Worksport Ltd. reported preliminary unaudited monthly financial performance for the period from April through June 2026, demonstrating a significant improvement in revenue quality and profitability. Net sales increased approximately 46%, while gross profit increased approximately 132%, reflecting substantial gross-margin expansion and increasing gross-profit contribution from the company's growing sales base. The company has achieved a sustainable gross-margin running rate above 35%, compared to 26% in Q1 2026, and expects to maintain or increase from this level.

Preliminary gross profit increased from approximately $310,000 in April to $720,000 in June, while net sales increased from approximately $1.43 million to $2.08 million. This performance indicates that the company is generating substantially more gross profit as its sales base expands. The combination of higher sales, improving gross margins, and gross profit growing materially faster than revenue represents continued progress in the underlying economics of the business, steering it toward operational cash flow positivity and profitability in the near-term.

Preliminary Monthly Financial Highlights

• June net sales of approximately $2.08 million, up approximately 46% from April and 21% from May.
• June gross profit of approximately $720,000, up approximately 132% from April and 15% from May.
• Gross margin run rate now stable above 35% compared to 26% in Q1 2026.
• Monthly gross profit increased by approximately $410,000 between April and June.

Preliminary and Unaudited Financial Performance

Between April and June, monthly net sales increased by approximately $650,000, while monthly gross profit increased by approximately $410,000. June demonstrated continued momentum from May, with net sales increasing approximately 35% month over month and gross profit increasing approximately 9%. The company believes this trend will continue as it scales its automotive business and converts its expanding gross-profit base into progress toward operational cash-flow positivity.

Steven Rossi, Chief Executive Officer of Worksport, stated that the results demonstrate the company's growth is becoming increasingly productive. He highlighted that gross margin improved by almost 1000 basis points from Q1 2026, even as monthly sales continued to expand. The company expects to provide complete financial results for the second quarter of 2026 in its applicable filing with the U.S. Securities and Exchange Commission by about August 11, 2026. These figures are preliminary and unaudited, and actual results may differ.

Worksport Ltd. (NASDAQ:WKSP) has regained compliance with Nasdaq's minimum bid price requirement after its common stock closed above $1.00 on June 24, 2026, representing a 75% increase in five trading days. This milestone accompanies the announcement of a preliminary gross margin of approximately 35% for May 2026, a record high and an increase from 28.4% in Q1 2026. Management attributes the margin expansion to production efficiency, cost discipline, and operating leverage, despite a 50% rise in aluminum prices over the last two years. The company believes these operational improvements support a targeted annualized revenue opportunity of $36 million or more over the next 12 months, creating a path toward initial operational cash-flow positivity within 2026.

To discuss these developments, Worksport will host a live investor town hall on Tuesday, June 30, 2026, at 12:05 p.m. Eastern Time. Founder and Chief Executive Officer Steven Rossi will address the company's recent business momentum, including the Meyer Distributing partnership, NEXUS traction, and the 2026 execution plan. The company recently completed two direct investments, including one priced at a premium to recent trading levels, and has received expressed interest for additional financing of up to $10 million.

Meyer Distributing Partnership

Worksport has secured Meyer Distributing as its first multinational distribution partner, receiving an initial purchase order for tonneau covers. Meyer Distributing operates over 3.5 million sq. ft. of warehouse space across the United States, Canada, and international markets. This partnership provides Worksport access to a larger base of recurring orders from thousands of dealers and installers, strengthening its commercial platform alongside existing channels such as Tri-State Enterprises and Patriot Auto.

Revenue Targets and Growth Drivers

Worksport's current business-to-consumer (B2C) activity is tracking near $1 million per month, or approximately $12 million annualized. Business-to-business (B2B) sales were recently tracking near $0.7 million per month, or approximately $8.4 million annualized. With the activation of the Meyer Distributing relationship, management believes B2B annualized revenue potential can expand toward $24 million. The company noted that its current 2026 revenue run-rate is growing healthily at $21+ million.

Revenue Run-Rate Projection

Terravis Energy and Product Platform

In addition to its core tonneau cover and SOLIS solar cover strategies, Worksport continues to develop its Terravis Energy subsidiary. Terravis remains focused on highly efficient heating and cooling technologies, including its patented ZeroFrost™ heat-pump technology. Management currently expects product certification during the second half of 2026, subject to testing and certification timing. The company believes its broader product platform provides multiple long-term growth pathways.