EXCLUSIVE: Worksport's Q3 Revenue Soars 581% As New Product Lines Boost Growth, Raises 2025 Outlook

On Wednesday, Worksport Ltd WKSP reported third-quarter 2024 financial results, showcasing revenue growth and strong guidance for 2025.

Worksport’s third-quarter revenue grew 581% year-on-year to $3.12 million, topping the analyst consensus estimate of $2.40 million. The revenue grew 63% quarter-over-quarter.

The rapid growth reflects the successful scaling of both B2B and B2C channels and the growing demand for Worksport’s innovative products.

Also Read: EXCLUSIVE: Worksport Accelerates B2B Growth as Dealers Snap Up New AL4 Pre-Orders

The gross profit increased 176% year over year to $0.24 million. It reported an operating loss of $3.91 million, which was flat year over year as operating costs rose 3.6% year over year.

The net loss was $4.13 million, down from a $3.95 million loss year ago. EPS loss of 14 cents missed the analyst consensus of 13 cents loss.

Worksport’s direct-to-consumer sales soared from $21,599 in the third quarter of 2023 to $1.59 million in the third quarter of 2024, accounting for 51% of total revenue.

The company held $1.86 million in cash and equivalents as of September 30.

Worksport began selling to a U.S. government agency, paving the way for further expansion in this segment.

Worksport said the upcoming AL4 tonneau cover will be released in the fourth quarter and is expected to drive substantial revenue in 2025. Meanwhile, the SOLIS and COR products are in Alpha testing, with a full launch anticipated next year.

Worksport is on track to boost production capacity, targeting over 200 tonneau covers per day by 2025. This scale-up aims to meet rising demand while enhancing margins, driven by the launch of new, high-demand product lines.

In the third quarter, the company maintained an inventory of $6.1 million, positioning itself for steady revenue growth without significant capital outlay. Worksport expects to exceed its 200-cover daily target without substantial time or financial investment.

Steven Rossi, Worksport’s Founder & CEO, said, “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.”

Guidance: Worksport expects to exceed previously issued revenue guidance of $6 million—$8 million by year-end 2024, compared to the analyst consensus estimate of $7 million.

For 2025, Worksport projects its existing product lines will generate $20 million in revenue, with new product launches, including its COR and SOLIS systems, contributing up to an additional $18.5 million.

Depending on timing circumstances, these projections lead to a robust revenue outlook of $25 million—$34.5 million for 2025 (analyst consensus estimate of $28.8 million).

Price Action: WKSP stock closed higher by 5.10% to $0.87 on Wednesday.

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