Worksport Ltd. (NASDAQ:WKSP) stock surged more than 26% on Monday after the clean energy and automotive accessories company reported improving margins, expanded its distribution network and outlined a path toward positive operating cash flow in 2026.
The company reported a preliminary May gross margin of about 35%. That was up from 28.4% in the first quarter, driven by efficiency, cost discipline, pricing, and scale.
Path To Positive Cash Flow
Worksport would need roughly $9 million in quarterly revenue to achieve positive operating cash flow. That estimate assumes a 35% gross margin and targets initial positive operational cash flow in 2026.
Worksport secured Meyer Distributing as its first multinational distribution partner.
It also received an initial order for tonneau covers, expanding access for dealers, installers, and resellers across the U.S. and Canada.
Distribution Fuels Revenue Upside
B2C activity is tracking near $1 million per month, or about $12 million annualized. B2B sales recently tracked near $0.7 million per month, or about $8.4 million annualized.
With Meyer, Tri-State momentum, existing channel relationships and dealer expansion, management sees B2B annualized revenue potential above $24 million.
The company expects this over the next 12 months.
Combined with B2C activity, Worksport sees a total annualized revenue opportunity above $36 million.
CEO Steven Rossi said the update reflects "expanding distribution, improving gross margins, compelling B2C activity, and a clear revenue path toward near-term operational cash-flow positivity."
Worksport Business Overview And Growth Strategy
Worksport designs and manufactures automotive accessories and clean-energy products, including tonneau covers and portable power stations.
Recent margin gains and new distribution relationships support its push toward operational cash-flow positivity, with annualized revenue tracking above $20 million.
WKSP Earnings Preview And Analyst Outlook
Worksport is expected to provide its next financial update on August 12, 2026. Analysts estimate a loss of 43 cents per share, improving from a loss of 71 cents, while revenue is expected to rise to $6.60 million from $4.11 million.
The stock carries a Buy rating with an average price forecast of $3.00. Maxim Group maintained its Buy rating and lowered its price forecast to $2.00 on May 15.
WKSP Stock Price Activity: Worksport shares were up 26.21% at $0.92 at the time of publication on Monday, according to Benzinga Pro data.
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