Worksport (WKSP) investor relations material

Executive summary

• Q2 2026 net sales reached a record $5.23 million, up 27.4% year-over-year and 57.9% sequentially, marking the strongest quarter in company history.

• Gross profit rose to $1.65 million, a 69.4% year-over-year and 93% sequential increase, with gross margin expanding to 32%.

• Operating expenses declined 17% sequentially to $5.47 million, though up 16% year-over-year due to growth investments.

• Net loss for Q2 2026 was $3.97 million, a 32% sequential improvement, but up 6% year-over-year.

• Operating cash use fell 58% sequentially to $3.4 million, with focus on converting $12.1 million of inventory into cash and achieving positive operating cash flow.

Financial highlights

• Q2 2026 net sales: $5.23 million (Q2 2025: $4.10 million; Q1 2026: $3.3 million); H1 2026 net sales: $8.54 million.

• Gross profit for Q2 2026: $1.65 million (Q2 2025: $1.08 million; Q1 2026: $850,000); gross margin improved to 32% from 26% year-over-year and sequentially.

• Operating expenses for Q2 2026: $5.47 million, down 17% sequentially but up 16% year-over-year.

• Net loss Q2 2026: $3.97 million (Q2 2025: $3.73 million; Q1 2026: $5.83 million); loss per share improved to $(0.33).

• Net cash used in operating activities for Q2 2026: $3.4 million, down from $8.2 million in Q1 2026.

Outlook and guidance

• Management targets positive operating cash flow in 2026, focusing on disciplined execution, inventory conversion, and scalable distribution.

• No specific calendar target for breakeven, but momentary operational cash flow positivity may be achieved in Q3 2026.

• Revenue growth, margin expansion, and cost discipline are key to closing the operating cash flow gap.