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Worksport ($WKSP) Reports Significant 581% YoY Revenue Growth in Q3 2024, Eyes Record 2025

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Worksport (NASDAQ: WKSP) reported significant growth in Q3 2024, with revenue surging 581% year-over-year to $3.12 million compared to $458,433 in Q3 2023. B2C sales increased dramatically from $21,599 to $1.59 million, representing 51% of total revenue. The company expects to exceed its 2024 revenue guidance of $6-8 million and projects 2025 revenue between $25-34.5 million. Worksport aims to achieve cash flow positivity in 2025, targeting production of 200 tonneau covers per day. New product launches include the AL4 tonneau cover in Q4 2024, with SOLIS solar cover and COR portable energy system planned for Q2/Q3 2025.

Worksport (NASDAQ: WKSP) ha riportato una crescita significativa nel terzo trimestre del 2024, con un incremento dei ricavi del 581% anno su anno, arrivando a 3,12 milioni di dollari rispetto a 458.433 dollari nel terzo trimestre del 2023. Le vendite al consumatore finale sono aumentate drasticamente, passando da 21.599 a 1,59 milioni di dollari, rappresentando il 51% del fatturato totale. L'azienda prevede di superare le previsioni di fatturato per il 2024, stimate tra 6 e 8 milioni di dollari, e proietta un fatturato per il 2025 tra 25 e 34,5 milioni di dollari. Worksport mira a raggiungere la positività del flusso di cassa nel 2025, con l'obiettivo di produrre 200 coperture per tonneau al giorno. I nuovi lanci di prodotto includono la copertura AL4 per tonneau nel quarto trimestre del 2024, con la copertura solare SOLIS e il sistema di energia portatile COR previsti per il secondo e terzo trimestre del 2025.

Worksport (NASDAQ: WKSP) reportó un crecimiento significativo en el tercer trimestre de 2024, con un aumento de ingresos del 581% año tras año, alcanzando 3.12 millones de dólares en comparación con 458,433 dólares en el tercer trimestre de 2023. Las ventas B2C aumentaron drásticamente de 21,599 a 1.59 millones de dólares, representando el 51% de los ingresos totales. La compañía espera superar su guía de ingresos de 2024, estimada entre 6 y 8 millones de dólares, y proyecta ingresos para 2025 entre 25 y 34.5 millones de dólares. Worksport tiene como objetivo alcanzar la positividad del flujo de efectivo en 2025, con la meta de producir 200 cubiertas para tonneau al día. Los nuevos lanzamientos de productos incluyen la cubierta AL4 para tonneau en el cuarto trimestre de 2024, junto con la cubierta solar SOLIS y el sistema de energía portátil COR planificados para el segundo y tercer trimestre de 2025.

웍스포츠 (NASDAQ: WKSP)는 2024년 3분기에 상당한 성장을 보고했으며, 지난해 같은 기간 대비 수익이 581% 증가하여 312만 달러에 달했습니다. 2023년 3분기에는 458,433 달러였습니다. B2C 판매는 21,599 달러에서 159만 달러로 급증했으며, 이는 전체 수익의 51%를 차지합니다. 회사는 2024년 수익 전망을 600만에서 800만 달러를 초과할 것으로 예상하고, 2025년 수익은 2500만에서 3450만 달러 사이로 예상하고 있습니다. 웍스포츠는 2025년에는 현금 흐름을 양성으로 전환할 계획이며, 하루 200개의 토노커버 생산을 목표로 하고 있습니다. 새로운 제품 출시에는 2024년 4분기에 AL4 토노커버가 포함되며, SOLIS 태양광 커버와 COR 휴대용 에너지 시스템은 2025년 2분기 및 3분기에 계획되어 있습니다.

Worksport (NASDAQ: WKSP) a enregistré une croissance significative au troisième trimestre 2024, avec des revenus en hausse de 581% d'une année sur l'autre, atteignant 3,12 millions de dollars par rapport à 458 433 dollars au troisième trimestre 2023. Les ventes B2C ont considérablement augmenté, passant de 21 599 à 1,59 million de dollars, représentant 51% des revenus totaux. L'entreprise s'attend à dépasser ses prévisions de revenus pour 2024 estimées entre 6 et 8 millions de dollars, et projette des revenus pour 2025 compris entre 25 et 34,5 millions de dollars. Worksport vise à atteindre une rentabilité de flux de trésorerie en 2025, avec un objectif de production de 200 couvertures de tonneau par jour. Les nouveaux lancements de produits incluent la couverture AL4 pour tonneau au quatrième trimestre 2024, avec la couverture solaire SOLIS et le système d'énergie portable COR prévus pour le deuxième et le troisième trimestre 2025.

Worksport (NASDAQ: WKSP) hat im dritten Quartal 2024 ein signifikantes Wachstum gemeldet, mit einem Umsatzanstieg von 581% im Jahresvergleich auf 3,12 Millionen Dollar, verglichen mit 458.433 Dollar im dritten Quartal 2023. Der B2C-Umsatz stieg dramatisch von 21.599 auf 1,59 Millionen Dollar, was 51% des Gesamtumsatzes entspricht. Das Unternehmen rechnet damit, die Umsatzprognose für 2024 von 6 bis 8 Millionen Dollar zu übertreffen, und prognostiziert für 2025 einen Umsatz zwischen 25 und 34,5 Millionen Dollar. Worksport strebt an, im Jahr 2025 ein positives Cashflow zu erreichen und plant die Produktion von 200 Tonneau-Abdeckungen pro Tag. Zu den neuen Produkteinführungen gehört die AL4 Tonneau-Abdeckung im vierten Quartal 2024, mit der SOLIS-Solarabdeckung und dem tragbaren Energiesystem COR, die für das zweite und dritte Quartal 2025 geplant sind.

Positive
  • Revenue grew 581% YoY to $3.12M in Q3 2024
  • B2C sales increased dramatically from $21.6K to $1.59M
  • Maintained strong inventory position of $6.1M
  • Initiated sales to U.S. government agency
  • Projects significant revenue growth to $25-34.5M in 2025
Negative
  • Operating loss of $3.91M in Q3 2024
  • Net loss increased to $4.13M in Q3 2024
  • Gross profit margin decreased to 7.9% in Q3 2024
  • Cash position declined to $1.86M from $3.37M at year-end 2023

Insights

The 581% YoY revenue growth to $3.12 million in Q3 2024 marks a significant milestone for Worksport. Key growth drivers include a dramatic surge in B2C sales from $21,599 to $1.59 million, now representing 51% of total revenue. The company's ambitious $25-34.5 million revenue projection for 2025 appears supported by growing production capacity and inventory position of $6.1 million.

However, concerns persist around profitability with a quarterly net loss of $4.13 million and operating expenses of $4.15 million. The gross margin remains thin at 7.9%, though inventory buildup suggests potential for margin expansion as production scales. Cash position declined to $1.86 million from $3.37 million, warranting close monitoring of burn rate against growth trajectory.

The strategic expansion into government contracts and launch of new product lines positions Worksport well in the growing truck accessories market. The AL4 tonneau cover launch in Q4 2024, followed by SOLIS solar cover and COR energy system in Q2/Q3 2025, creates multiple revenue streams. The company's first-mover advantage in solar-integrated covers could be particularly valuable.

However, the $23 million market cap suggests investors remain cautious about execution risks. The Nasdaq compliance extension and high operating expenses indicate challenges in achieving profitable scale. Success will largely depend on the market reception of new products and ability to maintain growth while improving operational efficiency.

Company Announces Consecutive Surge in Quarterly Revenues; Provides Positive Outlook for Fiscal Year 2025; Ongoing Expansion and New Product Lines Fuel Momentum

West Seneca, New York--(Newsfile Corp. - November 13, 2024) - Worksport Ltd. (NASDAQ: WKSP) ("Worksport" or the "Company"), a U.S.-based manufacturer and innovator of hybrid and clean energy solutions for the light truck, overlanding, and global consumer goods sectors today announced its Q3 2024 financial results. Worksport shares another consecutive quarter of revenue growth and positive outlook for financial year-end 2025.

Q3 revenue surged to $3.12 million-a 581% year-over-year increase compared to $458,433 in Q3 2023. This rapid growth reflects continued scaling of both B2B and B2C channels and the growing demand for Worksport's innovative products. Following a 275% revenue increase from Q1 to Q2 2024, Q3 revenue grew another 63% from Q2 2024, underscoring the strength of the Company's strategic investments and the success of its recent sales initiatives. Worksport believes it will exceed previous financial guidance of $6-8M by year-end 2024, and below issues guidance for year-end 2025.

Steven Rossi, Worksport's Founder & CEO, stated:

"Our Q3 results are just the beginning. With our robust product pipeline and aggressive market penetration strategies, we are on a trajectory for sustained growth. Our goal is to become cash flow positive in 2025, with a keen focus on EPS and EBITA. We are targeting revenue growth to $25-$34.5 million in 2025. We are excited about the significant impact our products, including the AL4 tonneau cover, SOLIS solar cover, and COR portable energy system, are expected to have as we enter next year."

Upcoming Products & Strategic Path to Profitability:

Worksport continues to expand its production capacity and expects to meet its next production target of making over 200 tonneau covers per day within 2025. This increase in capacity should enable the Company to meet growing demand while notably increasing margins, driven by new high-demand, high-margin product lines. In Q3, the Company maintained an inventory balance of $6.1 million, strategically positioned to support sustained revenue growth without the need for major capital investments. The Company believes it can increase its ability to produce beyond 200 covers without significant time or capital investment.

Additional Highlights Include:

  • B2C Sales Growth: Online sales increased from $21,599 in Q3 2023 to $1.59 million in Q3 2024, now making up 51% of total revenue.
  • Government Sales Traction: Worksport initiated sales to a U.S. government agency, positioning itself for potential future business development.
  • New Product Launches: The highly anticipated AL4 tonneau cover is set to debut in Q4 this year and is expected to contribute significantly to revenue growth in 2025, while the SOLIS and COR products are in Alpha testing, with a full market launch slated for Q2/Q3 next year.

Strategic Market Position and Forward Guidance

Worksport expects to exceed its previously issued revenue guidance of $6-8 million by year-end 2024.

Worksport's growth is underpinned by its diversified portfolio, intellectual property, team experience, and its newly launched online presence. With the pickup truck market continuing to lead vehicle sales and Worksport's first-to-market solar-integrated tonneau cover SOLIS on the horizon, the Company believes it is well-positioned to capture market share in both the automotive accessory and clean energy sectors. Complemented by the COR portable energy system, Worksport's growth potential continues to become strong in 2025 and beyond.

For 2025, Worksport projects its existing product lines to generate $20 million in revenue, with new product launches, including its AL4 cover and COR and SOLIS systems, contributing up to an additional $18.5 million. Depending on timing and circumstances, these projections lead to a robust revenue outlook ranging from $25 million to $34.5 million in 2025, a pivotal year anticipated to drive Worksport towards cash flow positivity.

Worksport Q3 Earnings Call

For detailed insights on the quarter, and management commentary, please attend the Q3 2024 Earnings Call. It will occur at 4:30pm ET on Wednesday November 13, 2024. You may attend with this link: [Worksport Q3 2024 Earnings Call]

The prepared remarks will also be available at Worksport's Investor Relations website.

Investor Inquiries May Be Directed To:

Investor Relations, Worksport Ltd.
T: 1 (888) 554-8789 x128
W1: https://investor.worksport.com
W2: www.worksport.com
E: investors@worksport.com

Worksport Quarter 3, 2024 Report, Item 1. Financial Statements

The Company has included the Financial Statements section below from the 'Full Worksport Q3 2024' For Quarterly Period Ended: September 30, 2024. Investors are encouraged to read the full 10-Q along with the Prepared Remarks, both linked above.

Item 1. Financial Statements

Worksport Ltd.
Condensed Consolidated Balance Sheets

 September 30, 2024 (Unaudited)December 31,
2023
Assets
Current Assets
 Cash and cash equivalents$1,857,685$3,365,778
 Accounts receivable, net466,442463,122
 Other receivable153,967165,865
 Inventory (note 4)6,138,0603,631,492
 Related party loan (note 8)14,303-
 Prepaid expenses and deposits (note 5)256,6001,497,249
 Total Current Assets8,887,0579,123,506
Investments (note 10)90,73190,731
Property and Equipment, net (note 6)13,966,21014,483,436
Right-Of-Use Asset, net (note 11)658,152917,354
Intangible Assets, net 1,337,0081,338,889
 Total Assets$24,939,158$25,953,916
Liabilities and Shareholders' Equity
Current Liabilities
 Accounts payable and accrued liabilities$2,456,000$1,451,181
 Payroll taxes payable111,59185,010
 Related party loan (note 8)-2,192
 Current portion - Long term debt (note 12)190,0005,300,000
 Current lease liability (note 11)248,540328,229
 Total Current Liabilities3,006,1317,166,612
Long Term - Lease Liability (note 11)433,214608,761
Long Term Debt (note 12)5,136,738-
Total Liabilities8,576,0837,775,373
 
Shareholders' Equity
Series A & B Preferred Stock, $0.0001 par value, 100,100 shares authorized, 100 Series A and 0 Series B issued and outstanding, respectively (note 7)--
Common stock, $0.0001 par value, 299,000,000 shares authorized, 30,920,397 and 17,436,805 shares issued and outstanding, respectively (note 7)3,0922,032
Additional paid-in capital72,512,08564,685,693
Share subscriptions receivable(1,577)(1,577)
Share subscriptions payable4,034,2051,814,152
Accumulated deficit(60,176,150)(48,313,177)
Cumulative translation adjustment(8,580)(8,580)
Total Shareholders' Equity16,363,07518,178,543
Total Liabilities and Shareholders' Equity$24,939,158$25,953,916

 

The accompanying notes form an integral part of these condensed consolidated financial statements. Please click here to download the full 10-Q.

Worksport Ltd.

Condensed Consolidated Statements of Operations and Comprehensive Loss
For the Three and Nine Months Ended September 30, 2024 and 2023
(Unaudited)

   Three Months ended
September 30,
Nine Months ended
September 30,
   2024202320242023
   
Net Sales$3,122,359$458,483$5,556,535$690,259
 Cost of Goods Sold2,875,186368,7964,975,277541,841
   Gross Profit247,17389,687581,258148,418
   
Operating Expenses
 General and administrative2,875,2553,091,4888,495,9596,965,901
 Sales and marketing661,238380,8471,206,8071,473,910
 Professional fees 621,728539,1262,332,0692,899,190
 (Gain) loss on foreign exchange(5,832)(2,265)1,853(2,407)
   Total operating expenses4,152,3894,009,19612,036,68811,336,594
      Loss from operations(3,905,216)(3,919,509)(11,455,430)(11,188,176)
   
Other Income (Expense)
 Interest expense (229,701)(113,838)(487,463)(466,830)
 Interest income-38,9923,054237,598
 Rental income (note 17)-45,05776,866139,892
 Gain on settlement of debt---7,493
 Total other income (expense)(229,701)(29,789)(407,543)(81,847)
   
Net Loss$(4,134,917)$(3,949,298)$(11,862,973)$(11,270,023)
   
Loss per Share (basic and diluted)$(0.14)$(0.23)$(0.47)$(0.65)
Weighted Average Number of Shares (basic and diluted)29,432,79417,429,68525,540,75417,252,521

 

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. You may download the full 10-Q and accompanying earnings call remarks there: Q3 2024 10 Q & Earnings Call Prepared Remarks - Download Here

Key 2024 Press-Releases:

Read all Worksport press releases: [Link to All Press Releases].

Stay Connected

  • Investor Newsletter: Investors and customers are invited to follow Worksport's progress as it builds on this momentum and strives to redefine industry standards with each new corporate development. Link to Newsletter
  • Contact Information

Investor Relations, Worksport Ltd. T: 1 (888) 554-8789 -128 W: investors.worksport.com E: investors@worksport.com W: worksport.com

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, and NP (Non-Parasitic), hydrogen-based true green energy solutions for the sustainable, clean energy, and automotive industries. 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 RAM, Chevrolet, and GMC models from General Motors, as well as Ford, Jeep, Nissan, and Toyota pickup trucks. 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 NP (Non-Parasitic), Hydrogen-based technology. Terravis Energy's website is terravisenergy.com. For more information, please visit investors.worksport.com.

Connect with Worksport

Please follow the Company's social media accounts on X (previously Twitter), Facebook,

LinkedIn, YouTube, and Instagram (collectively, the "Accounts"), 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. 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.

Product social mediaInvestor social media
InstagramX (formerly Twitter)
Facebook
YouTube
LinkedIn
Link to Newsletter

 

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.

For additional information, please contact:

Investor Relations, Worksport Ltd. T: 1 (888) 554-8789 -128 W: investors.worksport.com W: www.worksport.com E: investors@worksport.com

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," "expect," "future," "intend," "plan," "project," "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 condition 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 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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/229841

FAQ

What was Worksport's (WKSP) revenue growth in Q3 2024?

Worksport's revenue grew 581% year-over-year to $3.12 million in Q3 2024, compared to $458,433 in Q3 2023.

What is Worksport's (WKSP) revenue guidance for 2025?

Worksport projects revenue between $25-34.5 million for 2025, with $20 million expected from existing product lines and up to $18.5 million from new products.

When will Worksport (WKSP) launch its SOLIS and COR products?

Worksport plans to launch its SOLIS solar cover and COR portable energy system in Q2/Q3 2025, following current Alpha testing.

What was Worksport's (WKSP) B2C sales growth in Q3 2024?

Worksport's B2C sales increased from $21,599 in Q3 2023 to $1.59 million in Q3 2024, representing 51% of total revenue.

Worksport, Ltd.

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