehicles, while relying on what it described as a superior total-cost-of-ownership proposition to support fleet adoption.
Workhorse is developing a next-generation modular chassis and powertrain platform based on the Motiv Gen6 and Workhorse W56 platforms. The planned architecture is expected to support multiple wheelbase configurations, battery and axle technologies, software features, Smart Hub integration and a braking system compatible with advanced driver-assistance systems.
The company also plans to introduce a Class 5/6 cab chassis platform for applications including box trucks. Griffith said initial development prototypes of the modular W56 chassis are expected in the fourth quarter of 2026, with testing and validation to follow and a planned production start in late 2027.
Production Ramp and Order Pipeline
Workhorse expects production to increase during the second half of 2026 as it fulfills orders in its backlog. Griffith said the company expects to produce more fully electrified Class 5/6 chassis and trucks over the next five months than in any prior five-month period in its history.
The company expects to deliver a substantial portion of previously announced orders from Purolator and Gateway Fleets over the next several quarters. Each customer had placed orders for 100 vehicles, according to Chief Financial Officer Jody Davis. Workhorse also cited purchase orders from other customers.
Griffith said the company’s sales pipeline has more than doubled since the beginning of 2026, supported by a refreshed enterprise sales organization, promotional pricing for 2026, and demand for deliveries in late 2026 and 2027. Workhorse did not provide specific revenue guidance.
Mobile AI Data Center Plans
In July, Workhorse announced plans to enter the mobile AI data center category. The company intends to develop a turnkey, compute-ready, containerized system for localized AI infrastructure applications.
Griffith said third-party research estimates the mobile data center market could reach $41 billion by 2031. He identified energy and utilities, defense and government, telecommunications, agriculture and transportation as potential markets for edge or mobile computing applications.
The company expects to use its experience in power electronics, thermal management, ruggedized structures, connectivity, vibration isolation, controls and systems integration to develop the systems. Workhorse plans to manufacture them at its Union City, Indiana, facility, which management described as suited for high-mix, low-volume production.
Workhorse intends to pursue a partnership-based go-to-market model. Under that approach, the company would serve as the design, engineering and manufacturing partner, while its partners would lead end-market development, customer sales and support.
During the question-and-answer session, Griffith said Workhorse is in an initial “phase zero” focused on finalizing a modular platform design, collecting market feedback, building supplier relationships and developing partnerships. He said those activities are expected to take roughly 10 to 12 months. The company is targeting production and commercial deliveries in 2027.
Quarterly Financial Results and Liquidity
Revenue for the second quarter was $3.6 million, compared with $800,000 in the prior-year period on a GAAP basis. Workhorse delivered 26 vehicles during the quarter, compared with four vehicles a year earlier. Davis noted that year-over-year comparisons are not directly comparable because 2026 results reflect the combined Workhorse and Motiv operation, while 2025 figures reflect only Motiv as the accounting acquirer in the reverse merger.
On an unaudited pro forma combined basis, second-quarter 2025 revenue was $6.4 million on 39 vehicle deliveries. First-half 2026 revenue totaled $7.9 million, compared with pro forma combined revenue of $8.2 million in the first half of 2025.
- Second-quarter cost of sales was $11 million, producing a gross loss of $7.5 million.
- Selling, general and administrative expense was $7.8 million, while research and development expense was $4.1 million.
- Loss from operations was $19.4 million.
- Net loss was $20.2 million, or $1.86 per basic and diluted share.
- Cash and cash equivalents totaled $9.6 million as of June 30, along with $700,000 in restricted cash.
During the first half, Workhorse drew $20 million under its cash flow credit agreement, bringing the outstanding balance to $30 million. It also had $18.3 million outstanding under its customer order credit agreement. After the quarter ended, the company amended the cash flow credit agreement, increased its capacity and borrowed an additional $10 million in August. As of its 10-Q filing, Workhorse had $1.7 million available to borrow under its current credit agreements.
Davis, who joined Workhorse as CFO in July, said the company is focused on financial execution, cost discipline and developing the capital structure and reporting systems needed to operate at scale.
About Workhorse Group (NASDAQ:WKHS)
Workhorse Group Inc is a U.S.-based technology company specializing in the design and manufacture of electric vehicles and drone-integrated delivery solutions. Founded in 2007 and headquartered in Loveland, Ohio, Workhorse focuses on last-mile delivery, combining electric powertrain systems, advanced telematics and proprietary composite bodies to address the growing demand for sustainable logistics fleets.
The company’s core product lineup includes the N-GEN™ chassis, a modular electric vehicle platform available in Class 3–5 configurations, and the C-1000™ all-electric delivery van.
