Slide 1: Q2 2025 Earnings Call
Worksport Q2 2025 Earnings Call Worksport Ltd. 2025 Q2 Earning Call [August 13th 1:00PM ET]
Slide 2: Introduction
Q2 2025 Introduction "In just one quarter, we increased revenue by 83% while increasing gross profit by 173%. We decreased operating loss by 15%." 113% 83% 26.4% YoY Revenue Sequential QoQ Gross Margins up Growth Growth 800 Basis Points 2
Slide 3: Agenda
Q2 2025 Agenda 1 2 3 Q2 2025 Performance Growth & Market Expansion Innovation Pipeline Highlights Dealer network, e-commerce, and B2B Progress on SOLIS, COR, and AetherLux, Financial and operational initiatives plus new product introductions achievements 4 5 Current Operations 2025 Guidance Producti
Slide 4: Safe Harbor Statement
Q2 2025 Safe Harbor Statement Forward-Looking Inherent Uncertainties Statements Actual results may materially This presentation contains differ from projected outcomes forward-looking statements due to market volatility, based on management's current competitive pressures, regulatory expectations an
Slide 5: Q2 2025 Financial Performance
Q2 2025 Q2 2025 Financial Performance $1.80 $1.20 $0.60 $0.00 April May June Q2 2025 was our highest revenue quarter in company history. Net sales reached $4.10 million, representing 113% year-over-year growth compared to $1.92 million in Q2 2024, and an 83% sequential increase from Q1 2025. $19.2M
Slide 6: Gross Margin Improvement
Q2 2025 Gross Margin Improvement 30 20 10 0 Q2 2024 Q1 2025 Q2 2025 Gross profit for the quarter was $1.08 million, representing a gross margin of 26.4%, up from 17.7% in Q1 and 15.4% in Q2 last year. This marks our third consecutive quarter of gross margin expansion and reflects both operational ef
Slide 7: Operating Expenses & Loss Improvement
Q2 2025 Operating Expenses & Loss Improvement Operating expenses were $4.70 million, up modestly 71% 18% from Q2 2024's $4.21 million but essentially flat Reduction in R&D Expenses Reduction in G&A compared to Q1's $4.65 million, despite significantly higher revenues. Year-over-year decrease due to
Slide 8: Cash Flow Improvement
Q2 2025 Cash Flow Improvement Operating Cash Usage (in millions) 4.5 3.84 3.1 3 1.5 0 Q1 2025 Q2 2025 Cash and cash equivalents ended the quarter at $1.39 million, compared to $5.08 million at March 31. In Q2 we paid off debts. We now have approximately $4.76 million in available borrowing capacity
Slide 9: Inventory Overview
Q2 2025 Inventory Overview Accounts receivable increased in line with higher dealer sales volumes, while inventory remained stable at $5.88 million. Q1 Inventory: $5.7M Current Inventory: $5.88M Raw Materials Finished Goods Raw Materials Finished Goods Key Highlights We now own less finished goods a
Slide 10: Long Term Debt Position
Q2 2025 Long Term Debt Position $6.00 $4.00 $2.00 $0.00 Dec 2024 Mar 2025 Jun 2025 Our long-term debt declined to $2.09 million (compared to $4.78M as of Dec 31 2024, and $2.7M as of March 31, 2025). 10
Slide 11: Strategic Equipment Investment
Q2 2025 Strategic Equipment Investment 1 2 Purchase Order Details Expected Benefits $3 million equipment order placed August 1, 2025 Meaningful increase in production capacity (10% deposit) Enhanced ability to meet customer demand Established manufacturing equipment supplier Expected to contribute ~
Slide 12: Dealer Network Expansion
Q2 2025 Dealer Network Expansion 600 400 200 0 Start of 2025 Q1 2025 Q2 2025 In Q2 2025, we added two national distributors to our dealer network. In April, we added Patriot Auto Group, which brought over 200 dealers under the Worksport dealer network. In June, we added another national distributor
Slide 13: E-Commerce Growth
Q2 2025 E-Commerce Growth 50%+ Multiple Channels High Margins Of total unit volumes in Q2 came from Strong performance across our own E-commerce remains a high-margin direct online sales site and influencer / affiliate sales growth driver for the business programs Our strategy remains focused on giv
Slide 14: Production Scaling
Q2 2025 Production Scaling 240 160 80 0 Start of 2025 July 2025 Target Late Q3 While demand outpaces production, our U.S. manufacturing facility in West Seneca continues to scale efficiently. We are targeting 200 units/day production by late Q3, compared to approximately 50 units/day at the start of
Slide 15: Innovation Pipeline: HD3
Q2 2025 Innovation Pipeline: HD3 Q3 90%+ Heavy-Duty Tonneau Cover On track for Q3 launch with production already scheduled, the HD3 is designed for commercial and fleet applications. Launch Date US-Material Building on the AL3 platform The HD3 adds a new revenue stream and completes our U.S.- Upgrad
Slide 16: Innovation Pipeline: SOLIS & COR
Q2 2025 Innovation Pipeline: SOLIS & COR SOLIS Solar Cover COR Portable Power Beta testing has commenced with Nearing mass production select customers. The redesign readiness. COR's modular design announced in late 2024 is enables integration with SOLIS or delivering anticipated cost standalone use,
Slide 17: COR and SOLIS in the portable energy market
Q2 2025 Together, COR and SOLIS position Worksport within the fast-growing portable energy market4a space the Company believes will be a key long-term profitability driver. 17
Slide 18: AetherLux: Revolutionary Heat Pump Technology
Q2 2025 AetherLux: Revolutionary Heat Pump Technology Since its introduction in February 2025, AetherLux has attracted significant interest from major global corporations, federal governments, and numerous resellers, with inbound inquiries potentially representing hundreds of millions of dollars in
Slide 19: AetherLux Q2 Progress
Q2 2025 AetherLux Q2 Progress Advanced Testing 1 Progressed from lab testing to commercial testing environments 2 Manufacturer Selection Initiated manufacturer selection process for product certification Technology Optimization 3 Continued R&D optimization of ZeroFrost# technology 4 Strategic Evalua
Slide 20: Intellectual Property Portfolio
Q2 2025 Intellectual Property Portfolio 170+ Patents, Designs & Trademarks Approved, registered, and pending globally Worksport holds a robust and growing global portfolio of over 170 approved, registered, and pending patents, designs, and trademarks. We believe our patents protect us from any compe
Slide 21: Tariff Impact & Management
Q2 2025 Tariff Impact & Management US Manufacturing Advantage Cost Management Competitive Position Current tonneau cover line 5-10% material cost increases offset Tariff pressures affect competitors manufactured in the U.S. with over 90% by operational efficiencies that have equally or more severely
Slide 22: 2025 Revenue Guidance
Q2 2025 2025 Revenue Guidance $24.00 $20.00 $16.00 $8.00 $7.75 $5.60 $4.10 $2.24 $0.00 Q1 2025 Q2 2025 Q3 2025* Q4 2025* 2025 Target We reaffirm our full-year 2025 revenue target of $20 million+. Based on Q2 results and current order momentum, we remain confident in meeting this goal, supported by c
Slide 23: Margin & Expense Outlook
Q2 2025 Margin & Expense Outlook Gross Margins Rise Controlled OpEx Growth Gross margins have exceeded Operating expenses are projected initial forecasts and are expected to grow at a slower rate than to rise each quarter, reaching revenues, enhancing operating 30%+ by year-end. leverage. Targeting
Slide 24: 2026 Profitability Drivers
Q2 2025 2026 Profitability Drivers 1 Tonneau Cover Business 2 COR & SOLIS 3 AetherLux While a successful launch of COR and SOLIS could accelerate profitability in 2026, we believe our core tonneau cover business alone can drive us into profitability next year. Current expectations are $233M in reven
Slide 25: Commentary on Cash
Q2 2025 Commentary on Cash $6M Working Capital $5.88M in Inventory 19% Cash Burn Reduction $1.39M in cash and cash equivalents Fully paid inventory providing a strong Cash used in operating activities $4.76M in unused capacity on foundation to support ongoing sales improved from $(3.84)M in Q1 to re
Slide 26: Capital Position & Market Value
Q2 2025 Capital Position & Market Value Reg - A Key Announcements We believe our intellectual property remains Reg A offering to close at the end of August 2025. significantly undervalued. Successful in attracting new investors and boosting AetherLux4our breakthrough heat pump technology4is a liquid
Slide 27: Key Q2 Achievements & Outlook
Q2 2025 Key Q2 Achievements & Outlook We believe this positive momentum will continue into Q3, accelerating our path towards operational cash flow positivity and profitability in 2026. 83% 173% 15% Revenue Growth Gross Profit Improvement Operating Loss Reduction Increased revenue significantly quart
Slide 28: Priorities for Remainder of 2025
Q2 2025 Priorities for Remainder of 2025 Scale Production Launch New Products Meet demand while maintaining quality HD3, SOLIS, and COR 3 successfully and on schedule Expand Distribution Continue Innovation Deepen dealer relationships and e-commerce reach Leadership in both automotive accessories an
Slide 29: Question & Answer Session
Q2 2025 Question & Answer Session Worksport welcomes live questions from attending analysts. Investors are encouraged to email questions to investors@worksport.com. 29