Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a growth stock that can live up to its true potential can be a tough task.
By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.
However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects, makes it pretty easy to find cutting-edge growth stocks.
Our proprietary system currently recommends Sezzle Inc. (SEZL - Free Report) as one such stock. This company not only has a favorable Growth Score, but also carries a top Zacks Rank.
Studies have shown that stocks with the best growth features consistently outperform the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).
Here are three of the most important factors that make the stock of this company a great growth pick right now.
Earnings GrowthEarnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Sezzle Inc. is 380%, investors should actually focus on the projected growth. The company's EPS is expected to grow 41.7% this year, crushing the industry average, which calls for EPS growth of 13.9%.
Cash Flow GrowthWhile cash is the lifeblood of any business, higher-than-average cash flow growth is more important and beneficial for growth-oriented companies than for mature companies. That's because, growth in cash flow enables these companies to expand their businesses without depending on expensive outside funds.
Right now, year-over-year cash flow growth for Sezzle Inc. is 92.6%, which is higher than many of its peers. In fact, the rate compares to the industry average of -2.2%.
While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 43.7% over the past 3-5 years versus the industry average of 12.5%.
Promising Earnings Estimate RevisionsBeyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
There have been upward revisions in current-year earnings estimates for Sezzle Inc.. The Zacks Consensus Estimate for the current year has surged 8.2% over the past month.
Bottom LineSezzle Inc. has not only earned a Growth Score of A based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #1 because of the positive earnings estimate revisions.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination positions Sezzle Inc. well for outperformance, so growth investors may want to bet on it.
On May 27, 2026, Sezzle Inc SEZL shares rose 5.5% to a current price of $116.05. This recent uptick comes amidst a 52-week range that has seen the stock fluctuate between $49.50 and $186.74.
GF Value™ verdict: Current price of $116.05 is 63.9% above the GF Value™ estimate of $70.81.GF Score™: 67/100, indicating above-average performance based on GuruFocus metrics.Notable signal: Insiders sold $5.4M in shares over the last three months, with no reported purchases. Is SEZL Overvalued or Undervalued? The current price of Sezzle Inc SEZL at $116.05 is significantly above its GF Value™ estimate of $70.81, reflecting a 63.9% overvaluation. This discrepancy indicates a lack of margin of safety for potential investors, as the market price does not align with the intrinsic value calculated by GuruFocus. The GF Valuation label categorizes SEZL as "Significantly Overvalued," which raises concerns for those considering a position in the stock.
If the stock remains overvalued, there is an inherent risk of a price correction, which could negatively impact returns for those entering at current levels. Conversely, if the stock trades down towards its GF Value™, it could create a more compelling investment opportunity in the future. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
How Does SEZL's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 27.8x 21.8x Forward P/E 22.6x N/A Sezzle's current P/E ratio of 27.8x is notably higher than its 5-year median P/E of 21.8x, representing a 27% premium. This analysis suggests that SEZL is trading above its historical valuation levels, which aligns with the GF Value™ verdict of being overvalued. The elevated P/E ratio indicates that investors may be paying a premium for earnings compared to historical standards.
What Does SEZL's GF Score™ Tell Us? Metric Rating GF Score™ 67 Financial Strength 6/10 Profitability 4/10 Growth 5/10 Valuation 3/10 Momentum 7/10 The GF Score™ of 67/100 indicates a relatively strong overall performance, particularly in momentum, where the stock ranks 7/10. However, the valuation aspect scores the lowest at 3/10, reinforcing the notion that the stock is overvalued. Financial strength is rated 6/10, suggesting a moderate level of stability, while profitability and growth rank lower at 4/10 and 5/10 respectively, indicating areas for improvement.
What Are Insiders Doing with SEZL Stock? In the past three months, insider activity has seen a significant amount of selling, totaling $5.4 million, with no recorded purchases. This trend might suggest a lack of confidence from insiders regarding the stock's future performance, further indicating potential concerns about its current valuation.
What This Means for Investors Based on the current GF Value™ estimate, Sezzle Inc SEZL is classified as overvalued. The significant premium over the GF Value™ suggests caution for prospective investors, as the stock may face downward pressure in alignment with its intrinsic value.
For the complete analysis, visit the Sezzle Inc SEZL stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is SEZL's GF Score™?
SEZL has a GF Score™ of 67, indicating above-average performance based on key financial metrics.
Is SEZL overvalued or undervalued?
SEZL is currently overvalued, with a significant premium over its GF Value™ estimate of $70.81.
What is SEZL's P/E ratio?
SEZL's P/E (TTM) is 27.8x, which is 27% above its 5-year median P/E of 21.8x, indicating a higher valuation compared to its historical levels.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Minneapolis, MN, June 03, 2026 (GLOBE NEWSWIRE) -- Sezzle Inc. (NASDAQ: SEZL) (Sezzle or Company) is expanding well beyond buy now, pay later. With nearly 5 million Earn tab visits in under a year, the company is seeing proof consumers want to use Sezzle for more than just paying over time. Today, the company outlined the next phase of that evolution.
In 1Q26, Sezzle surpassed $1 billion in quarterly GMV for the second consecutive quarter, supported by a new peak purchase frequency of 7.1 times per active consumer. Active subscribers grew 48.4% year over year during the same period. On the strength of those results, the company raised its FY2026 guidance across all metrics. The results reflect a platform that consumers are engaging with more often and in more ways.
The Earn Tab
At the center of that transition is the Earn tab, within the Sezzle mobile app. Launched in June 2025, the feature lets consumers discover and claim rewards and cashback offers on everyday purchases like gas, groceries, and dining. The goal was simple: give users a reason to open Sezzle between purchases and turn that attention into a daily habit. Since launch, the Earn tab has become a daily utility for consumers and one of the most-visited features in the app.
That engagement is translating into results. Consumers who use the Earn tab generate over 20% more revenue per active user, a signal that the feature is driving incremental value on top of core BNPL volume. Today, consumers can earn through mobile games in the Sezzle Arcade, MoneyIQ financial literacy courses, and surveys, with more ways to earn on the roadmap.
“Consumers are opening our app to earn cashback on gas and groceries, not just to split a payment. This is an early sign the “super app” strategy was working. Everything we're rolling out now, points, trivia, card-linked cashback, Pay-in-5*, grew out of that signal,” said Sarah Hill, SVP of Product.
Pay-in-5: Driving Higher-Value Orders Across Merchants
As consumer spending on the platform grew, so did demand for more ways to pay. The company introduced Pay-in-5, a five-installment option at no additional cost that gives consumers more flexibility and longer repayment window. The early signal is clear: in April, average order values on Pay-in-5 ran 44% higher than Pay-in-4. That shift is drawing new merchants to the platform as well. RockAuto, one of the largest online auto parts retailers in the U.S., and Follett, the premier college campus retailer serving students at over 1,000 universities across North America, both launched with Sezzle this year.
Points and Card-Linked Cashback: Expanding the Rewards Ecosystem
With daily engagement growing, Sezzle is layering a unified rewards currency on top of the platform. The company recently launched Sezzle Points, a system that lets users accumulate points through cashback, surveys, receipts, and other everyday actions, and redeem them for gift cards from popular retailers. Points give every interaction inside the app a tangible payoff, whether a consumer is claiming an offer, completing a financial literacy lesson, or scanning a receipt.
Sezzle is also expanding its cashback network through card-linked offers, which automatically reward users when they shop with their Sezzle virtual card. These rewards stack with the in-app cashback offers already available in the Earn tab, meaning a user who claims a gas or dining offer, and also pays with their virtual card, would earn cashback from both at the same time. The end result is a boosted, layered rewards model where the more a consumer interacts with Sezzle, the more they get back.
Embedding AI Across the Platform
Sezzle is putting AI to work across the entire platform. The company's AI-powered support chatbot, complete with powerful context-connected tools, is now live for all users of Sezzle’s mobile app, already resolving 70% of inbound inquiries without a human agent with plans to expand into additional support channels. On the shopping side, Sezzle is building alongside existing user behavioral recommendation systems toward a fully agentic experience, with an AI Shopping Assistant to automatically search and surface the best prices and personalized recommendations, replacing manual search with something closer to a personal concierge. Internally, engineering has fully shifted to an AI-first model, with more than 70% of new code written with AI assistance, accelerating the speed at which new features reach consumers.
Additional Platform Launches
Sezzle Mobile: An unlimited 5G phone plan on AT&T's network, powered by Gigs, available directly in the Sezzle app. Now live for all eligible users starting at best-in-market pricing of $29.99/month for Anywhere subscribers and $39.99/month for Premium subscribers.Enhanced Long-Term Lending†: Eligible users can now split purchases into 3- to 48-month payment plans directly at checkout, extending Sezzle into longer-duration consumer lending. The product is live and rolling out in stages.Expanded Payment Processing: Sezzle has strengthened its payments backbone by adding Adyen, a global payments platform, giving merchants faster, more reliable checkout experiences and broader payment acceptance. Adyen is now live for Canadian transactions as well. Interested in hearing more about the power of Sezzle? Learn more here.
About Sezzle Inc.
Sezzle is a forward-thinking fintech company committed to financially empowering the next generation. Designed to support users throughout every stage of their financial journey, Sezzle’s all-in-one app enables users to shop, earn, and learn in a seamless experience. By offering point-of-sale financing and digital payment services, Sezzle enhances purchasing power while connecting millions of consumers with its global network of merchants. Centered on transparency, inclusivity, and ease of use, Sezzle empowers consumers to manage spending responsibly and build lasting financial independence.
For additional assets and news on Sezzle please visit https://sezzle.com/news/
Follow Sezzle on social media: LinkedIn | Instagram | X
* Pay-in-5, Pay-in-4, Sezzle Virtual Card, are issued by WebBank or Sezzle. See loan agreement for details.
† Pay Monthly loans are originated by third party lenders, including WebBank. Refer to your loan agreement for details. APR ranges from 0.00%-35.99% based on creditworthiness and term length, subject to credit approval. For example, a $1,000 loan over 6 months would result in 6 monthly payments of $166.67 at 0.00% APR, $178.90 ay 24.99% APR, or $184.29 at 35.99% APR. Minimum purchase amount and down payment may be required.
‡ Unlimited data includes network management; speeds may be reduced during congestion or after high usage. 5G requires a compatible device and coverage and is not available in all areas. Actual speeds vary. Price excludes taxes/fees. Wireless service provided through Sezzle Mobile’s connectivity partners. AT&T is a trademark of AT&T Inc. and is not affiliated with or endorsing Sezzle Mobile.
Conference call expected to provide additional details on the Company's path to cash-flow positivity and key operational milestones. WEST SENECA, NY / ACCESS Newswire / March 11, 2026 / Worksport Ltd.
New Model Presented to North America's leading automotive aftermarket distributor targets major expansion of U.S. dealer network and early revenue pipeline.
WEST SENECA, NY / ACCESS Newswire / March 19, 2026 / Worksport Ltd. (NASDAQ:WKSP) ("Worksport" or the "Company"), a U.S.-based innovator and manufacturer of hybrid and clean energy solutions primarily for the light truck, overlanding, and global consumer goods markets, today announced the development of a new, highly anticipated tonneau cover model. The Company presented the unreleased cover in advance this past Saturday at the Keystone BIG Show, successfully securing early buyer interest and initiating pre-orders ahead of its official near-term launch with multiple buyers referring to the new model as "a game changer" in the market.
"We brought something special to Keystone," said Steven Rossi, Chief Executive Officer of Worksport. "We believe this may become the best and leading tonneau cover in the market for professionals. It is being designed with installer demand, dealer economics, and large-scale distribution in mind. We are executing on all fronts to bring this to our growing dealer network and look forward to accumulating initial sales orders immediately ahead of the official launch expected early Q2."
Strategic Debut at the Keystone BIG Show
Rather than a traditional press announcement, Worksport chose to debut this new model directly to the buyers who drive industry volume. Keystone Automotive Operations is widely recognized as the leading distributor and marketer of aftermarket automotive equipment and accessories in North America. With a legacy spanning decade, Keystone operates eight massive, dedicated distribution centers and a transport fleet that serves thousands of auto enthusiasts, dealerships, and professional installers across the USA and Canada, offering national product distribution to thousands of automotive speciality stores. Showcasing at the Keystone BIG Show places Worksport's new product directly in front of a captive audience of high-volume purchasing decision-makers.
The New Cover: Built for the Professional Market
The newly developed cover is engineered to complement Worksport's rapidly growing lineup, which includes the AL3, AL4, and HD3 models. While official product specifications, naming, and media assets will be released closer to the commercial launch, the new model is purpose-built to meet the rigorous demands of the professional and commercial truck market.
Pre-Orders and Near-Term Launch
Following the overwhelmingly positive reception at the BIG Show, Worksport is currently developing its pre-order pipeline to accumulate initial sales ahead of the official launch. The cover is expected to enter production and become commercially available in the near term.
This product expansion represents a key pillar in Worksport's 2026 growth strategy to aggressively expand its U.S. Dealer Network. It also builds upon the Company's recent execution milestones, including the successful market launch of its proprietary COR™ Portable Energy System and SOLIS™ Solar Tonneau Cover.
Investors, analysts, and members of the media are invited to register in advance for Worksport's live earnings webcast. During the call, participants will gain insights into the Company's operational progress, product development roadmap, updated financial outlook, and strategy for advancing toward cash-flow positive operations.
Date: Thursday, March 26, 2026
Time: 4:30 PM ET
Format: Live webcast with management discussion and Q&A
Register Here: Conference Call Registration
Stay tuned for more information and join our mailing list to stay up to date with the latest: Join Worksport's Newsletter
Connect with Worksport Chief Executive Officer, Steven Rossi
Steven Rossi X (Twitter)
Steven Rossi LinkedIn
About Worksport
Worksport Ltd. (Nasdaq:WKSP), through its subsidiaries, designs, develops, manufactures, and owns the intellectual property on a variety of tonneau covers, solar integrations, portable power systems, and clean heating & cooling solutions. Worksport has an active partnership with Hyundai for the SOLIS Solar cover. Additionally, Worksport's hard-folding cover, designed and manufactured in-house, is compatible with all major truck models and is gaining traction with newer truck makers including the electric vehicle (EV) sector. Worksport seeks to capitalize on the growing shift of consumer mindsets towards clean energy integrations with its proprietary solar solutions, mobile energy storage systems (ESS), and Cold-Climate Heat Pump (CCHP) technology. Terravis Energy's website is terravisenergy.com.
Connect with Worksport
Please follow the Company's social media accounts on X (previously Twitter), Facebook,
LinkedIn, YouTube, and Instagram, the links of which are links to external third-party websites, as well as sign up for the Company's newsletters at investors.worksport.com.
Social Media Disclaimer
The Company does not endorse, ensure the accuracy of, or accept any responsibility for any content on these third-party websites other than content published by the Company. Investors and others should note that the Company announces material financial information to our investors using our investor relations website, press releases, Securities and Exchange Commission ("SEC") filings, and public conference calls and webcasts. The Company also uses social media to announce Company news and other information. The Company encourages investors, the media, and others to review the information the Company publishes on social media. The Company does not selectively disclose material non-public information on social media. If there is any significant financial information, the Company will release it broadly to the public through a press release or SEC filing prior to publishing it on social media.
Forward-Looking Statements
The information contained herein may contain "forward‐looking statements." Forward‐looking statements reflect the current view about future events. When used in this press release, the words "anticipate," "believe," "estimate," "scheduled," "expect," "future," "intend," "plan," "project," "envisioned," "should," or the negative of these terms and similar expressions, as they relate to us or our management, identify forward‐looking statements. These statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial situation may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) supply chain delays; (ii) acceptance of our products by consumers; (iii) delays in or nonacceptance by third parties to sell our products; and (iv) competition from other producers of similar products. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the SEC, including, without limitation, our latest Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC's web site at www.sec.gov. As a result of these matters, changes in facts, assumptions not being realized or other circumstances, the Company's actual results may differ materially from the expected results discussed in the forward-looking statements contained in this press release. The forward-looking statements made in this press release are made only as of the date of this press release, and the Company undertakes no obligation to update them to reflect subsequent events or circumstances.
Company Update Revenue Increases 90% YoY; Company Highlights Margin Expansion and Commercialization Milestones
WEST SENECA, NY / ACCESS Newswire / March 26, 2026 / Worksport Ltd. (NASDAQ:WKSP) ("Worksport" or the "Company"), a U.S.-based innovator and manufacturer of hybrid and clean energy solutions primarily for the light truck, overlanding, and global consumer goods markets, today announced financial results for the full year ended December 31, 2025, as filed in its Annual Report on Form 10-K.
Fiscal 2025 Highlights
Record Net Sales: Net sales for fiscal 2025 reached $16.1 million, an 89.8% increase compared to $8.5 million in fiscal 2024.
Significant Margin Expansion: Full-year gross margin improved to 28%, up from 11% in fiscal 2024.
Strong Q4 Performance: Derived fourth-quarter gross margins reached approximately 30%, reflecting increased manufacturing efficiency and capacity utilization at the Company's New York facility.
Dealer Network Growth: The partnered dealer network expanded sixfold in 2025, now exceeding 550 locations across the U.S. and Canada.
Online Sales Growth: Online sales grew 142% to $11.9 million, representing 74% of total revenue
Business-to-Business Growth: Distributor and jobber sales increased to $4.2 million, up from $0.4 million in 2024
Commercial Product Launches: Successfully launched the SOLIS solar-integrated cover and COR portable energy storage system in December 2025.
Quality Certification: Achieved ISO 9001 certification in April 2025, a critical prerequisite for pursuing Tier-1 OEM relationships with major automotive manufacturers.
Management noted that 2025 marked a transition year, with multiple product lines moving from development into early-stage commercialization.
2026 Financial Guidance and Strategic Outlook
Following a year of foundational investment, Worksport is providing the following guidance for fiscal 2026:
Revenue Guidance: The Company expects full-year 2026 revenue to be between $35 million and $42 million.
Gross Margin Target: Management has set a stable target of 35% gross margin for fiscal 2026.
Network Expansion: Management targets aggressive dealer network growth to 1,500 locations by the end of 2026. This dealer expansion is expected to be a leading revenue driver.
Path to Profitability: Worksport expects to reach initial operational cash-flow positivity within the second half of 2026.
"Game Changer" Product Launch: A next-generation hard tonneau cover featuring patented capabilities is expected to launch in early Q2 2026.
Balance Sheet and Liquidity
As of December 31, 2025, Worksport reported:
$5.95 million in cash
$3.4 million available under its revolving credit facility
Total liquidity of approximately $9.3 million
The Company indicated that its capital deployment in 2025 was directed toward scaling production capacity and advancing commercialization efforts.
Management Commentary
"2025 was a transformative year where we successfully bridged the gap from product conceptualization to large-scale market delivery," said Steven Rossi, Worksport Founder & CEO. "We nearly doubled our top-line growth while dramatically improving our margin profile. With our New York facility now capable of producing over 125 units per 8-hour shift and our R&D hub in Missouri de-risking our clean-energy product launches, we believe the heavy lifting of building the platform is complete. Our focus in 2026 is squarely on execution, throughput, and achieving sustained profitability".
Steven added: "Our infrastructure is now built for scale. We ended 2025 with a total liquidity position of over $9.3 million, providing us the runway needed to reach our goal of initial operational cash-flow positivity in the second half of 2026".
Conference Call & Materials
Investors, analysts, and media are invited to register in advance for the live webcast, today, March 26, 2026, at 4:30pm ET.
Live Link: [Worksport FY 2025 Earnings Call Link]
The earnings call transcript, deck, and audio reply from the conference call will be available on the Worksport website https://investors.worksport.com/#reports after the call.
Stay tuned for more information and join our mailing list to stay up to date with the latest: Join Worksport's Newsletter
Worksport FY 2025 Report: Balance Sheet & Income Statement
Below is a summary excerpt from the Financial Statements section of 'Worksport 10-K, March 26, 2026' covering the fiscal year ending December 31, 2025. Investors are encouraged to review the complete 10-K filing and the accompanying Prepared Remarks, both linked above, for full context and analysis.
Worksport Ltd.
Consolidated Balance Sheets
December 31, 2025 and 2024
2025
2024
ASSETS
Current assets
Cash and cash equivalents
$
5,945,894
$
4,883,099
Accounts receivable, net
503,971
42,589
Other receivable
278,027
169,728
Inventories, net (Note 3)
9,530,671
5,190,054
Prepaid expenses and deposits (Note 6)
530,861
192,192
Total Current assets
16,789,424
10,477,662
Investment (Note 11)
67,033
66,308
Property and equipment, net (Note 4)
12,688,488
13,644,226
Operating lease right-of-use assets (Note 11)
272,598
595,415
Intangible assets, net (Note 5)
896,531
953,049
Total assets
$
30,714,074
$
25,736,660
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable
$
3,107,085
$
1,526,630
Accrued liabilities and other
1,400,730
800,283
Accrued compensation
420,210
377,112
Long-term debt, current portion (Note 12)
1,686,809
222,992
Lease liability, current portion (Note 11)
113,012
246,535
Total current liabilities
6,727,846
3,173,552
Lease liability, excluding current portion (Note 11)
159,526
368,472
Long-term debt, excluding current portion (Note 12)
950,481
4,781,005
Total liabilities
7,837,853
8,323,029
Shareholders' equity
Series A, B and Series C Preferred Stock, $0.001 par value, 10,000,000 shares authorized, 100 Series A, 0 Series B, and 427,812 Series C (for 2025) issued and outstanding, respectively (Note 7)
428
-
Series A, B and Series C Preferred Stock, $0.001 par value, 10,000,000 shares authorized, 100 Series A, 0 Series B, and 427,812 Series C (for 2025) issued and outstanding, respectively (Note 7)
428
-
Common stock, $0.001 par value, 45,000,000 shares authorized, 9,814,665 and 4,016,205 shares issued and outstanding, respectively (Note 7)
9,814
4,016
Additional paid-in capital
101,357,686
79,781,674
Share subscriptions receivable
(55,684
)
(1,577
)
Share subscriptions payable
5,446,347
2,115,064
Accumulated deficit
(83,873,790
)
(64,476,966
)
Cumulative translation adjustment
(8,580
)
(8,580
)
Total shareholders' equity
22,876,221
17,413,631
Total liabilities and shareholders' equity
$
30,714,074
$
25,736,660
The accompanying notes form an integral part of these condensed consolidated financial statements. Please click here to download the full 10-K.
Worksport Ltd.
Consolidated Statements of Operations and Comprehensive Loss
December 31, 2025 and 2024
2025
2024
Net sales
$
16,101,738
$
8,484,379
Cost of sales
11,626,831
7,578,729
Gross profit
4,474,907
905,650
Operating expenses
Research and development
1,538,923
2,289,940
General and administrative
14,806,326
11,709,925
Sales and marketing
6,947,671
2,386,504
Gain on foreign exchange
(4,587
)
(14,885
)
Total operating expenses
23,288,333
16,371,484
Loss from operations
(18,813,426
)
(15,465,834
)
Other income (expense)
Interest expense
(592,755
)
(726,095
)
Other
53,884
28,140
Total other income (expense)
(538,871
)
(697,955
)
Net loss
(19,352,297
)
(16,163,789
)
Loss per share (basic and diluted) (Note 13)
$
(3.16
)
$
(5.84
)
Weighted average number of shares (basic and diluted)
6,143,122
2,768,732
The accompanying notes form an integral part of these condensed consolidated financial statements. Please click here to download the full 10-Q.
The link below will take you to the Worksport Investor Relations Website. After 4:30pm ET, you may download the accompanying earnings call prepared remark and deck there; investors are highly encouraged to review this material:
FY 2025- Earnings Call Prepared Remarks - Download Here
Connect with Worksport Chief Executive Officer, Steven Rossi
Steven Rossi X (Twitter)
Steven Rossi LinkedIn
About Worksport
Worksport Ltd. (Nasdaq:WKSP), through its subsidiaries, designs, develops, manufactures, and owns the intellectual property on a variety of tonneau covers, solar integrations, portable power systems, and clean heating & cooling solutions. Worksport has an active partnership with Hyundai for the SOLIS Solar cover. Additionally, Worksport's hard-folding cover, designed and manufactured in-house, is compatible with all major truck models and is gaining traction with newer truck makers including the electric vehicle (EV) sector. Worksport seeks to capitalize on the growing shift of consumer mindsets towards clean energy integrations with its proprietary solar solutions, mobile energy storage systems (ESS), and Cold-Climate Heat Pump (CCHP) technology. Terravis Energy's website is terravisenergy.com.
Connect with Worksport
Please follow the Company's social media accounts on X (previously Twitter), Facebook,
LinkedIn, YouTube, and Instagram, the links of which are links to external third-party websites, as well as sign up for the Company's newsletters at investors.worksport.com.
Social Media Disclaimer
The Company does not endorse, ensure the accuracy of, or accept any responsibility for any content on these third-party websites other than content published by the Company. Investors and others should note that the Company announces material financial information to our investors using our investor relations website, press releases, Securities and Exchange Commission ("SEC") filings, and public conference calls and webcasts. The Company also uses social media to announce Company news and other information. The Company encourages investors, the media, and others to review the information the Company publishes on social media. The Company does not selectively disclose material non-public information on social media. If there is any significant financial information, the Company will release it broadly to the public through a press release or SEC filing prior to publishing it on social media.
Forward-Looking Statements
The information contained herein may contain "forward‐looking statements." Forward‐looking statements reflect the current view about future events. When used in this press release, the words "anticipate," "believe," "estimate," "scheduled," "expect," "future," "intend," "plan," "project," "envisioned," "should," or the negative of these terms and similar expressions, as they relate to us or our management, identify forward‐looking statements. These statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial situation may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) supply chain delays; (ii) acceptance of our products by consumers; (iii) delays in or nonacceptance by third parties to sell our products; and (iv) competition from other producers of similar products. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the SEC, including, without limitation, our latest Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC's web site at www.sec.gov. As a result of these matters, changes in facts, assumptions not being realized or other circumstances, the Company's actual results may differ materially from the expected results discussed in the forward-looking statements contained in this press release. The forward-looking statements made in this press release are made only as of the date of this press release, and the Company undertakes no obligation to update them to reflect subsequent events or circumstances.
Worksport Ltd. (NASDAQ: WKSP - Get Free Report) was the recipient of a large growth in short interest in the month of March. As of March 13th, there was short interest totaling 550,591 shares, a growth of 43.6% from the February 26th total of 383,438 shares. Approximately 6.1% of the company's stock are short sold. Based
Final safety and compliance approvals complete; certification package supports broader sales across retail, fleet, distributor, and commercial channels
WEST SENECA, NY / ACCESS Newswire / April 2, 2026 / Worksport Ltd. (NASDAQ:WKSP) ("Worksport" or the "Company"), a U.S.-based innovator and manufacturer of hybrid and clean energy solutions primarily for the light truck, overlanding, and global consumer goods markets, overlanding, and consumer goods markets, today announced that its COR Portable Energy System is now fully certified for the North American market, following receipt of all remaining required safety and regulatory approvals.
Certification Milestone
This milestone completes COR's multi-stage testing and validation process, including key safety certifications achieved in late March such as UL 2743, UL 1741, UL 1977, UL 1778, UL 2054, and CSA 62133-2, and marks an important step in the product's commercial readiness.
As a result, COR now holds all certifications and compliance approvals required to support broader commercialization across North American retail and commercial channels. Management believes the completed certification package strengthens Worksport's ability to expand sales through major retailers, distributors, fleets, and other business-to-business relationships.
Product Overview:
The COR modular portable energy system is built around the COR HUB and a swappable battery architecture. The system is designed for mobile power, emergency backup, worksite use, and outdoor recreation. When paired with the Company's SOLIS ™ Solar Tonneau Cover, COR becomes part of Worksport's broader clean-energy ecosystem, enabling users to generate, store, and use power through an integrated mobile platform.
Certification Scope:
COR's completed certification and compliance package now includes key transportation, product safety, electronic compliance, and regulatory requirements for North American commercialization. These include previously completed milestones such as UN38.3, MSDS, DGM965, FCC sDoC, ISED sDoC, CA Prop. 65, and TSCA, together with the remaining final approvals now complete to complete the product's commercial readiness.
"Completing COR's certification process is an important execution milestone for Worksport," said Steven Rossi, Chief Executive Officer of Worksport. "Achieving key safety certifications , including UL and CSA standards, helps remove a critical barrier to broader market access and supports our ability to scale across retail and commercial channels . With COR and SOLIS now shipping, we believe Worksport is better positioned to advance its clean-energy growth strategy with a product platform built for practical, everyday use."
Stay tuned for more information and join our mailing list to stay up to date with the latest: Join Worksport's Newsletter
Connect with Worksport Chief Executive Officer, Steven Rossi
Steven Rossi X (Twitter)
Steven Rossi LinkedIn
About Worksport
Worksport Ltd. (Nasdaq:WKSP), through its subsidiaries, designs, develops, manufactures, and owns the intellectual property on a variety of tonneau covers, solar integrations, portable power systems, and clean heating & cooling solutions. Worksport has an active partnership with Hyundai for the SOLIS Solar cover. Additionally, Worksport's hard-folding cover, designed and manufactured in-house, is compatible with all major truck models and is gaining traction with newer truck makers including the electric vehicle (EV) sector. Worksport seeks to capitalize on the growing shift of consumer mindsets towards clean energy integrations with its proprietary solar solutions, mobile energy storage systems (ESS), and Cold-Climate Heat Pump (CCHP) technology. Terravis Energy's website is terravisenergy.com.
Connect with Worksport
Please follow the Company's social media accounts on X (previously Twitter), Facebook, LinkedIn, YouTube, and Instagram, the links of which are links to external third-party websites, as well as sign up for the Company's newsletters at investors.worksport.com.
Social Media Disclaimer
The Company does not endorse, ensure the accuracy of, or accept any responsibility for any content on these third-party websites other than content published by the Company. Investors and others should note that the Company announces material financial information to our investors using our investor relations website, press releases, Securities and Exchange Commission ("SEC") filings, and public conference calls and webcasts. The Company also uses social media to announce Company news and other information. The Company encourages investors, the media, and others to review the information the Company publishes on social media. The Company does not selectively disclose material non-public information on social media. If there is any significant financial information, the Company will release it broadly to the public through a press release or SEC filing prior to publishing it on social media.
Forward-Looking Statements
The information contained herein may contain "forward‐looking statements." Forward‐looking statements reflect the current view about future events. When used in this press release, the words "anticipate," "believe," "estimate," "scheduled," "expect," "future," "intend," "plan," "project," "envisioned," "should," or the negative of these terms and similar expressions, as they relate to us or our management, identify forward‐looking statements. These statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial situation may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) supply chain delays; (ii) acceptance of our products by consumers; (iii) delays in or nonacceptance by third parties to sell our products; and (iv) competition from other producers of similar products. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the SEC, including, without limitation, our latest Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC's web site at www.sec.gov . As a result of these matters, changes in facts, assumptions not being realized or other circumstances, the Company's actual results may differ materially from the expected results discussed in the forward-looking statements contained in this press release. The forward-looking statements made in this press release are made only as of the date of this press release, and the Company undertakes no obligation to update them to reflect subsequent events or circumstances.
Founder & CEO Acquires 88,214 Shares at $0.8502, Citing Belief in Operational Progress, Margin Expansion and Path to Cash-Flow Positivity
WEST SENECA, NY / ACCESS Newswire / April 14, 2026 / Worksport Ltd. (NASDAQ:WKSP) ("Worksport" or the "Company"), a U.S.-based innovator and manufacturer of hybrid and clean energy solutions primarily for the light truck, overlanding, and global consumer goods markets, overlanding, and consumer goods markets, today announced that its Founder and Chief Executive Officer, Steven Rossi, acquired 88,214 shares of the Company's common stock at a deemed purchase price of $0.8502, the closing price of the Company's common stock on Friday, April 10, 2026, in satisfaction of previously accrued cash compensation, representing an aggregate value of $75,000.The issuance of such shares was made pursuant to a stock purchase agreement, dated April 13, 2026.
This transaction underscores management's confidence in Worksport's fundamental value, bolstered by a year of record revenue growth, significant margin expansion, and a clear path toward operational cash-flow positivity in the second half of 2026.
The CEO's acquisition of additional shares follows a year of significant operational progress and continued investment into Worksport's asset base, including:
Net Sales Growth: From ~$1.5 million (2023) to $8.5 million (2024), and $16.1 million (2025), with a forecast of $35 to $42 million in 2026
Manufacturing & Asset Value: A U.S.-based production facility in New York, appraised at approximately $9 million in 2024, alongside continued investment in production equipment and infrastructure supporting scaled output
Strategic Inventory Positioning: As of December 31, 2025, the Company held approximately $9.5 million in inventory to support anticipated demand and minimize supply chain volatility
Intellectual Property (IP) Portfolio: A growing global footprint consisting of approximately 25 utility patents, 50 design patents and registrations, and 44 registered trademarks and 97 pending IP applications.
Gross Margin Expansion: From ~11% in Q4 2024 to approximately ~30% in Q4 2025
Dealer Network Expansion: From under 100 to over 550 locations across North America
Product Commercialization: Launch of SOLIS, COR, AL4, and HD3 in 2025, with an additional next-generation product expected in Q2 2026
The Company has indicated that, at approximately $9-11 million in quarterly revenue at targeted margin levels, it expects to reach operational cash-flow positivity, a milestone it is actively pursuing in fiscal 2026
CEO Commentary
"The decision to increase my personal stake in Worksport by nearly 1% of the total outstanding stock reflects my unwavering belief in our team's execution and the intrinsic value of our assets," said Steven Rossi.
"Over the past two years, we have transformed the business - scaling revenue, expanding margins, building a national dealer network, and bringing multiple products to market. While the share price has recently experienced pressure, I believe it does not fully reflect the underlying progress we have made or the momentum we are building. Worksport management maintains its position that the company's market valuation is undervalued.
He continued: "We have invested meaningfully to establish the foundation of this company. With that foundation now largely in place, our focus is on execution - driving revenue growth, expanding distribution, and progressing toward operational cash-flow positivity. I remain highly confident in our strategy and the long-term opportunity ahead."
Upcoming Catalysts and Innovation Pipeline
Worksport enters fiscal 2026 with multiple growth drivers in motion:
Core Tonneau Cover Business: A now matured product lineup (including AL4 and HD3) positioned to scale across both direct-to-consumer and B2B channels.
"Game Changer" Product: The Company expects to debut a next-generation hard cover in early Q2 2026, featuring patented capabilities designed to capture significant market share.
Distribution Expansion: Targeting significant dealer growth and broader national distribution partnerships
New large-scale distribution partnerships are expected within 2026.
SOLIS & COR Commercialization: Recently launched solar-integrated tonneau cover and portable energy storage system, with initial revenue contribution expected to build through 2026
Business-to-Business marketing and sales partnerships are being developed and deployed within 2026.
OEM & Strategic Partnerships: Ongoing engagement with automotive manufacturers and commercial partners
Following factory ISO certification in 2025, new partnerships are being focused on with OEMs in 2026.
Terravis Energy (AetherLux): Innovative cold-climate heat pump with industry-leading performance, representing a longer-term clean energy opportunity
Commercial certification is expected within 2026.
Management has emphasized that fiscal 2026 represents a transition from investment and buildout to monetization and operating leverage, supported by improving margins and a scalable manufacturing base.
Long-Term Focus, Near-Term Milestones
Worksport continues to target:
$35-$42 million in revenue for fiscal 2026
~35% gross margin profile
Operational cash-flow positivity within the year
The CEO's acquisition is aligned with these objectives and reflects a continued focus on disciplined execution, capital efficiency, and long-term shareholder value creation.
Stay tuned for more information and join our mailing list to stay up to date with the latest: Join Worksport's Newsletter
Connect With Worksport Chief Executive Officer Steven Rossi
Steven Rossi X (Twitter)
Steven Rossi LinkedIn
About Worksport
Worksport Ltd. (NASDAQ:WKSP), through its subsidiaries, designs, develops, manufactures, and owns the intellectual property on a variety of tonneau covers, solar integrations, portable power systems, and clean heating & cooling solutions. Worksport has an active partnership with Hyundai for the SOLIS Solar cover. Additionally, Worksport's hard-folding cover, designed and manufactured in-house, is compatible with all major truck models and is gaining traction with newer truck makers, including the electric vehicle (EV) sector. Worksport seeks to capitalize on the growing shift of consumer mindsets towards clean energy integrations with its proprietary solar solutions, mobile energy storage systems (ESS), and Cold-Climate Heat Pump (CCHP) technology. Terravis Energy's website is terravisenergy.com.
Connect With Worksport
Please follow the Company's social media accounts on X (previously Twitter), Facebook, LinkedIn, YouTube, and Instagram, the links of which are links to external third-party websites, as well as sign up for the Company's newsletters at investors.worksport.com.
Social Media Disclaimer
The Company does not endorse, ensure the accuracy of, or accept any responsibility for any content on these third-party websites other than content published by the Company. Investors and others should note that the Company announces material financial information to our investors using our investor relations website, press releases, Securities and Exchange Commission ("SEC") filings, and public conference calls and webcasts. The Company also uses social media to announce Company news and other information. The Company encourages investors, the media, and others to review the information the Company publishes on social media. The Company does not selectively disclose material non-public information on social media. If there is any significant financial information, the Company will release it broadly to the public through a press release or SEC filing prior to publishing it on social media.
Forward-Looking Statements
The information contained herein may contain "forward‐looking statements." Forward‐looking statements reflect the current view about future events. When used in this press release, the words "anticipate," "believe," "estimate," "scheduled," "expect," "future," "intend," "plan," "project," "envisioned," "should," or the negative of these terms and similar expressions, as they relate to us or our management, identify forward‐looking statements. These statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial situation may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) supply chain delays; (ii) acceptance of our products by consumers; (iii) delays in or nonacceptance by third parties to sell our products; and (iv) competition from other producers of similar products. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the SEC, including, without limitation, our latest Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC's web site at www.sec.gov. As a result of these matters, changes in facts, assumptions not being realized or other circumstances, the Company's actual results may differ materially from the expected results discussed in the forward-looking statements contained in this press release. The forward-looking statements made in this press release are made only as of the date of this press release, and the Company undertakes no obligation to update them to reflect subsequent events or circumstances.
Company to engage directly with overlanding consumers and industry participants as part of continued commercial rollout of recently launched power and tonneau solutions
WEST SENECA, NY / ACCESS Newswire / April 16, 2026 / Worksport Ltd. (NASDAQ:WKSP) ("Worksport" or the "Company"), a U.S.-based innovator and manufacturer of hybrid and clean energy solutions primarily for the light truck, overlanding, and global consumer goods markets, overlanding, and consumer goods markets, is pleased to announce its participation in the upcoming Midwest Overlanding and Off-Road Expo (MOORE), taking place April 17-18, 2026 in Springfield, Missouri.
Located at Booths 37, 38, and 39, Worksport will provide live demonstrations of its newly launched portable power products and broad line of tonneau covers to a rapidly growing audience of off-road enthusiasts and industry partners.
Strategic Market Engagement
The MOORE Expo has seen consistent year-over-year growth, surpassing 7,500 attendees in 2025. By securing a prominent triple-booth presence, Worksport aims to capitalize on this high-intent demographic to drive direct-to-consumer, and business to business (B2B) sales.
"The MOORE Expo represents a prime opportunity to put our technology directly into the hands of users it was designed for," said Steven Rossi, CEO of Worksport. "While we are showcasing our flagship COR & SOLIS products, we are also using this platform to demonstrate the full breadth of our product catalog. Our goal is to convert the high foot traffic into immediate brand traction and measurable sales activity."
Product Showcased: The Power of Integration
Worksport will be presenting a comprehensive look at its mobile power and utility ecosystem:
SOLIS Solar Tonneau Cover: A first-of-its-kind, patented solar-integrated truck bed cover.
COR Battery System: A portable, modular power station designed for off-grid resilience.
Vehicle Mounting System (VMS): Secure integration of the COR system and additional battery modules within the truck bed.
The Game Changer Cover: Expanding beyond green energy, Worksport will also display another premium tonneau cover for its innovative product portfolio. Previously presented at the Keystone BIG Show, this cover has unique patent pending features and is set to officially release later this month.
Attendance and Booth Details
Members of Worksport's management, will be on-site to lead demonstrations and engage with investors, retail customers, and potential B2B partners.
The Company's attendance at the MOORE Expo is part of its ongoing 2026 strategy to scale the market presence of the SOLIS and COR systems following their recent successful launches.
Stay tuned for more information and join our mailing list to stay up to date with the latest: Join Worksport's Newsletter
Connect with Worksport Chief Executive Officer, Steven Rossi
Steven Rossi X (Twitter)
Steven Rossi LinkedIn
About Worksport
Worksport Ltd. (Nasdaq:WKSP), through its subsidiaries, designs, develops, manufactures, and owns the intellectual property on a variety of tonneau covers, solar integrations, portable power systems, and clean heating & cooling solutions. Worksport has an active partnership with Hyundai for the SOLIS Solar cover. Additionally, Worksport's hard-folding cover, designed and manufactured in-house, is compatible with all major truck models and is gaining traction with newer truck makers including the electric vehicle (EV) sector. Worksport seeks to capitalize on the growing shift of consumer mindsets towards clean energy integrations with its proprietary solar solutions, mobile energy storage systems (ESS), and Cold-Climate Heat Pump (CCHP) technology. Terravis Energy's website is terravisenergy.com.
Connect with Worksport
Please follow the Company's social media accounts on X (previously Twitter), Facebook, LinkedIn, YouTube, and Instagram, the links of which are links to external third-party websites, as well as sign up for the Company's newsletters at investors.worksport.com.
Social Media Disclaimer
The Company does not endorse, ensure the accuracy of, or accept any responsibility for any content on these third-party websites other than content published by the Company. Investors and others should note that the Company announces material financial information to our investors using our investor relations website, press releases, Securities and Exchange Commission ("SEC") filings, and public conference calls and webcasts. The Company also uses social media to announce Company news and other information. The Company encourages investors, the media, and others to review the information the Company publishes on social media. The Company does not selectively disclose material non-public information on social media. If there is any significant financial information, the Company will release it broadly to the public through a press release or SEC filing prior to publishing it on social media.
Forward-Looking Statements
The information contained herein may contain "forward‐looking statements." Forward‐looking statements reflect the current view about future events. When used in this press release, the words "anticipate," "believe," "estimate," "scheduled," "expect," "future," "intend," "plan," "project," "envisioned," "should," or the negative of these terms and similar expressions, as they relate to us or our management, identify forward‐looking statements. These statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial situation may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) supply chain delays; (ii) acceptance of our products by consumers; (iii) delays in or nonacceptance by third parties to sell our products; and (iv) competition from other producers of similar products. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the SEC, including, without limitation, our latest Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC's web site at www.sec.gov. As a result of these matters, changes in facts, assumptions not being realized or other circumstances, the Company's actual results may differ materially from the expected results discussed in the forward-looking statements contained in this press release. The forward-looking statements made in this press release are made only as of the date of this press release, and the Company undertakes no obligation to update them to reflect subsequent events or circumstances.
Proprietary single-side operation addresses key customer pain points; ~strong pre-order demand and early distributor demand support 2026 revenue guidance
WEST SENECA, NY / ACCESS Newswire / April 20, 2026 / Worksport Ltd. (NASDAQ:WKSP) ("Worksport" or the "Company"), a U.S.-based innovator and manufacturer of hybrid and clean energy solutions primarily for the light truck, overlanding, and global consumer goods markets, is pleased to announce the official commercial launch and commencement of sales for its highly anticipated Nexus Tonneau Cover, a premium tonneau cover, with innovative features previously unseen in the market.
Following a successful production start on April 13, 2026, the Nexus cover is now available for purchase on the Company's B2C website and through its B2B distribution network. Early demand from established distributors with multi-million-dollar annual purchasing capacity-supports management's expectation that the Nexus platform can contribute millions in incremental revenue in 2026, while accelerating adoption across existing and new sales channels.
The Nexus cover introduces a newly engineered operating system designed to materially improve ease-of-use, safety, and speed for truck owners. Unlike conventional folding tonneau covers that typically require users to walk around both sides of the vehicle to secure latches, the Nexus features a proprietary system that enables full operation from a single side of the truck while maintaining full-bed access. This design reduces repetitive movement, simplifies use in adverse conditions, and enhances safety in environments such as job sites, roadside settings, and busy parking areas.
Strong Market Validation and Financial Impact
Prior to the official launch, Worksport received approximately $250,000 in pre-orders interest for the Nexus cover. These initial orders are expressed from large-scale distributors with the capacity for multi-million-dollar annual purchase volumes, representing strong early validation of the product's value proposition and a meaningful signal of distributor confidence within the $4B Tonneau Cover market.
Management notes that this level of initial pre-orders reflects early channel alignment and expected demand scalability. The Nexus launch is a key pillar in Worksport's strategy to achieve its previously announced full-year revenue guidance of $35 million to $42 million.
Engineering Excellence: The ‘Uplatch' Advantage
Designed by Worksport's Missouri-based engineering team, the Nexus cover represents an evolution in traditional folding tonneau designs, addressing longstanding usability challenges identified through customer feedback and field experience.
Traditional full-access folding covers have remained largely unchanged for decades, often requiring multiple trips around the vehicle and greater physical effort to lift and secure stacked panels. The Nexus addresses these limitations through its proprietary "Uplatch" system, which enables the cover to automatically secure on both sides when positioned upright behind the cab, all while being operated from a single side of the truck.
Internal customer feedback and market observations indicated that multi-step operation, panel weight, and accessibility were among the most common friction points with existing folding tonneau covers. The Nexus platform was engineered to address these challenges within a single integrated design, enabling faster, easier, and more controlled operation.
Key Technical Specifications:
Full Bed Access: Optimized for maximum utility and cargo space.
'Light Weight': Through the unique design, the cover is easier to lift
Materials: Constructed from heavy-duty 16-gauge aluminum substrate.
Durability: Finished with a specialized "Diamond Shield Finish" protective coating
Ease of Use: Features a middle-panel pull strap for simplified operation for any truck
Pricing: MSRP ranging from $1,249 to $1,349, depending on vehicle application.
Multimedia Video
Investors and customers are encouraged to view the Nexus Features and Benefits video to see the Uplatch system in action:
Nexus - Features and Benefit Video
[https://www.youtube.com/watch?v=JCSySjMDDls]
Management Commentary
Steven Rossi, Chief Executive Officer of Worksport, commented:
"The Nexus represents a meaningful step forward in tonneau cover design," said Steven Rossi, Chief Executive Officer of Worksport. "For years, users have had to work around the limitations of traditional folding covers - walking around the vehicle multiple times, lifting heavier panels, and reaching into the bed to secure them. Nexus simplifies that entire experience into a premium, faster, safer and single-sided operation. The early response from our distribution partners reinforces our view that practical innovation - focused on real user challenges - drives adoption."
Stay tuned for more information and join our mailing list to stay up to date with the latest: Join Worksport's Newsletter
Connect with Worksport Chief Executive Officer, Steven Rossi
Steven Rossi X (Twitter)
Steven Rossi LinkedIn
About Worksport
Worksport Ltd. (Nasdaq:WKSP), through its subsidiaries, designs, develops, manufactures, and owns the intellectual property on a variety of tonneau covers, solar integrations, portable power systems, and clean heating & cooling solutions. Worksport has an active partnership with Hyundai for the SOLIS Solar cover. Additionally, Worksport's hard-folding cover, designed and manufactured in-house, is compatible with all major truck models and is gaining traction with newer truck makers including the electric vehicle (EV) sector. Worksport seeks to capitalize on the growing shift of consumer mindsets towards clean energy integrations with its proprietary solar solutions, mobile energy storage systems (ESS), and Cold-Climate Heat Pump (CCHP) technology. Terravis Energy's website is terravisenergy.com.
Connect with Worksport
Please follow the Company's social media accounts on X (previously Twitter), Facebook, LinkedIn, YouTube, and Instagram, the links of which are links to external third-party websites, as well as sign up for the Company's newsletters at investors.worksport.com.
Social Media Disclaimer
The Company does not endorse, ensure the accuracy of, or accept any responsibility for any content on these third-party websites other than content published by the Company. Investors and others should note that the Company announces material financial information to our investors using our investor relations website, press releases, Securities and Exchange Commission ("SEC") filings, and public conference calls and webcasts. The Company also uses social media to announce Company news and other information. The Company encourages investors, the media, and others to review the information the Company publishes on social media. The Company does not selectively disclose material non-public information on social media. If there is any significant financial information, the Company will release it broadly to the public through a press release or SEC filing prior to publishing it on social media.
Forward-Looking Statements
The information contained herein may contain "forward‐looking statements." Forward‐looking statements reflect the current view about future events. When used in this press release, the words "anticipate," "believe," "estimate," "scheduled," "expect," "future," "intend," "plan," "project," "envisioned," "should," or the negative of these terms and similar expressions, as they relate to us or our management, identify forward‐looking statements. These statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial situation may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) supply chain delays; (ii) acceptance of our products by consumers; (iii) delays in or nonacceptance by third parties to sell our products; and (iv) competition from other producers of similar products. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the SEC, including, without limitation, our latest Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC's web site at www.sec.gov. As a result of these matters, changes in facts, assumptions not being realized or other circumstances, the Company's actual results may differ materially from the expected results discussed in the forward-looking statements contained in this press release. The forward-looking statements made in this press release are made only as of the date of this press release, and the Company undertakes no obligation to update them to reflect subsequent events or circumstances.
Partnership advances Worksport's 2026 U.S. distribution expansion strategy, accelerating velocity and building recurring revenue from high-volume accounts.
WEST SENECA, NY / ACCESS Newswire / April 29, 2026 / Worksport Ltd. (NASDAQ:WKSP) ("Worksport" or the "Company"), a U.S.-based innovator and manufacturer of hybrid and clean energy solutions primarily for the light truck, overlanding, and global consumer goods markets, today announced that it has secured Tri-State Enterprises, Inc. ("Tri-State") as a new cross-regional distribution partner for Worksport's growing tonneau cover lineup, including the Company's recently launched Nexus cover.
Last week, the Company received two initial purchase orders with a broad spectrum of SKUs and quantity, with another order anticipated in the coming days tied to near-term sales activity. This early traction reflects immediate demand following onboarding and signals strong momentum as Worksport expands its U.S. distribution footprint.
Projected Account Growth
Worksport projects the new Tri-State account to generate seven-figure revenue in the near term, with the potential to evolve into a recurring multi-million-dollar contributor to net sales growth. This outlook is supported by expanding product availability, increasing customer adoption, and deeper penetration of Worksport's premium tonneau cover lineup across Tri-State's distribution footprint.
Tri-State is a family-operated automotive aftermarket distributor headquartered in Fort Smith, Arkansas, with locations across Arkansas, Missouri, Oklahoma, and Texas. The company operates approximately one million square feet of warehouse space and is a member of both the Pronto Network and The AAM Group. Tri-State maintains a strong service advantage across its regions, offering "same-day" delivery to select locations within its network of thousands of wholesale customers - a key capability that may position Worksport to access just-in-time demand across key markets. Truck bed covers are among Tri-State's top product categories, making this relationship a highly aligned and strategic addition to Worksport's expanding dealer and distributor network.
Big Money Show Accelerates Nexus Exposure
On April 25, 2026, Worksport attended Tri-State's Big Money Show to introduce its product lineup directly to a broader customer base, with particular focus on Worksport's Nexus tonneau cover, following its recent commercial launch. Nexus is designed to address a key market gap in premium hard folding tonneau covers by offering a proprietary single-side opening system, allowing users to operate the cover from either side of the truck. This cover continues to gain significant traction and was a contributing factor to landing the Tri-State account.
The Company believes this direct selling event provided both near-term revenue opportunity and meaningful brand exposure among active aftermarket buyers. Worksport views the event as an important step in accelerating Nexus adoption through distribution and professional aftermarket channels.
Strategic Distribution Expansion
This new relationship supports Worksport's broader 2026 strategy to expand its U.S. dealer and distributor network, increase sell-through velocity, and build recurring revenue from high-volume regional accounts.
The Company believes Tri-State's established customer relationships, warehouse capacity, and strong presence in the South and Central U.S. create a scalable distribution channel for Worksport's tonneau cover portfolio. As Worksport continues ramping production and widening availability of its recently launched products, management expects distributor-led sales to play an increasingly important role in achieving its 2026 revenue objectives.
"We believe that a relationship with Tri-State is an important commercial win because it places Worksport products into a highly relevant, high-volume aftermarket distribution channel," said Steven Rossi, Chief Executive Officer of Worksport. "The initial purchase orders are encouraging, but the larger opportunity is the account's projected annual volume and the ability to introduce Nexus to a broader customer base at the exact time we are scaling production and distribution. We believe relationships like this can help convert product innovation into repeatable revenue, stronger brand recognition, and long-term shareholder value."
Worksport expects to continue expanding its distributor base throughout 2026 as it advances commercialization of Nexus, its broader tonneau cover lineup, and its clean energy product ecosystem.
Stay tuned for more information and join our mailing list to stay up to date with the latest: Join Worksport's Newsletter
Connect with Worksport Chief Executive Officer, Steven Rossi
Steven Rossi X (Twitter)
Worksport Ltd. (NASDAQ:WKSP), through its subsidiaries, designs, develops, manufactures, and owns the intellectual property on a variety of tonneau covers, solar integrations, portable power systems, and clean heating & cooling solutions. Worksport has an active partnership with Hyundai for the SOLIS Solar cover. Additionally, Worksport's hard-folding cover, designed and manufactured in-house, is compatible with all major truck models and is gaining traction with newer truck makers including the electric vehicle (EV) sector. Worksport seeks to capitalize on the growing shift of consumer mindsets towards clean energy integrations with its proprietary solar solutions, mobile energy storage systems (ESS), and Cold-Climate Heat Pump (CCHP) technology. Terravis Energy's website is terravisenergy.com.
Connect with Worksport
Please follow the Company's social media accounts on X (previously Twitter), Facebook,
LinkedIn, YouTube, and Instagram, the links of which are links to external third-party websites, as well as sign up for the Company's newsletters at investors.worksport.com.
Social Media Disclaimer
The Company does not endorse, ensure the accuracy of, or accept any responsibility for any content on these third-party websites other than content published by the Company. Investors and others should note that the Company announces material financial information to our investors using our investor relations website, press releases, Securities and Exchange Commission ("SEC") filings, and public conference calls and webcasts. The Company also uses social media to announce Company news and other information. The Company encourages investors, the media, and others to review the information the Company publishes on social media. The Company does not selectively disclose material non-public information on social media. If there is any significant financial information, the Company will release it broadly to the public through a press release or SEC filing prior to publishing it on social media.
Forward-Looking Statements
The information contained herein may contain "forward‐looking statements." Forward‐looking statements reflect the current view about future events. When used in this press release, the words "anticipate," "believe," "estimate," "scheduled," "expect," "future," "intend," "plan," "project," "envisioned," "should," or the negative of these terms and similar expressions, as they relate to us or our management, identify forward‐looking statements. These statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial situation may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) supply chain delays; (ii) acceptance of our products by consumers; (iii) delays in or nonacceptance by third parties to sell our products; and (iv) competition from other producers of similar products. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the SEC, including, without limitation, our latest Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC's web site at www.sec.gov. As a result of these matters, changes in facts, assumptions not being realized or other circumstances, the Company's actual results may differ materially from the expected results discussed in the forward-looking statements contained in this press release. The forward-looking statements made in this press release are made only as of the date of this press release, and the Company undertakes no obligation to update them to reflect subsequent events or circumstances.
Worksport CEO Steven Rossi will share the Company's growth story with institutional investors in New York City as Worksport continues expanding commercial execution, product availability, and investor visibility. Existing shareholders may also request meetings with Worksport management on May 6 and May 7.
WEST SENECA, NY / ACCESS Newswire / May 4, 2026 / Worksport Ltd. (NASDAQ:WKSP) ("Worksport" or the "Company"), a U.S.-based innovator and manufacturer of hybrid and clean energy solutions primarily for the light truck, overlanding, and global consumer goods markets, today announced that Chief Executive Officer Steven Rossi has been invited to attend the D. Boral Capital 2026 Global Conference on May 7, 2026, in Manhattan, New York City.
The conference is expected to provide Worksport with direct access to institutional investors, capital markets professionals, and emerging-growth company stakeholders. Mr. Rossi will present Worksport's growth story, including the Company's expanding U.S. manufacturing footprint, growing tonneau cover portfolio, recently launched clean energy products, and strategy to scale toward its previously issued 2026 revenue guidance.
Investor Meeting Availability
Worksport's CEO and Investor Relations team will be available for meetings with existing shareholders on May 6 and May 7 in Manhattan, New York City.
Retail investors interested in requesting a meeting may contact: [email protected]
Institutional investors interested in meeting with Worksport at the conference may contact: [email protected]
Institutional Visibility at a Key Growth Stage
Worksport's participation comes as the Company continues executing across multiple commercial priorities, including broader distribution for its tonneau cover lineup, continued rollout of its SOLIS™ solar tonneau cover and COR™ portable energy system, and deeper engagement with investors as the Company works toward higher revenue scale and cash-flow objectives.
Management believes the D. Boral conference offers an opportunity to communicate Worksport's progress directly to new institutional audiences and strengthen relationships with the capital markets community.
Stay tuned for more information and join our mailing list to stay up to date with the latest: Join Worksport's Newsletter
Connect with Worksport Chief Executive Officer, Steven Rossi
Steven Rossi X (Twitter)
Steven Rossi LinkedIn
About Worksport
Worksport Ltd. (NASDAQ:WKSP), through its subsidiaries, designs, develops, manufactures, and owns the intellectual property on a variety of tonneau covers, solar integrations, portable power systems, and clean heating & cooling solutions. Worksport has an active partnership with Hyundai for the SOLIS Solar cover. Additionally, Worksport's hard-folding cover, designed and manufactured in-house, is compatible with all major truck models and is gaining traction with newer truck makers including the electric vehicle (EV) sector. Worksport seeks to capitalize on the growing shift of consumer mindsets towards clean energy integrations with its proprietary solar solutions, mobile energy storage systems (ESS), and Cold-Climate Heat Pump (CCHP) technology. Terravis Energy's website is terravisenergy.com.
Connect with Worksport
Please follow the Company's social media accounts on X (previously Twitter), Facebook, LinkedIn, YouTube, and Instagram, the links of which are links to external third-party websites, as well as sign up for the Company's newsletters at investors.worksport.com.
Social Media Disclaimer
The Company does not endorse, ensure the accuracy of, or accept any responsibility for any content on these third-party websites other than content published by the Company. Investors and others should note that the Company announces material financial information to our investors using our investor relations website, press releases, Securities and Exchange Commission ("SEC") filings, and public conference calls and webcasts. The Company also uses social media to announce Company news and other information. The Company encourages investors, the media, and others to review the information the Company publishes on social media. The Company does not selectively disclose material non-public information on social media. If there is any significant financial information, the Company will release it broadly to the public through a press release or SEC filing prior to publishing it on social media.
Forward-Looking Statements
The information contained herein may contain "forward‐looking statements." Forward‐looking statements reflect the current view about future events. When used in this press release, the words "anticipate," "believe," "estimate," "scheduled," "expect," "future," "intend," "plan," "project," "envisioned," "should," or the negative of these terms and similar expressions, as they relate to us or our management, identify forward‐looking statements. These statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial situation may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) supply chain delays; (ii) acceptance of our products by consumers; (iii) delays in or nonacceptance by third parties to sell our products; and (iv) competition from other producers of similar products. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the SEC, including, without limitation, our latest Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC's web site at www.sec.gov. As a result of these matters, changes in facts, assumptions not being realized or other circumstances, the Company's actual results may differ materially from the expected results discussed in the forward-looking statements contained in this press release. The forward-looking statements made in this press release are made only as of the date of this press release, and the Company undertakes no obligation to update them to reflect subsequent events or circumstances.
New CFO brings public-company reporting, manufacturing finance, technical accounting, governance, and cash-flow planning experience in-house as Worksport scales toward its 2026 growth targets.
WEST SENECA, NY / ACCESS Newswire / May 6, 2026 / Worksport Ltd. (NASDAQ:WKSP) ("Worksport" or the "Company"), a U.S.-based innovator and manufacturer of hybrid and clean energy solutions primarily for the light truck, overlanding, and global consumer goods markets, today announced that its Board of Directors has appointed Jennifer Kartychak, CPA, as Chief Financial Officer, effective May 1, 2026.
Kartychak will also serve as Worksport's Principal Financial Officer and Principal Accounting Officer. Her appointment brings a seasoned finance leader with direct Worksport experience into the CFO role as the Company continues scaling production, expanding distribution, and advancing its previously stated objective of achieving initial operational cash-flow positivity.
Why This Appointment Matters
Kartychak has worked with Worksport since August 2023 through Arend Advisory Group, LLC, an entity wholly owned by her, before joining the Company full-time as Vice President of Finance on January 1, 2026. This internal promotion places the CFO role with a seasoned and vetted finance executive who already understands Worksport's manufacturing operations, reporting requirements, cost structure, revenue ramp, and long-term financial objectives.
As Vice President of Finance for the last 4 months, Kartychak has already been instrumental in supporting a more process-led budgeting approach, strengthening financial reporting cadence, and helping develop the Company's planning around cash-flow positivity. Worksport believes her appointment supports the Company's transition toward a deeper in-house finance function built for scale, accountability, and faster decision-making.
Big Four, Public Company, and Manufacturing Finance Experience
Kartychak brings over 25 years of accounting experience, including approximately five years with Ernst & Young LLP, where she advanced to Manager in the firm's Assurance Services practice. Her background includes manufacturing, public-company reporting, technical accounting, governance practices, internal reporting, acquisitions and divestitures, and executive-level finance support.
Kartychak's experience also includes approximately six years as Corporate Accounting Manager at Moog Inc., a publicly traded manufacturing company. During her tenure, she assumed increasing levels of responsibility and gained extensive experience with SEC reporting requirements, governance practices, operational reporting and complex accounting matters.
Kartychak holds Bachelor of Science degrees in Accounting and Accounting Information Systems from Canisius University. She is a Certified Public Accountant licensed in the State of New York and a member of the American Institute of Certified Public Accountants.
Shareholder-Aligned Financial Execution
Kartychak's disclosed incentive structure includes performance-based objectives tied to finance milestones that matter to shareholders, including timely SEC reporting, monthly consolidated reporting, internal control framework development, SG&A savings and gross margin improvement opportunities, and progress toward cash-flow breakeven. A portion of her equity incentive is also tied to Board approval of a three-year financial roadmap and achievement of cash-flow breakeven, aligning her compensation with Worksport's execution priorities.
"Jennifer has earned this role through technical strength, judgment, and a deep understanding of where Worksport is headed," said Steven Rossi, Founder and Chief Executive Officer of Worksport. "As we scale revenue, expand distribution, and pursue operational cash-flow positivity, we need deep finance leadership - a partner who can help translate manufacturing activity, margin discipline, working capital, and SG&A decisions into a clear operating plan. Jennifer brings that capability, and she already knows our business from the inside."
Rossi continued, "I also want to sincerely thank Mike Johnston for his long-standing service to Worksport. Mike has been part of the Company through important stages of its initial development, and we appreciate his professionalism, loyalty, and contributions. We wish him the very best in his next chapter."
Worksport also announced that Mr. Michael Johnston resigned as Chief Financial Officer, Principal Financial Officer, and Principal Accounting Officer effective April 30, 2026. As disclosed in the Company's Current Report on Form 8-K, Mr. Johnston's resignation was not the result of any disagreement with the Company regarding its operations, policies, practices, financial reporting, or accounting practices.
"I am honored to step into the CFO role at such an important point in Worksport's evolution," said Jennifer Kartychak. "The Company has built a strong platform across U.S. manufacturing, product innovation, and distribution. My focus is to help convert that platform into disciplined financial execution, stronger internal processes, and a clear path toward sustainable growth and cash-flow performance."
Stay tuned for more information and join our mailing list to stay up to date with the latest: Join Worksport's Newsletter
Connect with Worksport Chief Executive Officer, Steven Rossi
Steven Rossi X (Twitter)
Steven Rossi LinkedIn
About Worksport
Worksport Ltd. (Nasdaq:WKSP), through its subsidiaries, designs, develops, manufactures, and owns the intellectual property on a variety of tonneau covers, solar integrations, portable power systems, and clean heating & cooling solutions. Worksport has an active partnership with Hyundai for the SOLIS Solar cover. Additionally, Worksport's hard-folding cover, designed and manufactured in-house, is compatible with all major truck models and is gaining traction with newer truck makers including the electric vehicle (EV) sector. Worksport seeks to capitalize on the growing shift of consumer mindsets towards clean energy integrations with its proprietary solar solutions, mobile energy storage systems (ESS), and Cold-Climate Heat Pump (CCHP) technology. Terravis Energy's website is terravisenergy.com.
Connect with Worksport
Please follow the Company's social media accounts on X (previously Twitter), Facebook, LinkedIn, YouTube, and Instagram, the links of which are links to external third-party websites, as well as sign up for the Company's newsletters at investors.worksport.com.
Social Media Disclaimer
The Company does not endorse, ensure the accuracy of, or accept any responsibility for any content on these third-party websites other than content published by the Company. Investors and others should note that the Company announces material financial information to our investors using our investor relations website, press releases, Securities and Exchange Commission ("SEC") filings, and public conference calls and webcasts. The Company also uses social media to announce Company news and other information. The Company encourages investors, the media, and others to review the information the Company publishes on social media. The Company does not selectively disclose material non-public information on social media. If there is any significant financial information, the Company will release it broadly to the public through a press release or SEC filing prior to publishing it on social media.
Forward-Looking Statements
The information contained herein may contain "forward‐looking statements." Forward‐looking statements reflect the current view about future events. When used in this press release, the words "anticipate," "believe," "estimate," "scheduled," "expect," "future," "intend," "plan," "project," "envisioned," "should," or the negative of these terms and similar expressions, as they relate to us or our management, identify forward‐looking statements. These statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial situation may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) supply chain delays; (ii) acceptance of our products by consumers; (iii) delays in or nonacceptance by third parties to sell our products; and (iv) competition from other producers of similar products. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the SEC, including, without limitation, our latest Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC's web site at www.sec.gov. As a result of these matters, changes in facts, assumptions not being realized or other circumstances, the Company's actual results may differ materially from the expected results discussed in the forward-looking statements contained in this press release. The forward-looking statements made in this press release are made only as of the date of this press release, and the Company undertakes no obligation to update them to reflect subsequent events or circumstances.
Worksport will host its Q1 2026 earnings conference call on May 13, 2026, at 4:30 p.m. ET, followed immediately by the Company's inaugural investor townhall with CEO commentary, business updates, and shareholder Q&A.
WEST SENECA, NY / ACCESS Newswire / May 7, 2026 / Worksport Ltd. (NASDAQ:WKSP) ("Worksport" or the "Company"), a U.S.-based innovator and manufacturer of hybrid and clean energy solutions primarily for the light truck, overlanding, and global consumer goods markets, today announced that it will host its first quarter 2026 earnings conference call on Wednesday, May 13, 2026, at 4:30 p.m. Eastern Time.
Immediately following the earnings call, Worksport will hold its inaugural investor townhall, introducing a new, recurring communication platform designed to provide shareholders with more direct access to the Company's leadership team.
Webcast Registration
Investors, analysts, media, and other interested parties are invited to register in advance for the live webcast. During the earnings call, Worksport management will discuss the Company's Q1 2026 results and provide commentary on recent business developments.
Full URL: https://us06web.zoom.us/webinar/register/6417779145998/WN_xGJ3UtTtRl2z1yi2MC7D0w
Earnings Call and Townhall Details
Date: May 13, 2026
Time: 4:30 p.m. ET
Format: Live webcast with management discussion and Q&A
Townhall: Begins immediately following the earnings conference call
The earnings call transcript, presentation materials, and audio replay are expected to be available on the Worksport investor relations website after the call.
Introducing Worksport's Investor Townhall Series
The May 13 event will mark the first of a planned periodic townhall series, where Worksport intends to maintain an ongoing, open line of communication with its shareholders, supporters, and broader investor community.
These sessions are designed to go beyond traditional earnings commentary, offering:
Commentary on recent announcements and operational progress
CEO-led discussion on strategic direction and priorities
Real-time updates on product development and commercialization
An open forum for investor questions and dialogue
All shareholders, supporters, and interested participants are invited to attend. The Company welcomes all interested participants and encourages attendees to share the registration link with others who wish to learn more about Worksport's business and strategy.
Investors are encouraged to submit questions in advance by emailing [email protected], with management addressing selected questions during the live townhall, subject to time and disclosure considerations.
Steven Rossi, Chairman and Chief Executive Officer of Worksport, commented: "Worksport is building a business that we believe deserves a more direct and open line of communication with its shareholders. Our earnings call will cover the financial results, but the townhall gives us the opportunity to go deeper, explain the thinking behind recent developments, and speak more directly about where we are focused next. We want shareholders to better understand not only what we are doing, but why we believe these steps matter for long-term value creation."
Stay tuned for more information and join our mailing list to stay up to date with the latest: Join Worksport's Newsletter
Connect with Worksport Chief Executive Officer, Steven Rossi
Steven Rossi X (Twitter)
Steven Rossi LinkedIn
About Worksport
Worksport Ltd. (Nasdaq:WKSP), through its subsidiaries, designs, develops, manufactures, and owns the intellectual property on a variety of tonneau covers, solar integrations, portable power systems, and clean heating & cooling solutions. Worksport has an active partnership with Hyundai for the SOLIS Solar cover. Additionally, Worksport's hard-folding cover, designed and manufactured in-house, is compatible with all major truck models and is gaining traction with newer truck makers including the electric vehicle (EV) sector. Worksport seeks to capitalize on the growing shift of consumer mindsets towards clean energy integrations with its proprietary solar solutions, mobile energy storage systems (ESS), and Cold-Climate Heat Pump (CCHP) technology. Terravis Energy's website is terravisenergy.com.
Connect with Worksport
Please follow the Company's social media accounts on X (previously Twitter), Facebook, LinkedIn, YouTube, and Instagram, the links of which are links to external third-party websites, as well as sign up for the Company's newsletters at investors.worksport.com.
Social Media Disclaimer
The Company does not endorse, ensure the accuracy of, or accept any responsibility for any content on these third-party websites other than content published by the Company. Investors and others should note that the Company announces material financial information to our investors using our investor relations website, press releases, Securities and Exchange Commission ("SEC") filings, and public conference calls and webcasts. The Company also uses social media to announce Company news and other information. The Company encourages investors, the media, and others to review the information the Company publishes on social media. The Company does not selectively disclose material non-public information on social media. If there is any significant financial information, the Company will release it broadly to the public through a press release or SEC filing prior to publishing it on social media.
Forward-Looking Statements
The information contained herein may contain "forward‐looking statements." Forward‐looking statements reflect the current view about future events. When used in this press release, the words "anticipate," "believe," "estimate," "scheduled," "expect," "future," "intend," "plan," "project," "envisioned," "should," or the negative of these terms and similar expressions, as they relate to us or our management, identify forward‐looking statements. These statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial situation may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) supply chain delays; (ii) acceptance of our products by consumers; (iii) delays in or nonacceptance by third parties to sell our products; and (iv) competition from other producers of similar products. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the SEC, including, without limitation, our latest Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC's web site at www.sec.gov. As a result of these matters, changes in facts, assumptions not being realized or other circumstances, the Company's actual results may differ materially from the expected results discussed in the forward-looking statements contained in this press release. The forward-looking statements made in this press release are made only as of the date of this press release, and the Company undertakes no obligation to update them to reflect subsequent events or circumstances.
Q1 net sales reached $3.3 million with gross margin of 26%; Company enters Q2 with SOLIS and COR shipping, COR certified, NEXUS launched, Tri-State distribution added, and operational cash-flow targeted within 2026.
WEST SENECA, NY / ACCESS Newswire / May 13, 2026 / Worksport Ltd. (NASDAQ:WKSP) ("Worksport" or the "Company"), a U.S.-based innovator and manufacturer of hybrid and clean energy solutions primarily for the light truck, overlanding, and global consumer goods markets, today announced financial results for the first quarter ended March 31, 2026, with net sales increasing 47.9% year-over-year to $3.3 million and gross profit increasing 115.5% year-over-year to $854,000 as the Company advanced from product launch readiness into broader commercialization.
Q1 2026 was an investment and launch-readiness quarter for Worksport. During the period, the Company expanded product availability, funded inventory for recently launched products, strengthened sales channels, and prepared its newest product platforms for commercialization. Management believes these actions position Worksport for stronger sales conversion in Q2 2026 and the second half of the year.
Q1 2026 Financial Highlights
Net sales increased 47.9% to $3.31 million, compared to $2.24 million in Q1 2025.
Gross profit increased 115.5% to $853,946, compared to $396,221 in Q1 2025.
Gross margin improved to 26%, compared to 18% in Q1 2025, an 800 basis point year-over-year improvement.
U.S. net sales represented approximately 99% of total Q1 revenue.
Hard tonneau covers generated approximately 99% of total Q1 net sales.
B2C sales were approximately $1.8 million on approximately 1,700 covers.
B2B sales were approximately $1.5 million on approximately 2,300 covers.
Inventory increased to $11.6 million, reflecting product readiness for SOLIS, COR, NEXUS, and ongoing tonneau cover demand scale-up.
Net property and equipment stood at $13.3 million, anchored by the Company's West Seneca, New York manufacturing facility.
Worksport's full 10-Q 2026 is accessible here: https://www.nasdaq.com/market-activity/stocks/wksp/sec-filings
Worksport's management will host a conference call and live webcast at 4:30 PM ET to discuss the Company's financial performance, operational progress, and outlook. During the call, management is expected to provide additional details on the Company's roadmap toward achieving cash-flow positive operations, along with commentary on key strategic initiatives and product developments. Participants in the webcast will have the chance to do live Q&A with the Worksport Management team.
Webcast Registration
Investors, analysts, and members of the media are invited to register in advance for the live webcast. During the call, Worksport's leadership will provide insights into the Company's recent financial results, updated outlook, and strategic initiatives supporting its continued growth.
Q1 operating cash use was elevated as Worksport funded inventory, supported product launches, reduced prior-period obligations, and invested in marketing campaigns tied to SOLIS, COR, NEXUS, and the broader brand. Management views this as a working-capital investment intended to support product availability and sales-channel activation for the remainder of 2026. As of March 31, 2026, Worksport had $11.6 million in inventory, approximately $6.6 million in working capital.
Management's near-term priority is to convert inventory into revenue, improve channel-level gross margin, optimize marketing return on investment, and reduce operating cash consumption as launch-related spending normalizes.
2026 Outlook
The Company expects fiscal 2026 growth to be driven primarily by its tonneau cover business, expanded B2B and B2C sales channels, the newly launched NEXUS cover, and early contribution from SOLIS and COR. Worksport's recent distribution partnership with Tri-State is expected to be the first of more distributors joining Worksport's network as a result of Worksport's growing consumer awareness.
The Company also plans to provide annual financial guidance early each calendar year rather than updating guidance quarterly, allowing management to focus on long-term execution, durable revenue growth, cash-flow discipline, and shareholder value creation.
Terravis Energy and AetherLux Update
Worksport's clean energy subsidiary, Terravis Energy, continued advancing its AetherLux™ ZeroFrost heat pump platform during Q1 2026. Management has stated that a large government entity is monitoring upcoming laboratory performance results as part of an internal evaluation process, while certification work is progressing with AHRI, ENERGY STAR, and other North American certification milestones targeted within 2026.
The Company is not currently projecting AetherLux revenue in 2026. Management views AetherLux as a strategic upside platform separate from the core 2026 revenue drivers, which are expected to come from tonneau covers and early SOLIS/COR commercialization.
Stay tuned for more information and join our mailing list to stay up to date with the latest: Join Worksport's Newsletter
Connect with Worksport Chief Executive Officer, Steven Rossi
Steven Rossi X (Twitter)
Steven Rossi LinkedIn
About Worksport
Worksport Ltd. (Nasdaq:WKSP), through its subsidiaries, designs, develops, manufactures, and owns the intellectual property on a variety of tonneau covers, solar integrations, portable power systems, and clean heating & cooling solutions. Worksport has an active partnership with Hyundai for the SOLIS Solar cover. Additionally, Worksport's hard-folding cover, designed and manufactured in-house, is compatible with all major truck models and is gaining traction with newer truck makers including the electric vehicle (EV) sector. Worksport seeks to capitalize on the growing shift of consumer mindsets towards clean energy integrations with its proprietary solar solutions, mobile energy storage systems (ESS), and Cold-Climate Heat Pump (CCHP) technology. Terravis Energy's website is terravisenergy.com.
Connect with Worksport
Please follow the Company's social media accounts on X (previously Twitter), Facebook, LinkedIn, YouTube, and Instagram, the links of which are links to external third-party websites, as well as sign up for the Company's newsletters at investors.worksport.com.
Social Media Disclaimer
The Company does not endorse, ensure the accuracy of, or accept any responsibility for any content on these third-party websites other than content published by the Company. Investors and others should note that the Company announces material financial information to our investors using our investor relations website, press releases, Securities and Exchange Commission (SEC") filings, and public conference calls and webcasts. The Company also uses social media to announce Company news and other information. The Company encourages investors, the media, and others to review the information the Company publishes on social media. The Company does not selectively disclose material non-public information on social media. If there is any significant financial information, the Company will release it broadly to the public through a press release or SEC filing prior to publishing it on social media.
Forward-Looking Statements
The information contained herein may contain "forward‐looking statements." Forward‐looking statements reflect the current view about future events. When used in this press release, the words "anticipate," "believe," "estimate," "scheduled," "expect," "future," "intend," "plan," "project," "envisioned," "should," or the negative of these terms and similar expressions, as they relate to us or our management, identify forward‐looking statements. These statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial situation may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) supply chain delays; (ii) acceptance of our products by consumers; (iii) delays in or nonacceptance by third parties to sell our products; and (iv) competition from other producers of similar products. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the SEC, including, without limitation, our latest Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC's web site at www.sec.gov. As a result of these matters, changes in facts, assumptions not being realized or other circumstances, the Company's actual results may differ materially from the expected results discussed in the forward-looking statements contained in this press release. The forward-looking statements made in this press release are made only as of the date of this press release, and the Company undertakes no obligation to update them to reflect subsequent events or circumstances.
Worksport Ltd. (WKSP - Free Report) came out with a quarterly loss of $0.54 per share versus the Zacks Consensus Estimate of a loss of $0.51. This compares to a loss of $1.05 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -5.88%. A quarter ago, it was expected that this company would post a loss of $0.55 per share when it actually produced a loss of $0.72, delivering a surprise of -30.91%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Worksport, which belongs to the Zacks Automotive - Retail and Whole Sales industry, posted revenues of $3.31 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 22.24%. This compares to year-ago revenues of $2.24 million. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Worksport shares have lost about 54.5% since the beginning of the year versus the S&P 500's gain of 8.1%.
What's Next for Worksport?While Worksport has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Worksport was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.29 on $8.01 million in revenues for the coming quarter and -$1.15 on $34.03 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Automotive - Retail and Whole Sales is currently in the bottom 21% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Titan Machinery (TITN - Free Report) , another stock in the same industry, has yet to report results for the quarter ended April 2026.
This agriculture and construction equipment seller is expected to post quarterly loss of $0.61 per share in its upcoming report, which represents a year-over-year change of -5.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Titan Machinery's revenues are expected to be $493.22 million, down 17% from the year-ago quarter.
Newly issued U.S. Patent No. 12,624,872 strengthens Worksport's clean-energy intellectual property around ZeroFrost™, the proprietary AetherLux™ heat-pump architecture designed to address one of the largest barriers to cold-climate heat-pump adoption: frost buildup and defrost-cycle performance loss.
WEST SENECA, NY / ACCESS Newswire / May 26, 2026 / Worksport Ltd. (NASDAQ:WKSP) ("Worksport" or the "Company"), a U.S.-based innovator and manufacturer of hybrid and clean energy solutions primarily for the light truck, overlanding, and global consumer goods markets today announced that its clean-energy subsidiary, Terravis Energy, has been issued U.S. Patent No. 12,624,872 B2 by the United States Patent and Trademark Office for its AetherLux™ heat-pump system incorporating ZeroFrost™ technology.
The patent, titled "Heat Pump System and Components Thereof," protects core and ancillary system architecture features related to the Terravis Energy's ZeroFrost platform, including proprietary configurations designed to support continuous heating performance while reducing or eliminating the need for conventional defrost cycles. Further patent applications are pending in various jurisdictions worldwide.
Worksport expects certification for this technology within second half of 2026. The technology has attracted interest from several Fortune 500 companies, hundreds of dealers, and the Department of Energy's NLR Alaska Lab.
Why This Matters
Heat pumps are becoming a mainstream global solution for efficient residential and commercial heating and cooling. Grand View Research reports that heat pumps will more than double in market size to $200B by 2033, with adoption especially strong in colder countries such as Norway, Sweden, and Finland. However, a key misconception is that cold-climate heat pumps are only for extreme markets like Alaska, while the data supports that they are increasingly relevant across large heating markets in the northern U.S., Canada, Europe, and China.
One of the remaining barriers is frost. When frost builds on outdoor coils, conventional heat pumps often must interrupt heating, reverse operation, or rely on backup heat to clear ice. Worksport believes its patented ZeroFrost™ architecture directly targets this issue by supporting more dependable heating performance in all-weather conditions.
The timing is also aligned with broader market momentum. In New York, NYSERDA identifies heat pumps as a smarter, more efficient option for heating and cooling buildings, and the state has banned natural gas lines in new constructions, leaving heat-pumps as the go-to option.
Worksport believes ZeroFrost directly targets this industry limitation. The AetherLux Pro system is being developed to deliver dependable heating in harsh climates by addressing frost formation at the system level, rather than treating defrost as an unavoidable operating interruption.
Patent Coverage and Strategic Protection
The newly issued patent is expected to strengthen Worksport's defensible position around AetherLux and ZeroFrost as the Company advances third-party validation, certification work, strategic partner discussions, and future commercialization planning. The patent generally covers an antifreeze coil proximate to a refrigerant coil at the outdoor heat exchanger for reducing temperature of the refrigerant coil, thus reducing or preventing the formation of frost on the coil, which in turn avoids the requirement for a defrost cycle or supplemental heating source.
Worksport continues to view AetherLux (owned by its Subsidiary Company, Terravis Energy) as a strategic upside platform separate from Worksport's current core revenue drivers, which remain tonneau covers, expanded B2B and B2C distribution, NEXUS, SOLIS, and COR. However, the Company believes this patent and multiple related pending patent applications materially strengthen the long-term value of the AetherLux platform by protecting technology that could support future product sales, strategic partnerships, private-label opportunities, and potential licensing pathways.
Management Commentary
"Securing this patent is an important milestone for Terravis Energy and the AetherLux product line," said Lorenzo Rossi, Chief Executive Officer of Terravis Energy. "ZeroFrost was developed to address one of the most persistent challenges in the heat-pump market: maintaining efficient, reliable heating performance in cold-weather conditions where frost and defrost cycles can disrupt conventional systems. We believe this technology can make advanced heat-pump systems more practical, more dependable, and more attractive across large cold-climate markets."
Mr. Rossi continued, "For Terravis Energy, this patent protects more than a product feature. It protects core system architecture behind AetherLux, giving us a stronger foundation for future commercialization, strategic partnerships, and potential licensing opportunities. While Terravis Energy remains separate from Worksport's core 2026 revenue plan, we believe it represents one of the most compelling long-term clean-energy opportunities within the overall Worksport portfolio."
Expanding Terravis Energy's IP Position, Benefiting Worksport Shareholders
The issuance of this patent strengthens Terravis Energy's intellectual property position around AetherLux, its clean heating and cooling product line. Terravis Energy owns and develops the AetherLux platform, while Worksport Ltd. (NASDAQ: WKSP), as the parent company, expects to benefit from the long-term value created by Terravis Energy's protected technology.
This distinction is important. Worksport's manufacturing and automotive-accessory operations remain focused on scaling tonneau covers, SOLIS solar covers, and COR portable energy systems. Terravis Energy is advancing AetherLux as a separate clean-energy platform with potential future value through commercialization, strategic partnerships, and licensing opportunities.
Management believes this structure allows Worksport to continue executing on its core revenue plan while preserving meaningful upside for WKSP shareholders through Terravis Energy's growing patent-protected technology portfolio. Worksport previously announced significant growth in its global patent portfolio, including both issued patents and pending applications, as part of its broader strategy to protect innovation, strengthen competitive positioning, and support long-term shareholder value.
Read More on Aetherlux
February 11, 2025: Terravis Energy Unveils Revolutionary "No-Defrost" Heat Pump Technology
October 6, 2025: Terravis Energy Selected for Competitive NREL NTAP Award to Analyze ZeroFrost Technology in Alaska
January 27, 2026: Terravis Energy Secures Mass Manufacturing for Aetherlux Heat Pump
February 12, 2026: Worksport Confirms Government Evaluation of Aetherlux for Potential Long-Term Deployment
The Company expects to share additional news on AetherLux withing the second half of 2026, including certification status update, final product specs, and sales pipeline.
Stay tuned for more information and join our mailing list to stay up to date with the latest: Join Worksport's Newsletter
Connect with Worksport Chief Executive Officer, Steven Rossi
Steven Rossi X (Twitter)
Steven Rossi LinkedIn
About Worksport
Worksport Ltd. (Nasdaq: WKSP), through its subsidiaries, designs, develops, manufactures, and owns the intellectual property on a variety of tonneau covers, solar integrations, portable power systems, and clean heating & cooling solutions. Worksport has an active partnership with Hyundai for the SOLIS Solar cover. Additionally, Worksport's hard-folding cover, designed and manufactured in-house, is compatible with all major truck models and is gaining traction with newer truck makers including the electric vehicle (EV) sector. Worksport seeks to capitalize on the growing shift of consumer mindsets towards clean energy integrations with its proprietary solar solutions, mobile energy storage systems (ESS), and Cold-Climate Heat Pump (CCHP) technology. Terravis Energy's website is terravisenergy.com.
Connect with Worksport
Please follow the Company's social media accounts on X (previously Twitter), Facebook,
LinkedIn, YouTube, and Instagram, the links of which are links to external third-party websites, as well as sign up for the Company's newsletters at investors.worksport.com.
Social Media Disclaimer
The Company does not endorse, ensure the accuracy of, or accept any responsibility for any content on these third-party websites other than content published by the Company. Investors and others should note that the Company announces material financial information to our investors using our investor relations website, press releases, Securities and Exchange Commission ("SEC") filings, and public conference calls and webcasts. The Company also uses social media to announce Company news and other information. The Company encourages investors, the media, and others to review the information the Company publishes on social media. The Company does not selectively disclose material non-public information on social media. If there is any significant financial information, the Company will release it broadly to the public through a press release or SEC filing prior to publishing it on social media.
Forward-Looking Statements
The information contained herein may contain "forward‐looking statements." Forward‐looking statements reflect the current view about future events. When used in this press release, the words "anticipate," "believe," "estimate," "scheduled," "expect," "future," "intend," "plan," "project," "envisioned," "should," or the negative of these terms and similar expressions, as they relate to us or our management, identify forward‐looking statements. These statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial situation may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) supply chain delays; (ii) acceptance of our products by consumers; (iii) delays in or nonacceptance by third parties to sell our products; and (iv) competition from other producers of similar products. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the SEC, including, without limitation, our latest Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC's web site at www.sec.gov. As a result of these matters, changes in facts, assumptions not being realized or other circumstances, the Company's actual results may differ materially from the expected results discussed in the forward-looking statements contained in this press release. The forward-looking statements made in this press release are made only as of the date of this press release, and the Company undertakes no obligation to update them to reflect subsequent events or circumstances.
Founder & CEO continues to acquire equity, reflecting his confidence in the Company's progress toward achieving operational cash-flow positivity and his belief that the Company's current market valuation, trading significantly below book-value. does not fully reflect its underlying business, or growth potential.
WEST SENECA, NY / ACCESS Newswire / June 9, 2026 / Worksport Ltd. (NASDAQ:WKSP) ("Worksport" or the "Company"), a U.S.-based innovator and manufacturer of hybrid and clean energy solutions primarily for the light truck, overlanding, and global consumer goods markets, today announced that its Founder and Chief Executive Officer, Steven Rossi, has elected to receive 79,618 shares of the Company's common stock in lieu of receiving $50,000 in cash compensation otherwise payable to him.
The shares were issued to Rossi pursuant to a Stock Purchase Agreement dated June 5, 2026, between Mr. Rossi and the Company at a purchase price of $0.6280 per share, representing the closing price of the Company's common stock on the Nasdaq Capital Market on June 5, 2026.
This marks the second time Mr. Rossi has elected to receive Company shares in satisfaction of accrued, earned compensation. As previously announced, in April 2026, Mr. Rossi elected to receive 88,214 shares of common stock in lieu of $75,000 in accrued cash compensation.
Mr. Rossi's continued decision to acquire equity in lieu of cash compensation reflects his confidence in the Company's long-term strategy and his belief that the Company's current market valuation does not fully reflect its asset base, growth trajectory, expanding sales channels, intellectual property portfolio, and progress toward achieving operational cash-flow positivity.
Over the past several years, Worksport has grown annual revenue from approximately $1.5 million in 2023 to $8.5 million in 2024 and $16.1 million in 2025, while simultaneously expanding gross margins, increasing dealer penetration, commercializing new products, and investing in infrastructure designed to support future growth.
Worksport continues to pursue its stated objective of achieving operational cash-flow positivity through growing sales, expanding distribution, improving manufacturing efficiencies, and advancing its recently launched clean-energy solutions SOLIS and COR.
Management also believes that the continued commercial rollout of the Company's Nexus Tonneau Cover, launched in April 2026, together with the Company's broader commercialization initiatives, will support its long-term growth objectives.
CEO Commentary
"I continue to believe that Worksport is trading materially below the value of the business we have built," said Steven Rossi, Founder and Chief Executive Officer.
"Over the last several years, we have transformed Worksport through substantial investments in manufacturing, inventory, product development, distribution, intellectual property, and brand equity. During that time, our revenue has continued to grow, our margins have continued to improve, and we have made significant progress toward achieving operational cash-flow positivity.
"While market conditions and sentiment can fluctuate, my conviction in the Company remains unwavering. My decision to receive shares instead of cash compensation reflects my strong belief that the market has not yet fully recognized the strength of our assets, the progress we have made, or the opportunities that lie ahead. I have tremendous confidence in our team and remain highly optimistic about our ability to execute our strategy and create long-term shareholder value."
Management remains focused on disciplined execution, operational efficiency, revenue growth, and strengthening the Company's position across both its core and emerging business segments.
Stay tuned for more information and join our mailing list to stay up to date with the latest: Join Worksport's Newsletter
Connect with Worksport Chief Executive Officer, Steven Rossi
Steven Rossi X (Twitter)
Worksport Ltd. (Nasdaq: WKSP), through its subsidiaries, designs, develops, manufactures, and owns the intellectual property on a variety of tonneau covers, solar integrations, portable power systems, and clean heating & cooling solutions. Worksport's hard-folding cover, designed and manufactured in-house, is compatible with all major truck models and is gaining traction with newer truck makers including the electric vehicle (EV) sector. Worksport seeks to capitalize on the growing shift of consumer mindsets towards clean energy integrations with its proprietary solar solutions, mobile energy storage systems (ESS), and Cold-Climate Heat Pump (CCHP) technology. Terravis Energy's website is terravisenergy.com.
Connect with Worksport
Please follow the Company's social media accounts on X (previously Twitter), Facebook, LinkedIn, YouTube, and Instagram, the links of which are links to external third-party websites, as well as sign up for the Company's newsletters at investors.worksport.com.
Social Media Disclaimer
The Company does not endorse, ensure the accuracy of, or accept any responsibility for any content on these third-party websites other than content published by the Company. Investors and others should note that the Company announces material financial information to our investors using our investor relations website, press releases, Securities and Exchange Commission ("SEC") filings, and public conference calls and webcasts. The Company also uses social media to announce Company news and other information. The Company encourages investors, the media, and others to review the information the Company publishes on social media. The Company does not selectively disclose material non-public information on social media. If there is any significant financial information, the Company will release it broadly to the public through a press release or SEC filing prior to publishing it on social media.
Forward-Looking Statements
The information contained herein may contain "forward‐looking statements." Forward‐looking statements reflect the current view about future events. When used in this press release, the words "anticipate," "believe," "estimate," "scheduled," "expect," "future," "intend," "plan," "project," "envisioned," "should," or the negative of these terms and similar expressions, as they relate to us or our management, identify forward‐looking statements. These statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial situation may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) supply chain delays; (ii) acceptance of our products by consumers; (iii) delays in or nonacceptance by third parties to sell our products; and (iv) competition from other producers of similar products. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the SEC, including, without limitation, our latest Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC's web site at www.sec.gov. As a result of these matters, changes in facts, assumptions not being realized or other circumstances, the Company's actual results may differ materially from the expected results discussed in the forward-looking statements contained in this press release. The forward-looking statements made in this press release are made only as of the date of this press release, and the Company undertakes no obligation to update them to reflect subsequent events or circumstances.
BROOKFIELD, NEWS, May 26, 2026 (GLOBE NEWSWIRE) -- Brookfield Corporation (“BN”) (NYSE: BN, TSX: BN) and Brookfield Wealth Solutions (“BWS”) (NYSE: BNT, TSX: BNT) announced today that their respective boards of directors have approved the previously announced transaction to further simplify their corporate structure under one publicly traded company, Brookfield Corporation Ltd. (together with its subsidiaries, the “Company”), to be listed on the NYSE and the TSX under the symbol “BN” (“Transaction”).
Under the terms of the Transaction, all class A limited voting shares of BN and class A exchangeable limited voting shares of BWS will be exchanged on a one-for-one basis for new shares of the Company.
The Transaction will be implemented pursuant to a court-approved plan of arrangement and related steps requiring approval of shareholders of each of BN and BWS and is expected to be completed on a tax deferred basis for U.S. and Canadian shareholders. Management information circulars of BN and BWS will be filed with applicable securities regulators providing full details of the transaction and the matters contemplated therein will be voted on at the 2026 annual general meetings of BN and BWS, both to be held on July 16, 2026, as approved by the TSX.
Following completion of the Transaction, Brookfield Corporation Ltd. is expected to pay a quarterly distribution of an amount equal to distributions currently paid by BN and BWS.
Completion of the Transaction is subject to customary conditions and is expected to close by year-end, subject to receipt of all applicable regulatory approvals.
About Brookfield Corporation
Brookfield Corporation is a leading global investment firm focused on building long-term wealth for institutions and individuals around the world. We have three core businesses: Asset Management, Wealth Solutions, and our Operating Businesses which are in energy, infrastructure, private equity, and real estate.
We have a track record of delivering 15%+ annualized returns to shareholders for over 30 years, supported by our unrivaled investment and operational experience. Our conservatively managed balance sheet, extensive operational experience, and global sourcing networks allow us to consistently access unique opportunities. At the center of our success is the Brookfield Ecosystem, which is based on the fundamental principle that each group within Brookfield benefits from being part of the broader organization. Brookfield Corporation is publicly traded in New York and Toronto (NYSE: BN, TSX: BN).
For more information, please contact:
About Brookfield Wealth Solutions
Brookfield Wealth Solutions Ltd. is focused on securing the financial futures of individuals and institutions through a range of retirement services, wealth protection products and tailored capital solutions. Each BWS Class A Share is exchangeable on a one-for-one basis with a BN Class A Share.
For more information, please contact:
This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful. Any securities to be issued in the Transaction will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or the securities laws of any state of the United States, and any securities issued in connection with the Transaction are anticipated to be issued in reliance upon the exemption from the registration requirements of the U.S. Securities Act provided for by Section 3(a)(10) thereof and in accordance with applicable state securities laws.
Forward-Looking Statements
This news release contains “forward-looking information” within the meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of the U.S. Securities Act, the U.S. Securities Exchange Act of 1934, “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and in any applicable Canadian securities regulations (collectively, “forward-looking statements”). Forward-looking statements are typically identified by words such as “expect”, “anticipate”, “believe”, “foresee”, “could”, “estimate”, “goal”, “intend”, “plan”, “seek”, “strive”, “will”, “may” and “should” and similar expressions. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future results, events or conditions, and include, but are not limited to, statements which reflect management’s current estimates, beliefs and assumptions and which in turn are based on our experience and perception of historical trends, current conditions and expected future developments, statements concerning Brookfield’s beliefs on certain benefits of the Transaction, the listing of the class A limited voting shares of Brookfield Corporation Ltd., the expected timing of completion of the Transaction, the anticipated tax treatment of the Transaction for BN and BWS shareholders resident in Canada and the United States, future distributions by Brookfield Corporation Ltd., as well as other factors management believes are appropriate in the circumstances. Factors that could cause actual results, performance, achievements or events to differ from current expectations include, among others, risks and uncertainties related to: obtaining shareholder and regulatory approvals, rulings, court orders and consents, or satisfying other requirements, necessary or desirable to permit or facilitate completion of the Transaction or the plan of arrangement; future factors that may arise making it inadvisable to proceed with, or advisable to delay, all or part of the Transaction; the potential benefits of the Transaction; and business cycles, including general economic conditions. The estimates, beliefs and assumptions of Brookfield are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and as such, are subject to change.
Although Brookfield believes that such forward-looking statements are based upon reasonable estimates, beliefs and assumptions, certain factors, risks and uncertainties, which are described from time to time in our documents filed with the securities regulators in Canada and the United States, not presently known to Brookfield, or that Brookfield currently believes are not material, could cause actual results to differ materially from those contemplated or implied by forward-looking statements. Certain risks and uncertainties specific to the proposed Transaction and Brookfield Corporation Ltd., will be further described in the management information circulars to be mailed to shareholders of BN and BWS in advance of their respective shareholders’ meetings.
Readers are urged to consider these risks, as well as other uncertainties, factors and assumptions carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements, which are based only on information available to us as of the date of this news release. Except as required by law, Brookfield undertakes no obligation to publicly update or revise any forward-looking statements, whether written or oral, that may be as a result of new information, future events or otherwise.
North America’s freight rail map is about to be redrawn. The proposed merger of Union Pacific (NYSE: UNP | UNP Price Prediction) with Norfolk Southern (NYSE: NSC) would create the first transcontinental railroad, and the Surface Transportation Board review will almost certainly require divestitures of regional lines, yards, and equipment. Investors fixate on the operators. The more interesting question is who buys what gets sold. Three names sit at the center of this story: Brookfield Infrastructure Partners (NYSE: BIP), CSX (NASDAQ: CSX), and Union Pacific.
Three Companies, One Rail Consolidation Story Union Pacific is the largest U.S. Class I railroad, hauling grain, coal, intermodal containers, and chemicals across the western half of the country. CSX runs the eastern equivalent, with a network feeding ports, chemical plants, and auto factories. Brookfield Infrastructure is something different. It owns regulated and contracted infrastructure globally, with roughly 90% of adjusted EBITDA from regulated or contracted revenues across utilities, midstream, data, and transport. Its rail exposure runs through a railcar leasing joint venture with GATX and its 2019 acquisition of Genesee & Wyoming, the largest short-line and regional railroad operator in North America.
How Each Business Is Positioned The proof point for the Brookfield thesis arrived this winter. On January 5, 2026, GATX and Brookfield Infrastructure closed their $4.2 billion acquisition of Wells Fargo’s rail portfolio. That follows Brookfield’s earlier $1.1 billion commitment to the North American railcar leasing platform alongside GATX. That means Brookfield is already running the rail-asset rollup playbook with infrastructure-scale capital. If the STB forces Union Pacific or its merger partner to shed short lines, yards, or equipment, Brookfield is one of a small number of buyers with the balance sheet and mandate to absorb them.
Company Core Business Trend Exposure Brookfield Infrastructure Global infrastructure, railcar leasing JV, pipelines Indirect, picks-and-shovels Union Pacific Western U.S. Class I railroad Direct acquirer in proposed merger CSX Eastern U.S. Class I railroad Potential consolidation target Union Pacific is the operator with the most to gain from synergies. Q1 2026 revenue reached $6.2 billion with adjusted EPS of $2.93 and an adjusted operating ratio of 59.9%. CSX, for its part, has been quietly improving execution. Operating margin expanded from 30.4% to 36.0% year over year in Q1 2026, and free cash flow jumped 41.9% to $793 million. Both are running better railroads. Both also face the same regulatory uncertainty.
Straight From the Earnings Calls Union Pacific CEO Jim Vena: “As we advance through the regulatory process to create America’s first transcontinental railroad, we have a solid foundation for another year of industry-leading results.”
CSX CEO Steve Angel: “As we remain disciplined on costs and take advantage of opportunities for profitable growth, we continue to make progress toward best-in-class performance.”
Brookfield CEO Sam Pollock: “In 2025 we exceeded our ambitious $3 billion capital recycling target and funded five new investments, showcasing our self-funding strategy.”
Vena sounds the most specific about the merger catalyst. Angel is focused on operational discipline. Pollock is talking about deploying capital, which is exactly what a divestiture wave would require.
Who Actually Benefits Most Union Pacific shareholders capture the synergies if the merger clears. CSX shareholders benefit either from independent margin expansion or from a possible takeout premium. But Brookfield Infrastructure is the asymmetric play. The unit price is near $39, with a $0.455 quarterly distribution, recently raised 6%, and a $9.6 billion capital backlog available for new deployment. The GATX and Wells Fargo Rail transaction shows Brookfield can move at the scale a forced divestiture would require.
The Bottom Line The Class I rail consolidation story is no longer hypothetical. Union Pacific is pushing it through regulatory review, and CSX is positioning either to compete or to be courted. Brookfield Infrastructure offers retirement-focused investors exposure to the same trend through railcars, pipelines, and a proven appetite for distressed rail asset rollups. Watch the STB timeline and any divestiture list closely.
Editor's note: This article has been updated to clarify that the Akre Focus ETF is managed by Akre Capital’s investment team. Chuck Akre founded Akre Capital Management in 1989 and "continues to share his insights and wisdom as the Chairman of Akre Capital Management," but the ETF's investment team is John Neff, Andrew Millette, and Trey Tickner.
Most investors have probably never heard of Chuck Akre. But inside the investing world, he has built a reputation as one of the market's best long-term investors.
The founder of Akre Capital Management is known for focusing on what he calls the "three-legged stool": exceptional businesses, talented management teams, and the ability to reinvest capital at high rates of return for years.
And today, one of the largest positions of the Akre Focus ETF (AKRE 1.05%) is Brookfield Corp. (BN +0.87%), a global investment firm with a diversified portfolio of business holdings -- accounting for 8.2% (close to a half-billion dollars) of the $6 billion total assets under management.
The Akre ETF's ownership alone does not make the stock a buy, but if the Akre approach picked it, that makes it worth a look.
Image source: Getty Images.
A business model designed to compound capital over decades At first glance, Brookfield can look complicated. The company operates across infrastructure, renewable energy, private equity, insurance, and asset management.
Despite that complexity, Brookfield's core business model is fairly simple: to compound capital over time.
For instance, its asset management arm, Brookfield Asset Management, manages more than $1 trillion in assets and generates billions in recurring fee-related earnings. As more institutional capital flows toward alternative investments, that business still has plenty of room to grow.
Brookfield also owns a large portfolio of real assets that generate durable cash flow. These include infrastructure assets, renewable power projects, and private investments that often benefit from inflation-linked pricing and long-term contracts.
At the same time, the company has been rapidly expanding its insurance platform through Brookfield Wealth Solutions, which now manages more than $100 billion in assets. That gives Brookfield access to capital it can reinvest across its ecosystem.
In many ways, Brookfield is less a traditional asset manager and more a long-term capital compounding machine -- one that keeps reinvesting its capital and profits to generate long-term wealth.
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Why Brookfield fits the Akre investing style Akre Capital Management has long favored businesses that fit into his three-legged stool framework -- particularly the third criterion of reinvesting capital at attractive rates for years.
Brookfield fits surprisingly well into that framework. The company controls assets that generate durable cash flow across infrastructure, renewable energy, and private credit. It also continues to reinvest capital in areas with significant demand, including insurance and real assets.
Importantly, Brookfield's approach is evident in the numbers. During the past 30 years, it has delivered a compound annual return of 19%, turning $1 of invested capital into $270.
Management has stated that it aims to increase intrinsic value by about 16% annually. During the past five years, the company reports that its plan value per share -- a metric to measure intrinsic value -- has grown at roughly 16% annually.
That track record gives credibility to the company's long-term targets. Moreover, as capital flows toward infrastructure, private credit, and real assets, Brookfield appears increasingly well positioned for the next decade.
What does it mean for investors? Brookfield is not a simple company, and that complexity may keep some investors away.
But for investors who invest like Akre, that may be exactly where the opportunity lies.
The company controls large pools of capital, owns durable, cash-flow-generating assets, and continues to reinvest across multiple growth areas. If management can continue compounding intrinsic value at anything close to its historical pace, the long-term upside could be meaningful.
That does not make Brookfield risk-free. Execution still matters, especially in areas like insurance and credit. But for investors willing to look past the complexity, Brookfield may be the type of business that they should consider for their long-term portfolio.
Brookfield Corporation (BN +0.87%) can be a rather complex entity. It has several publicly traded affiliates, many of which have two separate U.S. listings. That complexity has weighed on the valuation of its different entities.
This discount is leading Brookfield to make some changes. It recently approved the corporate simplification to combine with its insurance arm, Brookfield Wealth Solutions (BNT +1.01%). Here's a look at what this will mean for investors.
Image source: The Motley Fool.
Bringing this entity back into the fold Brookfield formed its insurance arm in 2021. The leading alternative investment company launched a separate entity, then called Brookfield Reinsurance, by paying a special stock dividend to investors in the newly formed company. Brookfield created a separate, publicly traded entity to establish a scalable platform for growing its insurance business and to provide investors with an alternative way to invest in the company.
The global financial firm has significantly expanded its insurance operations through acquisitions over the years. Notable deals include AEL ($4.3 billion in 2024), Argo ($1.1 billion in 2023), and American National ($5.1 billion in 2022). The company changed the name of this business to Brookfield Wealth Solutions in 2024 to reflect its broader expansion into providing retirement services and wealth protection products, including commercial property and casualty insurance and annuities. The leading global financial firm has grown its insurance business from $30 billion in value to nearly $200 billion over the last five years.
Brookfield announced earlier this year that it planned to seek board approval to recombine with its wealth solutions business. Both boards recently granted their approval, which will now go to a shareholder vote in July.
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Streamlining to unlock shareholder value The proposed recombination of Brookfield Corporation and Brookfield Wealth Solutions is the next step in its streamlining process to combine paired securities. The company previously combined Brookfield Business Corporation with Brookfield Business Partners. The positive market response to that combination is leading the company to combine BN and BNT. Brookfield is also evaluating a similar simplification of its two infrastructure entities (BIPC and BIP) and energy entities (BEPC and BEP).
CEO Bruce Flatt commented on the company's streamlining plan in his first-quarter letter to shareholders. He noted that Brookfield is streamlining based on the view that companies with simpler structures and larger market capitalizations are more effective in today's market, given the dominance of index investing. The CEO also noted that it has become "clear that to keep growing and to maximize our returns and lower risk, a full combination is optimal." It will provide its insurance operations with greater access to Brookfield's balance sheet, giving it more flexibility to grow.
Strengthening its value proposition Brookfield's insurance operations have been a meaningful growth driver over the past five years. The company expects it to continue playing a significant role over the next five years, contributing more than a third of its expected earnings growth during that period. The company's investment-led insurance model is a core aspect of its plan to grow the value of its shares to $140 by 2030. With its stock price currently below $50, it has significant upside potential as it continues to simplify its businesses and execute its growth strategy.
Matt DiLallo has positions in Brookfield Corporation, Brookfield Infrastructure, Brookfield Infrastructure Partners, Brookfield Renewable, and Brookfield Renewable Partners and has the following options: short July 2026 $40 puts on Brookfield Corporation. The Motley Fool has positions in and recommends Brookfield Corporation and Brookfield Wealth Solutions. The Motley Fool recommends Brookfield Infrastructure Partners, Brookfield Renewable, and Brookfield Renewable Partners. The Motley Fool has a disclosure policy.
June 01, 2026 17:40 ET | Source: Brookfield Corporation
All amounts in Canadian dollars unless otherwise stated.
BROOKFIELD, NEWS, June 01, 2026 (GLOBE NEWSWIRE) -- Brookfield Corporation (“Brookfield”) (NYSE: BN, TSX: BN) today announced the reset dividend rate on its Cumulative Class A Preference Shares, Series 24 (the “Series 24 Shares”) (TSX: BN.PR.R) for the five years commencing July 1, 2026 and ending June 30, 2031.
If declared, the fixed quarterly dividends on the Series 24 Shares during the five years commencing July 1, 2026 will be paid at an annual rate of 5.432% ($0.3395 per share per quarter).
Holders of Series 24 Shares have the right, at their option, exercisable not later than 5:00 p.m. (Toronto time) on June 15, 2026, to convert all or part of their Series 24 Shares, on a one-for-one basis, into Cumulative Class A Preference Shares, Series 25 (the “Series 25 Shares”), effective June 30, 2026. The quarterly floating rate dividends on the Series 25 Shares will be paid at an annual rate, calculated for each quarter, of 2.30% over the annual yield on three-month Government of Canada treasury bills. The actual quarterly dividend rate in respect of the July 1, 2026 to September 30, 2026 dividend period for the Series 25 Shares will be 1.16525% (4.623% on an annualized basis) and the dividend, if declared, for such dividend period will be $0.2913125 per share, payable on September 30, 2026.
Holders of Series 24 Shares are not required to elect to convert all or any part of their Series 24 Shares into Series 25 Shares.
As provided in the share conditions of the Series 24 Shares, (i) if Brookfield determines that there would be fewer than 1,000,000 Series 24 Shares outstanding after June 30, 2026, all remaining Series 24 Shares will be automatically converted into Series 25 Shares on a one-for-one basis effective June 30, 2026; and (ii) if Brookfield determines that there would be fewer than 1,000,000 Series 25 Shares outstanding after June 30, 2026, no Series 24 Shares will be permitted to be converted into Series 25 Shares. There are currently 10,808,027 Series 24 Shares outstanding.
The Toronto Stock Exchange (“TSX”) has conditionally approved the listing of the Series 25 Shares effective upon conversion. Listing of the Series 25 Shares is subject to Brookfield fulfilling all the listing requirements of the TSX.
About Brookfield Corporation
Brookfield Corporation is a leading global investment firm focused on building long-term wealth for institutions and individuals around the world. We have three core businesses: Asset Management, Wealth Solutions, and our Operating Businesses which are in energy, infrastructure, private equity, and real estate.
We have a track record of delivering 15%+ annualized returns to shareholders for over 30 years, supported by our unrivaled investment and operational experience. Our conservatively managed balance sheet, extensive operational experience, and global sourcing networks allow us to consistently access unique opportunities. At the center of our success is the Brookfield Ecosystem, which is based on the fundamental principle that each group within Brookfield benefits from being part of the broader organization. Brookfield Corporation is publicly traded in New York and Toronto (NYSE: BN, TSX: BN).
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION TO THE UNITED STATES
The prospectus supplement, the corresponding base shelf prospectus and any amendment thereto in connection with this offering will be accessible through SEDAR+ within two business days.
BROOKFIELD, News, June 02, 2026 (GLOBE NEWSWIRE) -- Brookfield Renewable Partners L.P. (TSX: BEP.UN; NYSE: BEP) (“Brookfield Renewable”) today announced that it has agreed to issue 6,000,000 5.75% Cumulative Minimum Rate Reset Class A Preferred Limited Partnership Units, Series 19 (the “Series 19 Preferred Units”) on a bought deal basis to a syndicate of underwriters led by Scotiabank, BMO Capital Markets, CIBC Capital Markets, National Bank of Canada Capital Markets, RBC Capital Markets and TD Securities Inc. for distribution to the public. The Series 19 Preferred Units will be issued at a price of C$25.00 per unit, for gross proceeds of C$150,000,000.
Holders of the Series 19 Preferred Units will be entitled to receive a cumulative quarterly fixed distribution yielding 5.75% annually for the initial period ending July 31, 2031. Thereafter, the distribution rate will be reset every five years at a rate equal to the greater of (i) the 5-year Government of Canada bond yield plus 2.65%, and (ii) 5.75%. The Series 19 Preferred Units are redeemable on July 31, 2031 and on each Series 19 Reclassification Date (as defined below) thereafter.
Holders of the Series 19 Preferred Units will have the right, at their option, to reclassify their Series 19 Preferred Units into Cumulative Floating Rate Reset Class A Preferred Limited Partnership Units, Series 20 (“Series 20 Preferred Units”), subject to certain conditions, on July 31, 2031 and on July 31 every 5 years thereafter (each a “Series 19 Reclassification Date”). Holders of Series 20 Preferred Units will be entitled to receive a cumulative quarterly floating distribution at a rate equal to the 90-day Canadian Treasury Bill yield plus 2.65%.
Brookfield Renewable has granted the underwriters an option, exercisable until 48 hours prior to closing, to purchase up to an additional 2,000,000 Series 19 Preferred Units which, if exercised, would increase the gross offering size to C$200,000,000.
The Series 19 Preferred Units will be offered in all provinces and territories of Canada by way of a prospectus supplement to Brookfield Renewable’s existing Canadian short form base shelf prospectus dated September 26, 2025. The Series 19 Preferred Units may not be offered or sold in the United States or to U.S. persons absent registration or an applicable exemption from the registration requirements under the U.S. Securities Act.
Brookfield Renewable intends to use the net proceeds from this offering to fund Eligible Investments (as defined in Brookfield Renewable’s 2024 Green Financing Framework (the “Green Financing Framework”)), including to repay indebtedness incurred in respect thereof. The Green Financing Framework is available on Brookfield Renewable’s website and described in the prospectus supplement in respect of the offering.
The offering of Series 19 Preferred Units is expected to close on or about June 9, 2026.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction, nor shall there be any offer or sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities being offered have not been approved or disapproved by any regulatory authority nor has any such authority passed upon the accuracy or adequacy of the short form base shelf prospectus or the prospectus supplement. The offer and sale of the securities has not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold in the United States or to United States persons absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.
Access to the prospectus supplement, the corresponding base shelf prospectus and any amendment thereto in connection with the offering of the Series 19 Preferred Units is provided in accordance with securities legislation relating to procedures for providing access to a prospectus supplement, a base shelf prospectus and any amendment thereto. The prospectus supplement, the corresponding base shelf prospectus and any amendment thereto in connection with the offering will be accessible within two business days at www.sedarplus.ca.
An electronic or paper copy of the prospectus supplement, the corresponding base shelf prospectus and any amendment to the documents may be obtained, without charge, from any of the joint bookrunners by contacting Scotiabank by email at [email protected], BMO Capital Markets by email at [email protected], CIBC Capital Markets by email at [email protected], National Bank of Canada Capital Markets by email at [email protected], RBC Capital Markets by email at [email protected], and TD Securities Inc. by email at [email protected].
Brookfield Renewable
Brookfield Renewable operates one of the world’s largest publicly traded platforms for renewable power and sustainable solutions. Our renewable power portfolio consists of hydroelectric, wind, utility-scale solar, distributed solar, and storage facilities and our sustainable solutions assets include our investment in a leading global nuclear services business and a portfolio of investments in carbon capture and storage capacity, agricultural renewable natural gas, materials recycling and eFuels manufacturing capacity, among others.
Investors can access the portfolio either through Brookfield Renewable Partners L.P. (NYSE: BEP; TSX: BEP.UN), a Bermuda-based limited partnership, or Brookfield Renewable Corporation (NYSE, TSX: BEPC), a Canadian corporation.
Brookfield Renewable is the flagship listed energy company of Brookfield Asset Management, a leading global alternative asset manager headquartered in New York, with over $1 trillion of assets under management.
Contact information:
Media: Investors:Simon Maine Alex JacksonManaging Director – CorporateVice President – InvestorCommunicationsRelations (44) 7398-909-278(416)[email protected]@brookfield.com Cautionary statement regarding forward-looking information
Note: This news release contains forward-looking statements and information within the meaning of Canadian securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Forward-looking statements can be identified by the use of words such as “will”, “expected”, “intend”, or variations of such words and phrases. Forward-looking statements in this news release include statements regarding the closing and use of proceeds of the offering. Although Brookfield Renewable believes that such forward-looking statements and information are based upon reasonable assumptions and expectations, no assurance is given that such expectations will prove to have been correct. The reader should not place undue reliance on forward-looking statements and information as such statements and information involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Brookfield Renewable to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information. Except as required by law, Brookfield Renewable does not undertake any obligation to publicly update or revise any forward-looking statements or information, whether written or oral, whether as a result of new information, future events or otherwise.
Brookfield Corporation (BN +0.87%) has arguably been one of the best financial stocks over the past 30 years. The global investment firm has delivered a 19% annualized total return over the last three decades, crushing the S&P 500's 11% annualized total return. Brookfield has achieved robust returns by evolving its business and continuing to innovate.
The alternative investment giant believes the best is yet to come. Here are three reasons why it could be the top financial stock to buy and hold for the next decade.
Image source: The Motley Fool.
Investing heavily in AI infrastructure One of the keys to Brookfield's success over the years is its thematic investment approach. It aims to identify secular trends, create products that serve its clients based on those megatrends, and then deploy capital at scale into those themes.
Brookfield Corporation believes that AI could become the most impactful general-purpose technology in history if the global economy builds out the necessary infrastructure to support its adoption. The company estimates that total AI infrastructure spending could reach $7 trillion over the next decade. It aims to be a leader in investing in this once-in-a-generation opportunity.
The global financial firm launched its inaugural Brookfield AI Infrastructure Fund late last year, aiming to acquire up to $100 billion in AI infrastructure assets. It's a cornerstone investor in the fund. Additionally, Brookfield's operating businesses are all investing in AI infrastructure, including building AI factories, developing power solutions, and establishing new platforms to help companies deploy AI.
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Robust demand for wealth solutions The retirement financial model has shifted over the years from pensions to defined contribution plans. That's creating a structural need for new wealth solutions to provide future retirees with sustainable income.
Brookfield sees a massive opportunity to provide individual investors with wealth solutions to support their retirement. They hold an estimated $40 trillion in assets, nearly double the size of the institutional investor market. The company believes that individual investors will steadily allocate more capital to alternative investment strategies, including annuities, going forward.
This trend drove the company to build a large-scale wealth solutions platform over the past several years to capitalize on growing demand for wealth protection products such as annuities. Brookfield is also creating new investment products geared toward individual investors.
Capitalizing on the real estate recovery Brookfield Corporation is one of the world's largest real estate investors. It manages $277 billion in real estate assets. The company owns 100% of Brookfield Property Group, a leading owner of high-quality office and mall properties. Additionally, its asset management arm manages several real estate funds.
The global real estate market has been challenging over the past several years due to structural changes (lower post-pandemic demand for office space) and higher interest rates. However, operating fundamentals across most real estate sectors are strengthening. Meanwhile, interest rates are declining from their peaks. That drives Brookfield's view that the global real estate market is starting to recover.
The company has taken a counter-cyclical approach to real estate investing, leaning into the sector during a period when others pulled back. It has deployed $60 billion of capital into real estate over the last five years, putting it in an even stronger position to capitalize on the recovery phase.
Strong growth for a value price Brookfield currently estimates the company is worth about $68 per share. That's well above its recent trading price of less than $45 per share. The company believes its multiple growth catalysts will drive annual earnings-per-share growth of around 25% for at least the next five years. That would increase its per-share value to $140 by 2030. The company's combination of robust growth and low valuation positions investors to generate strong total returns over the next decade, making it a top financial stock to buy and hold.
BlackRock (BLK +0.58%) and Blue Owl Capital (OWL +2.64%) have both imposed limits on redemptions from their privately traded credit funds. That has Wall Street on edge about the entire alternative asset space, with shares of Brookfield Corporation (BN +0.87%) having gone sideways so far in 2026 despite management's still bullish business outlook. The company isn't sitting around and waiting for investors to catch on to the opportunity.
Brookfield Corporation has a strong core As an asset manager, Brookfield Corporation charges fees to invest on behalf of other people and businesses. In the first quarter of 2026, the company's fee-related earnings rose 11% year over year. Fee-bearing capital stood at $614 billion in the first quarter. It has a very solid foundation, and the business doesn't appear to be facing any material problems. However, Wall Street's concerns about the broader asset management space continue to weigh on the stock.
Image source: Getty Images.
To be fair, the company is working through a business change, as it seeks to simply its operating structure. It basically wants to become more like Berkshire Hathaway (BRKA 0.06%)(BRKB), which operates as an investment-led insurance company. There are a lot of moving parts, but the goal is very clear, and the business continues to execute well. The business transition isn't a good enough reason to avoid the stock.
Brookfield Management isn't letting an investment opportunity slip by What's interesting here is that Brookfield Management repurchased $1 billion in stock in the first quarter, split between its own stock and the stock of its controlled asset management business, Brookfield Asset Management (NYSE: BAM). Shares of Brookfield Asset Management are off by around 7% so far in 2026, as of this writing.
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Regarding Brookfield Management, the company's average purchase price for its own stock was $41 per share in the quarter. It stated that this was a 40% discount to what it believes its intrinsic value to be. A little math suggests that Brookfield Management believes it is worth nearly $60 per share. The current stock price is roughly $46. Investors willing to buy while others are fearful could still have an opportunity here, essentially following management's lead.
Actions speak louder than words It is easy for a company to say that it believes its shares are being mispriced by Wall Street. It is another thing entirely when a company, like Brookfield Management, actually steps in to buy stock and explains specifically how much value it sees in its own shares. This may or may not be the bottom for alternative asset managers, but this asset manager clearly sees an investment opportunity.
If you are looking at the finance sector, Brookfield Management is on the complex side, but it could also be trading at an attractive price. Or at least that's what the company is telling investors with both its words and its actions.
Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway, BlackRock, Brookfield Asset Management, and Brookfield Corporation. The Motley Fool has a disclosure policy.
NEW YORK, June 08, 2026 (GLOBE NEWSWIRE) -- Brookfield Real Assets Income Fund Inc. (the “Fund”) (NYSE: RA) today announced upcoming portfolio management changes at Oaktree Fund Advisors, LLC (“Oaktree”), the sub-adviser responsible for managing the Fund’s securitized credit allocation.
Effective June 30, 2026, Justin Guichard will no longer serve as the Portfolio Manager for the Fund’s securitized credit allocation and will be replaced in this capacity by Aaron Greenberg. Effective immediately, Mr. Greenberg, a Managing Director at Oaktree, has been named Portfolio Manager for Oaktree’s Real Estate Debt strategy, and Co-Portfolio Manager for Oaktree’s Structured Credit business. Prior to joining Oaktree in 2018, Mr. Greenberg began his career as a CMBS trader at Morgan Stanley, and was subsequently at Deutsche Bank, where he headed the secondary trading desk. Mr. Greenberg received a B.A. in economics and psychology summa cum laude from Yale University, where he was elected to Phi Beta Kappa. Mr. Greenberg has a certificate from New York University’s Schack Institute of Real Estate.
Gaal Surugeon, Chris Janus and Riley O’Neil of Brookfield Public Securities Group LLC, the Fund’s investment adviser, will continue to serve as Co-Portfolio Managers of the Fund and will remain jointly and primarily responsible for the day-to-day management of the Fund, including the authority to adjust the strategic allocation of assets between corporate credit, securitized credit and equity securities.
Brookfield Real Assets Income Fund Inc. is managed by Brookfield Public Securities Group LLC. The Fund uses its website as a channel of distribution of material information about the Fund. Financial and other material information regarding the Fund is routinely posted on and accessible at https://privatewealth.brookfield.com/fund/brookfield-real-assets-income-fund-inc.
Investing involves risk; principal loss is possible.
A fund’s investment objectives, risks, charges and expenses must be considered carefully before investing. The prospectus contains this and other important information about the investment company. Read the prospectus carefully before investing.
Brookfield Real Assets Income Fund Inc. is distributed by Foreside Fund Services, LLC.
Quasar Distributors, LLC provides filing administration for Brookfield Real Assets Income Fund Inc.
Brookfield Corporation (BN +0.87%) is a complex business with numerous moving parts, some of which are also publicly traded. That said, Brookfield Corporation itself is looking to mimic Berkshire Hathaway (BRKA 0.06%)(BRKB +0.23%), as it works to become an investment-led insurance company. Its focus has long been on providing investment management services and on investing in infrastructure assets. That's almost perfect for a higher-for-longer rate environment.
What does Brookfield Corporation do? Essentially, Brookfield Corporation has its own capital and collects capital from others. That cash is invested through Brookfield Corporation's ecosystem, which includes Brookfield Asset Management (BAM +2.01%) and a collection of publicly traded entities, such as Brookfield Renewable (BEP +0.43%) and Brookfield Infrastructure (BIP 1.59%). It is a bit complex, but think of Brookfield Corporation as the mastermind.
Image source: Getty Images.
That said, Brookfield has long focused on buying, selling, and operating infrastructure assets on a global scale. These types of investments are often referred to as hard assets. They tend to hold up well during periods of high inflation because they provide vital services and thus have pricing power. Think hydroelectric power plants, shipping ports, and railroads, among other things.
Brookfield Corporation is well-positioned for higher for longer Brookfield Corporation's first quarter 2026 results highlight the fundamental strength of the business. Despite interest rates rising, Distributable earnings before realizations increased by 7% year over year. The company is so confident in its position that it bought back $1 billion of shares across Brookfield Corporation and its controlled Brookfield Asset Management business.
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With inflation running high, there's concern that more interest rate increases are in the cards. Or, at the very least, that rates will hold at current levels. That's not likely to be a problem for Brookfield Corporation given its investment focus. The infrastructure assets it owns will enable it to increase the fees it charges the users of those assets. That, in turn, will increase the value of these hard asset investments, leaving anyone who invested alongside Brookfield Corporation pleased as well. Brookfield Corporation's strong first quarter is simply a sign of the company's strength and long-term opportunity.
Anywhere along the Brookfield spectrum The truth is, there are any number of Brookfield entities you could buy. For example, if you want to focus on renewable power, then Brookfield Renewable might be the best option for you. However, if you want to own the mastermind of the entire ecosystem, then the only choice is Brookfield Corporation.
It delivered 22% compound annual distributable earnings growth over the five years through June 2025, easily beating its target of 15%. And since there's no reason to believe that a higher-for-longer rate environment will derail Brookfield Corporation's infrastructure-focused business model, there's also no reason to doubt its ability to keep delivering strong results in the future.
Reuben Gregg Brewer has positions in Brookfield Renewable Partners. The Motley Fool has positions in and recommends Berkshire Hathaway, Brookfield Asset Management, and Brookfield Corporation. The Motley Fool recommends Brookfield Infrastructure Partners and Brookfield Renewable Partners. The Motley Fool has a disclosure policy.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of BIPH, BIPC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Investors often look to Brookfield Renewable Partners (BEPC +0.51%) and WEC Energy Group (WEC 0.82%) for reliable dividends and exposure to the energy transition. Both companies offer different paths to long-term returns.
Brookfield Renewable is a pure-play green energy operator with a global footprint, while WEC Energy Group is a traditional regulated utility focused on the American Midwest. This comparison highlights the trade-off between aggressive renewable expansion and the stability of regulated rate bases.
Brookfield Renewable Corp operates one of the world's largest platforms for carbon-free power. Its portfolio includes 47.3 gigawatts (GW) of capacity across hydro, wind, solar, and energy storage. It serves a diverse range of corporate and utility customers in North America, South America, Europe, and Asia.
In FY 2025, revenue reached nearly $5.1 billion. This represented a 15% decrease compared to the previous fiscal year. The company reported a net loss of close to $926 million.
As of its most recent quarter, its debt-to-equity was about 216%. This figure indicates that total liabilities exceed shareholder equity.
The case for WEC Energy GroupWEC Energy Group is a leading holding company focused on regulated energy delivery in the Midwest. The company serves nearly 4.7 million customers through subsidiaries like We Energies and Wisconsin Public Service. It is currently making significant infrastructure investments to support large-scale data center customers in the electric utility sector.
During FY 2025, revenue grew by about 14% to reach nearly $9.8 billion. Net income reached approximately $1.6 billion for the same period. This led to a net margin of nearly 15.9%, reflecting the stability of its regulated operations.
Based on its most recent quarter’s balance sheet, its debt-to-equity is about 153%. This percentage is the company’s total debt relative to its shareholder equity.
Risk profile comparisonBrookfield Renewable faces risks from interest rate volatility and the complex regulatory environments of the many countries where it operates. It competes with other large developers, such as NextEra Energy (NEE 0.27%), for new projects and long-term power contracts. Any delays in bringing new wind or solar capacity online could hinder its ability to meet future earnings estimates.
WEC Energy Group faces regulatory and rate recovery risks, particularly in Illinois, where recent orders disallowed certain capital costs. The company must also manage environmental compliance costs related to EPA ozone standards in Wisconsin. Furthermore, its heavy investment in data centers introduces concentration risk if those customers, or competitors like Exelon Corp (EXC 0.22%) shift their regional strategies.
Valuation comparisonInvestors must choose between the high P/S ratio of WEC Energy Group and the lower revenue multiple of Brookfield Renewable.
MetricBrookfield RenewableWEC Energy GroupSector BenchmarkForward P/En/a20.2x20.3xP/S ratio1.5x3.8xn/aSector benchmark uses the SPDR XLU sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?Brookfield Renewable Partners Corp and WEC Energy Group are different utility businesses.
Brookfield is a Canada-based business that owns a global portfolio of renewable energy assets and invests in them to seek long-term total return. Management has been successful at that, generally seeing a roughly 15% return on its investments year over year. But share-wise, BEPC is more volatile, reflecting the market’s love-hate attitude with most renewable energy stocks. (It’s worth noting that BEPC is structured as a typical corporation that pays dividends, while another stock ticker, BEP, is structured like a partnership and generally requires more complex tax reporting. Both stocks give investors an ownership interest in the exact same energy portfolio.)
WEC Energy Group, meanwhile, is less volatile and offers more predictable returns. Over the past 10 years, WEC’s total annualized returned is just under 10%. In the past five years, WEC’s annualized total return is just aboiut 8%, compared to nearly 2% for BEPC. WEC is also up nearly 11% year-to-date in total return compared to a slight loss for BEC. That’s a great track record.
Brookfield Renewable is appealing because the company’s macro thesis is that global renewable energy assets are in high demand and offer excellent returns over time. Its plans are massive: Brookfield has 221 GW of renewable energy assets under development worldwide.
But it is hard to ignore the success of WEC’s quieter and more predictable Midwest utility business. Yet that still offers growth opportunities as the industry, including AI data centers, requires more energy production. WEC also has a good outlook for future regulated utility rate increases in its core market, Wisconsin. Longer-term WEC plans to eventually mothball its coal plants as it increases its investments in renewable energy. The business has 828 MW of wind projects under development, for example.
In the next 12 months, WEC is expected to pay $3.81 in dividends compared to $1.57 for BEPC. That’s a nice payout for buying a stock that should also appreciate over time.
Brookfield Renewable Partners offers a stable, utility-like 4%+ yield with inflation protection and double-digit FFO-per-unit growth potential. BEP is positioned to benefit from AI-driven power demand, underpinned by long-term contracts, a diversified asset base, and major agreements with hyperscalers. Valuation remains attractive at ~16x current-year FFO, with a robust balance sheet and BBB+ rating supporting long-term capital deployment.
It is hard to find an artificial intelligence (AI) stock these days that investors would rate as a value stock, but Pagaya Technologies (PGY +8.62%) is one. AI stocks and value arenʻt mutually exclusive. It's just that most AI stocks are overvalued, not undervalued, given the hype surrounding them.
But Pagaya has somehow avoided the hype, remaining just below the AI radar. It's stock trades at around $13 per share and has a trailing 12-month price-to-earnings (P/E) ratio of 11. But it has a forward P/E ratio of just 4, and its five-year price/earnings-to-growth (PEG) ratio barely registers at 0.03.
In other words, Pagaya stock is trading like a deep value stock, but it has massive growth potential.
Image source: Getty Images.
Pagaya uses AI to place loans Pagaya is a fintech that uses AI to help banks and financial institutions process loans. But the company specializes in handling non-prime loan requests that have been passed on by banks. Rejected loan requests deemed too risky by the average bank are forwarded to Pagaya, which uses its AI-enabled platform to determine if an alternate lender can be found in its network.
Pagaya is really the only company that specializes in this area, so it has carved out a growing niche. It makes most of its revenue through fees for placing these loans with lenders.
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In the first quarter, it generated $317 million in revenue, up 10% year over year. Of that amount, $299 million, or 94%, came from fees. The rest was mostly from interest income.
Its network volume rose by 9% in the quarter to $2.6 billion, fueled by growth in auto loans and point-of-sale loans, like those obtained through buy now, pay later (BNPL) companies. The point-of-sale loans are a rapidly growing part of its business and should continue to surge, as Pagaya just signed a deal with Sezzle to provide that service for its BNPL platform.
In addition, Pagaya reduced its expenses in Q1. This allowed it to raise its operating income by 67% to $80 million, while its net income spiked 212% to about $25 million.
Growth outlook Pagaya anticipates strong growth this year, and it recently raised its guidance for network volume and net income. The company now anticipates network volume of between $11.45 billion and $13 billion in 2026, which would be up from $10.5 billion last year. The previous guidance called for $11.25 billion at the low end.
Revenue is forecast by management at $1.4 billion to $1.575 billion this year, up almost 15% at the midpoint from 2025. Net income is anticipated to be within a range of $110 million to $160 million, up 67% at the midpoint from last year. The previous guidance called for net income of $100 million to $150 million.
It is this type of growth, combined with its dirt cheap valuation, that has Wall Street analysts extremely bullish on Pagaya stock. 100% of the 10 analysts covering Pagaya rate it a buy, with a median price target of $25 per share, suggesting 86% upside over the next year or so.
If you are looking for a cheap growth stock with big upside, this is one stock to consider.
As lending shifts toward machine learning, Upstart (UPST +5.02%) and Pagaya Technologies (PGY +8.62%) are racing to replace traditional credit scores. Both companies offer unique paths for investors seeking exposure to the next generation of credit.
These companies are frequently compared because they both use sophisticated algorithms to help lenders assess borrower risk more accurately than a standard FICO score. While they operate in the same general ecosystem, their business models and financial health vary significantly, making a side-by-side comparison essential for any long-term investor.
The case for UpstartUpstart operates an AI-based marketplace that connects consumers with more than 100 partners among financial services for various loan products. Its expansion includes home equity lines of credit and small-dollar relief loans, while its top three lending partners accounted for nearly 61% of total revenue in 2025. Customer concentration like this adds a layer of risk to the business, as the platform's success relies on maintaining relationships with a limited number of high-volume institutions.
In FY 2025, revenue reached approximately $1.1 billion, up roughly 58.9% from the prior year. This performance led to a net income of close to $53.6 million, indicating that the company is successfully scaling while improving its bottom line. The company's rapid growth highlights the increasing adoption of AI tools by smaller financial institutions looking to compete effectively with major national banks.
As of the December 2025 balance sheet, the debt-to-equity ratio was roughly 2.3x, calculated by dividing total debt by shareholders’ equity. The current ratio stood at approximately 3.0x, calculated by dividing current assets by current liabilities to assess the ability to pay short-term debts. For FY 2025, free cash flow was nearly negative $166.1 million, representing the cash from operations remaining after capital expenditures.
The case for Pagaya TechnologiesPagaya Technologies provides the AI infrastructure that allows its financial partners to evaluate and originate loans across various markets like auto and real estate. The company depends on a small number of fintech partners for a majority of its revenue. Customer concentration like this adds a layer of risk to the business, yet this technology-first strategy allows the firm to embed its software into existing workflows, making it a sticky partner for lenders.
During FY 2025, the company generated revenue of approximately $1.3 billion, which is a nearly 25.6% increase over the previous fiscal year. It achieved a net income of roughly $81.4 million and a net margin of close to 6.5%, which represents the percentage of revenue remaining after all expenses. This profitable result is a major milestone for the business as it transitions from an early investment phase into a more mature operating model.
Based on its December 2025 balance sheet, the debt-to-equity ratio is approximately 1.9x, calculated as total debt divided by shareholders’ equity. The current ratio is roughly 5.6x, indicating how many times current assets can cover short-term liabilities. In FY 2025, free cash flow was nearly $224.7 million, calculated as cash from operations minus capital expenditures, providing the company with significant financial flexibility.
Risk profile comparisonUpstart faces risks from macroeconomic factors, such as high interest rates, that reduce loan demand and limit the availability of investor funding. The business also depends on its AI models performing accurately across cycles, as errors could lead to sub-optimal pricing and a loss of partner trust. Furthermore, the company must compete for market share against established financial technology companies such as Fair Isaac.
Pagaya Technologies is sensitive to shifts in the real estate market and the availability of cost-effective capital within the complex securitization markets. Its expansion into property management introduces new regulatory risks and regional economic sensitivities that could impact its network volume. Additionally, the company competes with various fintech firms and traditional financial giants, including SoFi Technologies.
Valuation comparisonPagaya Technologies appears cheaper because its Forward P/E uses future earnings estimates and its P/S ratio compares market value to sales.
MetricUpstartPagaya TechnologiesSector BenchmarkForward P/E13.1x9.7x16.6xP/S ratio2.7x0.9xSector benchmark uses the SPDR XLF sector ETF. Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Pagaya and Upstart have one thing in common: Both use AI to help evaluate borrowers. But aside from this, there are key differences that can help investors choose one over the other.
Neither company is really a household name, but Upstart may be more recognizable. It also has a first-mover advantage and a reputation as a fintech disruptor. However, when funds are unavailable from banks and credit unions, it can act as more of a lender, carrying more loans on its own balance sheet. That means it faces a greater risk of borrower defaults.
Pagaya also uses AI-driven underwriting, but it limits direct exposure to the loans it facilitates by partnering with institutional investors rather than using its own capital to carry loans. This can make the business more resilient as economic conditions change.
Both companies are expanding into different types of loans, such as auto and mortgage loans, and are growing well. And Pagaya's model doesn't necessarily make it a safer investment. Both companies' stocks are prone to volatility because they remain tied to consumer credit trends and broader economic conditions. But for long-term investors looking for exposure to AI-powered lending, Pagaya may be the more balanced opportunity today.
Pagaya Technologies Ltd. overstates its AI-driven underwriting capabilities, raising concerns about management credibility and business model sustainability. PGY has improved its risk posture, but its profitability record remains short and should not yet be treated as through-the-cycle proof. The company's retained investment portfolio and large credit-loss allowance remain key risks, even after recent improvement.
Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:
Pagaya Technologies Ltd. (PGY - Free Report) : This product-focused technology company has seen the Zacks Consensus Estimate for its current year earnings increasing 12.2% over the last 60 days.
TTM Technologies, Inc. (TTMI - Free Report) : This company that manufactures and sells printed circuit boards has seen the Zacks Consensus Estimate for its current year earnings increasing 27.5% over the last 60 days.
Green Dot Corporation (GDOT - Free Report) : This financial technology and bank holding company has seen the Zacks Consensus Estimate for its current year earnings increasing 12.8% over the last 60 days.
Occidental Petroleum Corporation (OXY - Free Report) : This explorer and developer of oil and gas has seen the Zacks Consensus Estimate for its current year earnings increasing 67.2% over the last 60 days.
Civista Bancshares, Inc. (CIVB - Free Report) : This financial holding company for Civista Bank has seen the Zacks Consensus Estimate for its current year earnings increasing 9.2% over the last 60 days.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways PGY, MOV, YPF and XYZ are four of seven stocks passing a relative price strength screen.Rally to S&P 500 records is fueled by AI demand plus easing tensions and softer oil prices.Screen favors 12/4/1-week S&P 500 beaters with positive Q1 estimate revisions and liquidity. Wall Street’s powerful rally continues to defy seasonal expectations, with the S&P 500 extending its advance to record highs. The market’s strength has been fueled by the ongoing AI revolution, as generative and agentic technologies continue to reshape industries and support strong demand for technology-focused companies. As a result, investors have largely stayed committed to equities despite occasional bouts of uncertainty.
Recent gains have been supported by a combination of easing geopolitical tensions, softer oil prices, and encouraging signals from policymakers. Progress in discussions between the United States and Iran has helped calm concerns about energy supplies and inflation, while technology stocks have continued to provide leadership. Broad participation across large-, mid-, and small-cap stocks also points to healthy market momentum.
Although risks remain, the overall backdrop remains constructive. In this environment, relative price strength remains a valuable strategy, helping investors identify stocks that continue to outperform and attract buying interest as the broader market trend stays positive.
At this stage, investors would be wise to consider companies such as Pagaya Technologies (PGY - Free Report) , Movado Group (MOV - Free Report) , YPF S.A. (YPF - Free Report) and Block, Inc. (XYZ - Free Report) .
Relative Price Strength Strategy
Whether a stock has the potential to offer considerable returns is determined primarily by its earnings and valuation ratios. Simultaneously, it is essential to check whether its price performance exceeds its peers or the industry average.
Upon such comparison, if we find that a stock is unable to match up to wider sectoral growth despite having impressive earnings momentum or valuation multiples, it may be better to avoid it.
However, those outperforming their respective industries or benchmarks should be included in your portfolio since they have a higher chance of securing significant returns. Picking a stock that outperforms its peers ensures a winning option on your hands.
Then again, it is imperative that you determine whether or not an investment has relevant upside potential when considering stocks with significant relative price strength. Stocks delivering better than the S&P 500 for 1 to 3 months, at least, and having solid fundamentals, indicate room for growth and the best way to go about this strategy.
Finally, it is crucial to find out whether analysts are optimistic about the upcoming earnings of these companies. In order to do this, we have added positive estimate revisions for the current quarter’s (Q1) earnings to our screen. When a stock undergoes an upward revision, it leads to additional price gains.
Screening Parameters
Relative % Price change – 12 weeks greater than 0
Relative % Price change – 4 weeks greater than 0
Relative % Price change – 1 week greater than 0
(We have considered those stocks that have been outperforming the S&P 500 over the last 12 weeks, four weeks and one week.)
% Change (Q1) Est. over 4 Weeks greater than 0: Positive current-quarter estimate revisions over the last four weeks.
Zacks Rank equal to 1: Only Zacks Rank #1 (Strong Buy) stocks — that have returned more than 26% annually over the last 26 years and surpassed the S&P 500 in 23 of the last 26 years — can get through. You can see the complete list of today’s Zacks #1 Rank stocks here.
Current Price greater than or equal to $5 and Average 20-day Volume greater than or equal to 50,000: A minimum price of $5 is a good standard to screen low-priced stocks, while a high trading volume would imply adequate liquidity.
VGM Score less than or equal to B: Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2 (Buy), offer the best upside potential.
Here are four of the seven stocks that made it through the screen:
Pagaya Technologies: Founded in 2016, Pagaya Technologies applies proprietary artificial intelligence (AI) to improve credit decisioning and capital allocation across consumer finance. Over the past 60 days, the Zacks Consensus Estimate for the company’s 2026 earnings has moved up 12.2%. PGY has a VGM Score of A.
Pagaya Technologies beat the Zacks Consensus Estimate for earnings in three of the last four quarters and missed in the other. It has a trailing four-quarter earnings surprise of roughly 29%, on average. PGY shares have dropped 9.6% in a year.
Movado Group: It designs and markets watches and jewelry through owned and licensed brands, supported by global reach, company stores, strong cash reserves and a focus on profitable growth. The Zacks Consensus Estimate for fiscal 2027 earnings of Movado Group indicates 24.6% growth. MOV has a VGM Score of B.
The firm has a market capitalization of around $850 million. Over the past 60 days, the Zacks Consensus Estimate for Movado Group’s fiscal 2027 earnings has gone up 9.2%. MOV’s shares have surged 135.1% in a year.
YPF: YPF is Argentina’s leading integrated energy company, active across production, refining, marketing, and renewables. The Zacks Consensus Estimate for 2026 earnings of YPF indicates 439.5% growth. YPF has a VGM Score of A.
Over the past 60 days, the Zacks Consensus Estimate for YPF’s 2026 earnings has moved up 59.3%. The company has a market capitalization of $21 billion. YPF shares have gone up 53.1% in a year.
Block: Block offers financial and marketing services through a commerce ecosystem that helps sellers start, run and grow their businesses. The company’s expected EPS growth rate for three to five years is currently 31.8%, which compares favorably with the industry's growth rate of 22.1%. XYZ has a VGM Score of B.
Over the past 60 days, the Zacks Consensus Estimate for Block’s 2026 earnings has moved up 6.3%. The Zacks Consensus Estimate for 2026 earnings of the company indicates 62.9% growth. XYZ shares have gained 22.6% in a year.
Momentum investing is essentially an exception to the idea of "buying low and selling high." Investors following this style of investing are usually not interested in betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.
Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead of their future growth potential. In such a situation, investors find themselves loaded up on expensive shares with limited to no upside or even a downside. So, going all-in on momentum could be risky at times.
It could be safer to invest in bargain stocks that have been witnessing price momentum recently. While the Zacks Momentum Style Score (part of the Zacks Style Scores system), which pays close attention to trends in a stock's price or earnings, is pretty useful in identifying great momentum stocks, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced.
There are several stocks that currently pass through the screen and Pagaya Technologies Ltd. (PGY - Free Report) is one of them. Here are the key reasons why this stock is a great candidate.
A dash of recent price momentum reflects growing interest of investors in a stock. With a four-week price change of 6.2%, the stock of this company is certainly well-positioned in this regard.
While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. PGY meets this criterion too, as the stock gained 31.6% over the past 12 weeks.
Moreover, the momentum for PGY is fast paced, as the stock currently has a beta of 5.35. This indicates that the stock moves 435% higher than the market in either direction.
Given this price performance, it is no surprise that PGY has a Momentum Score of B, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success.
In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped PGY earn a Zacks Rank #1 (Strong Buy). Our research shows that the momentum-effect is quite strong among Zacks Rank #1 and #2 stocks. That's because as covering analysts raise their earnings estimates for a stock, more and more investors take an interest in it, helping its price race to keep up. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Most importantly, despite possessing fast-paced momentum features, PGY is trading at a reasonable valuation. In terms of Price-to-Sales ratio, which is considered as one of the best valuation metrics, the stock looks quite cheap now. PGY is currently trading at 0.94 times its sales. In other words, investors need to pay only 94 cents for each dollar of sales.
So, PGY appears to have plenty of room to run, and that too at a fast pace.
In addition to PGY, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.
Click here to sign up for a free trial to the Research Wizard today.
Shares of Pagaya Technologies Ltd. (PGY - Free Report) have gained 6.2% over the past four weeks to close the last trading session at $15.12, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $26.91 indicates a potential upside of 78%.
The average comprises 11 short-term price targets ranging from a low of $20.00 to a high of $33.00, with a standard deviation of $5.13. While the lowest estimate indicates an increase of 32.3% from the current price level, the most optimistic estimate points to a 118.3% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
But, for PGY, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Here's Why There Could be Plenty of Upside Left in PGYAnalysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current year, one estimate has moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 30.4%.
Moreover, PGY currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much PGY could gain, the direction of price movement it implies does appear to be a good guide.
Pagaya Technologies Ltd. (PGY - Free Report) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.
A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.
Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.
As such, the Zacks rating upgrade for Pagaya Technologies Ltd. is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
For Pagaya Technologies Ltd., rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for Pagaya Technologies Ltd.This company is expected to earn $3.23 per share for the fiscal year ending December 2026, which represents no year-over-year change.
Analysts have been steadily raising their estimates for Pagaya Technologies Ltd.. Over the past three months, the Zacks Consensus Estimate for the company has increased 30.9%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Pagaya Technologies Ltd. to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Pagaya Technologies Ltd. (PGY - Free Report) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.
Analysts' growing optimism on the earnings prospects of this company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For Pagaya Technologies Ltd., there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.
The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:
12 Month EPS
Current-Quarter Estimate RevisionsFor the current quarter, the company is expected to earn $0.71 per share, which is a change of +10.9% from the year-ago reported number.
Over the last 30 days, one estimate has moved higher for Pagaya Technologies Ltd. compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 18.87%.
Current-Year Estimate RevisionsFor the full year, the earnings estimate of $3.23 per share represents a change of -2.4% from the year-ago number.
In terms of estimate revisions, the trend for the current year also appears quite encouraging for Pagaya Technologies Ltd.. Over the past month, one estimate has moved higher compared to no negative revisions, helping the consensus estimate increase 30.36%.
Favorable Zacks RankThanks to promising estimate revisions, Pagaya Technologies Ltd. currently carries a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom LinePagaya Technologies Ltd. shares have added 6.2% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. So, you may consider adding it to your portfolio right away to benefit from its earnings growth prospects.
Key Takeaways Pagaya connects lenders and institutional investors, using AI to approve and price consumer loans.In Q1 2026, network volume was $2.6B, with growth largely driven by auto and POS.Pagaya had 30 lending partners and 160 funding partners as of Mar. 31, 2026, supporting ABS. Pagaya Technologies (PGY - Free Report) has built a U.S.-focused platform that sits between lenders and institutional investors. It uses proprietary artificial intelligence (AI) to improve credit decisioning and capital allocation across consumer finance.
The investment case often comes down to whether Pagaya can keep scaling volumes and profitability without loosening credit standards. First quarter results have reflected that balance, with management pointing to fee generation, operating leverage, disciplined spending and funding flexibility as key drivers.
PGY’s Platform Basics: AI Credit at ScalePagaya’s core role is to connect lenders that want to originate loans with institutional investors that want exposure to consumer credit with targeted risk-adjusted outcomes. The platform applies AI to large volumes of real-time and historical data to make informed approval and pricing decisions.
The model is designed to be asset-light. Pagaya originates and structures loans through partners, but sells most of the credit exposure to institutional investors. That reduces capital intensity and balance sheet risk, so revenues are primarily fee-driven rather than dependent on holding loans.
Those fees are tied to technology solutions that support marketing, underwriting and decisioning, paired with capital-efficiency capabilities focused on funding and risk management. PGY’s goal is to scale volumes while keeping credit quality and capital markets execution in view.
Pagaya’s Products: From Personal Loans to POSPagaya started in personal loans and expanded into auto, point of sale (POS) and single-family rental, while also adding credit cards as another market. The broader footprint matters because it diversifies volume sources and helps the network stay resilient when one asset class slows.
That breadth is showing up in the mix. In the first quarter of 2026, network volume was $2.6 billion and growth was largely driven by auto and POS, underscoring momentum beyond personal loans.
Product-led tools are meant to fit across the lending lifecycle. Direct Marketing Engine, Affiliate Optimizer and FastPass are positioned as technology layers that help partners with customer acquisition and conversion, underwriting decisioning and a more integrated workflow.
Sales Estimates
Image Source: Zacks Investment Research
PGY’s Funding Engine: ABS Scale and Investor DepthPagaya finances originations through multiple channels, including securitizations sponsored or administered by Pagaya or affiliates, funds managed or advised by Pagaya or affiliates, and third-party special purpose vehicles under forward-flow arrangements, among similar structures.
A key point is how much of the credit exposure is distributed rather than retained. By selling most exposure to institutional investors, Pagaya can keep its balance sheet relatively asset-light while using capital markets execution to support growth.
Scale and partner breadth are central to that engine. As of March 31, 2026, PGY reported more than 30 lending partners and 160 institutional funding partners supporting its asset-backed securities (ABS) and other funding channels. Since 2018, it has raised more than $36 billion across over 85 ABS transactions, and it raised $2.1 billion in ABS funding across four transactions in the first quarter of 2026.
Pagaya’s Growth Markers: Volumes, Partners, PenetrationPagaya’s network has evaluated more than $3.7 trillion in loan applications since inception, which speaks to the scale of the top-of-funnel data feeding its models and partner workflows.
Management has emphasized expanding the partner base and deepening multiproduct penetration. The company planned to onboard seven to eight new partners by the end of the second quarter of 2026, and it had already onboarded four partners across its three core consumer credit asset classes through May 7, 2026. Multi-year deals with two large partners in auto and personal lending are also intended to support predictability.
Broader adoption can matter as much as new logos. In the first quarter of 2026, revenue from fees increased as partner adoption broadened, with Pagaya adding Experian Activate for personal loans and scaling Affiliate Optimizer and Direct Marketing Engine. The company completed 12 campaigns across five partners, a data point that ties product usage to potential revenue per application over time.
Earnings Estimates
Image Source: Zacks Investment Research
What Moves PGY’s Unit EconomicsInvestors often track revenue from fees less production costs (FRLPC) as a core margin lens. In the first quarter of 2026, FRLPC was $121 million, up 5% year over year, while FRLPC as a percentage of network volume was 4.6%.
That margin can move quickly with funding conditions. Management attributed the year-over-year decline in FRLPC margin to asset-class mix, new partner contributions and tighter pricing on the company’s ABS transactions, reflecting a higher cost of capital and market-driven pricing pressure. When ABS pricing tightens, capital markets execution fees can come under pressure and take rates can compress.
Near-term economics can also be influenced by ramp-up dynamics and underwriting posture. Management deliberately reduced loan production in late 2025 by about $100 to $150 million per month and carried that lower run-rate into early 2026, while application-to-volume conversion stayed below 1% as the company leaned into higher-quality borrowers.
Pagaya: Key Watch List for InvestorsMonitor partner onboarding cadence and the pace at which new relationships translate into network volume, with management positioning new partner ramps as a more meaningful contributor in the back half of 2026.
Watch the auto and POS mix, since mix shifts have been linked to near-term FRLPC pressure. Management expects FRLPC margin of 4-5%, with a tilt toward the lower end due to increased POS mix, new partners and funding mix.
Monitor underwriting selectivity, including whether conversion remains below 1% and how that interacts with volume targets. Follow funding conditions, especially ABS pricing, since tighter pricing has flowed through to lower capital markets execution fees. Finally, look for updates on the single-family rental business path, as management has been evaluating strategic alternatives.
Pagaya’s Price Performance & Zacks RankFor context, Pagaya’s peers in the broader fintech and consumer credit ecosystem include Affirm Holdings (AFRM - Free Report) and LendingClub Corporation (LC - Free Report) .
Over the past three months, shares of PGY have jumped 38.6%, outperforming the industry’s rally of 7.8%. In the same time frame, Affirm Holdings and LendingClub have gained 52.4% and 23.7%, respectively.
3-Month Price Performance
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At present, Pagaya sports a Zacks Rank #1 (Strong Buy), while Affirm Holdings and LendingClub carry a Zacks Rank #3 (Hold) and a Zacks Rank #2 (Buy), respectively. You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Takeaways Pagaya says embedded credit is going mainstream, expanding lender demand in POS and adjacent flows.Pagaya's Q1 2026 network volume hit $2.6B, up 9% YoY, led mainly by auto and POS verticals.Pagaya flagged tighter ABS pricing: FRLPC margin slipped to 4.6%, despite $2.1B ABS raised in Q1. Embedded credit is moving from a niche checkout add-on to a core distribution channel for consumer finance. That shift is expanding the addressable market for lenders that want to meet borrowers where demand originates, especially in point-of-sale (POS) and adjacent flows.
Pagaya Technologies (PGY - Free Report) sits in the middle of that evolution. The company applies proprietary artificial intelligence (AI) to credit decisioning and capital allocation, aiming to help partners drive approvals and pricing that improve risk-adjusted outcomes.
Currently, PGY sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
PGY’s Big Theme: Embedded Credit Goes MainstreamEmbedded credit and POS financing are the secular demand drivers powering PGY’s runway. The company’s pitch is not just distribution, but infrastructure. The platform evaluates large volumes of real-time and historical data to support approval and pricing decisions across multiple consumer credit asset classes.
That matters because embedded channels can scale quickly when lenders find a repeatable way to expand approvals without sacrificing credit performance. Pagaya’s model is built to sell most credit exposure to institutional investors, keeping the balance sheet asset-light while monetizing through fee-based solutions tied to marketing, underwriting, and decisioning.
Pagaya’s Mix Shift: Auto and POS Drive VolumesThe current volume mix shows where the momentum is building. Network volume was $2.6 billion in the first quarter of 2026, up 9% year over year. This was attributed primarily to the auto and POS verticals. That breadth also reinforces that PGY is no longer solely a personal-loan story.
A continued shift toward auto and POS can keep volume growth durable, particularly if deeper penetration at existing partners remains led by auto, while newer initiatives add incremental demand. The tradeoff is that the mix can dilute near-term margins, especially as POS grows faster and new partner contributions ramp.
Sales Estimates
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PGY’s Risk-First Underwriting: Growth With GuardrailsPGY’s current operating posture is shaped by a conservative macro stance. Management’s 2026 framework assumes persistent uncertainty and weaker consumer performance, and it has chosen to protect credit quality even if that caps near-term volume.
That risk-first positioning shows up in production and conversion. The company deliberately reduced its loan production run-rate in late 2025 by roughly $100–$150 million per month, carrying that lower cadence into early 2026. Application-to-volume conversion stayed below 1% in the first quarter, reflecting a deliberate shift toward higher-quality borrowers.
PGY is prioritizing credit outcomes and durability over chasing the last unit of volume. That can make near-term results more dependent on execution and on the pace of partner ramp rather than purely on channel expansion.
Pagaya’s Margin Pressure Point: ABS Pricing and Take RatesThe key swing factor into 2026 is funding economics, particularly in asset-backed securities (ABS) markets. Pagaya has improved funding flexibility by broadening its investor base, and it raised $2.1 billion of asset-backed securities funding across four transactions in the first quarter, including its first auto resecuritization. Still, tighter pricing is the pressure point.
In the first quarter, revenue from fees less production costs (FRLPC) was $121 million, up 5% year over year, but FRLPC as a percent of network volume fell 19 basis points to 4.6%. The contraction of FRLPC as a percent of network volume was mainly due to tighter ABS pricing, higher cost of capital, and mix effects. It is worth noting that tighter pricing flows through lower capital markets execution fees, which can compress take rates if market conditions stay tight.
That is the monitoring item through 2026: whether ABS execution economics stabilize enough to support revenue per unit of volume while PGY continues to scale.
PGY’s Partner Flywheel: New Logos and MultiproductPagaya is leaning on partner growth as the next leg of scaling. Management planned to onboard seven to eight new partners by the end of the second quarter of 2026, and it had already onboarded four partners by May 7, 2026, across its core consumer credit asset classes.
Just as important is monetization per application. Pagaya is pushing multiproduct adoption and product-led tools such as Direct Marketing Engine and Affiliate Optimizer to serve partners across the lending lifecycle. It has also added Experian Activate for personal loans and is scaling marketing and affiliate initiatives, including 12 campaigns completed across five partners. Multi-year deals with two large partners in auto and personal lending add predictability as these tools deepen penetration.
The Wild Card for Pagaya: Single-Family Rental OptionsThe main strategic uncertainty is Pagaya’s single-family rental business. Management is evaluating strategic alternatives for that unit, which introduces questions around capital allocation and adds disclosure complexity.
What to watch next is straightforward: signals on the direction and timing of those strategic alternatives, and whether simplifying the business mix improves transparency while keeping focus on the core consumer credit asset classes.
In the meantime, investors should weigh that uncertainty alongside PGY’s improving profitability trend and its funding-and-take-rate sensitivity as the embedded-credit opportunity expands.
Pagaya’s Price Performance & Zacks RankFor context, Pagaya’s peers in the broader fintech and consumer credit ecosystem include Affirm Holdings (AFRM - Free Report) and LendingClub Corporation (LC - Free Report) .
Over the past three months, shares of PGY have jumped 38.6%, outperforming the industry’s rally of 7.8%. In the same time frame, Affirm Holdings and LendingClub have gained 52.4% and 23.7%, respectively.
3-Month Price Performance
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At present, Pagaya sports a Zacks Rank #1 (Strong Buy), while Affirm Holdings and LendingClub carry a Zacks Rank #3 (Hold) and a Zacks Rank #2 (Buy), respectively. You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Takeaways Pagaya posted Q1 2026 GAAP net income of $24.7M, up from $7.9M, on operating leverage.PGY lifted 2026 GAAP net income guidance to $110M-$160M and revenue to $1.4B-$1.575B.Pagaya raised $2.1B of ABS across four deals and completed its first auto resecuritization. Pagaya Technologies (PGY - Free Report) is leaning into a different narrative in 2026: scaling profits without loosening credit standards. The first quarter reinforced that shift, with another GAAP profit and clear evidence of operating leverage.
Management also raised its full-year GAAP net income outlook, while pointing to fee generation, disciplined spending, and a more durable funding playbook as key supports.
PGY’s Q1 Takeaways: Profits and Operating LeverageFirst-quarter 2026 adjusted earnings of 73 cents beat the Zacks Consensus Estimate of 48 cents, as profitability improved year over year. GAAP net income attributable to Pagaya rose to $24.7 million from $7.9 million in the prior-year quarter.
The setup was straightforward: total revenues and other income increased 9.6% year over year to $317.9 million, while total costs and operating expenses declined 1.8% to $237.9 million. Lower technology, data and product development costs, along with lower general and administrative costs, helped drive that expense improvement.
The first quarter fits into a broader operating leverage trend. Revenue growth has been outpacing expense growth, helping margins improve and supporting a profitability streak into 2026. Operational efficiencies and tighter cost discipline have been reinforced by better performance in personal loans and auto lending, keeping spending in check as the platform scales.
Pagaya’s 2026 Outlook: What Changed and WhyManagement raised full-year 2026 GAAP net income guidance to $110-$160 million, up from $100-$150 million previously. Adjusted EBITDA guidance was also updated to $420-$460 million from $410-$460 million.
The company also expects 2026 network volume of $11.45-$13 billion, with the lower end lifted by about $200 million versus prior guidance, and total revenues projected at $1.4-$1.575 billion.
For the second quarter, management projects network volume of $2.875-$3.075 billion and total revenues of $345-$365 million, alongside adjusted EBITDA of $100-$115 million and GAAP net income of $25-$45 million.
The drivers behind the higher net income outlook center on fee generation, operating leverage, and disciplined spending. At the same time, management continues to factor in a conservative macro stance and selective underwriting, which can temper near-term volume even as profitability improves.
Earnings Estimates
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PGY’s Near-Term Setup: Strong Buy Signal and Style ScoresPagaya sports a Zacks Rank #1 (Strong Buy), which is designed to be most effective over a one- to three-month holding horizon by capturing earnings estimate revision trends. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Style Scores add another layer of near-term support. A VGM Score of A, paired with a Value Score of A, suggests the shares screen well across value and blended factor frameworks. Growth and Momentum scores of B indicate a supportive, though not extreme, factor backing those dimensions.
Context matters in this peer group. Affirm Holdings, Inc. (AFRM - Free Report) and Upstart Holdings, Inc. (UPST - Free Report) both carry a Zacks Rank #3 (Hold) in the same industry comparison set. This highlights how Pagaya’s near-term rating profile stacks up compared with other consumer finance platforms.
Pagaya’s Funding Flexibility: Stress-Test EvidenceFunding durability is central to Pagaya’s model, and the first quarter delivered tangible proof points. The company raised $2.1 billion of asset-backed securities (ABS) funding across four transactions despite market volatility and completed its first auto resecuritization.
These steps matter because PGY’s approach is built around expanding securitization capacity and adding new investors, supporting an upfront model that raises cash before loans are originated. A broader institutional funding partner base is intended to reduce volatility and improve execution resilience when markets get choppy.
The trade-off is that funding costs remain a swing factor. Tighter ABS pricing can compress take rates and pressure revenue per unit of volume, making capital markets conditions an ongoing variable to watch even with improved funding flexibility.
Valuation Lens for PGY: Tangible Book ContextOn valuation, the key anchor is tangible book value. Pagaya has been trading at 2.65X trailing 12-month tangible book value, compared with 4.23X for the industry.
History shows a wide range. Over the past three years, the stock has traded as high as 8.03X and as low as 0.83X tangible book, with a three-year median of 1.84X.
P/TB TTM
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For investors, that context frames the current multiple as neither a peak nor a trough versus its own range, while keeping the focus on whether profitability and funding execution can justify holding above the longer-term median.
In comparison, Affirm Holdings and Upstart Holdings are trading at a premium to PGY. At present, Affirm Holdings and Upstart Holdings are trading at a trailing 12-month tangible book value of 7.87X and 4.89X, respectively.
Decision Checklist: What Would Change the CallFirst, track whether Pagaya can sustain GAAP profitability beyond a single quarter and keep operating discipline intact as volumes scale.
Second, monitor the FRLPC trend versus expectations. FRLPC as a percentage of network volume was 4.6% in the first quarter, and the company expects a 4-5% range for 2026 while trending toward the lower end due to point-of-sale mix, new partners, and funding mix.
Third, watch stability in funding costs and ABS execution economics, since tighter pricing can squeeze take rates.
Fourth, execution on partner ramps matters, with management targeting additional onboarding and framing ramps as more back-half weighted. Finally, keep an eye on concentration risk, including the contribution from a related-party customer that represented about 20% of total fee revenues in the first quarter.
NEW YORK--(BUSINESS WIRE)-- #creditratingagency--KBRA assigns preliminary ratings to 13 classes of notes issued by Pagaya AI Debt Grantor Trust 2026-4 and Pagaya AI Debt Trust 2026-4, collectively “PAID 2026-4,” an unsecured consumer loan ABS transaction. PAID 2026-4 has initial hard credit enhancement levels ranging from 83.97% for the Class A-1 Notes to 4.05% for the Class F-2 Notes. Credit enhancement is comprised of overcollateralization, subordination, except for the Class F-2 Notes, cash reserve accounts funde.
Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:
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Pagaya Technologies Ltd. (PGY - Free Report) : This company, which applies proprietary artificial intelligence (AI) to improve credit decisioning and capital allocation across consumer finance, has seen the Zacks Consensus Estimate for its current year earnings increasing 12.2% over the last 60 days.
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The Estee Lauder Companies (EL - Free Report) : This company, which is one of the world's leading manufacturers and marketers of skin care, makeup, fragrance and hair care products, has seen the Zacks Consensus Estimate for its current year earnings increasing 7.6% over the last 60 days.
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You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Here are three stocks with buy rank and strong value characteristics for investors to consider today, June 5th:
Upbound Group, Inc. (UPBD - Free Report) : This company, which is a leading lease-to-own provider with operations in the United States, Puerto Rico and Mexico, carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 0.5% over the last 60 days.
Upbound Group has a price-to-earnings ratio (P/E) of 4.39 compared with 10.80 for the industry. The company possesses a Value Score of A.
Pagaya Technologies Ltd. (PGY - Free Report) : This company, which applies proprietary artificial intelligence (AI) to improve credit decisioning and capital allocation across consumer finance, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 12.2% over the last 60 days.
Pagaya Technologies has a price-to-earnings ratio (P/E) of 4.79 compared with 7.50 for the industry. The company possesses a Value Score of A.
Columbia Sportswear (COLM - Free Report) : This company, which engages in the sourcing, marketing and distribution of outdoor and active lifestyle apparel, footwear, accessories and equipment in the U.S. and internationally, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 11.6% over the last 60 days.
Columbia Sportswear’s has a price-to-earnings ratio (P/E) of 16.81 compared with 17.40 for the industry. The company possesses a Value Score of B.
See the full list of top ranked stocks here.
Learn more about the Value score and how it is calculated here.
