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Every growth company eventually faces the same question: when does the investment start paying back? For Worksport (Nasdaq: WKSP), the answer came in the third quarter of 2026.
Based in West Seneca, New York, the company designs and builds its hard-folding truck bed covers in-house, offers SOLIS, a solar truck bed cover backed by an active partnership with Hyundai, and offers COR, a modular portable power system that went on sale on Amazon at the end of September.
According to preliminary results released on November 3, Worksport delivered its strongest sales quarter yet, at about $7.24 million. At the same time, the cash consumed by its day-to-day operations dropped to about $0.37 million, roughly a tenth of the second-quarter figure and a small fraction of the $8.2 million used in the first quarter.
What makes the quarter stand out is that it played out the way management said it would.
“We described the first quarter as our investment and launch readiness quarter, and said the second half would be about conversion. The third quarter delivered on that,” said Steven Rossi, Chief Executive Officer of Worksport.
The investment phase was visible on the balance sheet. Worksport stocked up in the first half of the year ahead of new product launches and a wider distribution push. The conversion phase is now visible too: between July and September, the company sold through about $2.5 million of that stock, trimming its inventory to roughly $9.6 million.
The biggest structural change is where Worksport’s sales now come from.
Business and distribution customers generated half of the company’s September net sales. At the end of 2025, they accounted for a quarter. In nine months, the channel’s share doubled as partners brought Worksport products into their lineups.
Distribution partners can put products in front of buyers that a single brand website might never reach. Just as important, Worksport has kept gross margin above 30% even as more of its sales went through these partners, which management sees as a sign of a healthier business.
The growth has been remarkably steady. Net sales have increased in every month of 2026, and September set a new company high at $2.68 million. Worksport counts it as nine consecutive months of net sales growth.
For the quarter as a whole, net sales rose 44% from a year earlier and 38% from the second quarter. Demand is still running ahead of billing: orders booked in the quarter totaled about $7.87 million, and the estimated backlog stood at about $740,000 at the end of September, more than six times its level at the end of June.
Newer clean energy products are gaining traction as well. SOLIS remains a small part of revenue today, but its sales grew more than fourfold compared with the second quarter.
Net sales: about $7.24 million, a company record, up 44% year over year
September net sales: $2.68 million, the best month in company history
Operating cash use: about $0.37 million, or roughly 5% of net sales
Distribution and B2B share: half of September net sales, double the 25% share in December 2025
Estimated backlog: about $740,000 on September 30, versus about $117,000 on June 30
Worksport is also changing how it builds. Production is moving to a just-in-time model, so the company makes products closer to when customers need them instead of carrying large stockpiles.
Combined with the inventory sell-through, the effect on cash has been dramatic. Operating cash use is down more than 95% from the first quarter. Management believes the business can now reach operating cash flow breakeven, citing today’s low cash use, its available resources, including a credit facility, and the inventory still to be sold.
“Achieving that sustainably will let us build growth without significant dependence on equity financing,” Rossi said.
Worksport is building in two markets with long runways. The latest market report from the Specialty Equipment Market Association (SEMA) shows U.S. drivers put more than $15 billion into modifying their pickups in 2025. Portable power is expanding even faster: Persistence Market Research forecasts that worldwide sales of portable power stations will climb from roughly $1.8 billion this year to $4.9 billion in 2033.
COR’s Amazon launch came at the very end of the quarter, so the third-quarter numbers reflect little, if any, of that new channel. The coming quarters will be the first to show what it adds.
Worksport set out a two-step plan for 2026: invest first, then convert. Its third quarter shows the second step working, with record sales, a distribution business that accounted for half of September revenue, steady margins and operating cash use close to breakeven.
Full third-quarter results will come in the company’s Form 10-Q, and management will walk through them on an earnings call after the market closes on November 10. The third-quarter figures above are preliminary and unaudited.