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Worksport
(NASDAQ:WKSP)
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Rating:45Neutral
Price Target:
$0.40
▼(-19.18% Downside)
Action:Reiterated
Date:10/06/26
WKSP scores low primarily due to heavy ongoing losses and significant cash burn despite improving revenue and gross margins, keeping financing and execution risk elevated. Technicals reinforce the risk with a clear downtrend (below major moving averages and negative MACD). Positives from the earnings call and recent operating updates—record sales, margin expansion, and progress toward cash-flow breakeven—partially offset the score, but liquidity and listing/dilution risks remain key constraints.
Positive Factors
Revenue and margin expansion
Sales growth alongside expanding gross margins indicates improving product traction and unit economics. If sustained, higher volume can absorb fixed overhead and create a more durable path toward operating cash-flow breakeven, strengthening the core tonneau-cover business over the next several quarters.
Negative Factors
Persistent unprofitability
Worksport’s substantial losses show that revenue growth has not yet covered its operating cost base. Continued negative earnings can consume shareholder equity, restrict reinvestment capacity, and keep the company dependent on successful scaling before durable profitability is established.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and margin expansion
Sales growth alongside expanding gross margins indicates improving product traction and unit economics. If sustained, higher volume can absorb fixed overhead and create a more durable path toward operating cash-flow breakeven, strengthening the core tonneau-cover business over the next several quarters.
Read all positive factors
Worksport (WKSP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.29M
Dividend YieldN/A
Average Volume (3M)508.93K
Price to Earnings (P/E)―
Beta (1Y)2.14
Revenue Growth47.63%
EPS Growth46.31%
CountryUS
Employees119
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)-2.33
Shares Outstanding19,993,671
10 Day Avg. Volume323,395
30 Day Avg. Volume508,933
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)0.57
Price to Sales (P/S)0.81
P/FCF Ratio-0.72
Enterprise Value/Market Cap2.08
Enterprise Value/Revenue0.94
Enterprise Value/Gross Profit3.13
Enterprise Value/Ebitda-0.93
Forecast
1Y Price Target
$2.00Price Target Upside308.16% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-1.12
Revenue Forecast (FY)$35.50M
Worksport Business Overview & Revenue Model
Company Description
Worksport Ltd., headquartered in Vaughan, Canada, is engaged in the design, manufacturing, and distribution of truck bed covers, commonly known as tonneau covers, across both Canada and the United States. Its product portfolio encompasses a range ...
How the Company Makes Money
Worksport primarily makes money by selling physical products for pickup trucks, led by tonneau covers, through a mix of channels that can include direct-to-consumer e-commerce and business-to-business distribution/retail relationships. Revenue is ...
Worksport Earnings Call Summary
Earnings Call Date:Aug 11, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 18, 2026
Earnings Call Sentiment Positive
The call emphasized meaningful operational improvements: record quarterly revenue, rapid month‑over‑month growth, strong gross margin expansion, sizable sequential reductions in cash burn and operating expenses, and a fast‑ramping product launch (NEXUS). At the same time, material risks remain — notably the going‑concern disclosure, low cash balance, a large inventory build, input cost inflation from aluminum and persistent net losses on a year‑to‑date basis. Management presented clear initiatives to convert inventory, expand distribution, sustain margin gains and pursue certification/commercialization milestones for energy products, and reported tangible sequential progress. Overall, positive operational momentum and product execution are evident, but short‑term liquidity and cost pressures require continued execution to translate into sustained cash‑flow breakeven.Positive Updates
Record Quarterly Revenue and Strong Sequential Growth
Net sales of ~$5.2M in Q2 2026, the strongest quarterly result in company history; +27% year‑over‑year and +58% sequentially. Monthly progression in Q2: Apr ~$1.4M, May ~$1.7M, Jun ~$2.1M (June = strongest month on record).
Negative Updates
Substantial Doubt on Going Concern and Low Cash Balance
Form 10‑Q discloses substantial doubt about ability to continue as a going concern. Cash and cash equivalents were only ~$1.2M at June 30, 2026, with ~$820k available on revolving credit (borrowing capacity, not cash).
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Revenue and Strong Sequential Growth
Net sales of ~$5.2M in Q2 2026, the strongest quarterly result in company history; +27% year‑over‑year and +58% sequentially. Monthly progression in Q2: Apr ~$1.4M, May ~$1.7M, Jun ~$2.1M (June = strongest month on record).
Read all positive updates
Company Guidance
The company guided that it is targeting sustainable operating cash‑flow breakeven in 2026 (and may achieve a momentary positive operating cash flow in Q3 2026), prioritizing revenue growth, gross‑margin expansion, disciplined recurring cost control and inventory conversion; Q2 results that underpin this path included net sales of $5.2M (+27% YoY, +58% QoQ), June record monthly sales of ~$2.1M, gross profit of ~$1.6M (gross margin ~32%, rising to ~35% in June), operating expenses of ~$5.5M (‑17% QoQ; operating expense/sales down from 128% to 68%), net cash used in operations of ~$3.4M (‑58% QoQ), cash $1.2M, $820k revolver availability and $12.1M inventory (≈$4.6M finished goods ~6,800 covers; $6.6M raw materials); management said at a 35% margin and the recent $2.1M monthly run‑rate quarterly revenue of roughly $12–12.9M would cover pre‑working capital costs (or ~ $9.3M quarterly at +300 bps margin coupled with ≈$1.2M quarterly cost reduction), and emphasized converting inventory to cash (July sold ~30% more covers than produced) and driving distributor reorders and e‑commerce to close the remaining cash‑flow gap.Worksport Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
48
Neutral
Cash Flow
18
Very Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 18.30M | 16.10M | 8.48M | 1.53M | 116.50K | 303.75K |
| Gross Profit | 5.50M | 4.47M | 905.65K | 240.51K | 59.53K | -46.95K |
| EBITDA | -18.63M | -16.93M | -13.68M | -13.20M | -11.56M | -7.54M |
| Net Income | -20.95M | -19.35M | -16.16M | -14.93M | -12.53M | -7.90M |
Balance Sheet | ||||||
| Total Assets | 28.09M | 30.77M | 25.74M | 25.95M | 32.76M | 36.29M |
| Cash, Cash Equivalents and Short-Term Investments | 1.16M | 5.95M | 4.88M | 4.86M | 15.32M | 28.57M |
| Total Debt | 5.47M | 2.91M | 5.62M | 6.24M | 6.62M | 857.06K |
| Total Liabilities | 9.01M | 7.84M | 8.32M | 7.78M | 8.65M | 2.11M |
| Stockholders Equity | 19.08M | 22.93M | 17.41M | 18.18M | 24.12M | 34.18M |
Cash Flow | ||||||
| Free Cash Flow | -22.87M | -18.10M | -10.67M | -15.62M | -19.13M | -5.18M |
| Operating Cash Flow | -22.06M | -17.31M | -10.14M | -11.93M | -7.98M | -4.05M |
| Investing Cash Flow | -734.36K | -1.12M | -528.24K | -3.76M | -11.15M | -1.13M |
| Financing Cash Flow | 22.56M | 19.50M | 12.18M | 4.43M | 5.18M | 32.64M |
Worksport Technical Analysis
Negative
0.49
Price Trends
0.54
Negative
0.66
Negative
1.07
Negative
Market Momentum
-0.04
Negative
37.48
Neutral
28.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WKSP, the sentiment is Negative. The current price of 0.49 is above the 20-day moving average (MA) of 0.43, below the 50-day MA of 0.54, and below the 200-day MA of 1.07, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 37.48 is Neutral, neither overbought nor oversold. The STOCH value of 28.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WKSP.
Worksport Risk Analysis
Worksport disclosed 43 risk factors in its most recent earnings report. Worksport reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Worksport Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
48 Neutral | $116.62M | -4.55 | -17.17% | ― | -0.42% | 41.05% | |
45 Neutral | $8.29M | -0.18 | -101.85% | ― | 47.63% | 46.31% | |
42 Neutral | $47.43M | -4.45 | -67.14% | 3.13% | -11.48% | -334.40% | |
40 Underperform | $4.60M | -0.13 | -187.46% | ― | ― | ― |
* Consumer Cyclical Sector Average
WKSP
Worksport
0.41
-3.23
-88.63%
CVGI
Commercial Vehicle Group
2.87
1.29
81.65%
SYPR
Sypris
2.06
-0.17
-7.62%
FRSX
Foresight Autonomous Holdings
0.85
-6.35
-88.19%
Worksport Corporate Events
Business Operations and StrategyFinancial Disclosures
Worksport Reports Strong August Sales Momentum and Margins
Positive
Oct 6, 2026
Worksport Ltd., a U.S.-based manufacturer of tonneau covers, solar-integrated truck accessories and clean energy systems for light trucks, overlanding and consumer markets, reported continued momentum in its 2026 operating metrics. The company, wh...
Executive/Board ChangesDividendsShareholder MeetingsStock Split
Worksport Shareholders Approve Board Elections and Stock Split Flexibility
Positive
Sep 4, 2026
On September 3, 2026, Worksport held its 2026 Annual Meeting of Shareholders, at which a quorum representing 76.94% of total voting power was present and five directors, including CEO Steven Rossi, were elected to serve until the 2027 annual meeti...
Business Operations and StrategyPrivate Placements and Financing
Worksport Announces Warrant Inducement Equity Financing Agreement
Positive
Aug 27, 2026
On August 27, 2026, Worksport Ltd. entered into an inducement agreement with a warrant holder, who agreed to exercise 3,840,421 existing warrants at a reduced price of $0.60 per share, down from $2.90, in exchange for 4,800,526 new inducement warr...
Business Operations and StrategyFinancial Disclosures
Worksport Reports Record July Sales and Profitability
Positive
Aug 26, 2026
On August 25, 2026, Worksport reported preliminary and unaudited results showing a record month for July 2026, with gross product orders of about $2.52 million and net sales of roughly $2.22 million, plus a backlog near $0.30 million. The company ...
Delistings and Listing ChangesRegulatory Filings and Compliance
Worksport Faces Nasdaq Minimum Bid Price Compliance Challenge
Negative
Aug 14, 2026
On August 13, 2026, Worksport Ltd. disclosed that it received a notice from Nasdaq stating the company no longer meets the exchange’s $1.00 minimum bid price requirement, after its shares closed below that threshold for 30 consecutive busine...
Business Operations and StrategyFinancial Disclosures
Worksport Q2 2026 Results Highlight Strong Revenue Growth
Positive
Aug 11, 2026
On August 11, 2026, Worksport reported second-quarter 2026 results that marked a sharp shift from investment to operating leverage, with record net sales of $5.23 million, up 27.4% year over year and 57.9% from Q1. Gross profit rose 52.5% year ove...
Business Operations and StrategyFinancial Disclosures
Worksport Schedules Q2 2026 Earnings Call and Town Hall
Positive
Jul 29, 2026
On July 29, 2026, Worksport announced plans to host its second-quarter 2026 earnings conference call on August 11, 2026, at 4:30 p.m. Eastern Time, followed immediately by an investor town hall to deepen engagement with shareholders and the broade...
Business Operations and StrategyFinancial Disclosures
Worksport Reports Strong Preliminary Sales and Margin Growth
Positive
Jul 22, 2026
From April to June 2026, Worksport reported preliminary, unaudited figures showing net sales rising about 46% from $1.43 million to $2.08 million, while gross profit surged roughly 132% from $310,000 to $720,000. June 2026 was the strongest month ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.