Workhorse Group Inc. Reports Decline in Sales and Net Loss for Q1 2025

Workhorse Group Inc. reported a significant decline in financial performance for the first quarter of 2025, with net sales of $640,922, down from $1.3 million in the same period last year. The company incurred a net loss of $20.6 million, a decrease from a loss of $29.2 million in the prior year. This reduction in losses was attributed to lower operating expenses, which fell to $8.3 million from $17.6 million, primarily due to cost-cutting measures including a reduction in workforce and decreased research and development spending.

The company's total assets increased to $115.5 million as of March 31, 2025, compared to $93.8 million at the end of 2024. This growth was driven by a rise in current assets, particularly in restricted cash, which surged to $27.9 million from $525,000. However, total liabilities also rose sharply to $84.1 million, up from $49.6 million, largely due to an increase in convertible notes at fair value, which reached $45.2 million. The company’s accumulated deficit now stands at $874 million, reflecting ongoing challenges in achieving profitability.

Strategically, Workhorse has focused on enhancing its electric vehicle offerings, particularly the W56 model, while also transitioning away from its drone manufacturing operations. The company has implemented several cost-saving measures, including a reduction in workforce by approximately 20% and the furloughing of employees at its Union City, Indiana facility. These actions are part of a broader strategy to improve liquidity and operational efficiency amid slower-than-expected market demand for electric trucks.

Despite these efforts, Workhorse faces significant challenges, including a negative working capital of $2.8 million and ongoing supply chain issues. The company has indicated that its ability to continue as a going concern is contingent upon successfully executing its plans to improve liquidity, which include increasing truck sales and securing additional financing. As of March 31, 2025, the company had $2.6 million in cash and cash equivalents, raising concerns about its short-term financial stability.

Looking ahead, Workhorse anticipates that market conditions may improve, driven by stricter emissions regulations and potential government incentives for electric vehicle adoption. However, the company remains cautious, noting that its future performance will depend on its ability to navigate ongoing economic uncertainties, including inflation and geopolitical factors that could impact supply chains and production costs.