Revenue Climbs 90% to $16.1M as Gross Margin Expands
Worksport Ltd. (NASDAQ:WKSP) reported record financial results for the fiscal year ending December 31, 2025, signaling a successful transition from development to commercialization. Net sales grew by 89.8% year-over-year to $16.1 million, up from $8.5 million in fiscal 2024. This growth was fueled by a robust direct-to-consumer strategy, with online sales increasing 142% to $11.9 million and accounting for 74% of total revenue. Business-to-business sales also saw a dramatic increase, rising to $4.2 million from just $0.4 million in the previous year.
The company achieved significant improvements in profitability metrics alongside its sales growth. Full-year gross margin expanded to 28%, a substantial increase from 11% in fiscal 2024. Performance in the fourth quarter was particularly strong, with gross margins reaching approximately 30%. Management attributed this expansion to increased manufacturing efficiency and higher capacity utilization at its New York facility, which can now produce over 125 units per eight-hour shift.
Worksport Projects $35M Revenue, Targets Profitability in H2 2026
Building on its 2025 performance, Worksport issued bullish guidance for fiscal 2026, projecting full-year revenue between $35 million and $42 million. The company is also targeting a stable gross margin of 35% and expects to reach initial operational cash-flow positivity within the second half of 2026. This outlook is supported by a strategy focused on aggressive market penetration and a strong liquidity position, which included $5.95 million in cash and a total of $9.3 million in available liquidity as of year-end 2025.
A key driver for this growth is the planned expansion of its dealer network, which grew sixfold in 2025 to over 550 locations. The company aims to nearly triple this footprint to 1,500 locations by the end of 2026. This expansion follows the successful launch of its SOLIS solar-integrated cover and COR portable energy system in December 2025 and the achievement of ISO 9001 certification, a critical step for securing partnerships with major automotive OEMs.
2025 was a transformative year where we successfully bridged the gap from product conceptualization to large-scale market delivery. Our infrastructure is now built for scale.
— Steven Rossi, Founder & CEO.
