This article first appeared on GuruFocus.
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Truck Shipments: 32 trucks shipped in Q2 2025, up from 1 truck in Q2 2024.
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Revenue: $5.7 million in Q2 2025, up from $800,000 in Q2 2024.
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Cost of Sales: $13.1 million in Q2 2025, up from $7.3 million in Q2 2024.
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SG&A Expenses: $5.8 million in Q2 2025, down from $12.1 million in Q2 2024.
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R&D Expenses: $1.2 million in Q2 2025, down from $2 million in Q2 2024.
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Net Loss: Improved to $35.4 million for the first half of 2025 from $55.5 million in 2024.
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Cash and Cash Equivalents: $2.2 million as of June 30, 2025.
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Restricted Cash: $22.5 million as of June 30, 2025.
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Accounts Receivable: $2.4 million as of June 30, 2025.
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Inventory: $32.8 million net of reserves as of June 30, 2025.
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Accounts Payable: $10.8 million as of June 30, 2025.
Release Date: August 19, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Workhorse Group Inc (NASDAQ:WKHS) secured 36 purchase orders for their W56 step vans and shipped a record 32 trucks in Q2 2025, indicating strong demand and operational success.
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The company reported a significant year-over-year improvement in financial performance, with sales increasing from $800,000 in Q2 2024 to $5.7 million in Q2 2025.
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Operating expenses decreased by $7 million year-over-year, demonstrating improved operational efficiency.
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The strategic merger with Motiv is expected to create a leading North American medium-duty electric truck OEM, broadening the product portfolio and strengthening financial positions.
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The transaction with Motiv includes a $25 million interim funding, enhancing liquidity and supporting operations through the transaction close.
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Despite improvements, Workhorse Group Inc (NASDAQ:WKHS) still reported a net loss of $35.4 million for the first half of 2025, though this was an improvement from $55.5 million in 2024.
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The cost of sales increased to $13.1 million in Q2 2025, driven by higher sales volume and increased inventory excess and obsolescence reserves.
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The company faces challenges from a shifting political landscape and changing government regulations, which have delayed fleet customer adoption rates.
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Workhorse Group Inc (NASDAQ:WKHS) had only $2.2 million in cash and cash equivalents as of June 30, 2025, indicating limited liquidity.
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The merger with Motiv will result in Workhorse shareholders owning only 26.5% of the combined company, potentially diluting their influence and returns.
Q: Can you discuss Motiv’s history with Hudson County Motors and the New Jersey Zip program, and how it might benefit Workhorse? A: Scott Griffith, CFO of Motiv, explained that Motiv has a strong relationship with Hudson County Motors, which could serve as a model for developing relationships in other states. The New Jersey Zip program offers attractive funding opportunities, and Motiv’s experience in securing vouchers can be leveraged to benefit Workhorse as well.
Q: How will the combined company access government programs to drive growth, and what are your thoughts on growth into 2026? A: Richard Dauch, CEO of Workhorse, noted that changes in federal and state incentives, such as CARB’s new programs in California, are positive for growth. The merger with Motiv strengthens the balance sheet, making it easier to secure orders. Scott Griffith added that the combined company aims to be competitive against internal combustion engines without relying on vouchers, focusing on achieving cost parity.
Q: What is the potential for expanding the school bus and shuttle market with Workhorse’s capabilities? A: Scott Griffith highlighted that the school bus and shuttle markets are promising due to financial and community support for cleaner transportation. These vehicles have low mileage requirements, aligning well with current EV technology. The merger with Workhorse provides an opportunity to ramp up production and capitalize on this market.
Q: Why is a reverse stock split being considered in connection with the merger? A: Bob Ginnan, CFO of Workhorse, explained that due to the potential change of control, Workhorse must meet NASDAQ’s initial listing standards, which include minimum price thresholds. A reverse stock split may be necessary to meet these standards.
Q: How will the combined company address product overlap in Class 4 through 6 vehicles? A: Scott Griffith and Richard Dauch stated that the combined company will offer a full range of Class 4 through 6 trucks, leveraging the most advanced and road-tested products. They plan to develop a Class 5-6 cab chassis together and focus on a long-term product roadmap, including the bus and shuttle business.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.