Workhorse Group (WKHS -2.54%), a maker of electric commercial vehicles targeting last-mile delivery fleets, released its second-quarter 2025 results on August 15, 2025. The company reported GAAP revenue of $5.7 million in Q2 2025, exceeding the consensus GAAP estimate of $2.3 million, and a GAAP net loss per share of $(1.67), which was $2.31 per share better than the expected $(3.98) GAAP loss. Despite these beats, Workhorse continued to report negative gross margins (GAAP) and a loss for the quarter. Overall, this quarter showed progress on truck deliveries and cost controls, but also highlighted persistent structural challenges in scaling the business to profitability.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | $(1.67) | $(3.98) | $(17.45) | 90.4 % |
| Revenue (GAAP) | $5.7 million | $2.3 million | $0.8 million | 585.6 % |
| Gross Loss | $(7.4 million) | $(6.5 million) | (13.8 %) | |
| Selling, General & Administrative Expenses | $5.8 million | $12.1 million | (51.7 %) | |
| Research & Development Expenses | $1.2 million | $2.0 million | (37.8 %) |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
What Workhorse Group Does and Its Current Priorities
Workhorse Group (WKHS -2.54%) designs and builds electric delivery trucks for commercial fleets, with a special focus on last-mile logistics. It also develops drone technologies, but its W56 series of step vans is now the core product.
The company's recent focus has been on delivering commercial vehicles that cater to fleet operators seeking both operational efficiency and zero-emission solutions. Key success factors include steady technological progress in its vehicles, compliance with clean vehicle regulations, growing customer adoption, competitive product positioning, and ongoing access to capital for scaling the business. Demonstrating reliable in-field performance and building a nationwide dealer and service network have also been recent priorities.
Quarter in Review: Deliveries, Product Progress, and Financials
During the second quarter of 2025, Workhorse reported a significant improvement in top-line results. GAAP revenue more than doubled analyst expectations, rising from $0.8 million in the second quarter of 2024 to $5.7 million in the same period of 2025. This jump was driven by higher deliveries of the W56 step van, which is an all-electric delivery vehicle targeted at last-mile fleet operators.
The company shipped 32 W56 trucks in Q2 2025—a record for Workhorse—after securing 36 purchase orders. According to management, “the continued demand we are seeing for our high-quality trucks further demonstrates the critical role Workhorse plays in the last mile delivery market.”” In total, over 60 Workhorse vehicles are now in customer and partner fleets, with these delivered vehicles logging more than 212,000 miles as of Q2 2025, achieving 97% uptime in various regional conditions. The launch of new upfit versions, including integration of the widely recognized Utilimaster Aeromaster walk-in van body, signals efforts to broaden the product's appeal among commercial buyers.
Operationally, the company made clear progress on cost management. Selling, general, and administrative expenses (GAAP) were reduced by approximately 52.1% year over year in Q2 2025. Research and development costs declined 40% in Q2 2025. These reductions resulted primarily from lower headcount and streamlined spending. Despite growing sales, cost of sales (GAAP) also increased in Q2 2025, resulting in a gross loss of $7.4 million (GAAP). Management noted higher inventory reserves, including a $1.8 million charge for excess and obsolescence in Q2 2025, highlighting ongoing unprofitability at the product level.
Cash management remains a major focus, as unrestricted cash stood at just $2.2 million at the end of Q2 2025. The company completed $20 million in sale-leaseback financing for its Union City facility and raised an additional $5 million through secured convertible notes during Q2 2025. These deals, along with earlier conversions of notes into common shares, aim to support operations until a planned merger with Motiv Electric Trucks. At the close of this pending merger, management expects to retire existing secured debt, leaving only a $5 million convertible note as a balance sheet obligation. The company's continued reliance on interim financing underscores the importance of the merger for financial stability. Sale-leaseback, which involves selling an asset and then leasing it back from the buyer, provided immediate liquidity but reflects the tight cash position.
Workhorse did not declare or adjust a dividend for the quarter.
The company continued to stress its track record of technological innovation. The W56 now offers configurations with both 178-inch and 208-inch wheelbases, as well as the classic Aeromaster van body. Actual field data from customer fleets—over 212,000 miles accumulated with 97% uptime as of Q2 2025—serves as a key metric for prospective buyers focused on dependability. These expanded configurations and documented performance benchmarks enable Workhorse to address diverse customer needs in parcel delivery, municipal services, and other commercial applications.
Looking Forward: Outlook and Considerations
Management did not provide detailed financial or delivery guidance for the next period or for fiscal 2025. Company leadership continues to emphasize operating efficiency, cash preservation, and successful execution of the Motiv Electric Trucks merger as immediate strategic priorities.
Looking ahead, investors should monitor three factors: the ability of Workhorse to ramp production volume further, margin improvements as operations scale, and the company’s cash position as post-merger integration with Motiv progresses.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
