Worksport Ltd

Worksport outlined a path to sustainable operating cash flow breakeven in 2026, using a sensitivity analysis that shows quarterly revenue of approximately $12 million to $12.9 million at a 35% gross margin would fully cover its pre-working capital cost structure. CEO Steven Rossi said the company may achieve momentary operational cash flow positivity within Q3 2026, while CFO Jennifer Kartychak reported Q2 net sales of $5.2 million, up 27% year-over-year and 58% sequentially, with gross margin expanding to about 32% despite tariff and input cost pressures. The company held $1.2 million in cash and $820,000 in remaining credit line availability at quarter-end, and its 10-Q continues to disclose substantial doubt about its ability to continue as a going concern. Rossi noted the NEXUS product line reached $1 million in cumulative sales in about 10 weeks and generated nearly $1.5 million in July orders, while new distribution partnerships with Meyer Distributing and Tri-State Enterprises are expected to broaden wholesale access.

Worksport announced that its common stock closed above $1.00 on June 24, 2026, which the company believes keeps it in full compliance with Nasdaq's minimum bid price requirement, representing a 75% increase in five trading days. CEO Steven Rossi highlighted recent milestones including a preliminary 35% gross margin in May, the addition of Meyer Distributing as a major multi-national master distribution partner, a $36+ million annualized revenue opportunity, and securing premium-priced capital. The stock was up 1.9% premarket.