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Investors interested in stocks from the Broadcast Radio and Television sector have probably already heard of Sirius XM (SIRI - Free Report) and Netflix (NFLX - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Sirius XM has a Zacks Rank of #2 (Buy), while Netflix has a Zacks Rank of #3 (Hold) right now. This means that SIRI's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

SIRI currently has a forward P/E ratio of 8.63, while NFLX has a forward P/E of 25.88. We also note that SIRI has a PEG ratio of 0.71. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. NFLX currently has a PEG ratio of 1.18.

Another notable valuation metric for SIRI is its P/B ratio of 0.78. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, NFLX has a P/B of 12.46.

These metrics, and several others, help SIRI earn a Value grade of A, while NFLX has been given a Value grade of D.

SIRI stands above NFLX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SIRI is the superior value option right now.

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.

Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at Sirius XM (SIRI - Free Report) , a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Sirius XM currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here >>>

Set to Beat the Market? In order to see if SIRI is a promising momentum pick, let's examine some Momentum Style elements to see if this satellite radio company holds up.

A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.

For SIRI, shares are up 4.43% over the past week while the Zacks Broadcast Radio and Television industry is down 2.48% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 13.24% compares favorably with the industry's 1.98% performance as well.

Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Shares of Sirius XM have increased 19.2% over the past quarter, and have gained 38.15% in the last year. In comparison, the S&P 500 has only moved 4.15% and 30.86%, respectively.

Investors should also take note of SIRI's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now SIRI is averaging 6,057,771 shares for the last 20 days..

Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with SIRI.

Over the past two months, 2 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost SIRI's consensus estimate, increasing from $3.09 to $3.10 in the past 60 days. Looking at the next fiscal year, 2 estimates have moved upwards while there have been no downward revisions in the same time period.

Bottom LineTaking into account all of these elements, it should come as no surprise that SIRI is a #2 (Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Sirius XM on your short list.

Key Takeaways SIRI beat Q1 estimates with EPS of 72 cents and revenues rising 1.1% YoY.Ad revenues climbed 3.3%, driving growth alongside modest gains in subscriber revenues.Adjusted EBITDA rose 6% as cost cuts boosted margins and free cash flow more than tripled. Sirius XM Holdings (SIRI - Free Report) stock edged up 1% after its April 30, 2026, earnings announcement, modestly outpacing the 1% drop seen across the Zacks Broadcast Radio and Television industry.

The company reported first-quarter 2026 earnings of 72 cents per share, beating the Zacks Consensus Estimate of 70 cents by 2.86%. It reported earnings of 59 cents per share in the year-ago quarter.

The company reported total revenues of $2.09 billion, up 1.1% from $2.07 billion in the year-ago quarter and beat the Zacks Consensus Estimate by 0.89%.

Subscriber revenues (77% of total revenues) increased 0.62% from the year-ago quarter’s reported figure to $1.61 billion. The figure surpassed the Zacks Consensus Estimate by 0.39%.

Advertisement revenues (19.5% of total revenues) increased 3.3% year over year to $407 million, surpassing the Zacks Consensus Estimate by 2.71%.

Equipment revenues (2.0% of total revenues) were flat year over year at $41 million, missing the Zacks Consensus Estimate by 3.59%.

Other revenues (1.5% of total revenues) were flat year over year at $31 million, surpassing the Zacks Consensus Estimate by 4.58%.

Sirius XM Standalone Segment’s DetailsSirius XM’s Standalone segment revenues (76.0% of total revenues) were $1.59 billion, up 1% year over year, driven by higher subscriber revenues from pricing actions.

 Subscriber revenues increased 0.9% year over year to $1.48 billion, reflecting the impact of recent pricing actions, partially offset by a slightly lower average subscriber base.

Total subscriber base declined 0.3% year over year to 32.78 million.

Advertising revenues were $35 million, down 10% year over year, primarily due to softness in news channels.

Self-pay subscribers decreased 0.3% year over year to 31.23 million. Self-pay net subscriber loss in the reported quarter was 111K compared with a loss of 303K in the year-ago period. Average revenue per user amounted to $14.99, up from $14.86 year over year. Self-pay monthly churn improved to 1.5% from 1.6% in the year-ago period.

Net subscriber loss in the reported quarter was 148K compared with a net loss of 362K in the year-ago period.

Pandora & Off-Platform DetailsThe Pandora and Off-Platform segment continued to shoulder most of the company’s advertising mix. Segment revenues increased 3% year over year to $501 million, with advertising revenues rising 5% to $372 million, partially offset by a 2% decline in subscriber revenues to $129 million amid a smaller subscriber base.

    Self-pay subscribers of Pandora ended the quarter at 5.6 million. Ad-supported listener hours were 2.22 billion in the first quarter, down 6% year over year. Advertising revenue per thousand listener hours decreased 4% year over year to $84.11.

SIRI's Q1 Operating DetailsIn the first quarter, total operating expenses decreased 3% year over year to $1.64 billion, primarily backed by impairment, restructuring and other costs of $6 million compared with $48 million in the prior-year period.

Profitability improved on a combination of modest top-line growth and cost control. Adjusted EBITDA increased 6% year over year to $666 million, and adjusted EBITDA margin expanded 140 basis points to 32.0%, reflecting lower customer service, product and technology, and general and administrative expenses.

Management also reiterated its 2026 focus on efficiency, noting $45 million of progress toward a targeted $100 million in incremental gross cost savings for the year. The cost program included $27 million in operating expense run-rate savings and $18 million in capital expenditure savings.

Balance Sheet & Cash Flow of SIRIAs of March 31, 2026, cash and cash equivalents were $75 million compared with $94 million as of Dec. 31, 2025, according to the company's consolidated balance sheet.

Long-term debt as of March 31, 2026, was $9.69 billion compared with $8.65 billion as of Dec. 31, 2025.

During the quarter, Sirius XM completed a $1.25 billion refinancing, retired all 2026 notes and redeemed $250 million of 2027 notes, while returning $113 million to its shareholders through $91 million in dividends and $22 million in share repurchases.

For the first quarter, cash flow from operations was $271 million compared with $242 million in the year-ago quarter.

Free cash flow totaled $171 million, more than tripling from $56 million in the prior-year period, driven by higher adjusted EBITDA and lower capital expenditures.

SIRI Reaffirms 2026 GuidanceSIRI reaffirmed its full-year 2026 outlook, projecting revenues of approximately $8.5 billion, adjusted EBITDA of approximately $2.6 billion and free cash flow of approximately $1.35 billion.

The company also reiterated its longer-term target of $1.5 billion in free cash flow in 2027, reflecting a continued focus on operational efficiency and cash flow conversion.

SIRI’s Zacks Rank & Other Stocks to ConsiderSIRI currently carries a Zacks Rank #2 (Buy).

Alto Ingredients (ALTO - Free Report) , Central Garden & Pet (CENT - Free Report) and Fox (FOX - Free Report) are some other top-ranked stocks that investors can consider in the broader Consumer Discretionary sector. While Alto Ingredients currently sports a Zacks Rank #1 (Strong Buy), Central Garden & Pet and Fox carry a Zacks Rank #2 each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Alto Ingredients shares have surged 88.6% year to date. ALTO is set to report its first-quarter 2026 results on May 6.

Central Garden & Pet shares have gained 14.3% year to date. CENT is set to report its second-quarter fiscal 2026 results on May 6.

Fox shares have declined 12.3% year to date. FOX is set to report its third-quarter fiscal 2026 results on May 11.

Warren Buffett got serious about Sirius XM (SIRI 0.25%) in his final few quarters as CEO of Berkshire Hathaway. Buffett's iconic conglomerate had been adding to its stake in Sirius XM over the past two years, amassing a stake of better than 37% in the satellite radio monopoly before the generational investor stepped down from the helm.

We may never know if it was Buffett or one of his many skilled executives who led the charge to build out Berkshire's position. We do know that Sirius XM stock underperformed the market during Buffett's time at Berkshire. However, it's been a different story this year. Sirius XM is beating the market with a 33% gain so far in 2026.

Offering a healthy yield and in the early stages of turning things around, is Sirius XM a dividend stock that you should buy, too? Let's hit the road and crank up the music. This could be Berkshire's biggest gainer in 2026.

Image source: Getty Images.

The volume knob is finally starting to move Sirius XM may not look like much from the vantage point of the rearview mirror. It has posted modest revenue declines for three consecutive years. Its subscriber count peaked at nearly 35 million more than six years ago. The media stock may seem to be fading out like many of the musical tracks on its airwaves, but this song still has a few more verses to belt out.

For starters, Sirius XM has now posted back-to-back quarters of increasing revenue. It was just a 0.2% year-over-year uptick in the fourth quarter of last year and a 1.1% step up in last week's report, but there's a corner that is slowly but definitely being turned.

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Coming around the bend It's not just the fundamentals turning the corner. After five straight years of stock declines, Sirius XM is crushing the market in 2026. The stock's yield -- a hearty 4.1% even after the shares rising 35% off their November lows -- is attracting income investors. Routinely clocking in with 10-figure annual free cash flow ($1.35 billion projected by Sirius XM for this year), it's good for the money.

Sirius XM reiterated its 2026 guidance in last week's first-quarter report. This is great to see, but the risks remain. Sirius XM is directly in the path of two headwinds: rising gas prices and the impact they may have on diminishing consumer spending.

More pain at the pump in the coming months can limit the time folks spend driving. This would lower the perceived value of a premium radio service consumed primarily in automobiles. The other dagger is that with less disposable income after paying up for gas, a satellite radio subscription could be next on the chopping block for cost-cutting consumers.

There's also a bullish scenario: The war in Iran subsides, inflationary pressures recede, and car sales surge, along with Sirius XM's recent acceleration in revenue growth. Even if that scenario doesn't play out, the stock is still cheap for a business that appears to be coming around. You can buy Sirius XM for 8.6 times this year's earnings and 7.9 times next year's target.

© Dimitrios Kambouris / Getty Images Entertainment via Getty Images

Warren Buffett built Berkshire Hathaway by paying reasonable prices for durable cash flows, and three of his current bets still trade below $30 a share. With Greg Abel sitting on a record cash pile, the sub-$30 aisle is where value hunters are scanning for the kind of brand-heavy, cash-generative franchises Omaha tends to favor when sentiment sours.

Here are five stocks under $30 that fit the Buffett template: three Berkshire already owns, plus two Abel could plausibly add to the book.

Kraft Heinz (NASDAQ: KHC) Kraft Heinz (NASDAQ:KHC | KHC Price Prediction) owns Heinz, Philadelphia, Lunchables, and Primal Kitchen. Shares recently traded at $23.96, paying a 6.76% dividend yield at a forward multiple near 12. Q1 adjusted EPS hit $0.58 against a $0.5027 consensus, the fourth consecutive beat, while free cash flow jumped 58.9% to $766M. CEO Steve Cahillane’s $600M reinvestment plan anchors the turnaround case. The risk: organic net sales are guided down 1.5% to 3.5% on SNAP and private-label pressure. With analyst targets clustered near $23.87, the value here lives in the dividend.

Sirius XM (NASDAQ: SIRI) Sirius XM (NASDAQ:SIRI) operates satellite radio and Pandora and just locked in an exclusive U.S. audio ad partnership covering YouTube’s roughly 255 million monthly listeners. Shares sit near $27.10, up 37.2% year to date, on a trailing P/E of 11 and forward P/E of 9. The dividend yields 4.04% at $0.27 quarterly. Q1 churn hit a record-low 1.5% and podcast revenue grew 37%, with full-year free cash flow guided to $1.35B. The bear note: self-pay subscribers are still shrinking. Wall Street targets average $28.08, leaving the cash return as the main draw.

Liberty Latin America (NASDAQ: LILA) Liberty Latin America (NASDAQ:LILA) runs broadband and mobile networks across the Caribbean and Latin America under Flow, Liberty, and Más Móvil. Shares recently sat at $7.63, up 63.38% over the past year. Q1 operating income rose 13%, the company added 50,200 postpaid subscribers, and CEO Balan Nair announced plans to distribute $500M in 9% preferred stock. Berkshire still holds the position. The risk is real: net leverage sits at 4.5x and Hurricane Melissa weighed on Caribbean revenue. Analyst targets at $11.90 imply meaningful upside if recovery holds.

Nu Holdings (NYSE: NU) Nu Holdings (NYSE:NU), Latin America’s largest digital bank, sits outside Berkshire’s current portfolio yet matches the profitable, scale-driven financial profile Abel has flagged interest in. It’s also formerly a Berkshire Hathaway holding. Shares trade near $13.80 at a trailing P/E of 23. Full-year revenue grew 42.06% to $15.77B, net income climbed 45.61% to $2.87B, and Q4 return on equity hit 33%. Nubank also secured conditional OCC approval for a U.S. national bank. Risks include Brazilian macro exposure and $4.20B in expected credit losses. Consensus target sits at $19.87, well above the current quote.

Pfizer (NYSE: PFE) Pfizer (NYSE:PFE) is another non-Berkshire name that fits the Buffett-style screen Abel may inherit. Shares recently traded at $25.68, up 21.96% over the past year, pairing a 6.6% yield with a forward P/E of 9. The non-COVID portfolio grew 9% operationally in Q4, with Vyndaqel, Eliquis, and Abrysvo all posting double-digit gains. Q4 adjusted EPS came in at $0.66 versus a $0.57 consensus. Risks include a $1.5B loss-of-exclusivity headwind plus Most-Favored-Nation pricing uncertainty. Consensus target stands at $29.11.

A low share price by itself is never a thesis. Each of these names carries a specific risk that could undo the cheap headline multiple, from food-volume erosion to Brazilian macro to drug-pricing reform. Treat this list as a starting point for your own diligence, not a substitute for it.

Sirius XM Holdings Inc. (SIRI) Presents at J.P. Morgan 54th Annual Global Technology, Media and Communications Conference Transcript

With major indices flirting with historically stretched valuations and inflation still nibbling at household budgets, dividend-paying stocks under $40 are getting a fresh look from retail investors who want income without overpaying for it. A sub-$40 entry point can be the difference between a position that earns its keep and one that locks up capital. While the broader market grapples with historically stretched valuations and creeping inflation, satellite radio giant Sirius XM Holdings presents a masterclass in defensive, highly predictable cash generation.

With that in mind, here is one stock trading under $40 that pairs a legally protected monopoly with a yield north of 4% and a clear path to higher free cash flow.

Sirius XM Holdings (NASDAQ: SIRI) Sirius XM (NASDAQ:SIRI | SIRI Price Prediction) is the sole satellite radio provider in the United States, pairing subscription audio with the Pandora streaming and podcast business. The FCC-licensed satellite broadcast license is the kind of regulatory moat that public-market investors rarely get to buy at a single-digit forward multiple.

Shares closed at $29.87 on May 28, 2026, comfortably inside a retail price band yet up 52.75% year to date and 39.82% over the past year. For a retail investor, that means the YouTube partnership rerating is underway, yet the stock still trades below the $34 Guggenheim target and well under Rosenblatt’s $45 price target.

The fundamentals back up the setup. Sirius XM trades at a trailing PE of 13 and a forward PE of 10, with a PEG ratio of 0.657 and a dividend yield of 3.64% on the trailing basis (the run-rate yield sits above 4% against the recent filing price). The $0.27 quarterly dividend annualizes to $1.08 per share, a payout that consumed only 27% of free cash flow last cycle. Analyst consensus skews to a $28 average target, but the more aggressive bull cases reach $45.

The bull case is straightforward. Q1 2026 delivered EPS of $0.72, net income up 20% YoY to $245 million, operating income up 24.38%, and free cash flow that tripled to $171 million. Self-pay churn fell to 1.5%, the lowest first-quarter reading on record. Management reaffirmed 2026 guidance of roughly $8.50 billion in revenue, $2.60 billion in adjusted EBITDA, and $1.35 billion in free cash flow, with a 2027 free cash flow target of $1.5 billion. CEO Jennifer Witz said the company “significantly enhanced our advertising capabilities through our landmark partnership with YouTube”, a deal that gives SiriusXM Media exclusive U.S. ad representation for YouTube’s audio inventory reaching 255 million monthly listeners starting fall 2026. Podcast revenue grew 37% YoY in the quarter, and Berkshire Hathaway’s stake adds a credibility stamp few sub-$40 dividend names can match.

The key risk that cuts against the thesis: the subscriber base is still shrinking. Q1 2026 saw total net subscriber losses of 148,000, Pandora monthly active users fell 5% YoY to 40.1 million, and ad-supported listener hours declined 6% YoY. Net leverage at 3.6x is elevated, and reported early-stage merger talks with iHeartMedia introduce execution risk that could complicate the deleveraging path. Yet the trend lines on churn, ARPU, and free cash flow point the right way.

For patient investors hunting a regulator-protected cash compounder under $40, Sirius XM fits the brief.

The Bottom Line A low share price alone is never a reason to buy or avoid a stock, and Sirius XM still carries a debt load, ad-market sensitivity, and a slow-bleeding subscriber count that demand scrutiny. Use this as a starting point for your own research, weigh the YouTube catalyst and the dividend coverage against the leverage and M&A overhang, and decide whether the moat justifies the position size in your portfolio.

, /PRNewswire/ -- Sirius XM Holdings Inc. (NASD: SIRI) will replace Masimo Corp. (NASD: MASI) in the S&P MidCap 400 effective prior to the opening of trading on Thursday, June 11. S&P 500 & 100 constituent Danaher Corp. (NYSE: DHR) is acquiring Masimo in a deal expected to be completed soon pending final conditions.

Following is a summary of the changes that will take place prior to the open of trading on the effective date:

Effective
Date 

Index
Name 

Action 

Company Name 

Ticker 

GICS Sector 

 June 11, 2026  

S&P MidCap 400 

Addition 

Sirius XM Holdings

SIRI 

Communication Services 

 June 11, 2026  

S&P MidCap 400 

Deletion 

Masimo

MASI 

Health Care 

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Workhorse Group (NASDAQ: WKHS - Get Free Report) is projected to issue its Q4 2025 results before the market opens on Monday, March 30th. Analysts expect the company to announce earnings of ($8.88) per share for the quarter. Parties can find conference call details on the company's upcoming Q4 2025 earning report page for the latest

New configuration purpose-built for the needs of in-city, last-mile package deliveryLower entry price combined with 100-mile range offers more affordable option for companies seeking to diversify fleets as a hedge against rising fuel prices DETROIT, March 25, 2026 (GLOBE NEWSWIRE) -- Workhorse Group Inc. (NASDAQ: WKHS) (“Workhorse”), a North American OEM and provider of all-electric trucks, step vans, shuttles and buses, today announced the availability of a new W56 Step Van model with a 140 kWh battery. The new model is based on the same platform as the 210 kWh Workhorse W56 step van, which is renowned for its spacious cargo, ergonomic design, reliability and durability and comes in two wheelbases (Standard and Extended).

W56 step vans with the Standard Wheelbase and 140 kWh configuration offer an estimated nominal range of 100 miles per charge at full payload. Pricing begins at $169,000 which includes a fully-integrated, purpose-built composite body. Because Workhorse produces the W56 fully on site, it has greater control of the process which can result in lower costs and more predictable delivery timelines.

The Standard 178" Wheelbase offers 1,000 cubic feet of cargo space and a payload of 11,000 lbs., making it ideal for many last-mile delivery needs. The Expanded 208" Wheelbase offers 1,000 cubic feet of cargo space and 10,000 lbs., making it perfect for larger loads with the added benefit of enhanced stability for efficient operations.

“The new 140 kWh version of our W56 step van is a result of listening to customer feedback and purpose-building a product to meet their needs,” said Scott Griffith, CEO of Workhorse. “We’ve been able to balance the functional needs of fleets – range, durability, reliability and performance – with a lower entry price to offer a ‘no-compromise’ electric truck.”

Fleet operators, (such as the network of independent service providers (ISPs) operating FedEx Ground routes, including Stables by Workhorse, an ISP that is owned and operated by Workhorse), have consistently reported that 100 miles of daily range substantially exceeds their needs for many of their routes. They’ve stated that a more appropriately sized battery pack at a lower price point would strengthen the business case for electrification.

The timing of today’s announcement comes as oil prices have surged — exceeding $100 at their recent peak1 — following geopolitical disruptions in the Middle East. Analysts at Goldman Sachs have warned that triple-digit oil could become a structural reality for years to come2. For fleet operators of any size, fuel is often the second-largest operating expense after the cost/depreciation of the vehicle itself3.

“Commercial ground fleets have similar exposure to spikes in fuel prices as airlines, and the launch of this new model offers fleets a no-compromise option to control costs while still ensuring efficient operations,” said Scott Griffith, CEO of Workhorse. “Because electricity costs are low, local, and more immune to global oil shocks, we believe every electric truck in a mixed fleet can act as a buffer against the volatility that is once again hammering operators who run entirely on gasoline and diesel.”

The new model and pricing are a result of the initial synergies realized through Workhorse’s December 2025 merger with Motiv Electric Trucks, as the combined company works to drive down production costs through economies of scale as well as operational and supply chain efficiencies. Fleets now have new options as they seek to reduce overall operating costs and hedge against the volatility of gas prices. ISPs can now operate a blend of 140 kWh and 210 kWh configurations of the Workhorse W56 to optimize performance among the mix of shorter and longer routes they serve daily.

The W56 is currently in production at Workhorse’s commercial-scale manufacturing facility in Union City, Indiana, which is capable of producing up to 5,000+ vehicles per year on a single operating shift. Workhorse sells its vehicles through a national dealer network, with post-sale support bolstered by regionally deployed Workhorse-trained technicians.

About Workhorse Group Inc.
Headquartered in the Detroit area with a commercial-scale manufacturing plant in Union City, Indiana, Workhorse (Nasdaq: WKHS) is redefining what a medium-duty truck should be. Workhorse builds software-first, electric trucks, shuttles and buses that are powerful, cost-efficient, reliable, safe and comfortable — all with zero tailpipe emissions. Our deep experience building electric vehicles at scale drives intentional innovations designed to help customers lower operating costs, improve fleet performance, enhance the driver experience, and maximize uptime without compromise. More information is available at www.workhorse.com.

Media Relations Contact:
Workhorse
John Williams, Communications
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Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 21E of the Exchange Act, and the Private Securities Litigation Reform Act of 1995, as amended. All statements other than statements of historical fact included in this press release, including, among other things, statements regarding future events, plans and anticipated results of operations, business strategies, the anticipated benefits of the Motiv/Workhorse merger, the anticipated impact of the Workhorse/Motiv merger on the combined company’s business and future financial and operating results, the expected amount and timing of synergies from the Workhorse/Motiv merger and other aspects of either company’s operations or operating results are forward-looking statements. Some of these statements may be identified by the use of the words “plans”, “expects” or “does not expect”, “estimated”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, “targets”, “projects”, “contemplates”, “predicts”, “potential”, “continue”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “should”, “might”, “will” or “will be taken”, “occur” or “be achieved”.

Forward-looking statements are based on the opinions and estimates of management of Workhorse as of the date such statements are made, and they are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Some factors that could cause actual results to differ include our ability to achieve the expected synergies and/or efficiencies from our operations and as a result of the Motiv/Workhorse merger; the effect of the announcement of the Motiv/Workhorse merger on the ability of the parties to operate their businesses and retain and hire key personnel and to maintain favorable business relationships; the possibility that the integration of the parties may be more difficult, time-consuming or costly than expected or that operating costs and business disruptions may be greater than expected; the risk that the price of our securities may be volatile due to a variety of factors; changes in laws, regulations, technologies, the global supply chain, and macro-economic and social environments affecting our business; and our ability to maintain compliance with Nasdaq rules and otherwise maintain our listing of securities on Nasdaq.

Additional information on these and other factors that may cause actual results and Workhorse’s performance to differ materially is included in Workhorse’s periodic reports filed with the SEC, including, but not limited to, Workhorse’s Annual Report on Form 10-K for the year ended December 31, 2024, including those factors described under the heading “Risk Factors” therein, and Workhorse’s subsequent Quarterly Reports on Form 10-Q. Copies of Workhorse’s filings with the SEC are available publicly on the SEC’s website at www.sec.gov or may be obtained by contacting Workhorse. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. These forward-looking statements are made only as of the date hereof, and Workhorse undertakes no obligations to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

1 https://qz.com/brent-crude-oil-prices-wti-iran-war-energy-attacks-south-pars
2 https://www.cnn.com/2026/03/20/energy/oil-gas-prices-intl-hnk
3 https://www.automotive-fleet.com/346725/containing-fuel-spend-is-a-top-fleet-focus-despite-price-stability

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/e7d2a6f4-92e1-44f6-817b-94364a951e49

Workhorse's New Model of its W56 Electric Step Van Workhorse is announcing a new model of its W56 all-electric step van. The 140 kWh model offers 100-m...

Key Takeaways Rising P/E signals investor confidence and expectations of strong future earnings growth. Momentum filters show consistent price gains vs. past periods and the S&P 500.Screening narrows 7,700 stocks to 66, highlighting high-quality breakout candidates. Investors often opt for the stock-picking approach that involves stocks with a low price-to-earnings (P/E) ratio. This strategy is based on the notion that the lower the P/E ratio, the higher the stock value. The reasoning behind this is straightforward — when a stock's current market price does not adequately reflect its higher earnings, it suggests potential for growth.

But there is more to this whole P/E story. Because not only low P/E, stocks with a rising P/E can also fetch strong returns. In this regard, investors can bet on the likes of H&R Block (HRB - Free Report) , Sportsman's Warehouse (SPWH - Free Report) , Sera Prognostics (SERA - Free Report) , Veeva Systems (VEEV - Free Report) and Workhorse Group (WKHS - Free Report) .

Rising P/E: A Useful ToolThe concept is that as earnings rise, so should the price of the stock. As forecasts for expected earnings come in higher, strong demand for the stock should continue to push up its prices. After all, a stock's P/E gives an indication of how much investors are ready to shell out per dollar of earnings.

Suppose an investor wants to buy a stock with a P/E ratio of 30. This means that he is willing to shell out $30 for only $1 worth of earnings, as he expects earnings of the company to rise at a faster pace in the future, owing to strong fundamentals.

So, if the P/E of a stock is rising steadily, it means that investors are assured of its inherent strength and expect some strong positives out of it.

Also, studies have revealed that stocks have seen their P/E ratios jump over 100% from their breakout point in the cycle. So, if you can pick stocks early in their breakout cycle, you can end up seeing considerable gains.

The Winning StrategyIn order to shortlist stocks that are exhibiting an increasing P/E, we chose the following as our primary screening parameters.

EPS growth estimate for the current year is greater than or equal to last year’s actual growth

Percentage change in last year EPS should be greater than or equal to zero

(These two criteria point to flat earnings or a growth trend over the years.)

Percentage change in price over four weeks greater than the percentage change in price over 12 weeks

Percentage change in price over 12 weeks greater than percentage change in price over 24 weeks

(These two criteria show that the price of a stock has been increasing consistently over the said timeframes.)

Percentage price change for four weeks relative to the S&P 500 greater than the percentage price change for 12 weeks relative to the S&P 500

Percentage price change for 12 weeks relative to the S&P 500 greater than the percentage price change for 24 weeks relative to the S&P 500

(Here, the case for consistent price gains gets even stronger as it displays percentage price changes relative to the S&P 500.)

Percentage price change for 12 weeks is 20% higher than or equal to the percentage price change for 24 weeks, but it should not exceed 100%

(A 20% increase in the price of a stock from the breakout point gives cues of an impending uptrend. But a jump of over 100% indicates that there is limited scope for further upside and that the stock might be due for a reversal.)

In addition, we place a few other criteria that lead us to some likely outperformers.

Zacks Rank less than or equal to 2: Only companies with a Zacks Rank #1 (Strong Buy) or 2 (Buy) can get through.

Average 20-day Volume greater than or equal to 50,000: High trading volume implies that the stocks have adequate liquidity.

Just these few criteria narrowed down the universe from over 7,700 stocks to just 66.

Here are five out of the 66 stocks:

H&R Block: This Zacks Rank #2 company is a leading provider of tax preparation services. The company provides assisted income tax return preparation, do-it-yourself (DIY) tax solutions, and other products and services associated with income tax return preparation in the United States, Canada and Australia. All these continuing operations are reported under a single segment. You can see the complete list of today’s Zacks #1 Rank stocks here.

The average four-quarter earnings surprise of HRB is 1.57%.

Sportsman's Warehouse: This Zacks Rank #2 company is an outdoor sporting goods retailer.

The average four-quarter earnings surprise of SPWH is 38.37%.

Sera Prognostics: This Zacks Rank #2 company is a women's health diagnostics company.

The average four-quarter earnings surprise of SERA is 15.54%.

Veeva Systems: This Zacks Rank #2 company offers cloud-based software applications and data solutions for the life sciences industry.

The average four-quarter earnings surprise of VEEV is 7.47%.

Workhorse Group: This Zacks Rank #2 company is engaged in designing, developing, manufacturing and selling medium-duty trucks.

The average four-quarter earnings surprise of WKHS is 19.89%.

DETROIT, April 07, 2026 (GLOBE NEWSWIRE) -- Workhorse Group Inc. (NASDAQ: WKHS) (“Workhorse”), a North American OEM and provider of all-electric trucks, step vans, shuttles and buses, today announced a limited-time pricing promotion on its W56 electric step van lineup. Effective April 1 through September 30, 2026, customers can purchase W56 step vans at significantly reduced prices through any authorized Workhorse dealer.

Promotional Pricing — April 1 through September 30, 2026:

W56 Standard Wheelbase (178”), 210 kWh: New pricing starts at $196,000 (versus $255,000 prior to promotion) — a savings of $59,000W56 Extended Wheelbase (208”), 210 kWh: New pricing starts at $204,000 (versus $265,000 prior to promotion) — a savings of $61,000 This promotion is timed to help commercial fleets manage costs at a time when high fuel prices are driving costs for fleets, enabled, in part, by the initial synergies realized through Workhorse’s December 2025 merger with Motiv Electric Trucks. The combined company has worked to drive down production costs through economies of scale, operational and supply chain efficiencies and product roadmap-driven Bill of Materials (BOM) and build cost reductions.

The W56 step van, with its spacious cargo capacity, demonstrated operating cost savings of 64 percent compared to internal combustion engines1, ergonomic design, reliability and durability, is designed to meet the needs of real-world duty cycles, driver usability, and long-term durability. Every model includes a fully-integrated, purpose-built composite body. Because Workhorse produces the W56 fully on site, it has greater control of the manufacturing process, which can result in lower costs and more predictable delivery timelines.

The Standard 178" Wheelbase offers 1,000 cubic feet of cargo space and a payload of 10,000 lbs., while the Expanded 208" Wheelbase offers 1,200 cubic feet of cargo space and a payload of 9,000 lbs., making both configurations well-suited for the full spectrum of last-mile delivery needs. Workhorse recently announced a 140 kWh version of the W56 in both wheelbase options, with an estimated nominal range of 100 miles per charge, slightly more payload capacity, and a base price of $169,000.

The lower cost 140 kWh model and the new promotional prices for the 210 kWh model can be further reduced by various state incentive programs. California’s HVIP program, for instance, offers between $60,000 and $80,000 for qualifying vehicles. Washington state’s soon-to-be-launched WAZIP program offers incentives from $60,000 up to $100,000. A number of other states offer lower, but still significant, incentive amounts. Combining these incentives with the promotional pricing can significantly reduce, if not virtually eliminate in some cases, the price difference between an electric step van and a gas-powered one.

Today, many fleets are seeing significantly increased operating costs as a result of rising fuel prices, which now exceed $4.00 per gallon in many states resulting from the geopolitical disruptions in the Middle East2, with analysts warning that high fuel prices could become a reality for years to come. For commercial fleet operators, fuel can be the second-largest operating expense after the vehicle itself3—and the current spike is hitting fleets hard. Fleets are also increasingly prioritizing cost stability, operational predictability, and vehicle uptime—areas where purpose-built electric platforms are delivering measurable advantages.

“We know exactly what this oil price environment is doing to fleet operators, because we live it every day,” said Scott Griffith, CEO of Workhorse. “Through Stables by Workhorse, our own FedEx Ground ISP operation, we see firsthand how fuel costs are hammering route economics. Lowering the purchase price of the W56 is one of the most direct ways we can help our customers. As package delivery companies typically plan months in advance of the busy holiday season, there’s never been a better time to add electric trucks to their fleets.”

Electric trucks offer a compelling total cost of ownership versus their internal combustion counterparts. Workhorse has demonstrated 64 percent operating cost savings compared to internal combustion engine (ICE) vehicles in its Stables by Workhorse fleet, and that case strengthens considerably in periods of high oil prices. Electricity costs are comparatively low, often locally sourced and can be largely immune to the global oil shocks that are currently hammering gas- and diesel-dependent fleets. Every electric step van in a mixed fleet acts as a hedge, and can stabilize per-mile operating costs independent of what happens at the pump.

All models of the W56 lineup are produced at Workhorse’s commercial-scale manufacturing facility in Union City, Indiana, which is capable of producing up to 5,000+ vehicles per year on a single operating shift. Workhorse sells its vehicles through a national dealer network, with post-sale support bolstered by regionally deployed Workhorse-trained technicians. With expanded scale, an established dealer network, and more than 20 million real-world miles driven across its fleet, Workhorse brings a level of operational experience and production readiness that is critical for fleets making the transition to electric vehicles today.

About Workhorse Group Inc.

Headquartered in the Detroit area with a commercial-scale manufacturing plant in Union City, Indiana, Workhorse (Nasdaq: WKHS) is redefining what a medium-duty truck should be. Workhorse builds software-first, electric trucks, shuttles and buses that are powerful, cost-efficient, reliable, safe and comfortable — all with zero tailpipe emissions. Our deep experience building electric vehicles at scale drives intentional innovations designed to help customers lower operating costs, improve fleet performance, enhance the driver experience, and maximize uptime without compromise. More information is available at www.workhorse.com.

Media Relations Contacts:

Workhorse
John Williams, Communications
+1-206-660-5503, [email protected]

ICR, Inc.
[email protected]

Investor Relations Contact:
[email protected]

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 21E of the Exchange Act, and the Private Securities Litigation Reform Act of 1995, as amended. All statements other than statements of historical fact included in this press release, including, among other things, statements regarding future events and plans regarding Workhorse’s ability to achieve profitability, Workhorse’s sales, pricing and product pipeline, Workhorse’s access to capital to fund operations and fulfill orders, and other statements regarding the company’s anticipated or planned operations are forward-looking statements. Some of these statements may be identified by the use of the words “plans”, “expects” or “does not expect”, “estimated”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, “targets”, “projects”, “contemplates”, “predicts”, “potential”, “continue”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “should”, “might”, “will” or “will be taken”, “occur” or “be achieved”.

Forward-looking statements are based on the opinions and estimates of management of Workhorse as of the date such statements are made, and they are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Some factors that could cause actual results to differ include our ability to raise capital to fund our operations and to maintain access to our current debt facilities, our ability to achieve the expected synergies and/or efficiencies from our operations and as a result of the Motiv/Workhorse merger; our ability to reduce the cost to build our vehicles; the effect of the Motiv/Workhorse merger on the ability of the parties to operate their businesses and retain and hire key personnel and to maintain favorable business relationships; the possibility that the integration of the parties may be more difficult, time-consuming or costly than expected or that operating costs and business disruptions may be greater than expected; and changes in laws, regulations, technologies, the global market and supply chain, and macro-economic and social environments affecting our business, including demand for electric trucks and our cost of production.

Additional information on these and other factors that may cause actual results and Workhorse’s performance to differ materially is included in Workhorse’s periodic reports filed with the SEC, including, but not limited to, Workhorse’s Annual Report on Form 10-K for the year ended December 31, 2025, including those factors described under the heading “Risk Factors” therein, and Workhorse’s subsequent Quarterly Reports on Form 10-Q. Copies of Workhorse’s filings with the SEC are available publicly on the SEC’s website at www.sec.gov or may be obtained by contacting Workhorse. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. These forward-looking statements are made only as of the date hereof, and Workhorse undertakes no obligations to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾
1 Based on 2023 full year operations of W56 trucks at Stables by Workhorse, which operates FedEx ISP Fleet
2 https://www.investopedia.com/20-states-now-have-gas-prices-at-4-plus-see-what-youll-pay-in-your-state-11943493#:~:text=Key%20Takeaways,each%20month%20the%20disruption%20persists.
3 https://www.automotive-fleet.com/346725/containing-fuel-spend-is-a-top-fleet-focus-despite-price-stability

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/f30e29ae-ec30-4676-998b-612870e1f8e1

Workhorse Launches Pricing Promotion on W56 Electric Step Vans Price reductions of up to $61,000 are expected to make the W56 electric step vans a more attractive ...

DETROIT, April 30, 2026 (GLOBE NEWSWIRE) -- Workhorse Group Inc. (NASDAQ: WKHS) (“Workhorse”), a North American OEM and provider of all-electric trucks, step vans, shuttles and buses, and Kingsburg Truck Center (KTC), a leading California truck dealer, today announced a purchase order for 100 W56 fully-electric step vans from Gateway Fleets, a California-based provider of bundled electric vehicle and charging solutions for commercial delivery operators.

Gateway plans to deploy the W56 step vans across its network of electrified sites and is preparing to launch additional locations, to be announced in the coming months, expanding access to reliable charging across key markets. The company’s bundled model is designed to simplify electric fleet operations, pairing purpose-built electric trucks with on-site charging infrastructure, fleet support, and depot access — all available through flexible financing arrangements.

By offering W56 step vans through a lease structure, Gateway Fleets enables operators to access the fuel and maintenance savings of electric vehicles while managing cash flow and avoiding large upfront capital expenditures. The company currently operates depots in Southern California and is scaling its network to meet growing operator demand across the region and beyond.

“Gateway Fleets understands the challenges fleets are facing right now, and they’ve built a business model designed to solve it,” said Scott Griffith, Chief Executive Officer of Workhorse. “On top of the overall reduced costs of operating electric trucks, fleet electrification offers a counterweight to the current exorbitant costs and volatility of fossil fuels. Gateway’s bundled model enables fleets to seamlessly add electric trucks to their fleet by handling every aspect of electrification. We’re proud to support their vision.”

The W56 step vans available through Gateway are the Standard Wheelbase (178") with a 210 kWh battery, offering 1,000 cubic feet of cargo space, a payload of 10,000 lbs. and a nominal range of 150 miles per charge. Every van features a fully-integrated, purpose-built composite body, an ergonomic driver environment, and a platform engineered for the demands of high-cycle last-mile delivery.

“Even when factoring in electricity costs, we’ve seen fuel cost savings of up to 65 percent on active delivery routes, based on a year-long, real-world case study at our Riverside, California site. That’s real impact for operators managing tight margins. Vehicles like the W56 are performing reliably in last-mile operations, and through close coordination with partners like Workhorse and Kingsburg Truck Center, we’re delivering a more complete solution for operators,” said Jamie Miller, Chief Revenue Officer of Gateway Fleets.

All W56 models are produced at Workhorse’s commercial-scale manufacturing facility in Union City, Indiana, which is capable of producing up to 5,000+ vehicles per year on a single operating shift. To date, Workhorse has delivered more than 1,100 vehicles that have collectively accumulated more than 20 million real-world miles across customer fleets.

Vehicles are expected to begin deploying in July 2026, ahead of “peak” season, the lead-up to and through the holidays when package delivery volumes spike, supporting operators during the busiest time of year.

“At Kingsburg Truck Center, we pride ourselves on being at the forefront of the commercial transportation shift toward zero-emissions. This 100-unit commitment is a testament to the reliability of the Workhorse W56 and the strength of the partnership we've built with Gateway Fleets,” said Jerry Smith, President of Kingsburg Truck Center. “By combining Workhorse's quality engineering with our extensive experience in navigating the complex grant and incentive landscape, we are removing the traditional financial barriers to EV adoption and making it easier than ever for fleets to scale efficiently.”

Fleets interested in leasing a Workhorse W56 should contact Gateway Fleets directly or visit www.gatewayfleets.com.

About Workhorse Group Inc.

Headquartered in the Detroit area with a commercial-scale manufacturing plant in Union City, Indiana, Workhorse (Nasdaq: WKHS) is redefining what a medium-duty truck should be. Workhorse builds software-first, electric trucks, shuttles and buses that are powerful, cost-efficient, reliable, safe, and comfortable — all with zero tailpipe emissions. Our deep experience building electric vehicles at scale drives intentional innovations designed to help customers lower operating costs, improve fleet performance, enhance the driver experience, and maximize uptime without compromise. More information is available at www.workhorse.com.

About Gateway Fleets

Gateway Fleets is a California-based provider of complete electric vehicle and charging solutions designed for commercial delivery operators. Gateway delivers electric trucks, fast flat-rate charging infrastructure, real-time fleet visibility and support, and depot access in a single bundled package — removing the barriers to electric fleet adoption and enabling operators to focus on their routes. Gateway Fleets currently serves operators in Southern California and is expanding to meet growing demand. More information is available at www.gatewayfleets.com.

About Kingsburg Truck Center
Based in Kingsburg, California, Kingsburg Truck Center is one of the nation's leading commercial truck dealerships and was the first full-service authorized dealer for Workhorse Group Inc. in the state of California. Specializing in advanced vocational solutions and zero-emission fleet deployment, Kingsburg Truck Center provides comprehensive upfitting, sales, and service for the medium-duty market. The company is a recognized leader in California's incentive ecosystem, leveraging deep expertise in grant writing and voucher processing to maximize funding for fleet transitions. As a strategic partner for sustainable transportation, Kingsburg Truck Center helps operators navigate technical and financial complexities to achieve zero-emission goals. More information is available at kingsburgtruckcenter.com.

Contacts:

Workhorse
John Williams, Communications
+1-206-660-5503, [email protected]

ICR, Inc.
[email protected]

Investor Relations Contact:

[email protected]

Gateway Fleets

[email protected]

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 21E of the Exchange Act, and the Private Securities Litigation Reform Act of 1995, as amended. All statements other than statements of historical fact included in this press release, including statements regarding the planned delivery of vehicles to Gateway Fleets, Gateway Fleets’ intended leasing activities, anticipated fleet operator demand for electric vehicles, and the expected deployment date of purchased trucks are forward-looking statements. Some of these statements may be identified by the use of the words “plans”, “expects” or “does not expect”, “estimated”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, “targets”, “projects”, “contemplates”, “predicts”, “potential”, “continue”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “should”, “might”, “will” or “will be taken”, “occur” or “be achieved”.

Forward-looking statements are based on the opinions and estimates of management of Workhorse as of the date such statements are made, and they are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Some factors that could cause actual results to differ include our ability to raise capital to fund our operations and to maintain access to our current debt facilities; our ability to achieve the expected synergies and/or efficiencies from our operations and as a result of the Motiv/Workhorse merger; our ability to reduce the cost to build our vehicles; changes in laws, regulations, technologies, the global supply chain, and macro-economic and social environments affecting our business, including demand for electric trucks and our cost of production; and our ability to maintain compliance with Nasdaq rules and otherwise maintain our listing of securities on Nasdaq.

Additional information on these and other factors that may cause actual results and Workhorse’s performance to differ materially is included in Workhorse’s periodic reports filed with the SEC, including Workhorse’s Annual Report on Form 10-K for the year ended December 31, 2025 including those factors described under the heading “Risk Factors” therein, and Workhorse’s subsequent Quarterly Reports on Form 10-Q. Copies of Workhorse’s filings with the SEC are available publicly on the SEC’s website at www.sec.gov or may be obtained by contacting Workhorse. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. These forward-looking statements are made only as of the date hereof, and Workhorse undertakes no obligations to update or revise the forward-looking statements except as required by law.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/29860789-3031-43f2-824d-05964608aaca

Gateway Purchases 100 Workhorse W56 Step Vans A Workhorse W56 step van at a Gateway charging station

Revenue of $4.3 million in Q1 2026, compared to $1.1 million in Q1 2025 on a comparable GAAP basisDelivered 21 vehicles in Q1 2026, compared to 5 vehicles in Q1 2025Announced 100-vehicle W56 purchase order from Gateway Fleets, with deliveries expected to begin in July 2026; combined with Purolator 100 vehicle order and other unannounced orders, drives total contracted backlog of 200+ vehicles since merger closeLaunched 140 kWh W56 battery configuration and limited-time promotional pricing on 210 kWh W56, driving new commercial activityOn track to exit 2026 at $20 million annualized cost synergy run rate; facility consolidation to Union City, Indiana complete DETROIT, May 14, 2026 (GLOBE NEWSWIRE) -- Workhorse Group Inc. (NASDAQ: WKHS) ("Workhorse" or the "Company"), a North American OEM and provider of all-electric trucks, step vans, shuttles and buses, today reported financial results for the first quarter ended March 31, 2026. Today’s results represent the Company’s first full quarter as a combined company following the completion of its merger with Motiv Electric Trucks in December 2025.

“Reflecting back on the first quarter, I am pleased to report we are continuing to deliver on our commitments, controlling what is controllable, and positioning Workhorse for sustained growth,” said Scott Griffith, CEO of Workhorse. “We believe a strong product-market fit exists in the medium duty segment, with numerous large fleets already deploying electric vehicles at scale, making this $23 billion commercial vehicle market near a tipping point of an electric transition. Our efforts this year have been focused on reducing the time to that tipping point.”

Running an electric fleet reduces operating costs to 20 percent of the cost compared to gas and diesel vehicles, according to data from the Stables by Workhorse program1, our subsidiary that operates as an Independent Service Provider contracted with FedEx using a mix of gas and electric delivery trucks. While such operating cost savings make a compelling case to electrify, the higher upfront cost of an electric vehicle is still an obstacle for many.

“We took decisive steps in the first quarter to address the issue of upfront cost by introducing a lower cost version (140 kWh) of our W56 step van, while also launching promotional pricing on our 210 kWh,” said Griffith. “Both efforts have generated strong interest and sales, including our announced 100-unit order from Gateway Fleets.”

Workhorse also believes that fundamental, structural changes in hardware and software, as well as strategic use of the global supply chain, are required to create further cost reductions needed to effectively compete with ICE vehicles.

Toward that end, Workhorse has developed a plan for a new, proprietary “modular” chassis design that will be produced exclusively at its Union City manufacturing plant. The new chassis design will be based on the foundational learnings gathered from proven W56 components but with a scalable architecture that supports flexible wheelbase configurations, advanced battery and axle technologies, and next-generation software and power electronics.

In addition, Workhorse has developed a plan for its first Class 5/6 cab chassis, which will pair the new modular chassis with a lightweight, low-cost cab designed for efficient upfitting, spanning applications across all classes of medium duty trucks. Workhorse’s engineering team is planning to begin test and validation of both products in 2026, supporting a planned start of production for the cab chassis platform in early 2027.

Last, the Company took actionable steps to further provide a high level of support demanded by large fleets by announcing a new at-scale customer support program across its North American network of trucks through a combination of national dealer relationships, internal capabilities and a partnership with InCharge Energy. This industry-first partnership is a key aspect of plans to deliver scalable ‘first-call’ service operations and provide large fleets with what they value most – high uptime.

“Ultimately, we believe we’re very well positioned in the category to deliver on both of the key drivers of the tipping point to the electrification of the medium duty segment: ICE-comparable economics and professional, scalable post-sale support,” said Griffith. “We believe our revised product priorities and new product development roadmap will address the need to deliver on the first, while our new partnership with InCharge, combined with the ongoing learnings from our existing customers and data from our own operations at our FedEx ISP, put us in a great position to solve the second.”

____________________
1 Q1 Actual operating data (fuel and electricity costs) from Stables by Workhorse

First Quarter and Recent Strategic Highlights

Merger Integration on Track: Facility aggregation is complete, including the relocation of the EPIC 4 and F59 production lines to Union City, Indiana. Platform commonization and supply chain optimization efforts are underway.Targeting $20 Million in Annualized Cost Synergies: The Company continues to expect to exit 2026 at a $20 million annualized cost synergy run rate, with early savings already being realized through the elimination of duplicative administrative functions.Gateway Fleets 100-Vehicle Order: In late April, the Company announced a 100-vehicle W56 purchase order from Gateway Fleets through partner Kingsburg Truck Center in California, with deliveries expected to begin in July 2026. The order was influenced by the Company's promotional pricing, demonstrating how the flexibility afforded by the Company’s cost reduction efforts is translating to commercial success.Purolator 100-Vehicle Order: Purolator, a leading Canadian integrated freight and logistics provider, placed a 100-vehicle purchase order for fully-electric step vans — Purolator’s fourth order with the company over a multi-year period and one that will double the number of Workhorse vehicles in its fleet. Deliveries are expected to be completed by the end of 2026. First Quarter 2026 Financial Highlights *

Revenue: Sales, net of returns and allowances, for the first quarter of 2026 were $4.3 million, compared to $1.1 million in the first quarter of 2025.
Vehicles Delivered: The Company delivered 21 vehicles during the first quarter of 2026, compared to 5 vehicles in the first quarter of 2025.Cost of Sales: Cost of sales for the first quarter of 2026 was $11.8 million, compared to $2.2 million in the prior year quarter. Cost of sales increased on higher sales volume and also reflects the higher fixed cost base of the pre-facility consolidation combined manufacturing footprint, including the costs for the Workhorse manufacturing facility as well as contract manufacturing under the legacy Motiv operational structure during the quarter. Gross loss for the quarter was $7.5 million.Operating Expenses: Total operating expenses for the first quarter of 2026 were $13.6 million, compared to $8.0 million in the first quarter of 2025. Selling, general and administrative expenses were $9.5 million and research and development expenses were $4.1 million.Operating Loss: Operating loss was $21.1 million in the first quarter of 2026, compared to $9.1 million in the first quarter of 2025.Net Loss: Net loss for the first quarter of 2026 was $19.9 million, or $1.99 per basic and diluted share, compared to a net loss of $12.7 million, or $1.36 per share, in the same period last year. Conference Call

Workhorse management will hold a conference call on Thursday, May 14, 2026, at 4:30 p.m. Eastern time to discuss these results and answer related questions.

To listen to the conference call webcast, please go to the Investor Relations section of Workhorse’s website at ir.workhorse.com.

To listen via telephone, please call (877)-407-0789 (U.S.) or (201)-689-8562 (international).

A telephonic replay of the conference call will be available after 7pm Eastern time on the same day through May 28, 2026.

Toll-free replay number: (844)-512-2921
International replay number: (412)-317-6671
Replay ID: 13760452

About Workhorse Group Inc.

Headquartered in the Detroit area with a commercial-scale manufacturing plant in Indiana, Workhorse (Nasdaq: WKHS) is redefining what a medium-duty truck should be. Workhorse builds software-first, electric trucks, shuttles and buses that are powerful, cost-efficient, reliable, safe and comfortable—all with zero tailpipe emissions.

Our deep experience building electric vehicles at scale drives intentional innovations designed to help customers lower operating costs, improve performance of their fleets, enhance the driver experience, and maximize uptime without compromise. By electrifying their fleets, our customers can make a positive impact on our world while meeting their financial, sustainability and compliance goals.

More information is available at www.workhorse.com.

Media Relations Contacts:

Workhorse
John Williams, Communications
+1-206-660-5503, [email protected]
ICR, Inc.
[email protected]

Investor Relations Contact:

[email protected]

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 21E of the Exchange Act, and the Private Securities Litigation Reform Act of 1995, as amended. All statements other than statements of historical fact included in this press release, including, among other things, statements regarding future events, plans and anticipated results of operations, business strategies, the anticipated benefits of the Motiv/Workhorse merger, the anticipated impact of the Workhorse/Motiv merger on the combined company’s business and future financial and operating results, the expected amount and timing of synergies from the Workhorse/Motiv merger, Workhorse’s ability to achieve profitability, Workhorse’s sales integration and pipeline, Workhorse’s access to capital to fund operations and fulfill orders, Workhorse’s expected delivery of contracted vehicle orders, Workhorse’s product development plans, and other statements regarding the company’s anticipated or planned operations, access to capital or operating results are forward-looking statements. Some of these statements may be identified by the use of the words “plans”, “expects” or “does not expect”, “estimated”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, “targets”, “projects”, “contemplates”, “predicts”, “potential”, “continue”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “should”, “might”, “will” or “will be taken”, “occur” or “be achieved”.

Forward-looking statements are based on the opinions and estimates of management of Workhorse as of the date such statements are made, and they are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Some factors that could cause actual results to differ include our ability to raise capital to fund our operations and to maintain access to our current debt facilities; our ability to achieve the expected synergies and/or efficiencies from our operations and as a result of the Motiv/Workhorse merger; our ability to reduce the cost to build our vehicles; our ability to deliver vehicles as contracted; our ability to further develop and bring to market new products as planned; the effect of the Motiv/Workhorse merger on the ability of the parties to operate their businesses and retain and hire key personnel and to maintain favorable business relationships; the possibility that the integration of the parties may be more difficult, time-consuming or costly than expected or that operating costs and business disruptions may be greater than expected; the risk that the price of our securities may be volatile due to a variety of factors; changes in laws, regulations, technologies, the global supply chain, and macro-economic and social environments affecting our business, including demand for electric trucks and our cost of production; our status as a controlled company; and our ability to maintain compliance with Nasdaq rules and otherwise maintain our listing of securities on Nasdaq.

Additional information on these and other factors that may cause actual results and Workhorse’s performance to differ materially is included in Workhorse’s periodic reports filed with the SEC, including, but not limited to, Workhorse’s Annual Report on Form 10-K for the year ended December 31, 2025, including those factors described under the heading “Risk Factors” therein, and Workhorse’s subsequent periodic reports. Copies of Workhorse’s filings with the SEC are available publicly on the SEC’s website at www.sec.gov or may be obtained by contacting Workhorse. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. These forward-looking statements are made only as of the date hereof, and Workhorse undertakes no obligations to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

* Note on Financial Statement Presentation

On December 15, 2025, we completed our merger with Motiv. While the legal acquirer in the merger was Workhorse, for financial accounting and reporting purposes under U.S. GAAP, Motiv was the accounting acquirer, and the Merger was accounted for as a reverse acquisition. Accordingly, the consolidated assets, liabilities and results of operations of Motiv became the historical consolidated financial statements of the consolidated company, and Workhorse’s assets, liabilities and results of operations were consolidated with those of Motiv beginning on December 15, 2025. As a result, comparative first quarter 2025 financial information reflects only Motiv and is not directly comparable to the combined company results for the first quarter of 2026.

    Workhorse Group Inc.
Condensed Consolidated Balance Sheets    (in thousands, except share amounts)(Unaudited)
March 31, 2026 December 31,
2025Assets   Current assets:   Cash and cash equivalents$600  $12,240 Restricted cash 680   680 Accounts receivable, less allowance for credit losses of $295 and $435 as of March 31, 2026 and December 31, 2025, respectively 3,422   3,889 Inventory, net 37,272   39,065 Prepaid expenses and other current assets 5,059   3,948 Total current assets 47,033   59,822 Property, plant and equipment, net 20,689   22,470 Goodwill 3,482   3,130 Intangible assets, net 10,041   10,182 Operating lease right-of-use assets, net 21,075   21,872 Other assets 416   416 Total Assets$102,736  $117,892 Liabilities   Current liabilities:   Accounts payable$13,461  $13,301 Accrued liabilities and other current liabilities 11,993   11,063 Deferred revenue 1,291   1,615 Warranty liability - current portion 3,830   3,183 Operating lease liability - current portion 1,387   3,616 Stock rights liability 1,339   6,074 Customer order credit agreement - related party 5,000   — Total current liabilities 38,301   38,852 Operating lease liability - long-term 20,839   18,777 Cash flow credit agreement - related party 10,000   10,000 Convertible notes at fair value - related party 5,679   5,429 Warranty liability - long-term 1,724   1,792 Total Liabilities 76,543   74,850 Commitments and contingencies   Stockholders’ Equity:   Series A preferred stock, par value of $0.001 per share, 75,000,000 shares authorized, 0 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively —   — Common stock, par value $0.001 per share, 36,000,000 and shares authorized, 10,449,859 and 9,699,858 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively 11   10 Additional paid-in capital 365,087   362,055 Accumulated deficit (338,905)  (319,023)Total stockholders’ equity 26,193   43,042 Total Liabilities and Stockholders’ Equity$102,736  $117,892          Workhorse Group Inc.
Condensed Consolidated Statements of Operations
(Unaudited)   Three Months Ended
March 31,(in thousands, except per share amounts) 2026   2025 Sales, net of returns and allowances$4,329  $1,145 Cost of sales 11,811   2,224 Gross loss (7,482)  (1,079)Operating expenses:   Selling, general and administrative 9,545   4,340 Research and development 4,069   3,660 Total operating expenses 13,614   8,000 Loss from operations (21,096)  (9,079)Interest expense, net (354)  (3,576)Change in fair value of convertible note (145)  — Change in fair value of stock rights 1,703   — Other expense (24)  (1)Loss before benefit for income taxes (19,916)  (12,656)Benefit for income taxes 34   — Net loss$(19,882) $(12,656)    Net loss per share of common stock   Basic and Diluted$(1.99) $(1.36)    Weighted average shares used in computing net loss per share of common stock   Basic and Diluted 10,014   9,329          Workhorse Group Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)   Three Months Ended
March 31,(in thousands) 2026   2025 Cash flows from operating activities:   Net loss$(19,882) $(12,656)Adjustments to reconcile net loss to net cash used in operating activities:   Depreciation and amortization 2,015   197 Allowance for credit losses (140)  — Excess and obsolete inventory 66   — Non-cash lease expense 797   218 Warranty provision 1,800   251 Stock-based compensation —   106 Non-cash interest expense and change in fair value of convertible notes 250   — Non-cash change in fair value of stock rights (4,735)  — Non-cash conversion of stock rights 3,032   — Loss on disposal of assets 23   — Effects of changes in operating assets and liabilities:   Accounts receivable 642   (1,025)Inventory, net 1,727   (3,188)Prepaid expenses and other current assets (1,146)  330 Accounts payable 171   654 Accrued liabilities and other long-term liabilities (968)  2,954 Operating lease liability (167)  (328)Net cash used in operating activities (16,515)  (12,487)    Cash flows from investing activities:   Capital expenditures (125)  (168)Net cash used in investing activities (125)  (168)Cash flows from financing activities:   Proceeds from secured promissory note - related party —   10,000 Proceeds from Customer Order Credit Agreement 5,000   — Net cash provided by financing activities 5,000   10,000     Change in cash and cash equivalents and restricted cash (11,640)  (2,655)Cash and cash equivalents and restricted cash, beginning of the period 12,920   6,629 Cash and cash equivalents and restricted cash, end of the period$1,280  $3,974     Supplemental disclosure of cash flow information:   Cash paid for interest$227  $— Cash paid for taxes$—  $—                  Workhorse Group, Inc.
Unaudited Pro Forma Revenue

The table below reflects the combined revenue of Workhorse and Motiv for the period ended March 31, 2025 as if the merger had occurred at the beginning of the period presented. The unaudited pro forma revenue presented is for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved if the merger was completed at the beginning of the period presented or of the future operating results of the combined company. A reconciliation of pro forma revenue is provided below.

(in thousands)For the
Three Months Ended
March 31, 2025Sales, net of returns and allowances, as reported$1,145Pre-Merger Workhorse sales, net of returns and allowances 641Pro forma combined revenue$1,786   

CHARACTERS FROM THE UPCOMING HUNDRED ACRE WOOD SERIES JOIN KARTOON STUDIOS' CEO, CFO, AND HEAD OF TOON NETWORKS IN A GROUNDBREAKING PRESENTATION OUTLINING THE COMPANY'S GROWTH STRATEGY AND COMING PROPERTIES' TRANSITION TO AI-DRIVEN ANIMATION PRODUCTION

Building on 2025 Momentum as Operating Performance Improves and the Company Scales Its IP-Driven Strategy 

Distribution Revenue Climbs 15% Compared to Prior Year Period as Streamers, Kartoon Channel! and Ameba Expand Engagement and Monetization

Kartoon Channel Continues Strategic Expansion of Globally Recognized Entertainment Brands With Licensing Deal for Mattel’s Animated Series Masters of the Universe (2002) and American Girl (2016)

Operating Costs Decline 20% as Loss From Operations Continues to Narrow Year-Over-Year Reflecting Continued Operating Discipline 

Flagship Franchises, “Hundred Acre Wood” and “Stan Lee Universe”, Advance Toward Commercialization and Long-Term Monetization

BEVERLY HILLS, Calif., May 15, 2026 (GLOBE NEWSWIRE) -- Kartoon Studios (NYSE American: TOON) today reported financial results for the first quarter ended March 31, 2026, building on the operational momentum established in 2025 as the Company executes its transition to an intellectual property-driven growth model, with early signs that the strategy is beginning to translate into operating performance. The Company’s franchise initiatives are anchored by ‘Hundred Acre Wood’, inspired by A.A. Milne’s Winnie-the-Pooh, and ‘Stan Lee Universe’ based on IP from the iconic superhero creator Stan Lee.

During the quarter, the Company strengthened performance across its distribution network through its streaming services, Kartoon Channel, and Ameba, improved operating efficiency, and continued advancing its flagship franchise initiatives. This reflects the impact of prior investments in platform, content, and infrastructure, supporting a more scalable operating foundation and the broader commercialization of the Company’s intellectual property portfolio.

For the quarter, the Company reported total revenue of $7.2 million, with distribution revenue increasing 15% as compared to the same quarter last year, while total operating expenses declined 20%, contributing to improved operating performance.

Q1 2026 FINANCIAL HIGHLIGHTS

Total Revenue: $7.2 million, compared to $9.5 million in Q1 2025, reflecting timing of production deliveries at Mainframe StudiosDistribution Revenue: $2.3 million, up 15% as compared to the same quarter last yearGeneral & Administrative Expenses: $5.1 million, down 10% as compared to Q1 2025Total Operating Expenses: $10.0 million, down 20% as compared to Q1 2025Loss from Operations: $2.8 million, improved 9% as compared to Q1 2025Balance Sheet: $6.0 million in cash & marketable securities and $30.7 million in total current assets as of March 31, 2026, with stockholders’ equity of $22.6 million “We are now entering the phase where Kartoon Studios is translating years of investment in our platform into measurable operating performance,” commented Andy Heyward, Chairman & CEO of Kartoon Studios. “This quarter reflects continued momentum across our distribution business, where we are seeing growth in both engagement and monetization, alongside meaningful progress in improving our cost structure. Our channel system continues to grow and is still ranked #1 in the Apple app store by users above all our competitors”

“At the same time, our strategy is increasingly centered on the development and commercialization of our owned intellectual property. Our flagship franchises, Hundred Acre Wood and the Stan Lee Universe, are advancing as multi-platform initiatives designed to extend across content, licensing, and consumer products.”

“With our platform in place and our key franchises progressing, our focus is on execution, bringing these properties to market and converting them into scalable, higher-margin revenue opportunities that we believe will drive long-term value for the Company.”

Kartoon Studios continued to expand its owned distribution ecosystem during the quarter, with Kartoon Channel! and Ameba driving higher engagement and revenue contribution. During the first quarter, both Kartoon Channel! and Ameba achieved record paid subscriber levels, while also delivering breakout increases in viewer engagement across the Company’s subscription streaming platforms. Subscriber engagement on Kartoon Channel! increased more than 80% year-over-year during Q1 2026, while Ameba subscriber engagement increased more than 200% year-over-year.

The Company’s broader digital distribution strategy continues to gain traction, with YouTube, FAST, and VOD increasingly functioning as a discovery, engagement, and monetization flywheel. Broad audience reach and discoverability across these platforms are helping drive subscriber engagement, conversion, and monetization across the Company’s owned streaming services. This momentum is being supported by strong performance from recently acquired content, increasingly data-informed acquisition and programming decisions, and the Company’s operational expertise in driving reach and engagement across digital media platforms.

DISTRIBUTION PLATFORM CONTINUES TO EXPAND REACH AND MONETIZATION; ACQUIRES TOP TIER BRANDS FROM MATTEL

“Kartoon Channel is extremely proud to have closed a deal with Mattel to license the animated programs of both Masters of the Universe (2002) and American Girl (2016) for our premiere streaming service,” commented Mr. Heyward. Todd Steinman, President of Toon Media Networks, added, “Our strategy at Kartoon Channel is to continually align ourselves with globally recognized franchises and culturally resonant properties that already possess deep audience affinity and multi-generational appeal. The additions of Masters of the Universe (2002) and American Girl (2016) significantly strengthen that strategy.”

The 15% increase in distribution revenue reflects improved performance across the Company’s owned platforms alongside continued licensing of the Company’s intellectual property to third-party services. These results highlight the value of Kartoon Studios’ strategy of combining owned distribution with broader third-party platform reach to expand audience engagement and monetization opportunities. As the ecosystem continues to scale, the Company expects these combined revenue streams to play an increasingly important role in supporting recurring revenue growth.

The year-over-year change in total revenue primarily reflects the timing of production deliveries at Mainframe Studios, with several projects shifting from the first quarter into later periods in 2026. This timing variability is consistent with the nature of animation production schedules and does not reflect any loss of business or change in underlying demand. Mainframe Studios continues to maintain an active production pipeline with leading broadcast, streaming, and production partners, including recent and upcoming releases such as It’s Andrew, co-produced with Pirate Size Productions and Infinite Studios for CBC/SRC and ABC Australia; Unicorn Academy: Secrets Revealed for Spin Master on Netflix; and Phoebe & Jay for PBS. The Company maintains visibility into its production pipeline and expects these revenues to be recognized in future periods.

COST DISCIPLINE SUPPORTS IMPROVED OPERATING PERFORMANCE

Kartoon Studios continued to improve its cost structure during the quarter, contributing to stronger operating performance. Lower operating expenses reflect efficiencies achieved as the Company moves beyond its peak investment phase and aligns its cost base with current operations. Reduced general and administrative expenses, along with broader operational improvements, supported a narrowing of operating losses year-over-year. These improvements position the Company to benefit from future revenue growth as higher-margin activities become a larger part of the business.

FRANCHISE INITIATIVES PROGRESS TOWARD MARKET INTRODUCTION

Kartoon Studios continues to advance its intellectual property portfolio through scalable, multi-platform franchise initiatives, anchored by its flagship properties Hundred Acre Wood and the Stan Lee Universe.

With its core infrastructure in place, the Company is increasingly focused on execution, bringing its properties to market and expanding opportunities across content, licensing, and consumer products.

Hundred Acre Wood

Hundred Acre Wood, inspired by the classic works of A.A. Milne, remains a central component of the Company’s franchise strategy, designed as a multi-platform brand spanning episodic content, short-form programming, holiday specials, and consumer products.

The franchise is being developed with a broad content strategy that extends across both long-form and short-form programming, tailored for global distribution across streaming and digital platforms, while also supporting expansion into consumer products and licensing.

The series is being developed by a highly experienced creative team, including Executive Producer, Linda Woolverton, Composer, Danny Elfman, and Story Editor, Elise Allen. The brand has generated strong early audience response through previews and live events, and broadcast partners will be announced shortly.

As the property moves toward launch, the Company is focused on aligning content, distribution, and consumer products initiatives to support a coordinated global rollout.

Stan Lee Universe

Complementing this initiative, Kartoon Studios is also advancing the Stan Lee Universe, built around the legacy of one of the most influential creators in modern entertainment.

The initiative is focused on building a portfolio of original properties inspired by Stan Lee’s creative vision, including titles such as The Excelsiors and SuperHero Pets, with planned expansion across animation, publishing, licensing, and consumer products. 

Development is centered on creating a cohesive slate of character-driven franchises designed for introduction across multiple formats and platforms, with an emphasis on long-term brand development and sustained audience engagement.

As these properties move closer to market, the Company is focused on aligning creative development with distribution, licensing, and consumer products strategies, positioning the Stan Lee Universe as a scalable portfolio of original intellectual property.

LEVERAGING AN INTEGRATED PLATFORM

Kartoon Studios’ vertically integrated model continues to support its franchise strategy, enabling the Company to develop, distribute, and monetize content across multiple channels. By combining production capabilities, owned distribution platforms, marketing infrastructure, and licensing operations, the Company is positioned to capture value across the full lifecycle of its intellectual property.

“We are seeing a shift in our business and are quickly moving towards a tech-forward strategy focused on developing and deploying valuable IP across our media platform. We have the foundation in place, and our core business is shifting to align with this strategy. Overall, we are seeing the pivot of the company which is our competitive advantage – meaning we can move quicker and with purpose faster than our competitors” commented Brian Parisi, Chief Financial Officer. “We have foundational stability in our production, distribution and media advisory business, which remains an important driver of recurring revenue and long-term value for the IP we develop.”

“Looking ahead, our focus remains on executing against our platform while continuing to expand higher-margin, IP-driven revenue streams. As these initiatives scale, we expect further improvement in operating performance and margin profile over time,” concluded Parisi.

About Kartoon Studios

Kartoon Studios (NYSE AMERICAN: TOON) is a global leader in children’s and family entertainment, delivering premium content and high-value animated intellectual property to millions of viewers worldwide. The Company’s portfolio features globally recognized brands, as well as holding a controlling interest in Stan Lee Universe, and operates Mainframe Studios, one of North America’s largest animation producers, with more than 22,000 minutes of award-winning programming delivered.

Through its Toon Media Networks division including Kartoon Channel!, Ameba, Kartoon Channel Worldwide and Frederator, Kartoon Studios reaches audiences across linear television, AVOD, SVOD, FAST channels, and top streaming platforms. Kartoon Channel! is consistently rated the #1 kids’ streaming app on the Apple App Store. With a global distribution footprint in over 60 territories, and a robust content pipeline, Kartoon Studios is positioned for sustained growth and long-term shareholder value.

For more information, visit www.kartoonstudios.com

Forward-Looking Statements: Certain statements in this press release constitute "forward-looking statements" within the meaning of the federal securities laws. Words such as "may," "might," "will," "should," "believe," "expect," "anticipate," "estimate," "continue," "predict," "forecast," "project," "plan," "intend" or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements and include statements regarding: the Company executing its transition to an intellectual property-driven growth model; early signs of that strategy beginning to translate into operating performance; continuing to advance the Company’s flagship franchise initiatives; prior investments in platform, content, and infrastructure, supporting a more scalable operating foundation and the broader commercialization of the Company’s intellectual property portfolio; entering the phase where the Company is translating years of investment in its platform into measurable operating performance; continuing the momentum across the Company’s distribution business; increasingly centering the Company’s strategy on the development and commercialization of its owned intellectual property; advancing the Company’s flagship franchises as multi-platform initiatives designed to extend across content, licensing, and consumer products; focusing on execution, bringing properties to market and converting the Company’s franchises into scalable, higher-margin revenue opportunities to drive long-term value; licensing of the Company’s intellectual property being expected to play a larger role in supporting recurring revenue and direct audience relationships; recognizing revenues from the Company’s pipeline in future periods; aligning the Company’s cost base with current operations; reduced general and administrative expenses, along with broader operational improvements, positioning the Company to benefit from future revenue growth as higher-margin activities become a larger part of the business; continuing to advance the Company’s intellectual property portfolio through scalable, multi-platform franchise initiatives, anchored by flagship properties Hundred Acre Wood and the Stan Lee Universe; being increasingly focused on execution, bringing properties to market and expanding opportunities across content, licensing, and consumer products; developing Hundred Acre Wood with a broad content strategy that extends across both long-form and short-form programming, tailored for global distribution across streaming and digital platforms, while also supporting expansion into consumer products and licensing; being focused on aligning content, distribution, and consumer products initiatives to support a coordinated global rollout as Hundred Acre Wood moves toward launch; also advancing the Stan Lee Universe; building a portfolio of original properties inspired by Stan Lee’s creative vision, including titles such as The Excelsiors and SuperHero Pets, with planned expansion across animation, publishing, licensing, and consumer products; creating a cohesive slate of character-driven franchises designed for introduction across multiple formats and platforms, with an emphasis on long-term brand development and sustained audience engagement; being focused as properties move closer to market on aligning creative development with distribution, licensing, and consumer products strategies; positioning the Stan Lee Universe as a scalable portfolio of original intellectual property; the Company’s vertically integrated model continuing to support its franchise strategy, enabling the Company to develop, distribute, and monetize content across multiple channels; being positioned to capture value across the full lifecycle of the Company’s intellectual property by combining production capabilities, owned distribution platforms, marketing infrastructure, and licensing operations; seeing a shift in the Company’s business and quickly moving towards a tech-forward strategy focused on developing and deploying valuable IP across the Company’s media platform; shifting the Company’s core business to align with its tech-forward strategy; seeing the pivot of the Company; the Company moving quicker and with purpose faster than its competitors; the Company’s production, distribution and media advisory business remaining an important driver of recurring revenue and long-term value for the IP the Company develops; remaining focused on executing against its platform while continuing to expand higher-margin, IP-driven revenue streams; expecting further improvement in operating performance and margin profile over time as the Company’s initiatives scale; and being positioned for sustained growth and long-term shareholder value. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward-looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including without limitation the Company’s ability to execute its transition to an intellectual property-driven growth model; the Company’s ability to advance its flagship franchise initiatives; the Company’s ability to leverage prior investments in platform, content, and infrastructure, to support a more scalable operating foundation and the broader commercialization of the Company’s intellectual property portfolio; the Company’s ability to continue the momentum across its Company’s distribution business; the Company’s ability to advance its flagship franchises as multi-platform initiatives extending across content, licensing, and consumer products; the Company’s ability to bring properties to market and convert its franchises into scalable, higher-margin revenue opportunities to drive long-term value; the Company’s ability to launch and expand Hundred Acre Wood and the Stan Lee Universe in the US and globally as planned; the Company’s ability to capture value across the full lifecycle of its intellectual property by combining production capabilities, owned distribution platforms, marketing infrastructure, and licensing operations; the Company’s ability to move quicker and with purpose faster than its competitors; the Company’s ability to execute against its platform while continuing to expand higher-margin, IP-driven revenue streams; the Company’s ability to improve operating performance and margin profile over time as its initiatives scale; the Company’s ability to benefit from its investments in infrastructure and IP; the Company’s ability to obtain additional financing on acceptable terms, if at all; fluctuations in the results of the Company’s operations from period to period; general economic and financial conditions; the Company’s ability to anticipate changes in popular culture, media and movies, fashion and technology; competitive pressure from other distributors of content and within the retail market; the Company’s reliance on and relationships with third-party production and animation studios; the Company’s ability to market and advertise its products; the Company’s reliance on third parties to promote its products; the Company’s ability to keep pace with technological advances; the Company’s ability to protect its intellectual property and those other risk factors set forth in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and in the Company's subsequent filings with the Securities and Exchange Commission (the "SEC"). Thus, actual results could be materially different. The Company expressly disclaims any obligation to update or alter statements whether as a result of new information, future events or otherwise, except as required by law.

MEDIA CONTACT:
[email protected]

INVESTOR RELATIONS CONTACT:
[email protected]

Photos accompanying this announcement are available at:

https://www.globenewswire.com/NewsRoom/AttachmentNg/dbee42e2-aba6-4b08-8dc2-84f842dbf682

https://www.globenewswire.com/NewsRoom/AttachmentNg/4eca3785-8871-47c1-9752-c20fe1652d98

https://www.globenewswire.com/NewsRoom/AttachmentNg/4cf66a35-5b99-47f3-b359-9287ed194067 

https://www.globenewswire.com/NewsRoom/AttachmentNg/afb105a0-9b94-4984-a928-ceddf7f8552f 

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Southwest Airlines Co. (LUV) Presents at Bernstein 42nd Annual Strategic Decisions Conference Transcript

While the market remains mesmerized by artificial intelligence (AI) stocks, there is a sector of the old economy that has outperformed over the past month.

Airline stocks United Airlines (UAL +2.58%), Delta Air Lines (DAL +1.56%), and Southwest Airlines (LUV +2.66%) are up handsomely, with Delta even outperforming the S&P 500 in 2026 with its 17.4% rise so far. These are somewhat surprising developments, given that the war in Iran has sent the price of oil and jet fuel soaring.

Airline stocks and soaring fuel prices The following chart shows a broad-based recovery over the past month.

Data by YCharts.

It's surprising, given that oil prices are still in the $90-per-barrel range, compared with $60 per barrel before the conflict began. Moreover, the unavailability of crude oil and refined products that typically flow through the Strait of Hormuz has sent jet fuel crack spreads soaring this year.

For example, Delta CEO Ed Bastian said, "The war in the Middle East has driven an unprecedented spike in jet fuel, with prices roughly double what they were earlier in the year." The company declined to update its full-year guidance because of the uncertainty created by the conflict and its impact on jet fuel prices.

Image source:Getty Images.

Wall Street downgrades expectations That said, investors and Wall Street analysts have wasted no time in lowering expectations for airline stocks. Here's how the Wall Street consensus for adjusted diluted earnings per share (EPS), according to S&P Global Market Intelligence/Visible Alpha, has been lowered over the past three months for all three stocks.

Airline

EPS Estimate
3 Months Ago
for 2026

Current
EPS Estimate
for 2026

EPS Estimate
3 Months Ago
for 2027

Current
EPS Estimate
for 2027

United Airlines

$13.33

$9.46

$15.24

$14.59

Delta Air Lines

$7.19

$5.54

$8.20

$8.05

Southwest Airlines

$4.37

$2.71

$5.27

$4.44

Data source: S&P Global Marketplace/Visible Alpha.

There's a pronounced reduction in 2026 earnings expectations, but Delta and United's expectations haven't changed much for 2027.

Why Delta and United have outperformed All the airlines have been able to increase pricing to offset higher fuel costs because end demand remains high, and the market is pricing in a resolution to the conflict.

Regarding end demand, Delta's Bastian said in April, "The acceleration we saw in March is carrying forward into the June quarter." At the end of May, United CEO Scott Kirby said, "As everyone knows, demand has remained strong as is well publicized." That came at the same investment conference where Robert Jordan, CEO of low-cost airline Southwest, said:" [T]he consumer remains very strong despite this rise in fares. So I'm becoming increasingly bullish that we will be able to cover these fuel increases with revenue increases."

Where next for airlines While airlines have reduced capacity in response to rising fuel prices and earnings estimates have come down, Delta and United, in particular, have demonstrated they can push through price increases in the current environment, and they are likely to emerge as winners from a period of capacity constraints.

Moreover, both airlines have diversified their revenue streams, making them relatively insulated from the industry's decades-long cyclicality. Delta in particular remains a top stock to buy for 2026.

A Southwest Airlines jet comes in for a landing at LaGuardia Airport in New York City, New York, U.S., January 11, 2023. REUTERS/Mike Segar Purchase Licensing Rights, opens new tab

SummaryCompaniesMAX 7 revenue service expected in 2027Southwest focused on MAX, not second fleet typeStarlink rollout begins; Amazon Leo not ruled outRIO DE JANEIRO, June 6 (Reuters) - Southwest Airlines (LUV.N), opens new tab expects Boeing's (BA.N), opens new tab long-delayed 737 MAX 7 to enter ‌revenue service in 2027 and remains focused on the MAX family rather than adding another aircraft type to reduce risk, Chief Operating Officer Andrew Watterson told Reuters on Saturday.

Asked about Airbus's (AIR.PA), opens new tab A220, Watterson said Southwest ​was focused on the MAX.

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"Diversification doesn't come through a second fleet type," Watterson said ​in an interview on the sidelines of the International Air Transport Association's annual ⁠meeting in Rio de Janeiro. "A second fleet type can increase your risk."

"It doesn't make ​sense to lose focus on that," he added.

The MAX 7 is still awaiting certification from ​the U.S. Federal Aviation Administration. Watterson said Southwest plans to do about six months of internal work after certification, including adding the aircraft to its operating specifications and manuals.

"The clock starts when they certify it," he ​said.

Watterson said the MAX 7 delay had not forced Southwest to hold back specific ​routes, but had limited its ability to better match aircraft size with demand. The penalty, he said, is ‌having ⁠too many larger aircraft and not enough smaller jets for periods or markets with lower demand.

STARLINK ROLLOUTSouthwest is also moving ahead with Starlink-powered Wi-Fi, but Tony Roach, the airline's chief customer and brand officer, said the carrier has not ruled out Amazon's Leo satellite network.

​Roach said Southwest expects ​to have an aircraft ⁠serviceable with Starlink later this month.

The airline has targeted equipping 300 aircraft with Starlink by year-end, but the pace depends on how fast ​Starlink can supply equipment, the executives added.

"Our tech ops can retrofit as ​fast as ⁠Starlink can deliver," Watterson said.

Watterson said activist investor Elliott Investment Management was right that Southwest had been too slow to change, even though many changes were already underway.

"What Elliott was unequivocally correct ⁠about ​is we were too slow," he said.

Watterson said ​investors had underestimated Southwest customers' willingness to pay for new products, and said revenue per available seat mile would be ​the "litmus test" for whether the changes are working.

Reporting by Rajesh Kumar Singh in Rio de Janeiro

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Rajesh Kumar Singh is the U.S. Aviation Correspondent at Reuters, based in Chicago, where he reports on airlines, aircraft manufacturers, and regulatory developments that shape the global aviation industry. Prior to this role, he covered U.S. manufacturing and trade policy, including the U.S.–China trade wars, where his work delved into the disruption facing American businesses and the strategic responses of major corporations. He began his career with Reuters in India, where he reported on a wide range of issues covering the country's economic complexities—from its recovery after the global financial crisis to the challenges of inflation and governance.

SAY WOW TO DISCOUNT TRAVEL: SOUTHWEST AIRLINES DELIVERS WEEK OF DEALS ON FLIGHTS, HOTELS, CARS, AND VACATIONS SAY WOW TO DISCOUNT TRAVEL: SOUTHWEST AIRLINES DELIVERS WEEK OF DEALS ON FLIGHTS, HOTELS, CARS, AND VACATIONS PR Newswire

DALLAS, June 8, 2026

Book an adventure for less and earn more Rapid Rewards® points for future travel

, /PRNewswire/ -- Southwest Airlines Co. (NYSE: LUV) launches the Week of WOW, one of the carrier's biggest sales of the year. Starting today through June 11, Customers can save up to 40% off base fares using code FLYWOW for flights from Aug. 4 to Dec.16, 2026,1 along with promotions on hotels, rental cars, cruises, and Getaways by Southwest™ vacation packages. Check out some of the nonstop routes on sale now available on Southwest.com®, with one-way as low as 40% off between:

Baltimore and Orlando,Dallas and Las Vegas,Dallas and San Diego,Austin and New Orleans, andDenver and Tampa."Southwest Customers can book deals across all of our travel products—and with more than 20 million seats on sale, including millions of nonstop flights to destinations that our Customers love—our Week of WOW offers the perfect opportunity to book that trip," said Sabrina Callahan, Senior Vice President and Chief Digital & Marketing Officer. "Delivering some of the best deals of the year is another way we're focused on giving Customers more reasons than ever to fly Southwest, alongside our Legendary Hospitality, enhanced onboard offerings, rewarding loyalty program, and industry leading flexibility with no change or cancel fees."2

Savings All Along the Way
Customers can shop at Southwest.com for discounts on:

Fares: Using code FLYWOW, Customers can save up to 40% off base fares for select flights from Aug. 4 to Dec.16, 2026.1Rental Cars: Powered by Southwest's newly enhanced car rental platform, Customers can save up to 25% off base rates plus earn 1,200 Rapid Rewards points on two-day or longer car rentals with Dollar.3Cruises: Customers can earn 2X Rapid Rewards points on eligible cruises departing on or before Dec. 31, 2027.4Hotels: Customers can earn 5,000 Rapid Rewards bonus points or receive a 5,000 Rapid Rewards points discount for select hotel stays from June 8, 2026, through June 30, 2027.5More Reasons to Book the Vacation
Getaways by Southwest is bringing even more deals to Customers who want to book vacation packages. Customers can save up to $500 on a vacation package for two,6 plus two free checked bags.7

Unlock More Value as a Rapid Rewards Member
Join Rapid Rewards to unlock access to free WiFi thanks to T-Mobile®,8 tier benefits, and points by flying or spending with eligible partners. Members can purchase points to earn a reward to book their favorite destination or a new Southwest route. All Rapid Rewards rules and regulations apply at Southwest.com/rrterms.

ABOUT SOUTHWEST AIRLINES CO.
Southwest Airlines Co.operates one of the world's most admired and awarded airlines, offering its one-of-a-kind value and Hospitality at 121 airports across 12 countries. Southwest took flight in 1971 to democratize the sky through friendly, reliable, and low-cost air travel and now carries more air travelers flying nonstop within the United States than any other airline.9 By empowering its more than 73,00010 People to deliver unparalleled Hospitality, the maverick airline cherishes a passionate loyalty among more than 134 million Customers carried in 2025. Southwest leverages a unique legacy and mission to serve communities around the world including harnessing the power of its People and Purpose to put communities at the Heart of its success. Learn more by visiting Southwest.com/citizenship.

1 Use code FLYWOW by June 11 for travel on select flights Aug. 4 to Dec. 16, 2026. Restrictions, exclusions, and blackouts apply. Seats/days/markets limited. Discount applied pre-government taxes/fees. Additional fees may apply.
2 No change fees: Fare difference may apply. No cancel fees: All fare types are eligible for cancellations without a fee. For round trip reservations, if one or both flight segments is booked with a Basic fare, cancellations are only permitted if either a) both flight segments are canceled or b) the Basic fare segment(s) is upgraded. Failure to cancel a reservation at least 10 minutes prior to original scheduled departure may result in forfeited travel funds.
3 Valid at participating Dollar airport locations. Valid for bookings June 8 to June 15, 2026, and vehicle pickup through Nov. 30, 2026. Taxes and fees excluded. Terms and exclusions apply.
4 Book June 8, 2026 to June 15, 2026. Terms apply. All Rapid Rewards rules and regulations apply and can be found at southwest.com/rrterms..
5 Book June 8, 2026 to June 15, 2026. Terms apply. All Rapid Rewards rules and regulations apply and can be found at southwest.com/rrterms. .
6 Based on 2-person, 5-night minimum. Restrictions, exclusions, and blackouts may apply. Seats/days/markets limited 1-day advance. purchase required. Additional fees may apply. See Getaways terms and conditions.
7 Getaways by Southwest™ Customers receive their first and second checked bags for free. Weight and size limits apply. Additional allowances, benefits, and/or exceptions may apply. Learn more.
8 Where available. Available only on WiFi-enabled designated aircraft.
9 Based on U.S. Dept. of Transportation quarterly Airline Origin & Destination Survey as of Q4 2025
10 Fulltime-equivalent active Employees as of March 31, 2026.

View original content:https://www.prnewswire.com/news-releases/say-wow-to-discount-travel-southwest-airlines-delivers-week-of-deals-on-flights-hotels-cars-and-vacations-302793734.html

SOURCE Southwest Airlines Co.

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

#1 (Strong Buy) stocks have produced an unmatched +23.7% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Southwest Airlines (LUV - Free Report) Based in Dallas, TX, Southwest Airlines is a passenger airline that provides scheduled air transportation in the United States and 'ten near-international' markets. The company was incorporated in Texas in 1967 and commenced operations in 1971 with three Boeing 737 jets serving the cities of Dallas, Houston and San Antonio.

LUV is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 14.62; value investors should take notice.

Two analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.09 to $2.81 per share. LUV also boasts an average earnings surprise of +247%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, LUV should be on investors' short list.

By You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.

A Spirit Airlines worker waits for passengers at Chicago's O'Hare International Airport on March 10. Scott Olson/Getty Images Yeneshia Thomas was in her Central Florida home when she got a surprising email at about 12:30 a.m. on Saturday: Spirit Airlines was shutting down.

Thomas, 42, first heard the news from her union, but didn't fully believe it. The flight attendant still hoped Spirit Airlines executives would secure a $500 million federal bailout.

"We were all like, 'Nah. Until the company emails us, we don't believe it,'" Thomas said, referring to her and her colleagues.

The bailout negotiations fell apart, and Spirit Airlines announced at 3 a.m. that it would cease operations "effective immediately." It then canceled all its flights.

For Thomas and about 17,000 other employees, it was a gut punch. She had finished her shift hours before the news broke, unaware that it would be her last.

"This broke a lot of people's hearts," she said.

She said some employees were still on the road and had to get back home using other airlines, but that both Spirit and the union have stepped up to help employees navigate the transition.

"It feels like you're in a relationship, and your boyfriend is cheating on you, and everyone is there watching, but you didn't know," Thomas said. "You just heard it on the internet."

Spirit Airlines canceled its flights after ceasing operations on Saturday.  Joe Raedle/Getty Images Thomas said she received another email on Saturday telling her she was no longer allowed to wear her uniform. She said a colleague who hadn't read the email tried to go through security but was told by a TSA agent to "take your uniform off."

"We're all stunned because we're like, 'What happened?' We were doing good. We were putting out the work. Why didn't anyone say anything?" Thomas said.

Sign of the timesAlthough employees hadn't gotten official word in advance that Spirit Airlines would shut down over the weekend, Thomas said she saw the signs. Certain routine flights were canceled with little warning on Friday, for example.

Spirit Airlines had navigated turbulent winds in recent years, including two bankruptcies, a failed merger with JetBlue, employee furloughs, layoffs, and pay cuts. The ongoing US and Israeli war on Iran has also sent jet fuel prices skyrocketing, forcing airlines to implement cost-cutting measures.

Thomas was among the Spirit Airlines employees furloughed in December. She returned to her role in March. She also took a pay cut.

"I had hopes that we were going to make it because they called us back," Thomas said.

Despite how it ended, Thomas said she enjoyed her time at Spirit Airlines.

"At the end of the day, we had a big job," Thomas said. "Getting everyone from point A to point B was our biggest goal, which we did in a safe manner and as comfortably as possible."

Thomas said she found her job fulfilling and enjoyed interacting with people from all walks of life.

"The minute they see the uniform, people come up to me, and they say, 'I love Spirit Airlines. I take it all the time and see my grandchildren,'" Thomas said. "That made me feel so good."

She's also built ties with her coworkers as she traveled across the country.

"It's like a big family because you might end up on an airplane with someone that you've never met in your life, but before you leave, you know their whole life," Thomas said.

She said travelers will likely miss the budget-friendly option Spirit offered, especially amid rising ticket prices.

"They're feeling it now," Thomas said. "Someone just messaged me and she said, 'What am I going to do? Now I have to buy a $700 ticket.'"

Read next

Lauren Edmonds You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.

Lauren Edmonds is an award-winning reporter on the Business News team. When news isn't breaking, she covers personal finance, kitchen-table economics, and paths to financial freedom, including investing, real estate, side hustles, and small business. She also writes about guaranteed and universal basic income programs in the United States.Lauren has also covered lifestyle and entertainment, digital culture, and more. She has a master's degree from the Columbia University Graduate School of Journalism and resides in New York City.Do you have an interesting story to tell? You can reach Lauren at [email protected] or on Signal at ledmonds0.07.Popular StoriesNetflix wants to be Disney when it grows up Why Hollywood is paying this 17-year-old up to $20,000 to boost film trailers with TikTok editsHere's all the free money Trump's talked about giving Americans during his second term — and where it all standsA 17-year-old earned $72,000 after investing his e-commerce profits into stocks. Here's why he bet on the tech industry.Lawmakers float a nationwide basic income experiment that would cover the cost of a 2-bedroom apartmentNearly 30,000 Americans have received about $335 million in basic income. Here are 5 takeaways. Americans ditch suffocating healthcare costs and divisive politics to retire in Italy: 'It's the way they approach life'From 'road-schooling' to gas that costs $500, this family of 4 shares what it's like living in a solar-powered Greyhound bus

An airline worker waits at the Spirit Airlines terminal at LaGuardia Airport in Queens, in New York City, U.S., May 2, 2026. REUTERS/David 'Dee' Delgado Purchase Licensing Rights, opens new tab

CompaniesWASHINGTON, May 4 (Reuters) - Bankrupt discount carrier Spirit Airlines (FLYYQ.PK), opens new tab, which ceased operations on Saturday, asked a U.S. bankruptcy court for approval to ​pay retention bonuses to remaining employees and said it had no choice but to ‌end operations.

Spirit is seeking court approval to pay $10.7 million in retention bonuses to employees who remain as the company ends operations -- averaging $76,000 per participant -- and will pay more to the top three executives but has not yet disclosed ​how much.

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"Having fought valiantly for months to reorganize, and having all but succeeded, (Spirit is) ​left with no alternative to an orderly wind-down of operation," Chief Financial Officer ⁠Fred Comer said on Monday in a court filing.

"There are no longer any viable paths to ​a restructuring or continued operations."

Spirit said the payments to the top three executives will replace some of ​the payments it would have offered the senior executives under annual incentive and cash incentive plans in place before the bankruptcy.

Bondholders may challenge Spirit's management bonuses, as some aspects of the wind-down plan, such as how liquidation proceeds and ​cost savings will be measured, are still being negotiated with the debtor-in-possession lenders, according to a ​separate filing.

The airline said it will retain about 150 employees before decreasing its headcount to about 40 after the ‌first ⁠three months, with expectations that its liquidation plan will be completed within that time frame.

Spirit says it does not have money to conduct an organized auction of its aircraft, engines and other equipment, and is asking the court for permission for fast sales or to abandon and let the lenders ​repossess.

The carrier had been ​in advanced talks with ⁠the Trump administration over a $500 million government bailout that would have helped it exit bankruptcy and granted the government up to 90% of Spirit's equity. ​Those talks collapsed after some creditors objected.

Global carriers are contending with surging jet ​fuel prices since ⁠the U.S.-Israeli strikes on Iran disrupted traffic through the Strait of Hormuz, in the air travel industry's worst crisis since the COVID-19 pandemic. Spirit was already struggling to turn a profit before the fuel shock and ⁠has ​faced $100 million in incremental fuel costs since March 1.

"The material ​additional costs to Spirit proved to be too much for its available liquidity to absorb," Spirit said.

Reporting by David Shepardson in ​Washington and Dietrich Knauth and Doyinsola Oladipo in New York; Editing by Nick Zieminski and Bill Berkrot

Our Standards: The Thomson Reuters Trust Principles., opens new tab

-

SIXT stands ready to help affected travelers get where they need to go and welcomes Spirit Airlines team members to explore career opportunities

FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--SIXT USA, a subsidiary of Sixt SE, a global leader in premium mobility services, today announced a special offer for travelers impacted by the Spirit Airlines suspension of operations, providing those in need of alternative ground transportation with discounted one-way rental rates to help meet their near-term travel needs. SIXT is also inviting affected Spirit Airlines team members to explore career opportunities with the company.

Support for Spirit Airlines Travelers

SIXT is offering up to 20% off one-way rentals at participating U.S. locations to travelers whose Spirit Airlines flights have been cancelled or disrupted. Reservations must be made by May 17, 2026, with rentals taking place between May 5 and May 31, 2026, for a duration of one to 14 days. Vehicles must be returned no later than June 10, 2026.

This offer is available for select vehicle categories across SIXT's network of more than 120 locations in 27 states, including 56 major airports — many of which previously served Spirit Airlines routes. Impacted travelers can book at www.sixt.com/partners/travelassistance/. Additional information about SIXT, including rental locations, is available at SIXT.com or via the SIXT app.

Support for Spirit Airlines Team Members

SIXT recognizes that Spirit team members are navigating an incredibly difficult moment and wants to offer meaningful support. As SIXT continues its U.S. expansion, the company is actively recruiting across a broad range of roles — from operations and customer service to sales and corporate functions including finance, HR, and revenue management. With U.S. headquarters in Fort Lauderdale and locations nationwide, SIXT offers opportunities close to home and across the country. Interested candidates are encouraged to visit www.sixt.jobs/us/spirit to learn more and apply.

Tom Kennedy, President, SIXT North America: "When travelers face unexpected disruptions, our job is to step up. SIXT has the network, the locations, and the team to provide real solutions for people who need to get where they're going. We also recognize the very real impact this has on Spirit team members, and as we continue our robust expansion across the United States, we encourage anyone looking for their next opportunity to explore what SIXT has to offer."

SIXT’s focus on innovation and service excellence has earned multiple industry accolades, including being named “Best Car Rental & Mobility Innovation” company at the 2025 Frequent Traveler Awards, “#1 Rental Car Company” in the 2025 USA TODAY 10Best Readers’ Choice Awards, and one of Travel + Leisure Readers’ Five Favorite Car Rental Companies for two consecutive years (2024 and 2025).

In just 15 years, the United States has become SIXT's most important growth market. Today, the company operates more than 120 rental branches across 27 states and serves 56 of the busiest airports in the country. With operations established in Canada since 2022, SIXT has extended its North American footprint into another billion-dollar market.

We’re proud of our performance in the J.D. Power 2025 North America Rental Car Satisfaction Study. Learn more: J.D. Power 2025 North America Rental Car Satisfaction Study

About SIXT

Sixt SE with its registered office in Pullach near Munich, is a leading international provider of high-quality mobility services. With its products SIXT rent, SIXT share, SIXT ride and SIXT+ car subscription the company offers a uniquely integrated premium mobility service across the fields of vehicle and commercial vehicle rental, car sharing, ride hailing and car subscriptions. The products can be booked, among others, through the SIXT App, which also contains the services of its renowned mobility partners. With the global rewards program SIXT ONE, the company is also strengthening customer retention across its core markets and offering members a fully digitally integrated experience with attractive benefits when renting vehicles. SIXT has a presence in more than 100 countries around the globe. The company offers its customers experiences that inspire and exceed their expectations – through a lived culture of innovation, a consistent premium offering in terms of fleet and service, and an attractive price-performance ratio. According to preliminary calculations, the Group achieved consolidated earnings before taxes of EUR 400.5 million in 2025 and a significant increase in consolidated revenue to EUR 4.28 billion. Sixt SE has been listed on the Frankfurt Stock Exchange since 1986 (ISIN ordinary share: DE0007231326, ISIN preference share: DE0007231334). For more information, please visit https://about.sixt.com/en/.

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Spirit Airlines and United Airlines removed over 54,000 flights, according to Cirium. CHARLY TRIBALLEAU/AFP via Getty Images Airlines canceled more than 75,000 flights this summer over a 10-day period, according to the aviation analytics firm Cirium.

On Tuesday, Cirium released an analysis of flight schedules between June 1 and September 30, comparing what those schedules looked like on April 24 versus May 4.

During those 10 days, airlines around the world removed more than 9.3 million seats, per Cirium.

US carriers accounted for the four largest reductions.

About 70% of the removed seats, or 33,000 flights, came from Spirit Airlines. The budget airline shut down last Saturday after negotiations for a federal bailout fell apart.

United Airlines reduced its summer schedule by over 21,000 flights over the 10-day period, marking the second-highest cancellation count.

Delta Air Lines removed around 7,300 flights, and American Airlines cut some 6,400 flights.

Airlines have faced significant cost increases since the war in Iran doubled jet fuel prices. In April, jet fuel exceeded $200 a barrel, but has dropped back to about $180 a barrel, according to the International Air Transport Association.

Jet fuel is typically an airline's second-highest expenditure after labor costs.

When Spirit announced it was winding down operations, it cited "the recent material increase in oil prices and other pressures on the business."

The budget airline filed for Chapter 11 restructuring in August 2025 and in November 2024.

United Airlines, which reported a $340 million increase in fuel costs during the first quarter, is also cutting its schedule.

CEO Scott Kirby spoke about capacity cuts at a JP Morgan conference in March. "I'd much rather make the mistake of leaving a couple of months' worth of demand on the table because we cut more, and then you can get it back, as opposed to making the mistake of oil prices staying higher and longer, and you're flying flights that lose cash," he said.

Many airlines are raising ticket prices and baggage fees to offset higher fuel costs.

US carriers are more exposed to the price shock because, unlike most European airlines, they do not use financial derivatives to hedge against fuel costs.

Even so, Europe is also facing cancellations. Lufthansa, the continent's largest airline group by revenue, canceled over 5,000 flights that were scheduled between June and September, per Cirium's data.

The German flag carrier last month announced it was canceling 20,000 short-haul flights through October, reducing its capacity by 1%.

Not every airline has been slashing its schedule.

Cirium's data showed Frontier Airlines added more than 14,600 flights to its summer schedule.

After Spirit shut down, Frontier announced it would add nine new routes plus daily flights in 18 markets formerly served by its low-cost rival.

Read next

Pete Syme You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.

Pete Syme is an aviation reporter for Business Insider, based in London.He writes about all things related to the industry, such as flight diversions, aviation safety, airline updates, travel tips, plane tours, and aviation leaders.Pete has appeared on BBC News to discuss a Heathrow Airport closure and on Sky News to talk about Boeing.Before joining Business Insider in 2022, he graduated with an MA in Newspaper Journalism from City, University of London. While getting his BA in English from the University of Exeter, he was the award-winning deputy editor of the student newspaper, Exeposé.You can get in touch by emailing [email protected] or via Signal @syme.99.

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