Worksport, Ltd. · NASDAQ:WKSP
Worksport — Q1 2025 Earnings Presentation
26 slides from Worksport's earnings presentation, 2025
Slide 1: Worksport Ltd. Q1 2025
Worksport Ltd. Q1 2025 Welcome to Worksport's Q1 2025 earnings call. Join Steven Rossi, CEO, and Michael Johnston, CFO, as we review our transformative period of notable margin growth, expanded product lineup, and business development initiaitives.
Slide 2: Safe Harbor Statement
Safe Harbor Statement Forward-Looking Inherent Uncertainties Statements Actual results may materially This presentation contains differ from projected forward-looking statements outcomes due to market based on management's volatility, competitive current expectations and pressures, regulatory projec
Slide 3: Today's Agenda
Today's Agenda Q1 2025 Achievements Highlighting key milestones that propelled our impressive growth trajectory Financial Performance Emphasizing margin growth and developments from our dealer network Operational Successes Showcasing our USA-made hard folding truck bed cover line and shift toward hi
Slide 4: Q1 2025 - Strong Revenue Growth
Q1 2025 - Strong Revenue Growth $2.24M 337% Q4 Q1 Revenue YoY Growth Seasonal Pattern 337% increase from Q1 2024 Compared to $512,637 in Q1 2024 Slight decrease from Q4 follows typical seasonal trends Our strategic shift toward branded, high-margin products4highlighted by the late Q1 launch of the A
Slide 5: Gross Profit and Margin Expansion
Gross Profit and Margin Expansion 30 20 10 0 Q1 2024 Q4 2024 Q1 2025 Target Q4 2025 Gross profit rose notably to $396,000, achieving a gross margin of nearly 18%, which is up from 7% in the same quarter last year and 11% in Q4 2024. We expect margin to continue improving, with an objective of reachi
Slide 6: Operating Expenses
Operating Expenses Total operating expenses for Q1 were $4.65 million, up from $3.68 million in Q1 2024. This 26% increase in operating expenses reflects targeted investments that directly supported a 337% surge in revenues over the same time period. Sales and marketing expenses were $870,000, refle
Slide 7: Operating Loss and Net Loss
Operating Loss and Net Loss Profitability Target Operational cash flow breakeven by Q4 2025 or early Q1 2026 Improving Efficiency Expense-to-profit gap expected to decrease in future quarters Current Performance Q1 operating loss of $4.46M vs $3.71M in prior year For Q1 2025, our operating loss was
Slide 8: Balance Sheet Cash Highlights
Balance Sheet Cash Highlights Cash and Cash Working Capital Equivalents Improved to $7.94 million, $5.08 million. This increase providing financial follows capital raising flexibility and operational efforts and is subsequent readiness for continued to a reduction of long- growth. term debt by appro
Slide 9: Cash Flow Highlights
Cash Flow Highlights Operating Activities $3.84M used, reflecting net loss and increased inventories Investment Activities $269K used for property and equipment upgrades Financing Activities 3 $4.50M positive inflow from warrant exercises Net Result Slight increase in cash position to $5.08M
Slide 10: Inventory Highlight
Inventory Highlight Inventory Value We had inventories of $5.7 million as of March 31, 2025, a slight increase from Q4 2024, representing roughly 50% of our current assets. Notably, $3.4M of our inventory balance is raw materials. Sales Support We view our quarter-end inventory level as a healthy su
Slide 11: Strategic Operational Milestones
Strategic Operational Milestones AL4 Tonneau Cover Release Production Expansion Successfully launched our 1 Targeting 4x growth in monthly flagship product, expanding our 2 production by end of Q3 2025 high-end lineup with positive compared to Q4 2024 customer feedback Innovation Pipeline Dealer Net
Slide 12: AL4 Tonneau Cover Launch
AL4 Tonneau Cover Launch Premium Design Advanced Engineering Customer Satisfaction The AL4 expands our product Featuring improved latching Early feedback from customers lineup at the high end, with mechanisms and durability has been very positive on quality, sophisticated aesthetics and features tha
Slide 13: Production Expansion Goals
Production Expansion Goals Q4 2024 Baseline production established Q2 2025 Scaling production capacity Q3 2025 4x growth in monthly production Target: 200+ units daily $45M+ annual revenue potential The Worksport factory is targeting a 3-4x growth in monthly production by end of Q3 2025, as compared
Slide 14: Dealer Network Expansion
Dealer Network Expansion 450 300 150 0 Q4 2024 Jan-Feb 2025 March 2025 Q2 2025 Projection We added 35 new dealer accounts in March alone, following 24 additions in January and February combined. March 2025 B2B sales grew nearly 70% from February. In Q2, we project adding 200+ more. 17,000 addressabl
Slide 15: Innovation Pipeline
Innovation Pipeline Worksport plans to release three new product lines this year 3 the HD3 hard folding tonneau cover, the SOLIS solar integrated tonneau cover, and the COR portable energy storage system. Each product represents a strategic expansion of our offerings, targeting different market segm
Slide 16: HD3 Heavy-Duty Tonneau Cover
HD3 Heavy-Duty Tonneau Cover Commercial Focus Designed specifically for work trucks and fleet vehicles requiring maximum durability Enhanced Materials Upgraded components including improved seals and latch mechanism for greater durability B2B Strategy Primarily supporting growth amongst our wholesal
Slide 17: SOLIS Solar Cover
SOLIS Solar Cover Beta Testing Phase In Q1 2025, Worksport advanced SOLIS toward paid beta testing, selecting key customers to trial early units ahead of a planned commercial launch later this year. American Assembly The SOLIS will be assembled in the U.S. using American aluminum and solar panels so
Slide 18: COR Mobile Power System
COR Mobile Power System Development Release Final engineering and testing phase On schedule for later this year 2 Manufacturing Market Expansion Nearing mass production setup Entry into broader consumer market Alongside SOLIS, Worksport's portable COR battery system is nearing mass manufacturing and
Slide 19: Terravis Energy - AetherLux Heat Pump
Terravis Energy - AetherLux Heat Pump Revolutionary Innovations On February 11, 2025, we announced that Terravis has developed a cold-climate heat pump system, named AetherLux, with two major innovations: Elimination of defrost cycles: The system can operate without the need for traditional defrost
Slide 20: Intellectual Property Growth
Intellectual Property Growth 170+ 2025 5+ Global IP Portfolio LOT Network Key Protected Innovations Approved, registered, and Joined global consortium in AL3, AL4, SOLIS cover, COR system, pending patents and trademarks January to protect against patent and AetherLux heat pump trolls Worksport holds
Slide 21: Tariff Resilience Strategy
Tariff Resilience Strategy Strategic Sourcing US Manufacturing SOLIS solar panels sourced from Hard tonneau covers (AL3 and AL4) India, maintaining stable trade proudly manufactured in the U.S. relations Onshore Evaluation Supply Chain Management 4 Actively reviewing domestic Working with internatio
Slide 22: FY 2025 Outlook and Guidance
FY 2025 Outlook and Guidance Revenue Growth 1 Targeting full-year 2025 revenues in the range of $20 million to $25 million, representing a 2.5-3x increase from 2024 year-end revenues Margin Improvement Expecting gross margin to continue increasing in 2025, forecasting 2 25-30% range or higher by lat
Slide 23: Revenue Growth Drivers
Revenue Growth Drivers 1 Q2 Revenue Improvement 2 Tonneau Cover Business While Q1 revenue was $2.24M with expected The tonneau cover business is expected to seasonality, we are confident Q2 revenue will carry this growth. We expect tonneau cover see further margin improvement and revenue sales to im
Slide 24: Path to Profitability and Cash Flow
Path to Profitability and Cash Flow Revenue Growth Continued expansion of sales across product lines Margin Improvement Shift to higher-margin products and economies of scale Expense Management Careful balancing of growth investments with efficiency Cash Flow Breakeven Target of late 2025 or early 2
Slide 25: Concluding Remarks
Concluding Remarks Thank you everyone for joining us today. We appreciate your interest in Worksport and your support as we continue our growth journey. We remain excited about the opportunities ahead and confident in our ability to execute our strategic plan. Stakeholder Clear Vision Transparent Lo
Slide 26: Question & Answer Session
Question & Answer Session Worksport welcomes live questions from attending analysts. Investors are encouraged to email questions to investors@worksport.com.