Workhorse(WKHS) - 2025 Q2 - Quarterly Results

Management Commentary and Strategic Highlights Workhorse achieved record Q2 2025 truck shipments, announced a merger with Motiv Electric Trucks, and secured interim funding to bolster operations - Shipped a record 32 trucks in Q2, driven by W56 step van performance[3] - Entered a definitive merger agreement with Motiv Electric Trucks to create a leading North American medium-duty electric truck OEM[3][6] - Secured 36 new purchase orders for W56 step vans during the quarter[6] - Reduced operating expenses by $7.0 million year-over-year through cost conservation[5] - Secured approximately $25 million in interim funding via sale-leaseback and convertible note financing to pay down debt[5][16] - The W56 platform accumulated over 212,000 miles in customer operations, demonstrating 97% uptime[6] Second Quarter 2025 Financial Performance Workhorse reported increased net sales to $5.7 million in Q2 2025, alongside a $7.4 million gross loss, while reducing operating expenses and narrowing its net loss Q2 2025 vs Q2 2024 Financial Results | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Sales, net | $5.7 million | $0.8 million | | Cost of Sales | $13.1 million | $7.3 million | | Gross Loss | ($7.4 million) | ($6.5 million) | | SG&A Expenses | $5.8 million | $12.1 million | | R&D Expenses | $1.2 million | $2.0 million | | Loss from Operations | ($14.5 million) | ($20.5 million) | | Net Loss | ($14.8 million) | ($26.3 million) | - The $4.8 million increase in sales was primarily driven by higher W56 shipments[7] - Cost of sales increased by $5.8 million, mainly due to higher sales volume and a $1.8 million increase in inventory reserves[8] - SG&A expenses decreased by $6.3 million, primarily due to a $3.1 million reduction in employee compensation and a $1.1 million decrease in legal and professional expenses[9] Financial Position and Liquidity As of June 30, 2025, Workhorse held $2.2 million in cash and $22.5 million in restricted cash, bolstering liquidity through a $20 million sale-leaseback and $5 million convertible note financing Key Balance Sheet Items (as of June 30, 2025) | Item | Amount | | :--- | :--- | | Cash and cash equivalents | $2.2 million | | Restricted cash | $22.5 million | | Inventory, net | $32.8 million | | Accounts payable | $10.8 million | - Completed a $20 million sale-leaseback for the Union City, Indiana manufacturing facility[16][17] - Secured an additional $5 million through a secured convertible note financing[16][17] Financial Statements This section presents the condensed consolidated balance sheets and statements of operations, detailing the company's financial position and performance Condensed Consolidated Balance Sheets As of June 30, 2025, total assets increased to $99.3 million, while total liabilities rose to $76.9 million, leading to a decrease in stockholders' equity to $22.3 million Balance Sheet Comparison | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $63.7 million | $53.4 million | | Total Assets | $99.3 million | $93.8 million | | Total Current Liabilities | $73.5 million | $45.2 million | | Total Liabilities | $76.9 million | $49.6 million | | Total Stockholders' Equity | $22.3 million | $44.3 million | Condensed Consolidated Statements of Operations Workhorse reported a Q2 2025 net loss of $14.8 million or ($1.67) per share, a significant improvement from the prior year, driven by reduced operating expenses Statement of Operations (Three Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Sales, net | $5.7 million | $0.8 million | | Gross loss | ($7.4 million) | ($6.5 million) | | Loss from operations | ($14.5 million) | ($20.5 million) | | Net loss | ($14.8 million) | ($26.3 million) | | Net loss per share (Basic & Diluted) | ($1.67) | ($17.45) | Statement of Operations (Six Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Sales, net | $6.3 million | $2.2 million | | Gross loss | ($11.9 million) | ($12.6 million) | | Loss from operations | ($27.3 million) | ($44.2 million) | | Net loss | ($35.4 million) | ($55.5 million) | | Net loss per share (Basic & Diluted) | ($5.34) | ($40.81) | Supplementary Information This section provides details on the upcoming conference call and important disclaimers regarding forward-looking statements and associated risks Conference Call Information A joint conference call with Motiv management is scheduled for Tuesday, August 19th, at 10:00 a.m. Eastern Time to discuss financial results and the merger agreement - A joint conference call with Motiv management is scheduled for Tuesday, August 19th, at 10:00 a.m. Eastern Time to discuss financial results and the merger[18] Forward-Looking Statements This section provides a legal disclaimer regarding forward-looking statements, highlighting risks associated with the proposed Motiv merger, future plans, and anticipated results - The press release contains forward-looking statements related to the proposed merger with Motiv, future business strategies, and anticipated financial results[22] - Identified risks include successful integration with Motiv, obtaining approvals, supply chain disruptions, and funding ongoing operations[23][24]