The strong sequential improvement in revenue, gross margin, and cash burn supports the thesis that Worksport is transitioning from investment phase to operating leverage. Monitor the next 10-Q for continued revenue growth, further cash burn reduction, and progress toward the CEO's stated goal of positive operating cash flow in H2 2026. The low cash balance ($1.16M) remains a risk if the trajectory stalls.
Price Chart
Executive Summary
Worksport reported Q2 2026 record revenue of $5.23M (+27.4% YoY, +57.9% QoQ), gross profit of $1.65M (+52.5% YoY, +93.2% QoQ), and gross margin expansion to 31.5% from 26.4% a year ago. Net loss narrowed 32% sequentially to $3.97M, and operating cash burn fell 58% to ~$3.44M. The company is still unprofitable with a $93.7M accumulated deficit and cash of only $1.16M, but the sequential operating leverage trend is clear and management targets positive cash flow from operations within H2 2026.
Key Facts
- Record Q2 net sales of $5.23M, up 27.4% YoY and 57.9% sequentially
- Gross profit $1.65M, up 52.5% YoY and 93.2% sequentially; gross margin 31.5% vs 26.4% YoY
- Operating expenses fell ~17% sequentially to $5.47M; operating loss narrowed ~34% to $3.82M
- Net loss improved ~32% sequentially to $3.97M ($0.33/share) from $5.83M ($0.54/share) in Q1
- Operating cash use dropped ~58% sequentially to ~$3.44M from $8.23M in Q1
- Cash and equivalents $1.16M at June 30, 2026, down from $5.95M at Dec 31, 2025
- Working capital $10.96M; inventory $12.07M; total shareholders' equity $19.08M
- CEO targets positive cash flow from operations within the remainder of 2026
Financial Impact
Record quarterly revenue of $5.23M; gross profit nearly doubled sequentially to $1.65M; operating cash burn reduced 58% to ~$3.44M
Risk Factors
- Cash and equivalents only $1.16M, down 80% from year-end 2025, raising near-term liquidity risk
- Accumulated deficit of $93.7M with no timeline to GAAP profitability
- Inventory of $12.07M is high relative to revenue run-rate, posing working capital risk
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 10 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (WKSP) — Batch item 1 | 0001437749-26-026996 |
| Document: wksp20260629_8k.htm | 0001437749-26-026996 |
| Document: 0001437749-26-026996-index-headers.html | 0001437749-26-026996 |
| Document: 0001437749-26-026996-index.html | 0001437749-26-026996 |
| Document: 0001437749-26-026996.txt | 0001437749-26-026996 |
| 8-K Filing (WKSP) — Batch item 6 | 0001437749-26-026996 |
| Document: wksp20260629_8k.htm | 0001437749-26-026996 |
| Document: 0001437749-26-026996-index-headers.html | 0001437749-26-026996 |
| Document: 0001437749-26-026996-index.html | 0001437749-26-026996 |
| Document: 0001437749-26-026996.txt | 0001437749-26-026996 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 14, 2026 13d ago | EFFECT | $0.3717 $0.3752 | ▼ −0.94% | ▼ −0.66% | $0.3240 (+12.83%) |
Oct 6, 2026 20d ago | 8-K | $0.3854 $0.3931 | ▲ +2.00% | ▲ +2.24% | $0.3240 (−15.93%) |
Aug 26, 2026 8w ago | 8-K | $0.5100 $0.6300 | ▲ +23.53% | ▲ +22.87% | $0.3240 (−36.47%) |
Aug 14, 2026 10w ago | 8-K | $0.6600 $0.6500 | ▲ +1.52% | ▲ +0.84% | $0.3240 (+50.91%) |
Aug 11, 2026 10w ago | 8-K | $0.6763 $0.6813 | ▲ +0.74% | ▲ +0.04% | $0.3240 (−52.09%) |
Jul 29, 2026 12w ago | 8-K | $0.5857 $0.6165 | ▲ +5.26% | ▲ +3.58% | $0.3240 (−44.68%) |
Jul 22, 2026 13w ago | 8-K | $0.6215 $0.6600 | ▲ +6.19% | ▲ +7.43% | $0.3240 (−47.87%) |
Jun 22, 2026 18w ago | 8-K | $0.8383 $0.8400 | ▲ +0.20% | ▲ +1.66% | $0.3240 (−61.35%) |
Jun 18, 2026 18w ago | 424B5 | $0.8383 $0.8400 | ▼ −0.20% | ▼ −1.66% | $0.3240 (+61.35%) |
Jun 9, 2026 19w ago | 8-K | $0.6366 $0.6326 | ▼ −0.63% | ▲ +0.95% | $0.3240 (−49.10%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Create a free account Live analysis, Telegram alerts, watchlists and the MCP server for subscribers