Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $9.7 million, up from $6 million in Q4 2024, with a total of 65 vehicles delivered in Q4 2025 compared to 40 in Q4 2024 [25][26] - Full-year 2025 revenue reached $21.2 million, significantly higher than $7 million in 2024, with pro forma revenue of $34 million for 2025 if the merger had been completed earlier [28][29] - Operating loss for Q4 2025 was $20.1 million, compared to $16.5 million in Q4 2024, while net loss for Q4 was $23.7 million, up from $19.6 million in the same period last year [27][28] Business Line Data and Key Metrics Changes - The merger with Motiv Electric Trucks has positioned the company as a leading North American medium-duty commercial vehicle OEM, with a portfolio spanning classes four, five, and six [5][6] - The company has delivered 112 vehicles in full-year 2025, an increase from 46 units in 2024, driven by follow-on orders from existing customers [25][26] Market Data and Key Metrics Changes - The North American medium-duty truck market is valued at approximately $23 billion annually, with a significant shift towards e-commerce logistics and shorter delivery routes [9][10] - Annual mileage for medium-duty vehicles has increased from roughly 31,000 miles in 2020 to nearly 48,000 miles in 2025, indicating a growing demand for these vehicles [11][12] Company Strategy and Development Direction - The company aims to complete full enterprise integration within two to three quarters, targeting $20 million in annualized cost synergies from the merger by the end of 2026 [7][19] - A new product roadmap is being developed to commonize key components across platforms, which is expected to enhance pricing flexibility and reduce costs [8][19] Management's Comments on Operating Environment and Future Outlook - Management believes that capturing approximately 1% of the annual medium-duty truck market, or about 2,500 vehicles per year, is achievable and would lead to cash flow breakeven by the end of 2028 [16][17] - The company is focused on driving down the bill of materials to achieve pricing competitive with internal combustion engine trucks, leveraging merger synergies and economies of scale [18][19] Other Important Information - The company has a stronger balance sheet post-merger, with $12.9 million in cash and cash equivalents and access to a $40 million customer order lending facility [30][31] - Management is actively exploring financing alternatives to strengthen the balance sheet and support growth plans [31] Q&A Session Summary Question: What were the one-time expenses related to the merger in Q4? - The company recognized over $4 million in one-time fees and costs associated with the merger, with expectations to exit 2026 at a $20 million run rate in synergies [36][39] Question: Will the company reach positive gross margins by Q4 this year? - Management indicated that it is unlikely to reach positive gross margins by Q4 2026, as they continue to ramp up production [41] Question: What is the outlook for the step van market and feedback on the new lower-cost model? - Preliminary feedback on the new lower-cost models has been positive, with plans to mix the current W56 with the new vehicle for different duty cycles [45][46] Question: What is needed to reach the 5,000+ vehicle capacity? - Minimal capital expenditures are required, primarily for equipment like lift equipment and torque guns, as the facility is already well-prepared for increased production [48][49] Question: How will the Workhorse and Motiv products differ going forward? - The company will phase out the former Class 5-6 chassis from Motiv and ramp up production of new Class 5-6 cab chassis and Class four trucks [56][58] Question: How does the company plan to reduce the bill of materials during 2026? - The company aims to commonize components across different classes of trucks to reduce the bill of materials and achieve competitive pricing with ICE trucks [60][62]

Revenue of $9.7 million in Q4 2025, up 64% year-over-year; full year revenue of $21.2 million, up 201% year-over-yearOn a pro forma basis, combined company revenue of $34.0 million for full year 2025, compared to $13.7 million in 2024, an increase of 149%Delivered 65 vehicles in Q4 2025 and 112 vehicles for full year 2025, compared to 46 vehicles in full year 2024Combined delivered trucks surpassed 20 million real-world miles across more than 1,100 deployed vehiclesTargeting $20 million in annualized cost s ...

Financial Data and Key Metrics Changes - For Q3 2025, net sales were $2.4 million, a decrease of $100,000 from $2.5 million in Q3 2024, primarily due to lower truck deliveries [10] - Cost of sales increased to $10.1 million from $6.6 million year-over-year, driven by a $3.3 million increase in inventory excess and obsolescence reserve [11] - Net loss for Q3 2025 was $7.8 million, significantly improved from a loss of $25.1 million in the same period last year [12] - The company recognized a gain on the sale of assets of $13.8 million related to the sale leaseback of its Union City facility [13] - Cash and cash equivalents increased to $38.2 million from $4.6 million year-over-year, bolstered by $25 million in funding from Motiv's controlling investor [13][14] Business Line Data and Key Metrics Changes - The company sold 15 trucks during the quarter, reflecting progress in scaling sales and expanding the product portfolio [4] - The W56 step van continues to gain traction, with significant customer demand and positive feedback, achieving a 97% uptime availability in operations [5][8] Market Data and Key Metrics Changes - The company is actively engaging with logistics providers and service fleets to build order interest through its national dealer network [5] - The W56 step van is eligible for California's HVIP vouchers, which can provide $85,000 per truck, enhancing its market competitiveness [7] Company Strategy and Development Direction - The proposed transaction with Motiv aims to create a stronger entity in North America's medium-duty electric truck market, accelerating growth and expanding the product lineup [8][9] - The company is focused on cash conservation, expense reduction, and operational efficiencies while preparing for the production launch of the W56 140 kW vehicle in 2026 [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver value to shareholders and emphasized the importance of completing the transaction with Motiv [15][16] - The company is optimistic about the future, citing a potential 55-65% reduction in total cost of operation for its trucks compared to traditional vehicles [26] Other Important Information - The company completed a sale leaseback transaction for $20 million and secured a $5 million convertible note financing, strengthening its financial position [9][13] - The annual general shareholder meeting is scheduled for November 12, 2025, where shareholder approval for the Motiv transaction is sought [16] Q&A Session Summary Question: Broader market outlook for state-level incentives beyond California - Management noted successful engagement with California's HVIP vouchers, leading to increased orders, and mentioned positive developments in Washington and New York regarding similar incentives [20] Question: Cost trends as production ramps up in 2026 - Management indicated that both bill of material costs and labor costs are expected to improve as production increases, with ongoing efforts to reduce costs through engineering and supply chain optimization [22][23] Question: Total cost of operation reduction for trucks - Management highlighted that operational data shows a 55-65% reduction in total cost of operation, emphasizing the benefits of electric trucks over traditional vehicles [26]

Financial Data and Key Metrics Changes - For Q3 2025, net sales were $2.4 million, a decrease of $100,000 from $2.5 million in Q3 2024, primarily due to lower truck deliveries offset by an increase in deferred revenue recognition [10][11] - Cost of sales increased to $10.1 million from $6.6 million year-over-year, primarily due to a $3.3 million increase in inventory excess and obsolescence reserve [10][11] - Net loss for Q3 2025 was $7.8 million, significantly improved from a loss of $25.1 million in the same period last year [12] - Cash and cash equivalents increased to $38.2 million from $4.6 million year-over-year, bolstered by $25 million in funding from Motiv's controlling investor [13][14] Business Line Data and Key Metrics Changes - The company sold 15 trucks in Q3 2025, reflecting progress in scaling sales and expanding the product portfolio [4][5] - The W56 step van continues to gain traction, with a 97% or greater uptime availability reported during operations with FedEx [8][21] Market Data and Key Metrics Changes - Customer demand for the W56 step van is increasing, particularly in California, Washington, and New York, with successful engagement leading to repeat orders from FedEx ground operators [20][21] Company Strategy and Development Direction - The proposed transaction with Motiv aims to create a stronger entity in the medium-duty electric truck market, enhancing growth potential and product offerings [8][9][15] - The company is focused on cash conservation, expense reduction, and operational efficiencies while preparing for the W56 140 kW production launch in 2026 [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate challenging market conditions and emphasized the importance of the Motiv transaction for long-term success [9][15][30] - The company is optimistic about the potential for cost reductions and operational efficiencies post-merger, which will enhance shareholder value [30] Other Important Information - The company recognized a gain of $13.8 million from the sale leaseback of its Union City facility and a $4.8 million gain related to deferred revenue [12][13] - The merger with Motiv is expected to close in Q4 2025, pending shareholder approval [9][14] Q&A Session Summary Question: Broader market outlook for state-level incentives beyond California - Management noted successful engagement in California leading to increased orders and mentioned positive developments in Washington and New York regarding incentives [20][21] Question: Cost trends as production ramps up for the W56 vehicle - Management indicated that both bill of material costs and labor costs are expected to improve as production increases, with ongoing efforts to reduce costs through engineering and supply chain management [22][23] Question: Total cost of operation reduction for the W56 - Management highlighted a projected 55-65% reduction in total cost of operation, emphasizing the benefits of no fuel costs and high uptime [26]

Financial Data and Key Metrics Changes - For Q3 2025, net sales were $2.4 million, a decrease of $100,000 from $2.5 million in Q3 2024, primarily due to lower truck deliveries offset by an increase in deferred revenue recognition [9] - Cost of sales increased to $10.1 million from $6.6 million, primarily due to a $3.3 million increase in inventory excess and obsolescence reserve [10] - Net loss for Q3 2025 was $7.8 million, significantly improved from a loss of $25.1 million in the same period last year [11] Business Line Data and Key Metrics Changes - The company sold 15 trucks during the quarter, reflecting progress in scaling sales and expanding the product portfolio [4] - The W56 step van continues to see growing customer demand, with a 97% or greater uptime availability reported [7] Market Data and Key Metrics Changes - The W56 step van is eligible for California's HVIP vouchers, which can provide $85,000 per truck, contributing to increased orders from logistics providers [6][20] - Positive movements in state-level incentives are also noted in Washington and New York, indicating potential growth opportunities beyond California [20] Company Strategy and Development Direction - The proposed transaction with Motiv aims to create a stronger entity in the medium-duty electric truck market, enhancing growth and product offerings [7][8] - The company is focused on cash conservation, expense reduction, and operational efficiencies while preparing for the W56 140 kW production launch in 2026 [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver value to shareholders and emphasized the importance of completing the merger with Motiv [16] - The company is optimistic about capturing new opportunities in the commercial EV transition and believes the merger will enhance operational capabilities and product offerings [31] Other Important Information - The company recognized a gain of $13.8 million from the sale leaseback of its Union City facility, which bolstered its financial position [12] - Cash and cash equivalents increased to $38.2 million from $4.6 million year-over-year, largely due to funding from Motiv's controlling investor [12] Q&A Session Summary Question: Broader market outlook for state-level incentives beyond California - Management noted successful engagement with state-level incentives in California, Washington, and New York, leading to increased orders from FedEx ground operators [20] Question: Cost trends as production ramps up in 2026 - Management indicated that both bill of material costs and labor costs are expected to improve as production increases, with ongoing efforts to reduce costs through engineering and supply chain optimization [22][23] Question: Total cost of operation reduction for the W56 step van - Management highlighted a 55-65% reduction in total cost of operation, emphasizing the benefits of no fuel costs and high uptime [26]

Core Viewpoint - Workhorse Group Inc. reported its financial results for Q1 2025, highlighting a decrease in sales but progress in securing purchase orders and expanding its electric vehicle offerings, while focusing on cash conservation and operational efficiency [1][5][14]. Management Commentary - CEO Rick Dauch emphasized the company's momentum in delivering electric trucks and securing initial orders, including 27 W56 step vans and six W4 CC/W750 trucks in 2025 [2]. - The company is negotiating additional orders and has begun delivering W56 step vans to a national customer [2]. - Workhorse is focused on cash preservation and extending its financial runway while capitalizing on long-term EV market opportunities [2]. Recent Strategic & Financial Actions - Workhorse secured a purchase order for two W4 CC electric work trucks for a municipal fleet in Washington [3]. - The integration of Geotab telematics technology into the W56 step van enhances fleet management capabilities [3]. - The company expanded its certified dealer network, adding new locations to strengthen its presence in key markets [3]. First Quarter Financial Results - Q1 2025 sales were $0.6 million, down from $1.3 million in the same period last year, primarily due to the Aero divestiture and decreased truck sales [5]. - Cost of sales decreased to $5.2 million from $7.4 million, driven by lower sales volume and reduced labor costs [6]. - SG&A expenses fell to $6.8 million from $14.1 million, reflecting a significant reduction in employee compensation and related expenses [7]. Research and Development Expenses - R&D expenses in Q1 2025 were $1.5 million, down from $3.5 million, mainly due to lower headcount and consulting expenses [8]. Interest Expense and Financial Position - Interest expense increased to $5.3 million from $1.2 million, attributed to higher outstanding convertible note balances [9]. - As of March 31, 2025, the company had $2.6 million in cash and cash equivalents, $27.9 million in restricted cash, and $41.3 million in inventory [12]. Financial Overview and Future Outlook - The CFO stated that the company expects to secure additional orders and aims to ship more trucks in Q2 2025 than in all of 2024 [13]. - Workhorse has reduced operating expenses by $9.3 million year-over-year, focusing on revenue generation while preserving financial runway [14]. - The company regained compliance with Nasdaq's minimum bid price requirement following a reverse stock split [14].