Worksport Ltd. (NASDAQ:WKSP) reported preliminary third-quarter 2026 net sales of approximately $7.2 million and net cash used in operating activities of approximately $0.37 million. The company said the results reflected the conversion of approximately $2.5 million of inventory into sales and cash.
The financial information is preliminary and unaudited. It is based on management’s current close, remains subject to quarter-end review procedures and may differ from the figures Worksport reports in its Quarterly Report on Form 10-Q for the quarter ended September 30, 2026.
#Operating cash use declines
Worksport’s operating cash use was approximately 5% of net sales in the third quarter, compared with 66% in the second quarter and 249% in the first quarter.
Net cash used in operating activities was approximately $0.37 million, compared with approximately $3.4 million in the second quarter and approximately $8.2 million in the first quarter. The company said inventory declined to approximately $9.6 million at September 30 from $12.1 million at June 30 as production moved towards a just-in-time model.
#Sales growth and distribution activity
Preliminary third-quarter net sales increased 44% year-over-year and 38% from the second quarter, according to the company. September net sales reached a company record of $2.68 million, marking the ninth consecutive month of net sales growth.
Worksport said gross margins remained above 30% as B2B and distribution activity expanded. Those channels represented 50% of September net sales, compared with 25% in December 2025. The company said distribution partners contributed to the increase.
SOLIS was not yet a significant contributor to net sales, although Worksport said its sales had more than quadrupled from the second quarter. SOLIS is a solar cover developed through the company’s active partnership with Hyundai.
#Orders and estimated backlog
Worksport reported third-quarter sales orders of approximately $7.87 million. After invoiced sales, the company estimated its backlog at approximately $740,000 at September 30, compared with approximately $117,000 at June 30.
The company describes sales orders, invoiced sales and estimated backlog as supplemental operating measures rather than replacements for recognised net sales. Sales orders represent orders received and recorded during the relevant month, while invoiced sales reflect monthly invoicing before certain discounts. The estimated backlog uses a first-in, first-out allocation assumption rather than an order-level review of fulfilment dates, and its conversion into revenue depends on fulfilment and applicable revenue-recognition requirements.
#Management outlook and identified risks
Chief Executive Officer Steven Rossi said Worksport believes the business is in a position to reach operating cash flow breakeven, based on current operating cash use, available resources including its credit facility, and inventory that remains to be converted. Rossi also said achieving that condition sustainably would allow the company to build growth without significant dependence on equity financing, while acknowledging that further work remains.
Worksport said forward-looking statements concerning operating cash flow, liquidity, financing reliance, inventory conversion, order and backlog conversion, sales-channel mix, production volumes and gross margin are subject to uncertainty. The company identified supply chain delays, consumer acceptance, delays or non-acceptance by third parties, competition, order cancellations or fulfilment delays, production constraints, working-capital requirements, continued inventory conversion, efforts to reduce operating cash use and the availability of financing on acceptable terms as factors that could affect actual results.
#Next reporting date
Worksport expects to publish its full third-quarter 2026 results in its Quarterly Report on Form 10-Q, followed by an earnings call on November 10, 2026, after market.
#Key Takeaways
- Preliminary third-quarter net sales were approximately $7.2 million, up 44% year-over-year and 38% from the second quarter.
- Net cash used in operating activities was approximately $0.37 million, with operating cash use equal to approximately 5% of net sales.
- Inventory fell to approximately $9.6 million at September 30 from $12.1 million at June 30.
- B2B and distribution sales accounted for 50% of September net sales, while estimated backlog reached approximately $740,000.
- The preliminary figures are unaudited and may differ from the results in Worksport’s Quarterly Report on Form 10-Q.
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