WKSP

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved record quarterly revenue of $5.2 million, driven by a 58% sequential increase that reflects improved production output and broader product availability. Gross margin expanded to 32% (reaching 35% in June) despite rising aluminum costs and tariff pressures, attributed to higher sales volume and better overhead absorption. Operating leverage improved significantly as total operating expenses declined 17% sequentially while revenue grew, demonstrating that the cost base and revenue can move in opposite directions. The NEXUS tonneau cover launch successfully reached $1 million in cumulative sales within 10 weeks, proving the market fit for premium, differentiated utility products. Strategic shift toward a 'Just-In-Time' manufacturing environment aims to maximize raw material use while minimizing the concentration risk of inventory buildup. Management is prioritizing operational excellence and disciplined execution of the core tonneau cover business over speculative growth vectors to ensure financial stability. The company maintains a 'going concern' disclosure but has implemented a recovery plan focused on growing gross profit faster than recurring cash costs. Management targets reaching sustainable operating cash flow breakeven in 2026 by converting $12.1 million in existing inventory into working capital. Guidance assumes a trajectory toward a $30 million annual revenue run rate by year-end, supported by maturing distribution partnerships and repeat order frequency. AetherLux heat pump certification is expected in the second half of 2026, with potential commercial production starting 45 to 60 days post-certification. Future liquidity strategy emphasizes reducing reliance on dilutive capital as gross profit expands to cover recurring cash operating requirements. Sensitivity analysis suggests that at a 35% gross margin, quarterly revenue of approximately $12.9 million would fully cover the current pre-working capital cost structure. Aluminum raw material costs have doubled from approximately $1.30 per pound due to tariffs, impacting the margin profile of legacy products like the AL4. The company reported $1.2 million in cash and $820,000 in credit availability, necessitating active inventory liquidation to fund ongoing operations. A new advisory proposal for special dividends was introduced to allow shareholders to benefit from potential future divestitures of business units like Terravis Energy. Management noted that while some Section 301 tariffs might be recoverable, the process remains unclear and no immediate cash inflow is expected this year. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management is using small promotions on legacy AL3 models to accelerate liquidation, successfully testing this approach in June. The goal for Q3 is to sell 30% more covers than are produced to aggressively convert finished goods into cash. Management aims to keep sales and marketing expenses relatively flat while revenue grows, though they are prepared to invest if it accelerates the path to cash flow positivity. Efficiency is improving as the brand gains recognition, reducing the reliance on high-cost customer acquisition via Meta and Google. NEXUS generated $1.5 million in orders in July alone, significantly outpacing its initial 10-week launch run rate. Management believes NEXUS offers a unique value proposition that expands the market rather than cannibalizing AL4, though they prefer the higher-margin NEXUS sales. Worksport has partnered with a large heat pump manufacturer to ensure production can begin within 60 days of final certification. Initial orders from public and private sectors are being pursued to ensure the product contributes to the balance sheet by Q4 2026.

Worksport will host its Q2 2026 earnings conference call on August 11, 2026, at 4:30 p.m. ET, following market close, with an investor townhall immediately afterward featuring CEO commentary, business updates, and shareholder Q&A. WEST SENECA, NY / ACCESS Newswire / July 29, 2026 / Worksport Ltd. (NASDAQ:WKSP) ("Worksport" or the "Company"), a U.S.-based innovator and manufacturer of hybrid and clean energy solutions primarily for the light truck, overlanding, and global consumer goods markets, today announced that it will host its second quarter 2026 earnings conference call on Tuesday, August 11, 2026, at 4:30 p.m. Eastern Time, following the close of the U.S. financial markets. Immediately following the earnings call, Worksport will host its latest investor townhall, continuing the Company's recurring communication series designed to provide shareholders with more direct access to Worksport's leadership team. Steven Rossi, Chairman and Chief Executive Officer of Worksport, commented: "We are excited to discuss what has been a very strong second quarter for Worksport. During our Q2 earnings call, we will look forward to providing shareholders a clear review of the quarter's financial performance and recent operating progress. As reflected in our recently announced preliminary financial update, we are seeing higher revenues, higher gross margins, and believe we are notably closer to achieving positive cash flow. Based on our current operating trajectory and the preliminary results we recently announced, I believe the Company's market valuation does not yet fully reflect the progress we have made in strengthening our business. The investor town hall will give us the opportunity to add context, discuss our priorities more directly, and explain how we believe our current initiatives support Worksport's long-term strategy. We value open communication and look forward to engaging with shareholders following the call." Webcast Registration Investors, analysts, media, and other interested parties are invited to register in advance for the live webcast. During the earnings call, Worksport management will review the Company's Q2 2026 results and provide commentary on recent operating and business developments. Register Here: Q2 2026 Conference Call Registration Link Full URL: https://us06web.zoom.us/webinar/register/WN_WgMlf2zuQ7SJxFwlg_mV3w Earnings Call and Townhall Details Date: August 11, 2026Time: 4:30 p.m. ET (following market close)Format: Live webcast with management discussion and Q&ATownhall: Begins immediately following the earnings conference call The earnings call transcript, presentation materials, and audio replay are expected to be made available on the Worksport investor relations website following the event. Worksport's Ongoing Investor Townhall Series The August 11 event will continue Worksport's periodic investor townhall series, through which the Company seeks to maintain an open and ongoing dialogue with its shareholders, supporters, and broader investor community. The townhall sessions are intended to extend beyond traditional earnings commentary by providing: Context on recent announcements and operating progress CEO-led discussion of strategic priorities and direction Timely updates on product development and commercialization An open forum for shareholder questions and dialogue Shareholders, supporters, and other interested participants are invited to attend. The Company also encourages attendees to share the registration link with others who may wish to learn more about Worksport's business, progress, and strategy. Investors are encouraged to submit questions in advance by emailing [email protected]. Management intends to address selected questions during the live townhall, subject to time constraints and applicable disclosure considerations. Stay tuned for more information and join our mailing list to stay up to date with the latest: Join Worksport's Newsletter Contacts Investor Relations, Worksport Ltd. T: 1 (888) 554-8789-128 W: investors.worksport.comW: www.worksport.comE: [email protected] Connect with Worksport Chief Executive Officer, Steven Rossi Steven Rossi X (Twitter) Steven Rossi LinkedIn About WorksportWorksport Ltd. (Nasdaq:WKSP), through its subsidiaries, designs, develops, manufactures, and owns the intellectual property on a variety of tonneau covers, solar integrations, portable power systems, and clean heating & cooling solutions. Worksport has an active partnership with Hyundai for the SOLIS Solar cover. Additionally, Worksport's hard-folding cover, designed and manufactured in-house, is compatible with all major truck models and is gaining traction with newer truck makers including the electric vehicle (EV) sector. Worksport seeks to capitalize on the growing shift of consumer mindsets towards clean energy integrations with its proprietary solar solutions, mobile energy storage systems (ESS), and Cold-Climate Heat Pump (CCHP) technology. Terravis Energy's website is terravisenergy.com. Connect with Worksport Please follow the Company's social media accounts on X (previously Twitter), Facebook, LinkedIn, YouTube, and Instagram, the links of which are links to external third-party websites, as well as sign up for the Company's newsletters at investors.worksport.com. Social Media Disclaimer The Company does not endorse, ensure the accuracy of, or accept any responsibility for any content on these third-party websites other than content published by the Company. Investors and others should note that the Company announces material financial information to our investors using our investor relations website, press releases, Securities and Exchange Commission ("SEC") filings, and public conference calls and webcasts. The Company also uses social media to announce Company news and other information. The Company encourages investors, the media, and others to review the information the Company publishes on social media. The Company does not selectively disclose material non-public information on social media. If there is any significant financial information, the Company will release it broadly to the public through a press release or SEC filing prior to publishing it on social media. Forward-Looking Statements The information contained herein may contain "forward‐looking statements." Forward‐looking statements reflect the current view about future events. When used in this press release, the words "anticipate," "believe," "estimate," "scheduled," "expect," "future," "intend," "plan," "project," "envisioned," "should," or the negative of these terms and similar expressions, as they relate to us or our management, identify forward‐looking statements. These statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial situation may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) supply chain delays; (ii) acceptance of our products by consumers; (iii) delays in or nonacceptance by third parties to sell our products; and (iv) competition from other producers of similar products. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the SEC, including, without limitation, our latest Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC's web site at www.sec.gov. As a result of these matters, changes in facts, assumptions not being realized or other circumstances, the Company's actual results may differ materially from the expected results discussed in the forward-looking statements contained in this press release. The forward-looking statements made in this press release are made only as of the date of this press release, and the Company undertakes no obligation to update them to reflect subsequent events or circumstances. SOURCE: Worksport Ltd. View the original press release on ACCESS Newswire

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Q1 2026 served as a 'launch-readiness' quarter, characterized by heavy working capital investment to fund inventory for the SOLIS, COR, and NEXUS product lines. Revenue growth of 48% year-over-year was driven by the core tonneau cover business, while gross margin expansion to 26% reflects a strategic shift toward higher-margin, American-made hard covers. Management attributes the sequential gross margin dip from Q4 2025 to a shift in sales mix toward the B2B channel, which carries lower gross margins but offers lower customer acquisition costs and greater scale. The company is leveraging its West Seneca manufacturing facility to reduce reliance on foreign components, with over 90% of materials now domestically sourced to ensure quality and supply chain stability. Operational cash burn in Q1 was primarily driven by a $5.1 million inventory build and the settlement of prior-period obligations, which management views as a non-recurring level of intensity. Strategic positioning involves a three-layer approach: the foundational tonneau business, the SOLIS/COR power ecosystem, and the long-term AetherLux HVAC opportunity. Management reaffirmed full-year 2026 revenue guidance of $35 million to $42 million, targeting operational cash flow positivity in the second half of the year. The company is transitioning from quarterly to annual financial guidance to prioritize long-term strategic execution over short-term metric fluctuations. Growth assumptions rely on expanding the dealer network from 500 to over 1,500 locations and activating major distribution partnerships like Tri-State Enterprises. Inventory conversion is the primary focus for the remainder of 2026, with no significant cash outlays for additional material purchases anticipated until Q3. Future capital strategy emphasizes reducing reliance on equity dilution by pursuing senior lines of credit at regional banks once cash flow positivity is achieved. A 'going concern' explanatory disclosure remains in the 10-Q, which management is addressing through a clear plan to convert inventory to revenue and reduce cash consumption. Domestic inflation, particularly the doubling of aluminum prices, has created margin headwinds that the company is attempting to offset through manufacturing efficiencies. The company utilized its At-The-Market (ATM) offering to raise $2.2 million in Q1, acknowledging the impact of dilution but defending it as a tactical tool for operational returns. Seasonality is a noted factor, with Q1 historically being the slowest quarter for truck accessory sales due to weather and the post-holiday retail cycle. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that the $11.6 million inventory is an even blend across product lines, with NEXUS concentration currently sitting in raw materials rather than finished goods. COR inventory accounts for several million dollars as manufacturing requires batches of 1,000 units. While B2B has lower gross margins, management noted the 'net-net' profit is similar to B2C because B2B eliminates high digital marketing spend (CAC) and freight costs. Distributors like Tri-State provide 'overhead absorption' and infrastructure that allows for same-day service in regions Worksport cannot yet reach independently. CEO Steven Rossi suggested that the Terravis Energy subsidiary could command a '9-figure valuation' if private, based on inbound interest for its ZeroFrost heat pump technology. Revenue from AetherLux is not projected for 2026, as the product is currently undergoing government-monitored lab testing and certification. Domestic aluminum inflation has forced a reduction in discounting; for example, the AL3 model price increased from $799 to nearly $1,000. Management expects exponential margin recovery once geopolitical environments stabilize and aluminum prices retreat from all-time highs.

Image source: The Motley Fool. Wednesday, May 13, 2026 at 4:30 p.m. ET Chief Executive Officer — Steven F. Rossi Chief Financial Officer — Jennifer [last name not provided] President — Michael D. Johnston Steven F. Rossi: 26 as our VP of finance and has recently been promoted to CFO. Jennifer first began providing advisory services for WorkSports in August 2023, Her short term focus has been to help strengthen our financial discipline, reporting processes, and our internal control environments as we scale towards profitable operations. We will be reviewing the financial results for the quarterly period ending 03/31/2026. These results were just filed today at 4PM eastern time in our form 10 q and can be downloaded from the link provided in the chat. At the end of today's call, our prepared remarks and presentation deck will be available for download at www.investors.worksport.com forward slash hashtag reports. Again, w dot investors dot worksport dot com forward slash hashtag reports. Our remarks will follow on a slide presentation After our prepared remarks, we will open the line for questions. On that, let's begin. First, safe harbor statements. During this call, we will make forward looking statements, including statements regarding our financial outlook for the full-year 2026, our expectations regarding financial and business trends, impacts from the macroeconomic environment, and our market position opportunities, go to market initiatives, growth strategy, and business as aspirations and product initiatives, and the expected benefits of such initiatives. These statements are only predictions that are based on our current beliefs, expectations, and assumptions. Because forward looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict and many of which are outside of our control. Actual results or events may differ materially. Therefore, you should not rely on any of these forward looking statements. These forward looking statements are subject to risks and other factors that could affect our performance and financial results which we discuss in detail in our filings with the SEC, including our annual report on Form 10 k and quarterly reports on Form 10 Qs and other SEC filings. The forward looking statements made in this earnings call are only made as of today's date, Worksport assumes no obligation to update any forward looking statements we may make on today's webinar. So with that, we have our agenda. On today's call, we will be covering the following. First, key highlights from our Q1 26 that we just filed. Number 2, liquidity position and capital strategy. Number 3, financial review. Number 4, update on worksport operations. Number 5, an update on TerraVis Energy and Aetherlux. The exciting product. And Number 6, the 2026 outlook in general. With that, let's jump to key highlights. Let's dive into it. Q1 26 was the investment and launch readiness quarter, and we executed it with that objective in mind. In January, the Solace and Core started commercial shipping. In March, we unveiled Nexus to industry buyers at the Keystone Big Show. And initiated preorder activity on this product offering. In April 2026, Nexus launched commercially. Core received the applicable UL and CSA certification package needed to support broader North American retail and commercial distribution, and we secured distribution with Tri State Enterprises, including their placement of initial purchase order. Revenue grew approximately 48% year-over-year $3.3 million and gross profit more than doubled, increasing approximately 116%, $854 thousand. Gross margin was approximately 26% in Q1 compared with approximately 18% in Q1 of last year. These are meaningful year-over-year improvements. Since Q1 26 was a launch readiness quarter, our current product portfolio is yet to meaningfully contribute to our results, including gross margin contribution. We are at the eve of our broad broadest product revenue opportunity to date, for our Tonneau cover business. During 2026, we funded conducted multiple product launches, refined our marketing strategy, and allocated resources to bolster our distribution network. We could now focus on converting our working capital investments for the balance of the year. We entered Q2 with a stronger product portfolio, continued growth in with our distribution relationships, and deeper sales channel opportunity than any prior period in work sports history. Our cash position reflects the cost of operational strategic growth efforts and we will address that directly. But the key investor highlight for 2026 is this, We built product availability, funded launch activity, and expanded our commercial platform. Q2 26 in the second half are about conversion. Shipment, sales channels, activation. Margin efficiency improvement, and lower operational cash burn. We are projecting strong growth in both B2B and B2C sales channels, as well as a focus on meaningful efforts towards profitability, from the operations in 2026 and beyond, but more on that soon. First, and before we move deeper into the financial review, let's step back for a second and review what works port actually is. At its core, Worksport as a business consists of 2 key elements. First, we are an innovation focused US manufacturer. Second, we are building a clean energy solution. Or multiple solutions. These 2 areas are not separate. They move together. Our manufacturing platform gives us the ability to design, build, and scale physical products. Our clean energy focus gives our products a larger strategic purpose. These are the 2 core capabilities we believe that can drive the company towards profitability within the near term. We are a US based manufacturer. With approximately $11.6 million in inventory, $13.3 million in net property and equipment, including approximately $8.3 million of building and land, net value, and $6.6 million of manufacturing equipment net value. We have more than 500 dealer locations and target more than 1.5 thousand dealer locations by the end of this year. Our global intellectual property portfolio alone includes approximately 26 issued and 56, 57 patent pending utility patents, 51 issued, and 25 pending design patents and registrations, and 44 registered and 15 pending trademarks. We are also in the process of preparing and filing several other key utility and design patent applications across various countries and jurisdictions. We started production of our tonneau covers just in late 23, and based on internal sales data, have sold approximately 26 thousand tonneau covers through worksport.com and related direct online channels from 2024 through 2026. Including approximately 8 thousand covers in 2024, 16 thousand covers in 2025, and 2,000 covers alone just in 2026. In 2025 alone, across both B2B and B2C channels, WorkSports sold approximately 25 thousand tonneau covers and generated $16.1 million in net sales. We are quite proud of these statistics. Work sports started on the foundation of roughly 61 million pickup trucks in The USA on US roads alone, and pickup trucks remain among the top selling vehicles in The US every single year. People buy pickup trucks regardless of broader economic conditions. We started by making high quality tonneau covers at prices that compete and in many cases, can be competitors that primarily source raw material and components from foreign markets. We believe we can continue to capture market share in the estimated $4 billion-plus tonneau cover market in 2026, and build the tonneau cover core business into a 9-figure profitable middle market company over time. Said plainly, we believe Worksport has the potential to become a $100 million-plus middle market revenue company profitably from tonneau cover sales alone and that is just our foundation. that is our core of this business. Our vision does not stop at tonneau. We imagine a future where pickup trucks evolve to power. From power consuming utility vehicles into mobile power and nanogrids that support owners at the campsite, worksite, emergency site, and on fleet levels. That is where our newly launched SOLIS and core product offerings enter the picture. The tonneau cover is the physical platform, SOLIS adds solar generation, and CORE adds portable energy storage and usable power wherever you go. Together, Solis and CORE allow WorkSports to move from an aftermarket automotive accessory business into an anticipated 13 billion plus dollar portable power market. Importantly, Core is not limited to truck owners. CORE is a modular portable power system that can function as a standalone product for job site, off grid, emergency, recreational, and general portable power use cases for anybody, anywhere, globally. We are actively targeting OEM, fleet, dealer direct, distributor, and other direct-to-consumer relationships while continuing to build brand and consumer awareness around this new line of product offerings. Our next steps could be to look at integrating core battery backup technology for residential and commercial power. A possible first of its kind modular battery system for emergency power or key energy savings and off peak cost savings for businesses, with strong apparent opportunities in industrial applications. Now our subsidiary, Teravise Energy, is at the forefront of developing energy savings HVAC energy saving HVAC technology. The AetherLux zero plus frost heat pump has all the elements to become significant breakthrough in energy saving as a product solution alone. It is expected to be the only heat pump platform of capable of operating without traditional defrost cycles and it has been tested to operate smoothly in extreme rarely seen by conventional systems. In fact, I will say not seen by conventional systems. AetherLux can provide heating and cooling highly efficiently and we have a keen focus on home heating. We are also currently evaluating efficiencies within data center cooling technologies. The breakthrough AetherLux heat pump is expected to advance towards certification 2026 and address a $150 billion-plus HVACR market. And we have received a strong level of interest through initial inbound inquiries achieved support through the US Department of Energy, inclusive including their national renewable energy laboratory and are engaged in active government related strategic conversations. AetherLux sits on top of the core WorkSports product platform, as an important additional opportunity. In short, WorkSport has 3 related but distinct layers. First, the core tonneau cover business, what I call our foundational business. Second, the Solace and core power ecosystem. And third, the longer term highly efficient AetherLux HVAC opportunity through TerraVis Energy. And we will provide more information and more details on TerraVise later in this call. Let's talk about liquidity. I will now address our liquidity position directly. Our fiscal 25 form 10 k included a going concern explanatory disclosure. That disclosure is important, and we are addressing it through a clear operating plan. Convert inventory into revenue. Grow gross margins in each of our sales channels, and reduce operating cash consumption as our product launch spending normalizes. And maintain a disciplined approach to working capital and capital market funding resources as needed. Our ability to continue as a going concern remains dependent on generating future cash flows from operations while maintaining access to debt and equity capital markets. The largest use of cash in Q1 was the capital intensive launch related investments. The primary use of cash was working capital to support production of our existing product offerings, and the expected growth of additional product offerings launched in 2026. Including Solis, Core, and the new Nexus. We received approximately $5.1 million of inventory to support the expanded product lineup, with approximately $1 million of these raw material purchases remaining in accounts payables of 03/31/2026. We also used cash to settle prior period working capital obligations. The objective from here is clear. Turn that inventory into revenue, continue to improve our gross margin for each sales channel, and reduce operating cash used quarter over quarter. Our West Seneca facility also remains a substantial, meaningful asset on the balance sheet. Reflected in $13.3 million of net property and equipment. We are a manufacturing company with real assets, real inventory, and an expanding order and distribution base. The question is execution velocity. And Q2 26 begins answering that question. Our priority is to reduce our reliance on capital on equity capital and potential additive dilution. Or additional dilution to existing shareholders as revenue scales and working capital normalizes. Capital strategy. We remain transparent with our use of capital tools. During 2026, we raised approximately $2.2 million including net proceeds through our amended at the market offering with H. C. Wainwright. As a result, we issued 1.46 million shares of common stock. We recognize the impact of dilution, and we are mindful of our shareholder responsibilities. Our strategy remains to use the ATM as a tactical tool, subject to applicable form s 3 public float limitations and market conditions. Not our primary and not as our primary capital vehicle. Where capital tools are used, we will continue to evaluate them through 1 lens, whether the operational return justifies the dilution and improves the long term shareholder value equation. With that, I will hand the call over to Michael to walk through our financial results. Michael D. Johnston: Thank you, Steven. Good afternoon, everyone. it is a pleasure to be speaking with you, and I look forward to continuing these conversations as we progress through fiscal 26. Net sales for Q1 26 were $3.3 million an increase of approximately $1.1 million or 47.9% compared to $2.2 million in Q1 25. Geographically, The US continues to represent an overwhelming majority of our net sales at 99%, up 40.5% year over year Within our segments, hard tonneau covers generated approximately $3.3 million in net sales, accounting for approximately 99% of total Q1 net sales. Our soft tonneau cover segment contributed approximately $400 thousand. The concentration in net sales in the hard tonneau covers segment reflects our ongoing strategic focus on higher margin American made product offerings. From a channel perspective, Q1 also reflects a deliberate transition in how we are building the business. In Q1 26, B2C or the direct to consumer online channel contributed approximately $1.8 million in net sales on approximately 1.7 thousand covers, while B2B generated approximately $1.5 million in on approximately 2.3 thousand covers. Direct to consumer activity remains an important sales channel to develop but our growth strategy includes an enhanced concentration in the B2B sales channel, including dealers, distributors, fleets, and potential OEM partnerships. Moving on to gross margin. Gross margin for Q1 26 was approximately $900 thousand more than doubling from approximately $400 thousand in Q1 25. A 115.5% year over year improvement. Our Q1 26 gross margin was approximately 26%. Compared to approximately 18% in Q1 25 and 30 percent in Q4 25. The sequential movement from q 25 Q4 25 to Q1 26 was primarily driven by our sales channel mix. In Q4 25, our sales mix was weighted more heavily towards the direct to consumer sales channel, while in Q1 26, our mix shifted closer to an even split between B2C and B2B. Importantly, our B2C margin improves sequentially from approximately 30% to approximately 34% but the higher relative concentration from the B2B sales channel which has a lower margin, impacted that blended gross margin. Onto operating expenses. Total operating expenses for Q1 26 was approximately $6.6 million compared to $4.7 million in Q1 25. An increase of approximately $1.9 million or 41%. Let me walk you through some of the key line items. Research and development expenses decreased by approximately $200 thousand or 44% between Q1 25 and Q1 26. This decrease reflects the natural progression of our product development projects. The AL 4, and h d 3 moved out of active development and into full production during 2025. Our R&D spend is increasingly directed towards next generation innovation rather than ongoing refinement of production ready products. General and administrative expenses increased by approximately $980 thousand or 24% from $3.4 million in Q1 25 to $4.3 million in Q1 26. This increase is primarily attributable to the timing of costs incurred to support capital market positioning and promotion of our enterprise value amidst a perceived valuation gap in our market value. We continue to manage this expense caption with strategic discipline. Sales and marketing expenses increased by approximately $1.3 million or 148% from $900 thousand in Q1 25 to $2.1 million in 2020. The increase resulted from the combination of intentional brand awareness and product launch campaigns directly linked to the launch of multiple product offerings in early 26. We launched 3 products, and initiated large scale digital marketing campaigns to drive awareness for both the CORE and SOLIS, as well as to support the overall brand validation. We are closely monitoring the ROI on each marketing channel and plan to optimize accordingly. On to cash flows and the balance sheet. Cash and cash equivalents were $566 thousand down from $5.9 million approximately at December 2025. As Steven noted, this decline reflects working capital deployed to fund multiple product launches and reduce prior period obligations. Net cash used in operating activities in Q1 26 approximately 8.2 million. Let's further discuss the cash used from operations. Our net loss of $5.8 million included approximately $1.1 million of non-cash items. Primarily stock based compensation, depreciation, and amortization. That implies a cash based operating loss of approximately $4.7 million. Working capital used an additional approximately $3.5 million driven primarily by inventory build, and the settlement of prior period payable obligations. I would like to reinforce that we do not expect the level of working capital use in Q1 26 to repeat at the same magnitude as inventory begins converting into revenue and prior period obligations normalize. That normalization combined with a growing revenue base across multiple sales channels is how we close the gap and achieve cash flow positivity. Inventory increased by $2.1 million to $11.6 million as of 03/31/2020 Of that total, raw goods grew from $3.4 million to $5.3 million a direct reflection of our investments in Core and Solis as well as the NEXUS product readiness. Raw materials, of $5.4 million reflects our near term production pipeline. We are not anticipating a significant use of cash for further material purchases until Q3 26. Working capital as of 03/31/2026 was approximately $6.6 million compared to $10.1 million at 12/31/2025. This reflects our strategic decision to proactively convert working capital into operational assets to support the launch of multiple product lines in early 26. Our asset base anchored by approximately $13.3 million of net property and equipment represents our investment in our West Seneca manufacturing facility and continues to provide a strong foundation to support our future production growth. I will now turn the mic back to Steven to review our milestones. Steven? Steven F. Rossi: Thanks, Michael. On 01/13/2026, we announced the commercial launch of our flagship energy product tool, the SOLIS Solar Tonneau Cover in the CORE portable energy system. This was a defining moment for WorkSports. Years of R&D engineering, certification work, and manufacturing preparation culminating in real products shipping to real customers from our facilities. SOLIS is the world's commercially available solar integrated hard folding tonneau cover. CORE is a more modular portable energy system that integrates with SOLIS or functions as a standalone unit for the job site, off grid, or emergency power needs. Together, they represent work sports entry into the multibillion dollar clean energy and portable power market. So excited about it. With the initial product launches behind us, our 2026 focus is scaling, solar, and core revenue. In April 2026, CORE received the safety and regulatory certifications needed for North American retail and commercial distribution. Including all applicable UL and CSA approvals. This certification package is important because it expands the universe of retailers distributors, fleets, and commercial customers that we can evaluate to carry the product. We also strengthened our commercial sales channels around this product. In February 2026, we announced a strategic partnership with ProtoMAC International Partners to help position the SOLIS and CORE ecosystem for federal, fleet, and commercial adoption channels. We do not consider these channels as immediate revenue sources, but it is an important awareness channel for products that can serve worksite emergency mobile power and off grid applications. Solis also carries credibility through our active conversations with OEMs. The point is not that OEM revenue is assumed in our 2026 sales pipeline. The point is that the product platform has strategic relevance beyond direct to consumer sales, and we are building the channel architecture to pursue that opportunity responsibly. The question we are focused on answering is how quickly these products scale, through which channels, core and SOLIS did not represent a meaningful amount of sales in Q1, as emerging products we are developing marketing assets, product awareness, and sales pipelines to target strong sales towards the rest of the year. We are just getting started. With a focus on certification, channel onboarding, repeatable fulfillment, and measure customer acquisition economics, the path for market adoption is becoming accessible. We note it took approximately 1 year for our initial Made in the USA tonneau cover lines to build traction. I will repeat that. We note it took approximately 1 year for our initial Made in the USA tonneau covers, the AL 3, to build traction. And we believe that it can achieve we can achieve a similar speed or better with the SOLIS and the CORE. The third major commercial milestone of the quarter was the unveiling of our Nexus tonneau cover. Boy, is it exciting. On 03/19/2026, we presented NexSys to industry buyers at the Keystone Big Show. Keystone is 1 of the biggest aftermarket distributors in North America, 1 of the premier aftermarket distributors in North America, and this is 1 of the most premier events in North America. At the Keystone Big Show, our NexSys product generated immediate buyer interest in preorder activity. Following production and commercial launch in April 2026, early distributor interest is and remains significant. This supports management's expectation that NexSys can contribute meaningfully in net sales for this year. Nexus is a premium tonneau cover featuring a newly engineered operating system designed to improve the ease of use. Safety, speed for truck owners. Unlike conventional folding tonneau covers that often require users to walk around both sides of the truck to secure latches or prop rods, NexSys is designed to allow full operation from a single side of the truck while maintaining full bed access. This is a practical innovation that is focused on a clear customer pain point, and early distributor demand supports our view that the product can accelerate adoption across both existing and new sales channels. I encourage everyone to check the product out at www.worksport.com. It’s astonishing. In late 26, we announced that we secured Tri-State Enterprises as a new cross regional distribution partner and our biggest at the time. For a full tonneau cover lineup inclusive of NexSys. TriState expands our distribution reach across Arkansas, Missouri, Oklahoma, and Texas. Tri State operates approximately 1 million square feet of warehouse space, and has already placed initial purchase orders and reorders. Management believes TriState can become a 7-figure near term account with recurring multimillion dollar potential. Our distribution strategy remains a central pillar of our 2026 growth plan. We entered in the year with a dealer network that exceeded 500 locations, a nearly 6-fold increase from the start of last year. Our target is to reach 1.5 thousand plus locations by the end of this year through a combination of direct dealer onboarding and new distributor partnerships. Remember, there are 17 thousand dealers in America. So we are just getting started. The Tri-State Enterprise partnership announced in April is our first major distributor relationship and gives us the broader penetration to new geographic markets. Importantly, this is not just a logo announcement. Tri State has already placed initial purchase orders, and truck bed covers are among its top selling categories. That alignment matters because it increases the likelihood distribution reach can translate into real sell through. We are also in closing discussions with nationwide dealer network capable of bringing our products to all US continental states. We will update investors as these discussions move from pipeline to signed commercial relationships. Each of these relationships represent a potential step change in distribution reach. But our standard for reporting progress will remain execution. Orders, channel activation, repeat purchase behavior. We are strictly focused on execution this year. Our US manufacturing and quality credentials also matter to the strategy. The West Seneca facility that we built is an ISO 9 thousand:2015 certified facility, which supports our ability to pursue larger dealer, distributor, fleet, and potential OEM relationships. Quality certification does not create revenue by itself, but it removes the friction in conversations with larger counterparties that require this for quality systems. Our B2B go to market strategy continues to complement our direct to consumer ecommerce sales channel. We believe that the combination of strong online presence and expanding dealer network and new distributor partnerships is the right model to capture demand across the $4 billion-plus tonneau cover market. The investors takeaway is straightforward. The channel base has become larger, more diverse increasingly capable of absorbing a broader product lineup. Let's talk AtherLux. TerraVis Energy, our clean energy subsidiary, continued to make progress in the first quarter of this year. In February 2026, we confirmed that a large government entity is actively monitoring upcoming laboratory performance results of for the AetherLux heat pump as a part of an internal evaluation process. We also announced that the certification work is progressing. With AHRI, ENERGY STAR, and other North America milestones targeted within 2026. To be clear, no procurement decision has been made we are not currently projecting initial AetherLux revenue within this year. However, we anticipate commercial opportunities within 12 months. What we are saying is that a credible government related evaluation process is underway and that the technology is advancing towards third party validation, certification, and potential early commercialization in the 150 billion plus dollar HVACR market. We believe that AetherLux is the only heat pump technology in the world tested to operate at temperatures as low as negative 57 degrees Fahrenheit. Without the need for energy intensive defrost cycles. Our proprietary zero frost technology eliminates defrosting cycles entirely opening the doors to markets and applications that have historically been difficult for conventional heat pump technologies to serve. AetherLux can also be viewed as an upside driver beyond the revenue drivers embedded in our 2026 pipeline. The core 2026 revenue is expected to be driven by the tonneau cover business and early SOLIS/CORE contribution. AetherLux is a separate platform advancing through testing, certification, commercialization. We intend to update investors as lab results and certification milestones are achieved. 26 outlooks. So let's talk about this for a second. This is the strongest commercial work position WorkSports has occupied to start any of the fiscal years in our history. We have provided revenue 2026 guidance of $3.542 billion in our 2025 Form 10-K. We believe our revenue will increase substantially from 2025, and we will actively target operational cash flow positivity this fiscal year. As part of our recent key leadership transition, we reevaluated our strategic priorities. We believe it is in the best interest of all shareholders to conduct a high growth and construct a high growth and durable business that can compound shareholder value over the long term. Although it is not going to be a straight line, we are going to get there. And we are relatively young, and we are a dynamic business with consistent growth in design, production, distribution of quality and innovative products. Which offers us a promising future and opportunities. We believe our approach to support this achievement of our strategic priorities includes a more holistic evaluation of our guidance Accordingly, we plan to provide annual financial guidance every calendar year. The primary driver for moving away from quarterly guidance updates is to increase our emphasis on allocation of resources on long term strategy, including a focus on shareholder value. Believe a change in the frequency of providing guidance updates from a quarterly basis to an annual basis allows us to prioritize long term vision over short term metrics, which will allow us to focus and align our near-term efforts to meaningfully contribute to the successful execution of our strategic objectives. With countless potential operational variables alongside emerging sales and product channel mixures. We will hold off on specific guidance updates, but reaffirm our previous broader guidance Fiscal 2026 is about achieving cash flow positivity from operations and continued upward revenue trajectory. As I said earlier, we are executing, and we are going to continue to grow, and we are going to get to cash flow positivity, but it is never a straight line. So in closing, to our investors and our analysts, I want to close with this. 3 years ago, Worksport was generating under $2 million in annual revenue. Last year, we crossed $16 million. This year, we are on the path for achieving operational cash flow positivity just with our foundational product and significant revenue uptake. This is the company we have all built together. We have done this by manufacturing in America, building products that dealers and consumers want, and expanding our distribution with discipline. I also want to know that I recently purchased shares on the open market reflecting my personal conviction in the company's long term direction. Our responsibility now is to turn that conviction into measurable execution. And I will purchase shares again if I have to. In 2026, it is not a perfect quarter from a cash flow perspective. It was a quarter where we did what we said we were going to do, launch Solace, launch Core, unveiled Nexus, added major distribution, and completed Core certifications, expanded gross margin year over year, and improved loss per share, All while it was the slowest quarter of the year. Q1 tends to be the slowest quarter seasonally of the year for tonneau cover sales. Q1 was the investment in launch readiness quarter. 2026 and the second half are about proving conversion: turning inventory into revenue, dealer growth into orders, NexSys demand into shipments, and margin expansion into lower cash burn. We are also building strategic vectors around federal channels, OE targeting for SOLIS and CORE and AetherLux certification process progress. None of which are required for making the overall business operationally cash flow positive. We expect the tonneau cover business, our foundation, to be capable of that on its own, and everything else is accretive to that. We are not managing this business for a single quarter. Before you buy stock in Worksport, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Worksport wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $472,744!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,353,500!* Now, it’s worth noting Stock Advisor’s total average return is 991% — a market-crushing outperformance compared to 207% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 13, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Worksport (WKSP) Q1 2026 Earnings Transcript was originally published by The Motley Fool

Worksport will host its Q1 2026 earnings conference call on May 13, 2026, at 4:30 p.m. ET, followed immediately by the Company's inaugural investor townhall with CEO commentary, business updates, and shareholder Q&A. WEST SENECA, NY / ACCESS Newswire / May 7, 2026 / Worksport Ltd. (NASDAQ:WKSP) ("Worksport" or the "Company"), a U.S.-based innovator and manufacturer of hybrid and clean energy solutions primarily for the light truck, overlanding, and global consumer goods markets, today announced that it will host its first quarter 2026 earnings conference call on Wednesday, May 13, 2026, at 4:30 p.m. Eastern Time. Immediately following the earnings call, Worksport will hold its inaugural investor townhall, introducing a new, recurring communication platform designed to provide shareholders with more direct access to the Company's leadership team. Webcast Registration Investors, analysts, media, and other interested parties are invited to register in advance for the live webcast. During the earnings call, Worksport management will discuss the Company's Q1 2026 results and provide commentary on recent business developments. Register Here: [WKSP Conference Call Registration Link] Full URL: https://us06web.zoom.us/webinar/register/6417779145998/WN_xGJ3UtTtRl2z1yi2MC7D0w Earnings Call and Townhall Details Date: May 13, 2026 Time: 4:30 p.m. ET Format: Live webcast with management discussion and Q&A Townhall: Begins immediately following the earnings conference call The earnings call transcript, presentation materials, and audio replay are expected to be available on the Worksport investor relations website after the call. Introducing Worksport's Investor Townhall Series The May 13 event will mark the first of a planned periodic townhall series, where Worksport intends to maintain an ongoing, open line of communication with its shareholders, supporters, and broader investor community. These sessions are designed to go beyond traditional earnings commentary, offering: Commentary on recent announcements and operational progress CEO-led discussion on strategic direction and priorities Real-time updates on product development and commercialization An open forum for investor questions and dialogue All shareholders, supporters, and interested participants are invited to attend. The Company welcomes all interested participants and encourages attendees to share the registration link with others who wish to learn more about Worksport's business and strategy. Investors are encouraged to submit questions in advance by emailing [email protected], with management addressing selected questions during the live townhall, subject to time and disclosure considerations. Steven Rossi, Chairman and Chief Executive Officer of Worksport, commented: "Worksport is building a business that we believe deserves a more direct and open line of communication with its shareholders. Our earnings call will cover the financial results, but the townhall gives us the opportunity to go deeper, explain the thinking behind recent developments, and speak more directly about where we are focused next. We want shareholders to better understand not only what we are doing, but why we believe these steps matter for long-term value creation." Stay tuned for more information and join our mailing list to stay up to date with the latest: Join Worksport's Newsletter Contacts Investor Relations, Worksport Ltd. T: 1 (888) 554-8789-128 W: investors.worksport.com/ W: www.worksport.com E: [email protected] Connect with Worksport Chief Executive Officer, Steven Rossi Steven Rossi X (Twitter) Steven Rossi LinkedIn About Worksport Worksport Ltd. (Nasdaq:WKSP), through its subsidiaries, designs, develops, manufactures, and owns the intellectual property on a variety of tonneau covers, solar integrations, portable power systems, and clean heating & cooling solutions. Worksport has an active partnership with Hyundai for the SOLIS Solar cover. Additionally, Worksport's hard-folding cover, designed and manufactured in-house, is compatible with all major truck models and is gaining traction with newer truck makers including the electric vehicle (EV) sector. Worksport seeks to capitalize on the growing shift of consumer mindsets towards clean energy integrations with its proprietary solar solutions, mobile energy storage systems (ESS), and Cold-Climate Heat Pump (CCHP) technology. Terravis Energy's website is terravisenergy.com. Connect with Worksport Please follow the Company's social media accounts on X (previously Twitter), Facebook, LinkedIn, YouTube, and Instagram, the links of which are links to external third-party websites, as well as sign up for the Company's newsletters at investors.worksport.com. Social Media Disclaimer The Company does not endorse, ensure the accuracy of, or accept any responsibility for any content on these third-party websites other than content published by the Company. Investors and others should note that the Company announces material financial information to our investors using our investor relations website, press releases, Securities and Exchange Commission ("SEC") filings, and public conference calls and webcasts. The Company also uses social media to announce Company news and other information. The Company encourages investors, the media, and others to review the information the Company publishes on social media. The Company does not selectively disclose material non-public information on social media. If there is any significant financial information, the Company will release it broadly to the public through a press release or SEC filing prior to publishing it on social media. Forward-Looking Statements The information contained herein may contain "forward‐looking statements." Forward‐looking statements reflect the current view about future events. When used in this press release, the words "anticipate," "believe," "estimate," "scheduled," "expect," "future," "intend," "plan," "project," "envisioned," "should," or the negative of these terms and similar expressions, as they relate to us or our management, identify forward‐looking statements. These statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial situation may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) supply chain delays; (ii) acceptance of our products by consumers; (iii) delays in or nonacceptance by third parties to sell our products; and (iv) competition from other producers of similar products. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the SEC, including, without limitation, our latest Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC's web site at www.sec.gov. As a result of these matters, changes in facts, assumptions not being realized or other circumstances, the Company's actual results may differ materially from the expected results discussed in the forward-looking statements contained in this press release. The forward-looking statements made in this press release are made only as of the date of this press release, and the Company undertakes no obligation to update them to reflect subsequent events or circumstances. SOURCE: Worksport Ltd. View the original press release on ACCESS Newswire

Insight Enterprises (NSIT) came out with quarterly earnings of $2.88 per share, beating the Zacks Consensus Estimate of $2.45 per share. This compares to earnings of $2.06 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +17.71%. A quarter ago, it was expected that this information technology provider would post earnings of $2.82 per share when it actually produced earnings of $2.96, delivering a surprise of +4.96%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Insight Enterprises, which belongs to the Zacks Retail - Mail Order industry, posted revenues of $2.13 billion for the quarter ended March 2026, missing the Zacks Consensus Estimate by 0.31%. This compares to year-ago revenues of $2.1 billion. The company has not been able to beat consensus revenue estimates over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Insight Enterprises shares have lost about 15.3% since the beginning of the year versus the S&P 500's gain of 7.6%. While Insight Enterprises has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Insight Enterprises was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.88 on $2.17 billion in revenues for the coming quarter and $11.25 on $8.46 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Mail Order is currently in the top 12% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Worksport Ltd. (WKSP), another stock in the broader Zacks Retail-Wholesale sector, has yet to report results for the quarter ended March 2026. This company is expected to post quarterly loss of $0.51 per share in its upcoming report, which represents a year-over-year change of +51.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Worksport Ltd.'s revenues are expected to be $4.26 million, up 90.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Insight Enterprises, Inc. (NSIT) : Free Stock Analysis Report Worksport Ltd. (WKSP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Revenue Increases 90% YoY; Company Highlights Margin Expansion and Commercialization Milestones WEST SENECA, NY / ACCESS Newswire / March 26, 2026 / Worksport Ltd. (NASDAQ:WKSP) ("Worksport" or the "Company"), a U.S.-based innovator and manufacturer of hybrid and clean energy solutions primarily for the light truck, overlanding, and global consumer goods markets, today announced financial results for the full year ended December 31, 2025, as filed in its Annual Report on Form 10-K. Fiscal 2025 Highlights Record Net Sales: Net sales for fiscal 2025 reached $16.1 million, an 89.8% increase compared to $8.5 million in fiscal 2024. Significant Margin Expansion: Full-year gross margin improved to 28%, up from 11% in fiscal 2024. Strong Q4 Performance: Derived fourth-quarter gross margins reached approximately 30%, reflecting increased manufacturing efficiency and capacity utilization at the Company's New York facility. Dealer Network Growth: The partnered dealer network expanded sixfold in 2025, now exceeding 550 locations across the U.S. and Canada. Online Sales Growth: Online sales grew 142% to $11.9 million, representing 74% of total revenue Business-to-Business Growth: Distributor and jobber sales increased to $4.2 million, up from $0.4 million in 2024 Commercial Product Launches: Successfully launched the SOLIS solar-integrated cover and COR portable energy storage system in December 2025. Quality Certification: Achieved ISO 9001 certification in April 2025, a critical prerequisite for pursuing Tier-1 OEM relationships with major automotive manufacturers. Management noted that 2025 marked a transition year, with multiple product lines moving from development into early-stage commercialization. 2026 Financial Guidance and Strategic Outlook Following a year of foundational investment, Worksport is providing the following guidance for fiscal 2026: Revenue Guidance: The Company expects full-year 2026 revenue to be between $35 million and $42 million. Gross Margin Target: Management has set a stable target of 35% gross margin for fiscal 2026. Network Expansion: Management targets aggressive dealer network growth to 1,500 locations by the end of 2026. This dealer expansion is expected to be a leading revenue driver. Path to Profitability: Worksport expects to reach initial operational cash-flow positivity within the second half of 2026. "Game Changer" Product Launch: A next-generation hard tonneau cover featuring patented capabilities is expected to launch in early Q2 2026. Balance Sheet and Liquidity As of December 31, 2025, Worksport reported: $5.95 million in cash $3.4 million available under its revolving credit facility Total liquidity of approximately $9.3 million The Company indicated that its capital deployment in 2025 was directed toward scaling production capacity and advancing commercialization efforts. Management Commentary "2025 was a transformative year where we successfully bridged the gap from product conceptualization to large-scale market delivery," said Steven Rossi, Worksport Founder & CEO. "We nearly doubled our top-line growth while dramatically improving our margin profile. With our New York facility now capable of producing over 125 units per 8-hour shift and our R&D hub in Missouri de-risking our clean-energy product launches, we believe the heavy lifting of building the platform is complete. Our focus in 2026 is squarely on execution, throughput, and achieving sustained profitability". Steven added: "Our infrastructure is now built for scale. We ended 2025 with a total liquidity position of over $9.3 million, providing us the runway needed to reach our goal of initial operational cash-flow positivity in the second half of 2026". Conference Call & Materials Investors, analysts, and media are invited to register in advance for the live webcast, today, March 26, 2026, at 4:30pm ET. Live Link: [Worksport FY 2025 Earnings Call Link] The earnings call transcript, deck, and audio reply from the conference call will be available on the Worksport website https://investors.worksport.com/#reports after the call. Stay tuned for more information and join our mailing list to stay up to date with the latest: Join Worksport's Newsletter Worksport FY 2025 Report: Balance Sheet & Income Statement Below is a summary excerpt from the Financial Statements section of 'Worksport 10-K, March 26, 2026' covering the fiscal year ending December 31, 2025. Investors are encouraged to review the complete 10-K filing and the accompanying Prepared Remarks, both linked above, for full context and analysis. Worksport Ltd. Consolidated Balance Sheets December 31, 2025 and 2024 The accompanying notes form an integral part of these condensed consolidated financial statements. Please click here to download the full 10-K. Worksport Ltd. Consolidated Statements of Operations and Comprehensive Loss December 31, 2025 and 2024 The accompanying notes form an integral part of these condensed consolidated financial statements. Please click here to download the full 10-Q. The link below will take you to the Worksport Investor Relations Website. After 4:30pm ET, you may download the accompanying earnings call prepared remark and deck there; investors are highly encouraged to review this material: FY 2025- Earnings Call Prepared Remarks - Download Here Contacts Investor Relations, Worksport Ltd. T: 1 (888) 554-8789-128 W: investors.worksport.com W: www.worksport.com E: [email protected] Connect with Worksport Chief Executive Officer, Steven Rossi Steven Rossi X (Twitter) Steven Rossi LinkedIn About Worksport Worksport Ltd. (Nasdaq:WKSP), through its subsidiaries, designs, develops, manufactures, and owns the intellectual property on a variety of tonneau covers, solar integrations, portable power systems, and clean heating & cooling solutions. Worksport has an active partnership with Hyundai for the SOLIS Solar cover. Additionally, Worksport's hard-folding cover, designed and manufactured in-house, is compatible with all major truck models and is gaining traction with newer truck makers including the electric vehicle (EV) sector. Worksport seeks to capitalize on the growing shift of consumer mindsets towards clean energy integrations with its proprietary solar solutions, mobile energy storage systems (ESS), and Cold-Climate Heat Pump (CCHP) technology. Terravis Energy's website is terravisenergy.com. Connect with Worksport Please follow the Company's social media accounts on X (previously Twitter), Facebook, LinkedIn, YouTube, and Instagram, the links of which are links to external third-party websites, as well as sign up for the Company's newsletters at investors.worksport.com. Social Media Disclaimer The Company does not endorse, ensure the accuracy of, or accept any responsibility for any content on these third-party websites other than content published by the Company. Investors and others should note that the Company announces material financial information to our investors using our investor relations website, press releases, Securities and Exchange Commission ("SEC") filings, and public conference calls and webcasts. The Company also uses social media to announce Company news and other information. The Company encourages investors, the media, and others to review the information the Company publishes on social media. The Company does not selectively disclose material non-public information on social media. If there is any significant financial information, the Company will release it broadly to the public through a press release or SEC filing prior to publishing it on social media. Forward-Looking Statements The information contained herein may contain "forward‐looking statements." Forward‐looking statements reflect the current view about future events. When used in this press release, the words "anticipate," "believe," "estimate," "scheduled," "expect," "future," "intend," "plan," "project," "envisioned," "should," or the negative of these terms and similar expressions, as they relate to us or our management, identify forward‐looking statements. These statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial situation may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) supply chain delays; (ii) acceptance of our products by consumers; (iii) delays in or nonacceptance by third parties to sell our products; and (iv) competition from other producers of similar products. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the SEC, including, without limitation, our latest Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC's web site at www.sec.gov. As a result of these matters, changes in facts, assumptions not being realized or other circumstances, the Company's actual results may differ materially from the expected results discussed in the forward-looking statements contained in this press release. The forward-looking statements made in this press release are made only as of the date of this press release, and the Company undertakes no obligation to update them to reflect subsequent events or circumstances. SOURCE: Worksport Ltd. View the original press release on ACCESS Newswire

Achieved a 2,800 basis point gross margin improvement to 28% by shifting from private label contracts to 100% proprietary Worksport-branded production. Attributed top-line growth to the successful scale-up of the West Seneca, New York facility, which now supports high-volume domestic manufacturing of hard tonneau covers. Expanded the national dealer network sixfold to over 550 locations, reducing customer concentration risk by balancing direct-to-consumer and B2B channels. Secured ISO 9001 certification in April 2025, establishing the necessary operational framework to pursue Tier 1 OEM relationships with major automotive manufacturers. Managed raw material headwinds, specifically a 35% increase in domestic aluminum prices, through strategic price adjustments and improved overhead absorption. De-risked the commercial launch of clean-tech products by separating high-volume manufacturing in New York from complex R&D and assembly in Missouri. Targets fiscal 2026 revenue between $35,000,000 and $42,000,000, assuming stable aluminum prices and continued B2B channel expansion. Aims to reach a quarterly revenue threshold of $9,000,000 to $11,000,000 to achieve company-wide cash flow breakeven at a 35% gross margin target. Plans to expand the dealer network to 1,500 locations by the second half of 2026 through new distribution partnerships. Anticipates initial operational cash flow positivity in 2026 driven by the full-year impact of SOLIS and CORE products and a new 'game-changer' cover launch. Expects AetherLux to reach commercial readiness in 2026, though its potential financial contribution is currently excluded from formal guidance. Acknowledged a 'going concern' explanatory paragraph in the 10-K, characterizing it as a standard requirement for growth-stage entities with historical operating losses. Utilized a $6,400,000 warrant inducement and a tactical $4,000,000 ATM amendment to supplement cash flows for production capacity doubling. Identified significant tariff-related risks, noting that while hardcovers are U.S.-made, they are sensitive to domestic aluminum inflation driven by global trade policies. Maintains a defensive intellectual property moat consisting of 24 issued utility patents and 50 design patents to protect first-mover status in solar-integrated covers. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management noted that hitting the high end requires stable consumer demand for premium products and no further spikes in aluminum costs. Expressed concern that if aluminum inflation reaches 55-70%, it could force price hikes that lead to consumer 'dropouts' in conversions. Management is exploring all options including direct manufacturing, licensing, and potential divestiture or M&A. Claimed interest from global billion-dollar entities and OEMs for the SOLIS tonneau products 'shadows' the interest received for the AetherLux heat pump technology. Management expects a 'steady state' or tightening of marketing spend after front-loading branding expenses in 2025. The focus will shift toward performance marketing that reinforces the brand rather than just driving raw impressions. Confirmed that while initial sales began in late 2025, a 90-to-120 day delay is expected before these products 'really cook' due to the recent release of marketing assets. Stated that 1,000 CORE units and 900 battery packs represent a near-term $2,500,000 revenue opportunity. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.

Image source: The Motley Fool. March 26, 2026 at 4:30 p.m. ET Chief Executive Officer — Steven F. Rossi President — Michael D. Johnston Head of Investor Relations — Faran Ali Steven F. Rossi: 25 in our full fiscal 2025. These results filed today at 4:01 PM or thereabouts in our Form 10-K and can be downloaded from the link provided in the chat. On today's call, alongside our financial performance, we will review our operating execution across the flagship hard tonneau cover offerings, progress on the commercial launch of our SOLUS and CORE offerings, our capital position, and the key strategic priorities we are focused on as we move into 2026. Before we begin, I wanted to frame this call the right way. 2025 was a year of real top-line growth and significant margin improvement. Full-year net sales nearly doubled to $16,100,000. And gross margins improved 2,800 basis points to 28% from 11% in 2024. Both are significant as they were achieved through a combination of expanding our product offerings and increasing our presence in both direct-to-consumer and business-to-business sales channels. Our fiscal 2025 strategy is to expand our presence in multiple sales channels, introduce new products, and increase our market capture resulting in a net operating loss and increased use of our cash otherwise generated from our growing operations. Our use of cash to support operations did not grow at the same rate as our net sales. To address our need for both operating and investing activities during fiscal 2025, we supplemented our cash flows with external capital. This strategy complements our intentions to capture more meaningful market share from our very large competitors. That is the right context for evaluating our results. That stated, we still have work ahead of us. We are evolving with additional product offerings and recent learned experience of navigating entry and growth in different sales channels. We have all the pieces in place to make the years ahead transformative, with a keen focus on lean operations and generating positive operating cash flows. Our time and investments through the end of fiscal 2025 have set the right foundation for fiscal 2026 and beyond. We successfully transformed the product capitalization to market delivery. We increased our brand and sales channel distribution presence both with direct-to-consumer and business-to-business customers. Most importantly, the lessons we learned along the way now create a clear pathway forward. Our recent remarks will follow a slide presentation. After our prepared remarks, we will open the line for questions. At the end of today's call, our prepared remarks and presentation deck will be available for download as always at investors.worksport.com. And so with that, let us begin. Safe harbor statements. During this call, we will make forward-looking statements, including statements regarding our financial outlook for the full year 2026, our expectations regarding the financial and business trends, impact from the macroeconomic environment, our market positions, opportunities, go-to-market and growth strategies, and business aspirations, our product initiatives, and the expected benefit of such initiatives. These statements are only predictions that are based on current beliefs, expectations, and assumptions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict and many of which are outside of our control. Actual results or events may differ materially. Therefore, you should not rely on any of these forward-looking statements. These forward-looking statements are subject to risks and other factors that could affect our performance and financial results, which we discuss in detail in our filings with the SEC, including our annual report on Form 10-Ks, quarterly reports on Form 10-Q, and other SEC filings. The forward-looking statements made in the earnings call are made only as of today's date. Worksport Ltd. assumes no obligation to across multiple product lines. We will then address our risk profile, liquidity and capital strategy to provide clear context on our financial profile. From there, we will walk through a detailed financial review, including full year and sequential performance, margin expansion, net sales quality, and operating leverage. We will then cover our operational execution, including manufacturing scale-up, distribution expansion, and key product milestones across our tonneau cover product offerings. Next, we will review the commercial launch and positioning of SOLUS and CORE, followed by progress at our subsidiary, Terravis Energy, and its AetherLux platform. We will also address multi-supply chain dynamics, tariff impacts, and our intellectual property strategy. Finally, we will conclude with our fiscal 2026 financials, including key milestones, our path to cash flow positivity, and the strategic priorities driving the next phase of growth. Let me start with four key takeaways. First, fiscal 2025 was a year of strong net sales expansion. Net sales increased 89.8% year over year to $16,100,000, following fiscal 2024 net sales of $8,500,000. The scale-up of our business over the last two years is clear. Last year's jump from $8,000,000 to $16,000,000 demonstrates a clear demand for our product offering. Recent and forthcoming product launches provide fresh offerings to market participants. We are still growing and expanding our brand presence in the markets across multiple sales channels. Second, our gross margin profile improved materially. Full-year gross margins moved to 28% in fiscal 2025 from 11% in fiscal 2024. On a derived basis, fourth quarter 2025 gross margin was about 30% compared with roughly 11% in the fourth quarter of 2024. Our margin expansion consistently grew as we enhanced our market presence in 2025. Third, we turned several long-running development programs into commercial activity. Our HD3 cover transition into production began contributing to net sales in 2025. Our SOLUS and CORE product offerings launched commercially in December 2025. These are important developments, but investors should also understand that these launches came late in the year and did not significantly contribute to our fiscal 2025 financial results. Further, these efforts impacted our needs for operating cash flow without complementary liquidity conversion. We expect liquidity conversions from these efforts to otherwise enhance our financial projection in 2026. Fourth, Worksport Ltd. has evolved from an emerging brand into a recognized player in the $4,000,000,000 tonneau cover market. Our product offering differentiation and focus on quality have allowed us to increase our market presence in the last two fiscal years. Our dealer network alone expanded sixfold in fiscal 2025, now encompassing over 550 locations across the United States and Canada. But with over 17,000 dealers nationwide, we have only just begun. We are targeting aggressive expansion in fiscal 2026. More on that later. Our brand identity matured. Our brand maturity is supported by our ISO 9001 certification, which we received in April 2025. This certification is not just a badge, it is the prerequisite for Tier 1 OEM relationships. We are actively pursuing those. As we enter fiscal 2026, Worksport Ltd. stands as the only company currently offering a fully integrated solar and energy storage ecosystem for the light-duty truck market. I will now address our risk profile directly. Our fiscal 2025 Form 10-K includes an explanatory paragraph along management's assessment of the company's ability to continue as a going concern. This is a standard reporting requirement given our history of operating loss and as a growth-stage entity. Importantly, our growth has been outpacing our cost structure, reflecting improving operating leverage as we scale. With the foundational investments of 2025 now largely in place, our focus in 2026 shifts towards disciplined execution, monetization, and efficient capital deployment. Despite continued increases to one of our key raw components, aluminum, our margins continue to expand and we expect our operating cash burn to normalize as production overhead is further absorbed by growing sales volumes in fiscal 2026. We are targeting and managing initial signals of operating cash flow positivity in 2026. More on that later. We remain transparent regarding our use of the at-the-market offering program, otherwise known as an ATM. In 2025, we raised approximately $500,000 in net proceeds via the ATM. In November 2025, we amended our agreement to permit sales of up to an additional $4,000,000 to ensure tactical flexibility. We recognize the impact of dilution on our shareholders. We all feel it the same. Our strategy is to use the ATM only as a secondary tool. We evaluate and select the capital tools that are most advantageous to operating while being mindful of our shareholder responsibilities. We have historically prioritized the use of certain capital events such as the high-impact warrant inducement completed in December 2025, which brought in $6,400,000 at a fixed price. Every dollar of capital raised in fiscal 2025 has been tied directly to current and future operational return on investments, specifically, doubling our overall production capacity and strategically controlled R&D investments. With that, I will hand it over to Mike. Thanks, Steve. Michael D. Johnston: Let us take a deeper look at the net sales growth. Net sales growth is driven by the rapid scale of our made-in-America hard tonneau covers. In fiscal 2025, our hard tonneau covers segment generated $15,700,000 in net sales, while our soft cover segment contributed net sales of $500,000. The shift toward our hardcover product offerings is intentional; it reinforces our commitment to quality production while supporting higher market price points and better margin profiles. On a sequential basis, Q4 2025 net sales were $4,700,000 compared to $5,000,000 in Q3 2025. In 2025, management responded to continued pricing pressure of our raw material components by implementing a product price increase for both direct-to-consumer and business-to-business customers. The 5.4% sequential decline is attributed to the product price increase and directly impacted our promotional marketing efforts, which in turn both increased our marketing spend and decreased our sales volume. The impact is further amplified by the large contribution of the direct-to-consumer sales channel to net sales. Despite the price increase, our sales channels are stable and are on track to continue growth in fiscal 2026. More on this later. In 2025, our operational KPIs remained strong. We maintained a gross margin of 30.1% in Q4, which is a significant improvement over the 26.4% we recorded earlier in 2025. This sequential stability proves that our manufacturing processes are mature and can handle product mix shifts without significant margin erosion. Gross margin expansion is the most critical metric for our fiscal 2026 outlook. Our fiscal 2025 gross margin was 28%. Our fiscal 2024 gross margin was 10.7%. The expansion to nearly 30% in the latter half of fiscal 2025 was driven by two factors: higher capacity utilization at our New York factory and becoming more efficient with our production efforts. We plan to continue our focus on margin expansion and have set a stable target of 35% gross margin in fiscal 2026. We will continue to employ lean manufacturing principles while adding to our product portfolio and maximizing our production capabilities. Passing it back to Steve to talk about net sales mix and unit economics. Steven F. Rossi: Thanks, Mike. The quality of net sales-generating products also improved in fiscal 2025. Online retailer net sales increased 142% to $11,900,000 from $5,000,000 in 2024. Online retailers represented 74% of total net sales in 2025, compared with just 58% in 2024. Distributor and jobber net sales increased to $4,200,000 from $400,000 the year before. Most notably, there were no private label sales in fiscal 2025, whereas private label represented $3,100,000 or 37% of net sales in fiscal 2024. Every product that left our factory last year had a Worksport Ltd. label on it. We are proud of that. That strategic shift matters because our decisions to focus on proprietary production efforts complement our resulting margin expansion. We are no longer responding to the same sales channel mix demand that characterized fiscal 2024. The net sales mix in fiscal 2025 can be attributed to demand for our own branded products, especially through e-commerce and growing indirect distribution relationships. A mix within both channels complements our strategy to grow our brand without significant channel concentration or specific customers. We reduce customer concentration risk this way. Geographically, net sales remain Operator: Steve, this is operator. Just confirming that the audience can hear you. Steven F. Rossi: Am I coming through clearly? Operator: Yes, you are. You can continue at geographically net sales. Steven F. Rossi: My apologies, guys. Geographically, net sales remain overwhelmingly U.S.-based. U.S. net sales were $16,000,000, up 91% from fiscal 2024. That concentration is not surprising given our current sales channel footprint and market strategy. However, it does indicate meaningful room to broaden distribution over time, especially to international markets. Operator, am I still coming through clearly? Operator: Yes, you are. Steven F. Rossi: Okay. Chime in if I do not. I apologize for the unstable internet connection at times. Let us discuss the hard metrics of our production. Our primary production facility is located in West Seneca, New York, and is currently capable of producing over 125 units within a single eight-hour shift. In August 2025, we announced our strongest four-week production run since domestic operations began. Our unit economics have improved dramatically. In early 2024, our overhead absorption was a headwind due to low volumes. Today, as we approach phase one output levels, fixed costs are being allocated across a much larger base. To reach company-wide cash flow breakeven, we calculate that we need to sustain a quarterly revenue level between $9,000,000 and $11,000,000 at about 35% gross margin. This quarterly revenue target is highly influenced by the underlying sales mix between direct-to-consumer and indirect distribution, but is also influenced by our product mix. At our current growth rate, we are aggressively closing that gap and anticipate achieving net sales of $9,000,000 a quarter within the balance of this year. Mike will comment on our OpEx and cash position. Michael D. Johnston: Strategic focus as we enter fiscal 2026 includes diligent monitoring of our cash operating expenses. In fiscal 2025, our general and administrative expenses were $14,800,000. The $3,100,000, or 26%, increase was related to increased employment as we expanded our operations and further developed our product offerings. Excluding non-cash items, our growth in operational expenses is trending below our revenue growth. We have successfully insourced several business processes that were previously handled by high-cost third-party consultants, reducing our professional fees as a percentage of net sales. This is the definition of operating leverage. Our infrastructure is strong, and now every additional dollar of margin contribution has an even greater potential to impact our bottom line. Our net cash used in operating activities for fiscal 2025 is $17,200,000 compared to $10,100,000 in 2024. This increase reflects scaling our inventory resources as we begin to offer additional products to the market in Q4 2025, while also supporting our continued growth in multiple sales channels for our legacy tonneau cover offerings. At 12/31/2025, we had approximately $9,500,000 of inventory, of which 56% were raw materials. We are well positioned as we begin fiscal 2026 with diversified product offerings for multiple sales channels and expect higher liquidity to reinvest in our production efforts. We had $5,950,000 in cash and $3,400,000 available on our revolving line of credit as of 12/31/2025, a total liquidity position of over $9,300,000. Given our projected margin expansion and the expected revenue contribution from SOLUS and CORE in 2026, we believe this provides sufficient runway to reach initial operational cash flow positivity within 2026. Our expectation is to monitor our results and use our existing liquidity resources in a manner that both supports operational goals and decreases the need to seek financing through ongoing capital. I will now turn the call back to Steven to discuss our operational execution and product commercialization. Steven F. Rossi: Thanks, Michael. The financial results Michael just detailed are the output; the input is our operational execution on the factory floor and throughout our distribution network. Fiscal 2025 was about proving that Worksport Ltd. can manufacture in the United States with rigorous quality control. Quality is top of mind for us as we continue to achieve manufacturing milestones. Our initial ISO 9001 certification evidences our commitment to a quality product and demonstrates our ability to scale reliably even with our abbreviated active product production history. Our business-to-business sales channel is still in its infancy. During fiscal 2025, we rapidly expanded our footprint. In the third quarter alone, we grew our national dealer network by 42%. By mid-2025, our partner dealer network exceeded 550 locations across the United States, a nearly sixfold increase from the start of the year. This includes our strategic partnership with Patriot Automotive Technologies, which will support our efforts to accelerate our national penetration. Our tonneau cover business is systematically becoming a moat. By manufacturing high-quality hardcovers in New York, enforcing strict minimum advertised price policies to protect our dealers' margin, and supporting them with aggressive marketing, we are becoming a vendor of choice in the business-to-business sales chain. In November 2025, we announced a major expansion at our R&D facility in Ozarks, Missouri. This facility serves two vital roles. First, it is the primary assembly, testing, and distribution hub for our SOLUS solar-integrated covers and CORE portable energy products. Second, it effectively doubles our R&D footprint. By separating our high-volume tonneau cover production in New York from our complex clean-tech assembly in Missouri, we have de-risked the commercial launch of SOLUS and CORE. This geographical diversification also improves our logistics network, allowing us faster shipping to the critical Midwest and Southern markets. Our tonneau cover portfolio has never been stronger. By mid-2025, the premium AL4 achieved an 80% rollout, covering 20 of the 25 targeted vehicle models. In late October, we began production of the HD3 heavy-duty tonneau cover, which entered commercial sales in November. The HD3 is strategically priced for the business-to-business dealer network, protecting dealer margins while strengthening relationships within the jobber community. With a tiered lineup from entry-level SC3 soft-folding tonneau covers to premium AL4 and the professional HD3, we are now positioned to capture demand across the full $4,000,000,000 tonneau cover market. Importantly, with a now-mature product lineup, ISO-certified manufacturing, strengthened branding, and the investments made throughout 2025, we believe Worksport Ltd. is entering a new phase. We are operationally ready to scale. As we move into 2026, our focus shifts towards monetization and expansion. Prioritizing the largest revenue opportunities through national distribution, deeper penetration of our dealer network, and initial expansion into international markets such as Europe and Australia. In parallel, we will seek to advance OEM-level relationships with leading automotive manufacturers, including Ford, General Motors, and Ram, along with upcoming debutantes like Slate EV. A bonus note. In 2026, we plan to launch a next-generation cover that we believe will help shape the future of Worksport Ltd.'s hardcover product lineup, featuring patented capabilities not currently offered by competitors. Early feedback from select partners and prospective customers has been highly encouraging, many labeling this new cover as a game changer. We expect this product to see strong adoption within our sales channels and contribute meaningfully to net sales as we scale. Additional details, including product specifications and preorder campaign outcomes, are expected in early 2026. In late Q4 2025, we marked the commercial launch of our SOLUS and CORE product offerings. This is an important milestone for us as it validates our successful development journey of a long-running R&D program. The product positioning is clear. SOLUS is a solar-integrated folding tonneau cover aimed at power generation on-vehicle. CORE is a portable energy storage system for mobile, off-grid, backup, and vocational use and is designed for both function as a standalone or to integrate with SOLUS. Initially disclosed pricing direction during our Q3 2025 prepared remarks: the CORE starter kit at $949 and the SOLUS beginning at $1,999 and moving to $2,499 depending on fitment. We also described an initial rollout plan for 1,000 CORE units and 900 additional battery packs and a limited SOLUS release representing about $2,500,000 of near-term initial revenue opportunity. The key 2026 question is not whether these products launched. It is how fast they scale with acceptable margins and working capital discipline. Let us touch on Terravis Energy. Terravis Energy continues to deliver breakthrough innovation. In February 2025, we announced that AetherLux can operate in temperatures as low as negative 57 degrees without energy-intensive defrost cycles—the only heat pump in the entire world that has been tested to achieve this feat. Importantly, AetherLux is not limited to extreme climates. Our proprietary zero-frost technology has been tested to eliminate frost cycling altogether, a common source of energy loss, system strain, and inconsistent performance in everyday winter conditions, including major markets like Toronto here in Canada or New York. This enables more consistent efficiency, improved comfort, and reduced mechanical wear across a broad range of environments. AetherLux Pro has undergone due diligence and some site visits from multibillion-dollar corporations and U.S. government entities, including the Department of Energy's NREL Alaska laboratory. While tonneau covers drive the current revenue, Terravis' intellectual property represents a compelling opportunity tied to the global shift towards clean energy products, including high-efficiency HVAC. In late Q1 2026, we selected an established manufacturing partner. The product is expected to achieve certification in 2026 and is currently being evaluated by multiple government entities. Management believes this intellectual property represents a compelling addition to our overall value proposition. Before closing, I wanted to address the macroeconomic environment, specifically tariffs and supply chain risk, which remain top of mind for many investors. Our soft tonneau covers, along with a small percentage of raw material used for our hard folding tonneau covers, are sourced from China. While we experienced overall increased input costs during fiscal 2025 as a result of tariffs on imported goods, these cost increases did not impact our soft tonneau covers as no additional components were sourced during that time period. Our hardcovers are made in the USA. In fiscal 2025, domestic aluminum prices increased by more than 35% and are up over 50% since the start of fiscal 2024, driven by supply constraints and primarily tariff-related pricing pressures. In response, we implemented a pricing adjustment across our tonneau cover portfolio. While this led to a temporary decline in sales volume in Q4 2025, demand has started to stabilize across each of our sales channels, while also offering higher-margin products, and we are regaining momentum heading into 2026, into Q2 2026. Our portable energy products are currently manufactured using foreign lithium-ion supply chains. The current tariff environment has required adjustment to our price and go-to-market strategy. That said, we believe our unique SOLUS plus CORE system will be well received once the proper commercialization of the product is achieved across all sales channels. We are also actively evaluating opportunities to transition towards a more domestic supply chain for the CORE over time. We continue to manage these risks proactively and strategically. As of 12/31/2025, we hold 24 issued utility patents and 50 issued design patents and registrations globally, with 95 utility and design applications currently pending. In addition, we have 43 trademark registrations and 15 pending trademark applications in various jurisdictions worldwide. We take a clinical approach to intellectual property enforcement and ensuring that our first-mover status in the solar tonneau space is defended against both domestic and international imitators. We are very excited about our recently submitted patent application for the AetherLux zero-frost system. Our intellectual property portfolio continues to serve as our defensible competitive advantage. Now to Mike. Michael D. Johnston: To reiterate the scalability of our product offerings, in fiscal 2025, our net sales grew by nearly 90%. During that same period, our core manufacturing and distribution matured and expanded to complement our customer demand across all sales channels. In fiscal 2026, we do not anticipate the need for major step-ups in each channel. We have the floor space. We have the machinery. And we have the ISO certification. Focus is now exclusively on increasing throughput and optimizing our sales funnel. This is the classic S-curve of growth. The heavy lifting of building the platform is done, and we are now entering the phase of accelerated market capture. Steven F. Rossi: Looking ahead to 2026, we have set clear measurable milestones. One, initial SOLUS and CORE ramp-up and margin contribution. Two, full rollout of the HD3, AL4, and AL3 lines to all 550-plus dealer locations. Three, launch of the game-changer hard-folding tonneau cover, expected to be a best seller. For the second half of the year, we target aggressive dealer network expansion to 1,500 locations through new distribution partnerships expected later this year, operational cash flow positivity, B2B and OEM partnership expansions for the SOLUS and CORE by getting our system across to additional customers via synergistic partnerships with other businesses. Michael D. Johnston: Our path to net cash flow positivity is driven by three pillars. First is net sales volume. Reaching a $9,000,000 net sales quarterly threshold that meaningfully produces contributions in excess of operational needs depends on a combination of sales volume mix and product mix. It is also impacted by our production efficiency. We plan to monitor these components regularly and anticipate reaching this target outcome in fiscal 2026. Second is margin mix. Increasing overall production provides margin lift as we use our resources more efficiently to support our sales growth. We also have diversified our product offerings, some of which provide more meaningful margin lift. Both product mix and sales channel mix will directly impact our ability to maximize margin efficiencies. Third is capital efficiency. We plan to concentrate our efforts on performance marketing efforts that reinforce our brand rather than solely focusing on brand impression to drive sales volumes. We also plan to monitor our need to incur additional costs to increase our visibility and impression given our size and the stage of our operations. We enter fiscal 2026 with a stronger cash position and double the availability on our line of credit facility when compared with the start of fiscal 2025, providing us the stability to execute this plan. Steven F. Rossi: We are entering fiscal 2026 with a focused plan to continue our accelerated growth strategy, but with a focus on leveraging our previous investments in brand awareness as well as commercialization of additional product offerings. We believe this approach will continue to generate margin lift and provide additional operating cash flows. For 2026, we expect revenue of $35,000,000 to $42,000,000 with gross margins of approximately 35%. Some highlights. Our guidance includes a full year's impact of three product offerings launched in late fiscal 2025. Our guidance includes the introduction of our game-changer product offering in early 2026. Our guidance reflects our commitment to driving efficiencies with operations as our company and our product offerings mature in the market. Our guidance assumes continued growth in our business-to-business sales channel, a market which grew during 2025 to be 26% of our sales mix. Some important notes. We remain focused on metrics such as EBITDA and positive operating cash flow within the strategy that includes responsible management of our liquidity. We plan to update investors as we continue to evaluate how the combination of sales mix and product mix impact key performance indicators. Our guidance excludes contributions from AetherLux, which is expected to reach commercial readiness in 2026. Our guidance also does not assume upside from a potentially faster-than-expected ramp-up of SOLUS and CORE. Our guidance excludes potential impacts that may arise from the current geopolitical environment. For example, our guidance assumes that aluminum prices stay stable at the current prices and do not decrease back to a more normal baseline. Why Worksport Ltd.? Why now? To our investors, I encourage you to consider the transformation we have achieved. Just two years ago, Worksport Ltd. was a pre-revenue development-stage company. Today, we have demonstrated our ability to scale and grow—growing net sales from approximately $1,500,000 in 2023 to $8,500,000 in 2024 to $16,100,000 in 2025. Over that same period, gross margins improved from 11% to 28%, exceeding 30% in late 2025. At the same time, we have significantly strengthened the foundation of our operation. We expanded our sales channels positioning, reducing our indebtedness, and brought multiple products to market including HD3, SOLUS, and CORE. We also continue to invest our efforts to develop our AetherLux product, which may serve as a long-term value driver. Our efforts with our intellectual property provide a comfortable competitive advantage. With these milestones achieved, we can now focus on execution, scaling throughput, and driving towards sustained profitability. Thank you. This marks the end of our presentation. Turning the call back to the operator for Q&A. Faran Ali: Worksport Ltd. is now opening for Q&A. We welcome live questions from analysts attending the call. Investors attending the call can write their questions within the Q&A section of the Zoom call or are able to email us at [email protected]. We have Scott Buck here. Scott, you can go ahead with your question. Hi. Good afternoon, guys. Thanks for the time. Steven, I am— Scott Christian Buck: How should we think about the difference between the high end and the low end of the '26 revenue guide? What needs to go right to end up closer to that high end? Steven F. Rossi: Well, we have—there are a lot of different things, bottom-up, top-down. Top-down faces the market and its demand. Fuel prices, purses get tighter. Right? So to that extent, we are hoping that the economy stays strong. We are hoping that base fuels and energy stay affordable and do not pinch at the pocket. And we are hoping that the consumer stays active in the market. Tonneau covers are a must-have, but if people are more budget conscious, of course, premium tonneau covers and CORE-type products might be something that is not purchased as actively. So we might feel economic constraints. From the bottom-up, we are obviously very, very cognizant. Domestic inflation as a result of global tariffs has been significant. A 50% increase on American aluminum because of foreign tariffs—definitely not what I think the intention was with foreign tariffs. So if we continue—if it goes to 55%, 60%, 70%, it erodes margin, leads to price increases that ultimately the average consumer pays, and that $1,000 product turns into a $1,100 product, which might have some dropouts in terms of conversions, if that makes sense. So we are hoping that everything stays stable on the bottom-up, cost, supply chain, and then everything stays strong on the consumer side, and the economy continues to show signs of strength. Scott Christian Buck: Great. That is very helpful. And then I wanted to ask about the heat pump business. How do you envision the monetization there? Are you going to manufacture and market and sell, or potentially license that technology, or could that even be a potential divestiture down the road? Steven F. Rossi: We have considered and had meaningful conversations about almost all options, from divestitures to licensing. So when we released SOLUS, the quality of customer that reached out to us via LinkedIn, emails, these types of things, was huge—various OEMs—and we were so excited. I could say that it shadows the interest in terms of what came from AetherLux. The global billion- and trillion-dollar entities that reached out to Worksport Ltd., Terravis on that—being interested in helping bring the product to market or M&A and these types of things—continues to be significant. So we are going to explore all options, but what I think is important for you as an analyst and any investor shareholders to know is we know how to bring something from nothing to market. If nothing were to happen or we chose the path of bringing product to market and you were to say build it, stock it, and sell it, we know how to do that. And we have shown that from our ramp in sales. And a product that is something for everybody, like the heat pump, has a much larger—I mean, it dwarfs the tonneau cover market. I think it is— Scott Christian Buck: On sales and marketing expense, you know, a nice step up in 2025. Should we continue to see that move higher in '26, or have you reached kind of a steady state there on the marketing budget? Steven F. Rossi: Steady state. We are going to tighten up. We front-loaded expenses for marketing and branding, and we are going to try to tighten that up for this year. Scott Christian Buck: Okay. Perfect. Well, congrats on all the progress, guys. Looking forward to '26. That is all I have. Faran Ali: Thank you, Scott. Steve, we have a question from the audience. Will L. His question is if there are any new relationships with truck lines. I am assuming he means OEM trucks, like a partnership and plan. Steven F. Rossi: Yes. Obviously, OEM discussions are always—We know all the major automakers, and we think that there is a right time for that. I think that we are mature now, and that is what ISO is for. So we do have relationships. As they become material, we will announce them. And I think OEM is definitely in the cards for us this year. Faran Ali: There is another question about the SOLUS and CORE and if we can comment on the current sales as well as sales forecast. Steven F. Rossi: Yes. We have 1,000 CORE products and almost 1,000 additional batteries because it is an unlimited energy system. Sales initially have been pretty strong, but you have to think that when we received the product from contract manufacturing is when we received assets to be able to make marketing. We did not have prototypes. If you are going to make one, you are going to make 1,000, if that makes sense. So all the marketing has just—all the marketing assets have just become released. So to that extent, sales and interest were okay for January, February, March. But we only just released all the right marketing assets to get it to dealers, to get it online, to get it on our website—the videos, these types of things. We have always expected that there would be a 90- to 120-day delay to get the product really cooking. So we will have more news in the second half of this year or at least in Q2 and beyond. Faran Ali: Awesome, Steve. And we are going to take one more question here. There are a lot of other questions that are left unanswered. I encourage investors to email me at [email protected]. But we will take this question regarding the strength of intellectual property regarding AetherLux and if we anticipate any competitors in the shadow with the same technology. Steven F. Rossi: So far, we do freedom-to-operate. We do patent checks. We do disclosure checks. We check the market. We are fairly thorough. We have on-staff legal expertise in patents. To that extent, we think that we have a very strong IP asset in the making with the AetherLux patent. We think it is defensible, very defensible. We protect our intellectual property with vigor, and we do not think that anything like this exists that we have been able to find or hear about. There has been nothing close to it, and no other government entity or other business, including other manufacturers that we have spoken to—global manufacturers—none of them have said that they have anything close to this type of technology. So we remain very, very enthusiastic about the opportunity for AetherLux. Faran Ali: Fantastic. Well, thank you again, Steve and Mike, for doing the presentation. I have put my email in the chat to any remaining questions, which is [email protected]. And if you would like to meet with management one-to-one, feel free to email us. We are happy to get that scheduled. Thank you for being an investor, and have a great day. Operator: Thank you, everyone. Before you buy stock in Worksport, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Worksport wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Worksport (WKSP) Q4 2025 Earnings Call Transcript was originally published by The Motley Fool