Workhorse Group Inc. Annual Report: A Simple Breakdown

I’ve put together this guide to help you understand how Workhorse Group performed this year. Instead of digging through dense filings, we’ll look at what is actually happening with the company, their financial health, and what you should watch as an investor.

1. What does this company do?

Workhorse builds electric delivery trucks and buses in the U.S. They help businesses replace gas-powered fleets to save on fuel and maintenance. After merging with Motiv Power Systems in December 2025, they now offer a wider range of vehicles, including step vans and shuttle buses. They are currently combining operations to become more efficient. Their main products—the W4 CC, W750, and the Motiv-integrated EPIC chassis—target last-mile delivery companies and shuttle operators.

2. Financial performance: A year of restructuring

The company is in a "survival" phase. For the year ending December 31, 2025, Workhorse reported $12.5 million in revenue. This is a significant drop from previous years as they changed their manufacturing strategy. They are spending much more on research and overhead than they earn from sales, leading to a $115 million loss. To stay afloat, they made major changes in 2025:

• The Merger: By joining with Motiv, they aim to save $15 million annually by late 2026. They plan to do this by sharing technology, combining dealer networks, and streamlining supply chains.
• Stock Split: In December 2025, they performed a 1-for-12 reverse stock split. This combined shares to raise the price per share, helping them stay listed on the Nasdaq.
• Debt Shuffle: They paid off high-interest debt and secured $50 million in new credit from their majority owner, MGMH. This loan has a variable interest rate and is backed by almost all company assets, including their inventory and patents.

3. Financial health: The "Going Concern" warning

Management has officially stated there is "substantial doubt" about the company’s ability to stay in business over the next 12 months.

They are not yet self-sustaining. As of December 31, 2025, they had about $8.2 million in cash. Their survival depends on selling more vehicles, cutting costs, and successfully using their $50 million credit line. Because their market value is low, they cannot easily raise money by selling more shares. This forces them to rely on debt, which increases their interest payments.

4. Key risks

• Cash Flow: The company burns through $7 million to $9 million every month. If they don't produce at least 500 units annually to unlock their credit lines, they may face bankruptcy.
• Customer Concentration: Three customers provide 60% of their revenue. Losing even one contract could trigger a cash crisis.
• Operational Hurdles: Moving manufacturing to their Indiana facility is expensive. They also face supply chain issues, especially with battery cells and power electronics, which make up 45% of their material costs.

5. Future outlook

The goal for next year is survival. Management is focused on:

• Increasing sales to reach $30 million to $40 million in revenue.
• Cutting production costs by 20% using Motiv’s software and parts.
• Using new credit to keep at least $10 million in the bank while aiming to break even by late 2026.

Bottom line: Workhorse is a high-risk bet on electric commercial transport. They have new financing and a partner in Motiv, but they are fighting for their financial life. Success requires perfect execution in a volatile market. Before investing, consider if you are comfortable with a company that is currently relying on debt to fund its operations while working toward a break-even point that is still a year away.