Worksport Ltd. (NASDAQ:WKSP) reported third-quarter 2026 revenue of $7.23 million, representing a 44.2% increase from $5.0 million in the corresponding period of 2025, although the result fell below analysts’ expectations of $12.5 million.
Shares of the company declined 5.12% in premarket trading on Wednesday following the release of its financial results.
Worksport recorded a quarterly loss of $0.26 per share, compared with the analyst consensus forecast for a loss of $0.18 per share.
Despite the revenue and earnings shortfalls relative to market estimates, the company reported lower operating expenses, a narrower net loss and reduced operating cash outflows compared with earlier periods.
Third-Quarter Net Loss Narrows 27%
Worksport reported a net loss of $3.6 million for the third quarter, compared with $4.9 million in the same period of the previous year.
The reduction of approximately 27% occurred alongside higher revenue and lower operating expenses.
Operating expenses declined 11.7% year over year to $5.6 million.
As a proportion of net sales, operating expenses represented approximately 78%, compared with 127% in the third quarter of 2025.
The change indicates that operating expenses accounted for a smaller share of revenue as quarterly sales increased.
Worksport also reported operating cash use of approximately $0.4 million during the quarter, down 89% from $3.4 million in the second quarter of 2026.
The reduction in cash outflows reflected changes in the company’s operating performance and cash requirements during the period.
Management Reports Sequential Improvement in Revenue and Cash Use
Worksport Founder and Chief Executive Officer Steven Rossi highlighted the company’s sequential operating performance.
“Q3 was the second straight quarter in which our sales went up while our net loss and cash use came down,” Rossi said.
“Since the first quarter, we have more than doubled quarterly revenue while reducing our net loss by nearly 40% and our operating cash use by about 95%.”
The comments followed the company’s reported increase in third-quarter sales and reduction in operating cash consumption compared with the preceding quarter.
Management’s assessment also referenced improvements since the beginning of 2026, including higher quarterly revenue and lower net losses.
Although the company continued to report a net loss, the latest figures showed a reduction in quarterly losses compared with the corresponding period of 2025.
NEXUS Sales Reach $4.8 Million
Worksport reported approximately $4.8 million in net sales from NEXUS during the third quarter.
The figure represented an increase of approximately 150% compared with the second quarter of 2026.
NEXUS accounted for roughly two-thirds of Worksport’s total quarterly net sales, making it a significant contributor to the company’s reported revenue.
The sequential increase in NEXUS sales contributed to the company’s overall quarterly revenue performance.
Worksport did not provide additional segment-level profitability figures in the supplied results.
Inventory Declines 20.6% During Third Quarter
Worksport reduced its inventory balance to approximately $9.6 million at September 30, 2026, compared with $12.1 million at June 30.
The decrease represented a reduction of 20.6% during the three-month period.
The lower inventory balance occurred alongside increased quarterly sales and reduced operating cash use.
Cash and cash equivalents stood at approximately $2.5 million at the end of September, compared with $1.2 million at June 30.
The company attributed the increase in its cash balance primarily to an August 2026 warrant inducement transaction.
The higher cash balance therefore reflected financing activity as well as developments in the company’s operating cash flows.
Nine-Month Revenue Increases 38.8% to $15.8 Million
For the nine months ended September 30, 2026, Worksport reported net sales of approximately $15.8 million, an increase of 38.8% compared with the corresponding period of the previous year.
The company recorded a nine-month net loss of $13.4 million, compared with a loss of $13.1 million during the first nine months of 2025.
The figures indicate that although quarterly losses narrowed in the third quarter, the cumulative net loss for the nine-month period remained slightly higher than a year earlier.
The increase in nine-month revenue reflected the company’s sales growth during 2026, including the contribution from NEXUS in the latest quarter.
Shares Decline Following Revenue and Earnings Shortfalls
Worksport shares fell 5.12% in premarket trading after the company reported revenue and a per-share loss that were below analyst expectations.
Third-quarter revenue of $7.23 million compared with a consensus estimate of $12.5 million, while the reported loss of $0.26 per share exceeded the expected loss of $0.18 per share.
The results also showed a reduction in operating expenses, lower quarterly net losses and a decline in operating cash use.
The company’s financial performance reflected revenue growth alongside continued net losses, with NEXUS contributing approximately two-thirds of third-quarter sales.
Investors will continue to assess Worksport’s revenue development, operating expenses, cash position and ability to reduce losses as the company progresses through the remainder of 2026.