Workhorse Group Inc. Reports Revenue Decline and Increased Net Loss for Fiscal Year 2024

Workhorse Group Inc. reported a significant decline in financial performance for the fiscal year ending December 31, 2024, with revenues of $6.6 million, down from $13.1 million in 2023. The company incurred a net loss of $101.8 million, compared to a loss of $123.9 million the previous year. This decrease in losses was attributed to cost-saving measures, including a reduction in operating expenses, which fell from $80 million in 2023 to $51.7 million in 2024. The company also noted a decrease in cost of sales, which dropped from $38.4 million to $28.8 million, primarily due to lower sales of its W4 CC vehicle.

In terms of strategic developments, Workhorse has focused on enhancing its product offerings and expanding its market presence. The company continued to develop its W56 vehicle platform and launched the W750 model, which is expected to be available in Canada in 2025. Additionally, Workhorse has been working on its Stables by Workhorse initiative, which involves electrifying its delivery fleet to gather data on operational efficiencies and customer needs. The company also divested its Aero drone business to concentrate on its electric vehicle operations, resulting in an estimated monthly cost saving of $0.4 million.

Operationally, Workhorse faced challenges with customer demand and market conditions, leading to a decrease in vehicle sales. The company reported a total inventory of $41.8 million as of December 31, 2024, down from $45.4 million in the previous year. The workforce was also reduced by approximately 20% in early 2024, with 73 employees furloughed at one point, although some have since been reinstated. As of the end of 2024, Workhorse had 143 full-time and seasonal employees, reflecting ongoing efforts to manage costs amid lower-than-expected market demand.

Looking ahead, Workhorse's ability to continue as a going concern is uncertain, as it faces substantial doubt regarding its liquidity and capital resources. The company has outlined plans to improve its financial position, including increasing vehicle sales, reducing expenses, and securing additional financing through its 2024 Securities Purchase Agreement. However, the company acknowledged that its revenues are unlikely to meet liquidity requirements in the near term, and it may need to seek further adjustments to its operations or consider bankruptcy protection if it cannot secure necessary funding. The evolving regulatory landscape, particularly under the new Presidential Administration, adds further uncertainty to the company's outlook and market conditions.