Worksport reported preliminary third-quarter 2026 results showing record sales and a sharp reduction in cash used by operations. The maker of truck accessories and clean-energy products said it began turning inventory built earlier in the year into sales and cash, while distribution partners contributed a larger share of revenue.
The results are preliminary; Worksport expects to report full quarterly results on November 10.
Key details
- Net sales reached about $7.24 million, up 44% from a year earlier and 38% from the second quarter.
- Cash used in operating activities was about $370,000, compared with approximately $3.4 million in the second quarter and $8.2 million in the first. The company attributed the improvement in part to converting about $2.5 million of inventory into sales and cash.
- Operating cash use was about 5% of net sales, versus 66% in the second quarter and 249% in the first quarter.
- September sales set a monthly record of $2.68 million, extending the company’s run of monthly sales growth to nine consecutive months.
- Inventory fell to approximately $9.6 million at September 30, from $12.1 million at June 30. Worksport said production is shifting toward a just-in-time model after it built inventory in the first half to support product launches and distribution growth.
- Business-to-business and distribution sales made up 50% of September revenue, up from 25% in December 2025. The company said gross margins remained above 30% and stable despite the larger B2B contribution.
- SOLIS, Worksport’s solar product line, has more than quadrupled its sales from the second quarter, though it is still not a significant contributor to overall revenue.
- Third-quarter sales orders totaled about $7.87 million, exceeding invoiced sales. The estimated backlog was approximately $740,000 at September 30, compared with about $117,000 at June 30.
- Chief Executive Steven Rossi said the company believes its operating cash use, available resources—including its credit facility—and inventory yet to be converted put it in a position to reach operating cash-flow breakeven. He said sustainable breakeven would allow growth with less reliance on equity financing, while acknowledging that work remains.
What changes for investors
The quarter’s figures point to a substantial improvement in operating cash use alongside higher sales, as Worksport began selling inventory accumulated earlier in the year. The company’s stated aim is to reach operating cash-flow breakeven and reduce dependence on equity financing; that is a management objective, not a reported achievement.