Workhorse Group Inc. reported third‑quarter 2025 revenue of $2.38 million, a 5.0 % decline from $2.51 million in the same period last year and slightly below the consensus estimate of $2.50 million. The drop reflects a modest reduction in truck sales, as the company’s medium‑duty electric‑truck lineup faced limited demand in a competitive market.
Gross profit fell to $1.28 million, driven by a $3.3 million increase in inventory excess and obsolescence reserves that pushed cost of sales to $10.10 million. The higher reserve charge compressed gross margin from 53 % to 46 %, underscoring the company’s inventory management challenges.
Operating expenses rose to $7.80 million, up $0.10 million from $7.70 million a year earlier. The increase is largely attributable to $3.60 million in consulting and legal fees related to the definitive merger agreement with Motiv Power Systems, signed on August 15, 2025. Other operating costs remained largely flat.
Net loss for the quarter was $7.83 million, a significant improvement over the $26.30 million loss reported in Q3 2024. Earnings per share were –$0.50, beating the consensus estimate of –$1.45 by $0.95, or 66 %. The beat resulted from disciplined cost control, a lower-than‑expected inventory reserve charge, and the elimination of one‑time restructuring costs that were present in the prior year.
Cash and cash equivalents stood at $12.70 million, with restricted cash of $25.50 million. Management reiterated a “substantial doubt” about the company’s ability to continue as a going concern, citing the need for the pending Motiv merger and associated financing to secure a longer operating runway. CEO Rick Dauch emphasized that the merger will provide critical capital and scale, while CFO Bob Ginnan highlighted ongoing efforts to conserve cash and improve working capital.
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