The truck accessory and portable power maker turned its inventory into sales and cash, posting record quarterly revenue while bringing operating cash use down to about 5% of net sales.
For a growing manufacturer, one of the most important milestones is the point where sales start paying for the business. Worksport (Nasdaq: WKSP), the West Seneca, New York-based maker of pickup truck bed covers, the SOLIS solar truck cover and the COR portable power system, is now closing in on that point.
The company built up inventory in the first half of 2026 to prepare for product launches and wider distribution. Its preliminary third-quarter results, released on November 3, show it turning that stock into sales and cash.
Cash Burn Falls to a Fraction of Sales
Net cash used in operating activities was about $0.37 million in the third quarter, an improvement of about $3.1 million, or 89%, from roughly $3.4 million in the second quarter. In the first quarter, operations used about $8.2 million.
Measured against sales, the shift is sharper still. In the first quarter, operations used nearly two and a half times as much cash as the company recorded in net sales; in the second, about two-thirds. In the third, that figure was down to roughly one dollar in twenty.
“We converted inventory into sales and cash, grew gross profit faster than recurring cash costs, and reduced the cash our operations use by more than 95% since the first quarter,” said Steven Rossi, Chief Executive Officer of Worksport.
Inventory Turns Into Revenue
The improvement came as Worksport put the inventory it built earlier in the year to work. Over the quarter, inventory shrank by about $2.5 million, falling from $12.1 million at the end of June to roughly $9.6 million at the end of September. The company says production is moving toward a just-in-time model, which means building closer to actual orders rather than ahead of them.
Record Sales, Led by Distribution
Preliminary net sales reached a record of about $7.24 million in the quarter, up 44% from about $5.0 million a year earlier and 38% above the second quarter. Net sales have risen every month this year, with September setting a company record at $2.68 million, what Worksport calls its ninth consecutive month of net sales growth.
Distribution is doing much of the lifting. Business and distribution customers accounted for half of Worksport’s September net sales, double their 25% share in December 2025, as distribution partners took on Worksport products. Management notes that gross margin has stayed above 30% even as the sales mix shifted toward these customers, which it reads as a sign of improved business health.
Newer products are starting to show up as well. SOLIS, the company’s solar truck bed cover, still makes up a small share of revenue, but its sales were more than four times higher than in the second quarter. Demand also continued to outpace billing: third-quarter sales orders of about $7.87 million exceeded invoiced sales, lifting estimated backlog to about $740,000 at September 30 from about $117,000 at June 30.
The Road to Breakeven
Rossi tied the results directly to the company’s main financial goal: operating cash flow breakeven.
“Based on our current operating cash use, the resources available to us, including our credit facility, and the inventory we still must convert, we believe the business is in position to reach operating cash flow breakeven. Achieving that sustainably will let us build growth without significant dependence on equity financing,” Rossi said. “We still have work ahead of us, but the gap continues to narrow, and the pieces are in place.”
Worksport’s shift to just-in-time production is designed to keep that momentum going by keeping less cash tied up in inventory. Complete third-quarter numbers will come with the company’s Form 10-Q, followed by an earnings call on November 10, 2026, after the market closes.
Final Thoughts
Worksport’s third quarter marks a clear shift from building up to selling through. Record sales, a fast-growing distribution business, rising SOLIS sales and stable margins all arrived alongside a sharp drop in cash burn. With operating cash use now at about 5% of net sales, the company’s goal of operating cash flow breakeven looks within reach.
