Workhorse Group (NASDAQ:WKHS) reported higher first-quarter revenue as vehicle deliveries increased, while executives said the company is advancing integration work following its merger with Motiv and moving ahead with new product initiatives aimed at lowering electric truck costs.
On the company’s Q1 2026 earnings call, CEO Scott Griffith said Workhorse is focused on three commitments made at the close of the merger: completing integration, expanding the product portfolio and strengthening the company’s financial position. He said the first quarter showed “measurable progress” across those priorities.
Revenue Rises as Deliveries Increase
CFO Bob Ginnan said Workhorse generated $4.3 million in revenue in the first quarter of 2026, compared with $1.1 million in the prior-year period. The company delivered 21 vehicles during the quarter, up from five vehicles a year earlier.
Ginnan cautioned that year-over-year comparisons are not fully comparable because the 2025 period reflected only Motiv, which was treated as the accounting acquirer in the reverse merger. The first-quarter 2026 results reflect three full months of the combined Workhorse and Motiv operation.
Cost of sales rose to $11.8 million from $2.2 million a year earlier, resulting in a gross loss of $7.5 million. Ginnan said costs were higher due to increased sales volume and a changed cost structure as Workhorse now operates its own manufacturing facility, compared with Motiv’s prior use of contract manufacturers.
The quarter also included a $1.5 million warranty charge, primarily tied to a retrofit campaign for certain Motiv trucks previously sold in Canada. Ginnan said costs for that campaign were higher than originally estimated, requiring an increase in reserves.
Selling, general and administrative expenses were $9.5 million, compared with $4.3 million in the prior-year quarter. Research and development expenses were $4.1 million, compared with $3.7 million a year earlier, with the increase attributed to higher employee costs tied to strategic R&D investments, including efforts to lower vehicle bill-of-material costs.
Workhorse reported a loss from operations of $21.1 million, compared with a loss of $9.1 million in the first quarter of 2025. Net loss was $19.9 million, or $0.99 per basic and diluted share, compared with a net loss of $12.7 million, or $1.36 per share, in the prior-year period. The latest quarter included a $1.7 million non-cash gain related to the change in fair value of stock rights.
Integration and Cost Synergies Remain a Focus
Griffith said Workhorse now has three production lines operating in Union City: the W56 step van line, a new F59 chassis line and the integrated EPIC4 production line. He said hardware and software platform commonization is continuing across engineering, while supply chain optimization is underway.
The company is also reducing outside integration support and winding down the interim transition team used during the early stages of the merger integration.
Ginnan said Workhorse remains on track to achieve its previously outlined synergy targets. Griffith reiterated that the company expects to exit 2026 at a $20 million annualized cost synergy run rate.
New Product Roadmap Targets Lower EV Costs
Griffith used the call to emphasize that Workhorse believes medium-duty commercial electric vehicles are moving beyond the proof-of-concept stage and into broader deployment in certain use cases, including last-mile delivery, municipal fleets, school buses, shuttles and yard operations.
He said the central question is no longer whether electric trucks work in large segments of the medium-duty market, but how quickly the industry can reach a tipping point where software-defined electric trucks become more common.
To help address the upfront price gap between electric and internal combustion engine vehicles, Griffith said Workhorse is developing a new proprietary modular chassis design to be produced exclusively at the Union City plant. The design is expected to support flexible wheelbase configurations, advanced battery and axle technologies and next-generation software and power electronics.
Griffith said Workhorse plans to begin testing and validation later in 2026, with initial production expected in early 2027.
The company is also planning its first Class 5/6 cab chassis, which Griffith said will pair the modular chassis with a lightweight, lower-cost cab design intended for efficient upfitting. Testing and validation are expected to begin in 2026, with a planned start of production in early 2027.
Orders and Pricing Actions Support Demand Outlook
During the quarter, Workhorse announced two 100-unit purchase orders. Griffith said Purolator, a long-standing customer, completed its fourth order from the company with a purchase order for 100 new step vans. Workhorse also announced a 100-unit purchase order from Gateway Fleets through dealer Kingsburg Truck Center.
Griffith said Gateway’s lease-based model bundles the truck, charging infrastructure, fleet support and depot access, which can reduce upfront cost barriers for commercial delivery operators.
Workhorse also continued selling W56 step vans to independent service providers contracted with FedEx for last-mile package delivery. Griffith said the company now has 75 vehicles either deployed or on order for near-term delivery to ISPs operating in several states.
In response to an analyst question, Griffith said recent promotional pricing on the 210-kilowatt W56 step van was a factor in Gateway’s order. He said pricing reductions are likely to occur in steps as Workhorse lowers its cost structure, including through the planned modular chassis.
“I don’t think the Gateway order would have happened without that promotional pricing,” Griffith said.
Griffith also said higher fuel costs have increased inbound customer interest, though he said Workhorse had not yet received orders directly attributable to recent gas price changes.
Liquidity Strengthened After Quarter-End
Ginnan said Workhorse strengthened its liquidity position after the quarter ended. On April 1, the company drew $7.3 million under its customer order credit agreement, bringing total outstanding under that facility to $12.3 million.
In April, Workhorse also amended its credit agreement, increasing borrowing capacity under its cash flow agreement to $20 million and decreasing capacity under its customer order credit agreement to $30 million. The company then drew an additional $10 million under the cash flow credit agreement.
As of the filing date of the company’s Form 10-Q, Ginnan said Workhorse had $17.7 million available to borrow under the customer order credit agreement.
Workhorse also entered into a settlement agreement in April to resolve previously disclosed litigation with Coulomb Solutions, Inc. The settlement provides for dismissal of the matter in exchange for a $4.3 million payment, which Ginnan said the company expects to fund through borrowings under its customer order credit agreement.
The company did not provide specific financial guidance. However, Griffith said Workhorse expects deliveries to increase over the course of 2026 as production ramps at Union City and the company converts its order pipeline into revenue.
About Workhorse Group (NASDAQ:WKHS)
Workhorse Group Inc is a U.S.-based technology company specializing in the design and manufacture of electric vehicles and drone-integrated delivery solutions. Founded in 2007 and headquartered in Loveland, Ohio, Workhorse focuses on last-mile delivery, combining electric powertrain systems, advanced telematics and proprietary composite bodies to address the growing demand for sustainable logistics fleets.
The company’s core product lineup includes the N-GEN™ chassis, a modular electric vehicle platform available in Class 3–5 configurations, and the C-1000™ all-electric delivery van.
