Key Highlights

  • Net sales for the third quarter of 2026 rose 44.2% to USD 7.23 million from USD 5.01 million, which management called the strongest Revenue quarter in the company's history.
  • The net loss narrowed 27.0% to USD 3.60 million, or USD 0.26 per share, from USD 4.93 million, or USD 0.75, while operating expenses fell by USD 0.74 million to USD 5.62 million.
  • Gross profit was USD 2.19 million at a Margin of 30.3%, calculated from the filing, compared with 31.3% a year earlier, as tariffs and a larger business-to-business share weighed.
  • Operating cash use was about USD 0.4 million against USD 3.4 million in the second quarter, and cash ended the quarter near USD 2.5 million, according to the call.

Record Quarter Led by the NEXUS Tonneau Cover

Worksport (NASDAQ:WKSP) filed its Quarterly Report on November 10, 2026 and held its call on November 11, 2026, covering the quarter ended September 30, 2026. Net sales were USD 7.23 million, up 44.2% from USD 5.01 million and about 38% above the second quarter. The company makes hard tonneau covers for pickup trucks. Management said NEXUS, a premium auto-flip cover, generated about USD 4.8 million, roughly two thirds of sales, and rose 150% from the prior quarter. Third-quarter sales orders were about USD 7.9 million and estimated Backlog rose to about USD 740,000 from about USD 117,000 at the end of June.

Smaller Loss, Thinner Margin and Cash Helped by Working Capital

Gross profit rose 39.5% to USD 2.19 million, but the margin dipped about one point to 30.3% because of tariffs on imported components and a larger business-to-business share. Sales and Marketing expense fell 23.1% to USD 1.82 million, with Investor relations spending about USD 1.0 million lower. The loss from operations narrowed to USD 3.43 million from USD 4.79 million. For nine months, the net loss was USD 13.39 million, up 2.1%, though loss per share improved to USD 1.12 from USD 2.44. Management said the low cash burn was helped by Working Capital timing, including inventory falling to USD 9.6 million from USD 12.1 million in June, and should not be read as a run rate.

Liquidity, Credit Line and a Possible Acquisition

Cash ended the quarter near USD 2.5 million after a Warrant inducement in August that brought in about USD 2.3 million. Management said the credit Facility has been renewed through July 2028, and that it will keep using that facility and Capital Markets as needed. On November 4, 2026, the company signed a nonbinding term sheet for a Business selling a patented truck-bed accessory, and completion is not assured. Risks include Tariff costs, dependence on one product line for most sales and net losses that continue. The filing also shows interest expense of USD 175,243, up 26.2%, reflecting greater use of the credit line.

Where Things Stand

Sales growth was the driver, and cost discipline plus inventory release did the rest. Worksport (NASDAQ:WKSP) lifted sales 44.2% on NEXUS Demand and cut operating costs, yet it still lost USD 3.60 million and its gross margin slipped. The USD 0.4 million cash use reflects working capital timing that management does not expect to repeat. The reported loss per share also benefits from a higher share count. Next markers are fourth-quarter sales against the USD 7.23 million record, margin trends under tariffs, B2B distributor reorders and any definitive agreement on the truck-bed accessory deal.