Workhorse Group Reports Revenue Growth to $5.7 Million Despite Continued Losses in Q2 2025

Workhorse Group Inc. reported its financial results for the second quarter of 2025, revealing a significant increase in revenue but continued operational losses. The company generated $5.7 million in net sales for the three months ended June 30, 2025, compared to $842,440 in the same period last year. For the first half of 2025, total revenue reached $6.3 million, up from $2.2 million in the prior year. Despite this growth, Workhorse incurred a net loss of $14.8 million for the quarter and $35.4 million for the six months, although these figures represent a decrease from losses of $26.3 million and $55.5 million, respectively, in the same periods of 2024.

The company’s operational performance was impacted by increased costs associated with sales, which rose to $13.1 million in the second quarter, up from $7.3 million a year earlier. This increase was attributed to higher sales volume and a $1.8 million rise in inventory excess and obsolescence reserves. Workhorse's selling, general, and administrative expenses also decreased significantly, falling to $5.8 million in the second quarter from $12.1 million in the prior year, primarily due to reduced headcount and lower consulting and legal expenses.

Strategically, Workhorse has made notable moves, including a merger agreement with Motiv Power Systems, Inc., announced on August 15, 2025. This merger is expected to enhance Workhorse's market position in the electric vehicle sector. Additionally, the company has entered into a sale-leaseback transaction for its Union City, Indiana manufacturing facility, which is projected to generate $20 million to support its operations. Workhorse also issued a $5 million subordinated secured convertible note to an affiliate of Motiv, further bolstering its financial position.

As of June 30, 2025, Workhorse reported $2.2 million in cash and cash equivalents, alongside $22.5 million in restricted cash. The company has expressed concerns regarding its ability to continue as a going concern, citing recurring losses, an accumulated deficit of $888.8 million, and projected capital needs. Management is focused on improving liquidity through increased sales, cost reductions, and securing additional financing. The company has also noted challenges in the electric vehicle market, including slower adoption rates and supply chain disruptions, which could impact future performance.