Slide 1: Q3 2025 Earnings Call
Worksport “jWorksport Q3 2025 Earnings Call y Worksport Ltd. 2025 Q3 Earnings Call [November 13th, 8:30AM ET] 4 NascaqwksP Q3 2025- Earnings Call
Slide 2: Welcome & Introduction
Welcome & Introduction Good morning, everyone, and thank you for joining Worksport's Quarter 3 2025 earnings call. I'm Steven Rossi, Chief Executive Officer of Worksport Ltd. With me today is our Chief Financial Officer, Michael Johnston. Today we'll walk through our financial performance, operating
Slide 3: Safe Harbor Statement
Safe Harbor Statement Forward-Looking Statements Inherent Uncertainties This presentation contains forward- Actual results may materially differ looking statements based on from projected outcomes due to management's current expectations market volatility, competitive and projections about future pr
Slide 4: Today's Agenda
Today's Agenda 01 02 Q3 2025 Key Performance Outcomes Production Scaling & Operational Execution 03 04 Tariff Environment & Cost Management SOLIS & COR Commercial Launch Roadmap 05 06 R&D Next Steps, including AetherLux Cash & Capital Strategy 07 08 202532026 Outlook & Path to Cash Flow Positivity K
Slide 5: Q3 2025 Key Performance Outcomes
Q3 2025 Key Performance Outcomes Q3 was another solid step forward in Worksport's growth journey4our third consecutive quarter of growth. $5.0M 31.3% $6.3M $2.9M Net Sales Gross Margin Working Capital Total Indebtedness 61% growth year-over-year and Up from 7.9% in Q3 2024 and In addition to a healt
Slide 6: Q3 2025 Revenue Growth Drivers
Q3 2025 Revenue Growth Drivers Worksport's growth is being led by the rapid scale-up of our U.S.-made tonneau cover production. $6,000,000.00 AL4 Hard Cover Growth Strong continued growth from the AL4 hard cover launched in late Q1 2025 $4,000,000.00 Expanded Distribution $2,000,000.00 Expanded rela
Slide 7: Q3 2025 Margin Expansion
Q3 2025 Margin Expansion 36 24 12 0 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Gross margin is one of the clearest proof points of our strategy. Key Drivers Future Outlook Higher production throughput and fixed-cost absorption in our U.S. production facility We are now operating solidly in the 30%+ mar
Slide 8: Q3 2025 Operating Expenses
Q3 2025 Operating Expenses In Q3, operating expenses totaled $6.4 million, compared with $4.2 $3,000,000.00 million in Q3 2024 and $4.7 million in Q2 2025. The increase mainly reflects growth investments and marketing costs tied to the AL4 product launch and our Regulation A offering completed in Oc
Slide 9: Cash Flows & Liquidity
Cash Flows & Liquidity For the first nine months of 2025, our cash position reflects disciplined investment and growth financing activities. Operating Cash Flow Investing Activities Financing Inflows Net cash used in operations: $11.2 million, Cash outflow: $485 thousand for $7.1 million from warran
Slide 10: Strengthened Balance Sheet
Strengthened Balance Sheet We continue to improve our leverage profile while managing our obligations. Total Indebtedness Reduction As of September 30, 2025 Total indebtedness: $2.9 million (down from $4.8M on December 31, 2024) Dec 31, 2024 Revolving credit facility: $1.6 million Other term debt: $
Slide 11: Revenue, Margin, Expenses - Management's Take
Revenue, Margin, Expenses - Management9s Take Our path to profitability is becoming clearer each quarter, supported by stronger unit economics and upcoming revenue catalysts. Gross Margin Operating Leverage Revenue Scale Now consistently above 30%, up from under Year-to-date revenue up 60%+ while G&
Slide 12: Production Scaling & Operational Excellence
Production Scaling & Operational Excellence In Q3, we've built a scalable, ISO 9001:2015-certified manufacturing base. Q3's 31.3% gross margin is the financial proof of that operational capability. 2,499 50% Tonneau Covers Produced Q4 Production Increase In a 4-week stretch from early to late July 2
Slide 13: Tonneau Business: The Profit Engine
Tonneau Business: The Profit Engine After years of strategic investment, our hard folding tonneau cover division is now Worksport's near-term economic engine. U.S. Manufacturing Advantage Proven Margin Expansion U.S.-made with rising brand 35%+ gross margins at current recognition and multi-channel
Slide 14: Tariff Impact & Competitive Advantage
Tariff Impact & Competitive Advantage We continue to operate in a dynamic tariff and trade environment. While tariffs remain a headwind, they are manageable and, in the tonneau cover market, increasingly serve as a competitive tailwind for Worksport. U.S. Manufacturing Advantage Cost Containment The
Slide 15: HD3 Launch: Expanding Our Tonneau Lineup
HD3 Launch: Expanding Our Tonneau Lineup As of October 21, 2025, the Worksport HD3 tonneau cover is now in production. With initial sales expected to begin to B2B customers in November 2025, followed by sales to online customers later this year. HD3 Heavy-Duty Tonneau Cover The HD3 is a heavy-duty t
Slide 16: SOLIS & COR: From Investment to Revenue
SOLIS & COR: From Investment to Revenue After years of engineering, tooling, certification, and partnership investment, SOLIS and COR are now set to be released for orders later this month. What has been pure operating and capital expense is expected to become a visible, high-margin revenue stream b
Slide 17: SOLIS & COR Strategic Positioning
SOLIS & COR Strategic Positioning SOLIS Solar Tonneau A margin-accretive product leveraging our tonneau expertise to enter the premium solar tonneau cover product channel. COR Portable Energy System A modular portable energy system designed as a recurring revenue platform, driving stable, cash flow3
Slide 18: R&D Roadmap: 2026 & Beyond
R&D Roadmap: 2026 & Beyond In 2026, we aim to transition R&D from heavy foundational build to commercial optimization and platform leverage. 1 2 3 SOLIS & COR Optimization Tonneau Cover Expansion AetherLux Development Finalize launch execution and early Growing the HD3 product Advance pilots and par
Slide 19: Operating Leverage Roadmap
Operating Leverage Roadmap Our operating model priorities for 2025 into 2026 support our transition from capital-funded mindset to operations-funded growth. Slow OpEx Growth Sustain 35%+ Gross Margins Especially in Sales & Marketing. Treat Q3's elevated spending as Maintain manufacturing efficiency
Slide 20: Risk Management & Mitigation
Risk Management & Mitigation We are clear-eyed about the key risks and have strategies in place to address them. Key Risks Mitigation Strategies Ongoing net losses & going concern language in our 10-Q, Tighten spend to initiatives with measurable ROI reflecting reliance on external capital and execu
Slide 21: 2025-2026 Outlook
202532026 Outlook Q3 2025 ARR 2025 Year-End Projection $20.4 million4a substantive leap from $8.5 million in 2024 $17.0 to $21.0 million in revenues 1 2 3 4 Q4 2025 Expected 2026 Growth Drivers Continued tonneau growth and channel expansion, plus initial SOLIS & U.S. Tonneau Cover net sales: $27.0 t
Slide 22: Path to Cash Flow Positivity 1H 2026
Path to Cash Flow Positivity 1H 2026 Projecting: Operating cash flow positivity during first half of 2026 Stable Margins Infrastructure Leverage Maintain 35%+ gross margins Increasing sales with higher utilization of existing manufacturing and distribution infrastructure Cost Control New Revenue Str
Slide 23: Key Takeaways
Key Takeaways High-Margin U.S. Manufacturing Nationwide Distribution Built a scalable platform with rapid revenue growth and 30%+ Established strong relationships with national distributors and margins retail chains Clean-Tech Platform Ready Clear Path Forward SOLIS, COR, and AetherLux positioned on
Slide 24: Question & Answer Session
Question & Answer Session Worksport is now opening the floor for Q&A. We welcome live questions from the analysts attending the call. Investors attending the call are encouraged to email investors@worksport.com with their questions and we will get back to you. Q3 2025- Earnings Call 23