• Full Year 2024 Net Sales: $8.4 million, up 455% from $1.53 million in 2023.

• Q4 2024 Net Sales: Approximately $2.93 million, a 250% increase from $839,000 in Q4 2023.

• Gross Profit for 2024: Approximately $910,000, reflecting a gross margin of about 11%.

• December 2024 Gross Margin: Exceeded 20%, nearly three times that of Q3 2024.

• Operating Loss for 2024: $16.16 million, compared to $14.93 million in 2023.

• Cash and Cash Equivalents (End of 2024): $4.88 million, up from $3.37 million at the end of 2023.

• Working Capital (End of 2024): $7.3 million, up from $1.96 million at the end of 2023.

• Inventory (End of 2024): $5.19 million, representing roughly 50% of current assets.

• 2025 Revenue Guidance: $20 million to $34.5 million.

• 2025 Gross Margin Target: Expected to reach 25% to 30% by late 2025.

• Warning! GuruFocus has detected 6 Warning Signs with WKSP.

Release Date: March 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Worksport Ltd (NASDAQ:WKSP) achieved significant revenue growth in 2024, with net sales increasing by 455% to $8.4 million from $1.53 million in 2023.

• The company successfully expanded its product lineup, including the launch of the premium AL4 tonneau cover and the upcoming HD3 cover aimed at commercial and fleet customers.

• Worksport Ltd (NASDAQ:WKSP) improved its gross margins significantly, with December 2024 margins exceeding 20%, and expects further margin improvements in 2025.

• The company has strengthened its financial foundation, ending 2024 with $4.88 million in cash and cash equivalents, up from $3.37 million in 2023.

• Worksport Ltd (NASDAQ:WKSP) expanded its sales channels, with online sales accounting for 58% of total revenue in 2024, up from 7% in 2023, and increased its dealer network by 30% in early 2025.

Negative Points

• Despite revenue growth, Worksport Ltd (NASDAQ:WKSP) reported an operating loss of $16.16 million in 2024, up from $14.93 million in 2023.

• The company's cost of sales increased to 89% of net sales in 2024, up from 84% in 2023, due to strategic discounting and higher overhead allocation.

• Worksport Ltd (NASDAQ:WKSP) faces uncertainties related to geopolitical issues, tariffs, and supply chain challenges, particularly concerning semiconductors and solar panels.

• The company anticipates a broad range of revenue guidance for 2025, indicating potential variability in achieving its targets.

• Worksport Ltd (NASDAQ:WKSP) has not yet realized revenue from its Terravis Energy subsidiary, with commercialization of its AetherLux heat pump system still in development.