Worksport Reports Preliminary Q3 Results, Reduces Operating Cash Use 89% from Second Quarter to Approximately $0.37 Million; Delivers Record Net Sales of Approximately $7.24 Million
Key Highlights
- ➤Q3 net sales approximately $7.2 million, up 44% year-over-year
- ➤Operating cash use approximately $0.37 million, down 89% from Q2
- ➤Inventory declined to approximately $9.6 million from $12.1 million
- ➤B2B and distribution sales reached 50% of September net sales
- ➤Estimated backlog approximately $740,000, up from $117,000 at June 30
Expert Statements
Steven Rossi, Chief Executive Officer of Worksport
“Based on our current operating cash use, the resources available to us, including our credit facility, and the inventory we still must convert, we believe the business is in position to reach operating cash flow breakeven. Achieving that sustainably will let us build growth without significant dependence on equity financing. We still have work ahead of us, but the gap continues to narrow, and the pieces are in place. We described the first quarter as our investment and launch readiness quarter, and said the second half would be about conversion. The third quarter delivered on that,”
Steven Rossi, Chief Executive Officer of Worksport
“We converted inventory into sales and cash, grew gross profit faster than recurring cash costs, and reduced the cash our operations use by more than 95% since the first quarter.”
WEST SENECA, NY / ACCESS Newswire / November 3, 2026 / Worksport Ltd. (NASDAQ:WKSP) ("Worksport" or the "Company"), a U.S.-based innovator and manufacturer of hybrid and clean energy solutions primarily for the light truck, overlanding, and global consumer goods markets, today announced preliminary third-quarter 2026 results. Net cash used in operating activities was approximately $0.37 million, an improvement of ~$3.1 million or 89% compared to ~$3.4 million in the second quarter, and down from ~$8.2 million in the first quarter, as the Company converted approximately $2.5 million of inventory into sales and cash.
Preliminary Third-Quarter 2026 Highlights * Operating cash use at a single-digit percentage of net sales: approximately 5% in the third quarter, down from 66% in the second quarter and 249% in the first quarter * Record net sales of approximately $7.2 million, up 44% year-over-year and 38% from the second quarter * Nine Consecutive Months of Growth: September net sales reached a Company-record $2.68 million, supported by sustained gross margins above 30% and an expanding contribution from B2B sales. Management highlights that while the sales-mix now has more B2B sales, gross margin has remained stable, reflecting improved business health. From Investment to Conversion
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