Worksport, Ltd. (WKSP) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good afternoon, everyone, and thank you for joining WorkSport's fiscal year 2025 and Q4 2025 earnings call. I'm Stephen Rossi, Chief Executive Officer of WorkSport. With me is our Chief Financial Officer, Michael Johnson. We will be reviewing the financial results for the quarterly period ending December 31st, 2025 and our full fiscal 2025. These results file today at 4.01 p.m. or thereabouts in our form 10-K and can be downloaded from the link provided in the chat. On today's call, alongside our financial performance, we'll review our operating execution across the flagship hard tunnel cover offerings, progress on the commercial launch of our SOLUS and core offerings, our capital position, the key strategic priorities we're focused on as we move into 2026. Before we begin, I wanted to frame this call the right way. 2025 was a year of real top-line growth and significant margin improvement. Full-year net sales nearly doubled to $16.1 million, and gross margins improved 2,800 basis points from 11% in 2024. Both are significant milestones as we achieve, and we achieve through a combination of expanding our product offerings and increasing our presence in both direct-to-consumer and business-to-business sales channels. Our fiscal 2025 strategies to expand our presence in multiple sales channels, introduce new products, and increase our market capture result in a net operating loss and increased use of our cash otherwise generated from our growing operations. Our use of cash to support operations did not grow at the same rate as our net sales. To address our need for both operating and investing activities during fiscal 2025, we supplemented our cash flows with external capital. This strategy complements our intentions to capture more meaningful market share from our ver...