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Worksport
(NASDAQ:WKSP)
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Rating:44Neutral
Price Target:
$0.54
▲(10.61% Upside)
Action:Reiterated
Date:09/06/26
The score is held down primarily by weak financial performance—large ongoing operating losses and substantial cash burn despite improving gross margins and rapidly scaling revenue. Technicals also remain unfavorable with the stock trading below major moving averages and negative MACD. Offsetting factors include a more constructive earnings-call outlook with measurable sequential operating improvements and a stated path to 2026 operating cash-flow breakeven, while corporate events are mixed due to Nasdaq bid-price risk and potentially dilutive financing.
Positive Factors
Revenue and margin expansion
Rapid revenue growth combined with materially higher gross margins indicates improving commercial traction and unit economics. If sustained, the stronger contribution per sale can help absorb fixed costs, support reinvestment, and move the core tonneau-cover business toward operating leverage.
Negative Factors
Persistent cash consumption
Deeply negative operating and free cash flow means the business is not yet self-funding its operations and investment needs. Continued cash consumption increases dependence on external capital, limits financial flexibility, and makes execution on inventory conversion and cost control critical to reaching breakeven.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and margin expansion
Rapid revenue growth combined with materially higher gross margins indicates improving commercial traction and unit economics. If sustained, the stronger contribution per sale can help absorb fixed costs, support reinvestment, and move the core tonneau-cover business toward operating leverage.
Read all positive factors
Worksport (WKSP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.57M
Dividend YieldN/A
Average Volume (3M)6.99M
Price to Earnings (P/E)―
Beta (1Y)1.93
Revenue Growth47.63%
EPS Growth46.31%
CountryUS
Employees119
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)-2.33
Shares Outstanding15,298,333
10 Day Avg. Volume20,376,403
30 Day Avg. Volume6,990,738
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
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 makes money primarily by selling pickup-truck tonneau covers and related accessories. Revenue is generated from product sales through multiple channels: (1) business-to-consumer (DTC) sales via e-commerce/online marketplaces where custom...
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
0.71
Negative
0.80
Negative
1.31
Negative
Market Momentum
-0.04
Negative
42.05
Neutral
27.93
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 below the 20-day moving average (MA) of 0.61, below the 50-day MA of 0.71, and below the 200-day MA of 1.31, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 42.05 is Neutral, neither overbought nor oversold. The STOCH value of 27.93 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 | $131.65M | -5.14 | -17.17% | ― | -0.42% | 41.05% | |
44 Neutral | $8.57M | -0.24 | -101.85% | ― | 47.63% | 46.31% | |
42 Neutral | $43.06M | -4.00 | -67.14% | 3.13% | -11.48% | -334.40% | |
41 Neutral | $6.24M | -0.18 | -187.46% | ― | ― | ― |
* Consumer Cyclical Sector Average
WKSP
Worksport
0.56
-2.79
-83.31%
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3.24
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1.87
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FRSX
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1.17
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Worksport Corporate Events
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 ...
Business Operations and StrategyDelistings and Listing ChangesFinancial DisclosuresRegulatory Filings and Compliance
Worksport Achieves Nasdaq Compliance Amid Growth Initiatives
Positive
Jun 25, 2026
On June 25, 2026, Worksport announced that its shares had closed above $1.00 on June 24, returning the stock to compliance with Nasdaq’s minimum bid price requirement after a 75% gain over five trading days. The company also highlighted a pr...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Worksport Raises Capital to Advance 2026 Growth Strategy
Positive
Jun 24, 2026
On June 17–18, 2026, Worksport Ltd. raised roughly $722,870 in two registered direct offerings with a specialized institutional investor, issuing 208,333 common shares with matching warrants at $1.20 per unit and 675,529 additional shares at...
Business Operations and StrategyFinancial Disclosures
Worksport Reports Record Margins and New Distribution Partner
Positive
Jun 22, 2026
On June 22, 2026, Worksport reported a record preliminary gross margin of about 35% for May 2026, up sharply from 28.4% in the first quarter, and said it has secured Meyer Distributing as its first multinational distribution partner. Management sa...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Worksport CEO Takes Equity Compensation, Signaling Shareholder Confidence
Positive
Jun 9, 2026
On June 5, 2026, Worksport issued 79,618 common shares to Founder and CEO Steven Rossi at the June 5 Nasdaq closing price of $0.628 per share, offsetting $50,000 in previously accrued bonus compensation instead of paying cash. This insider stock p...
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.