Investment Analysis Report on Worksport Ltd. (WKSP): A High-Growth Play in the Clean Energy Transition

Based on the comprehensive data I have collected, below is an in-depth investment analysis report for

:

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[1], which implies from the current share price of $2.20. Notably, there is significant divergence among analysts:

分析师	目标价	上行空间
H.C. Wainwright	$11.50	+423%
Industrial Alliance Securities	$1.75	-20.5%
共识目标	$4.92	+124%

This extreme disparity in price targets (from $1.75 to $11.50) reflects significant uncertainty among analysts regarding the company’s future prospects[2].

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The company has demonstrated an impressive revenue growth trajectory[0]:

• Q3 FY2025 Revenue
  : $5.01M,
  60.6% year-over-year (YoY) growth
• YTD FY2025 Revenue
  : $11.36M,
  104% YoY growth
• This marks the company’s highest revenue quarter in history

:

Quarter	Revenue (M$)	Sequential Change
Q3 FY2024	3.12	-
Q4 FY2024	2.93	-6.1%
Q1 FY2025	2.24	-23.5%
Q2 FY2025	4.10	+83.0%
Q3 FY2025	5.01	+22.2%

Gross margin has seen a sharp improvement[0]:

• Q3 FY2025 Gross Margin
  : 31.3%, a sharp increase from
  7.9%
  in the year-ago quarter
• YTD FY2025 Gross Margin
  : 26.8%, more than doubling from 10.5% in the same period last year

The improvement in gross margin is mainly driven by increased production efficiency and economies of scale.

Metric	Q3 FY2025	Q3 FY2024
Net Loss	$(4.93)M	$(4.13)M
Earnings Per Share (EPS)	-$0.75	-$1.40
Operating Cash Flow	$(11.19)M (YTD)	$(7.96)M (YTD)

Although losses have widened, sustained investment is a reasonable strategic choice given the company is in the phase of product launch and expansion.

[0]:

• Current Ratio
  : 2.04, indicating strong short-term solvency
• Debt Risk Rating
  : Low Risk
• Debt-to-Asset Ratio
  : Approximately 27% (Total Liabilities $7.27M / Total Assets $27.05M)
• Cash Reserves
  : $3.76M

:

• The company has not yet achieved profitability (negative P/E ratio)
• ROE is -92.75%, indicating erosion of shareholder equity
• Continuous external financing is required to support operations

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Worksport is transitioning from a traditional auto parts company to a clean energy solutions provider[3]:

Product	Status	Market Positioning
SOLIS™ Solar Tonneau Cover	Shipping	Partnered with Hyundai to develop a dedicated model for the Rivian R1T
COR™ Portable Energy Storage System	Shipping	Targeting entry into mainstream home improvement retailers
Aetherlux™ Heat Pump	Launch-Ready	Features breakthrough ZeroFrost™ technology, operable in extreme temperatures as low as -57°F

1. Commercialization of Clean Energy Products
   : SOLIS and COR were officially launched on November 28, 2025, with initial orders exceeding $1M[3][4]

2. Distribution Network Expansion
   : Established partnerships with 6 national distributors, adding 2 new partners in Q3 2025[0]

3. OEM Partnerships
   :
   • Active partnership with Hyundai for the SOLIS Solar Cover
   • Potential EV OEM partners are actively evaluating the company’s technology[4]

4. Aetherlux Heat Pump Opportunity
   : Targeting the multi-billion dollar global heating market, positioned to meet residential and industrial decarbonization needs[3]

5. AI-Integrated Logistics Center
   : Opened an AI-driven distribution center in December 2025 to improve domestic U.S. delivery efficiency[3]

Management expects 2026 to be the

in the company’s history[4], driven primarily by:

• Ramping up production capacity for SOLIS and COR, targeting to become the primary revenue source by end of 2026
• Commercialization of the heat pump product line
• Continuous expansion of the distribution network
• Deepened OEM partnerships

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Metric	Value
Market Capitalization	$10.75M
P/E Ratio	-0.83x (unprofitable)
P/B Ratio	0.71x

:

1. 104% annual revenue growth demonstrates strong growth momentum
2. Gross margin jump from 7.9% to 31.3% shows improved operating leverage
3. The clean energy product portfolio has disruptive market potential
4. Potential partnerships with OEMs like Hyundai and Rivian
5. Breakthrough heat pump technology (ZeroFrost™) opens up new markets

:

1. The company remains unprofitable with rapid cash burn
2. Market acceptance of clean energy products remains unproven
3. Intense competition (from Tesla, SolarEdge, etc.)
4. Macroeconomic uncertainty may impact consumer spending
5. The stock price has fallen 73.81% over the past year, reflecting weak market confidence[0]

H.C. Wainwright’s $11.50 price target is based on

:

• Assumes multi-fold revenue growth in 2026
• Assumes achievement of scaled profitability
• Assumes successful execution of OEM partnerships and heat pump commercialization

This price target reflects

rather than a reasonable valuation achievable in the short term. For investors with higher risk tolerance, the current price may offer an attractive risk-reward ratio, but close tracking of market feedback following product launches is required.

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Category	Assessment
Revenue Growth	★★★★★ 104% YTD growth, strong momentum
Profitability	★★☆☆☆ Sustained losses, but marginal improvement
Gross Margin	★★★★★ Significant improvement from 7.9% to 31.3%
Cash Flow	★★☆☆☆ Rapid operating cash burn
Growth Narrative	★★★★★ Tremendous potential in clean energy transition
Risk Level	★★☆☆☆ High risk, high volatility

: H.C. Wainwright’s Buy rating and $11.50 price target are . The company’s fundamentals show strong revenue growth, significant gross margin improvement, and controllable financial risk, but it has not yet achieved profitability and is highly dependent on the success of product commercialization. The price target assumes full success of the clean energy product line, making this a investment for a company with a market capitalization of just $10.75M.

Investors should watch for the upcoming Q4 FY2025 earnings report (released on January 19, 2026) and 2026 product sales data to validate management’s growth guidance[0].

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[1] The Globe and Mail - “H.C. Wainwright Keeps Their Buy Rating on Worksport (WKSP)” (https://www.theglobeandmail.com/investing/markets/stocks/WKSP/pressreleases/34896277/hc-wainwright-keeps-their-buy-rating-on-worksport-wksp/)

[2] MLQ.ai - “Worksport Ltd. Stock Forecast & Analyst Ratings” (https://mlq.ai/stocks/WKSP/stock-forecast/)

[3] StockTitan - “Worksport 2026 Outlook: SOLIS, COR Now Shipping” (https://www.stocktitan.net/news/WKSP/worksport-provides-2026-business-update-clean-energy-products-e19p474j1rp7.html)

[4] Newswire - “Worksport Provides 2026 Business Update: Clean Energy Products Shipping Now” (https://www.newswire.com/news/worksport-provides-2026-business-update-clean-energy-products-shipping-now-oem)

[0] Jinling AI Financial Database (Company Profile, Financial Data, SEC Filings)