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CINCINNATI - Workhorse Group Inc. (NASDAQ:WKHS), a company specializing in zero-emission commercial vehicles, reported its full-year financial results for 2024, highlighting both strategic advancements in its electric vehicle (EV) offerings and a challenging financial environment. The company noted a decrease in sales from the previous year but emphasized its continued efforts to expand its EV portfolio and customer base. According to InvestingPro data, the company’s market capitalization stands at just $6.36 million, with the stock trading near its 52-week low of $1.83, reflecting investor concerns about its financial stability.
In the last year, Workhorse introduced the W56 208-inch wheelbase truck, designed for high-volume delivery needs, and received positive customer feedback. A national provider of uniforms and workplace supplies changed their original order to include 13 of these extended wheelbase trucks, with deliveries expected to start in the second quarter of 2025 through Kingsburg Truck Center. Additionally, Workhorse’s vehicles have been approved for sale in Canada, with demo trucks set to be deployed in April 2025.
Workhorse’s financial results for 2024 showed a net decrease in sales to $6.6 million, down from $13.1 million in 2023, and a net loss of $101.8 million, which is an improvement from a net loss of $123.9 million the previous year. The company attributed the decrease in sales primarily to lower W4 CC truck sales, partially offset by an increase in W56 truck sales and service revenue. Cost reduction measures have been implemented across the organization to preserve cash and extend Workhorse’s financial runway. InvestingPro analysis reveals concerning metrics, including a negative gross profit margin of -333% and rapid cash burn rate. InvestingPro subscribers have access to over 20 additional key insights about Workhorse’s financial health and market position.
The company also undertook a 1-for-12.5 reverse stock split in March 2025 to address Nasdaq’s minimum bid price requirement. Workhorse emphasized the importance of disciplined decisions to ensure financial stability and expressed optimism about the long-term market opportunity for EV technologies in the commercial truck segment.
Despite the financial challenges, Workhorse secured new orders and expanded its certified dealer and service networks. The company’s management remains focused on executing their product roadmap and creating value for shareholders.
Workhorse’s CFO Bob Ginnan highlighted significant cost reduction actions taken throughout 2024 and a financing arrangement with an institutional investor providing near-term liquidity. The company continues to seek opportunities to reduce costs and conserve cash to achieve strategic goals.
The information provided in this article is based on a press release statement from Workhorse Group Inc.
In other recent news, Workhorse Group Inc. has announced several significant financial and strategic developments. The company has secured $35 million in financing through a securities purchase agreement with an institutional investor, involving a senior secured convertible note and a warrant for common stock. This funding is part of a series of financings that could total up to $139 million. Additionally, Workhorse has obtained $3.5 million in extra financing through another securities purchase agreement, with the note convertible into common stock at the investor’s discretion.
In a strategic move to comply with Nasdaq’s listing requirements, Workhorse is executing a reverse stock split at a 1-for-12.5 ratio to meet the minimum bid price rule. The company also received approval to import and sell two models of its all-electric step vans in Canada, marking its entry into this market. Furthermore, Workhorse has gained consent to release $3 million from a lockbox account, part of a broader financing strategy involving convertible notes and warrants. These developments reflect Workhorse’s ongoing efforts to strengthen its financial position and expand its market presence.
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