Worksport Hits 35% May Gross Margin, Secures Meyer Distribution for $36M+ Run Rate
WKSP•Worksport achieved a record 35% gross margin in May 2026, up 660 basis points from Q1, despite a 50% rise in aluminum costs. It also secured Meyer Distributing as a national partner and targets a $36 million+ annualized revenue run rate through expanding B2C and B2B channels.
1. Record May Gross Margin
Worksport reported a preliminary 35% gross margin in May 2026, up from 28.4% in Q1 and just 11% in December 2024, driven by improved production efficiency, cost discipline, pricing strength and operating scale. This margin milestone, achieved despite a 50% increase in U.S. aluminum costs over two years, reduces the quarterly revenue needed for cash-flow positivity to roughly $9 million.
2. Meyer Distributing Partnership
The company secured Meyer Distributing as its first multinational distribution partner, receiving an initial purchase order for tonneau covers. With over 3.5 million sq. ft. of warehouse space and a network spanning the U.S., Canada and select international markets, this partnership enhances recurring B2B orders from thousands of dealers and installers.
3. $36M+ Annualized Revenue Opportunity
Current B2C sales track near $1 million per month (≈$12 million annualized) and B2B at $0.7 million per month (≈$8.4 million annualized). With Meyer, Tri-State Enterprises, Patriot Auto and other dealer relationships ramping, management forecasts B2B run rate expanding toward $24 million, supporting a combined revenue run rate above $36 million.
4. Near-Term Cash-Flow Positivity Path
Following a premium-priced direct investment, management highlights product launches, expanding distribution and margin expansion as drivers toward operational cash-flow positivity within 2026. The company plans ongoing updates on B2B onboarding, margin progression and revenue conversion as it scales its commercial platform.
