WKHS

Workhorse is a pre-viability commercial-EV manufacturer that loses money on the vehicles themselves: FY2025 gross profit was -$9.55M on $21.2M revenue, a -45% gross margin, before a dollar of opex. Operating margin was -223.7% and net margin -302.1%, producing a -$64.1M net loss and a -$148.9% ROE against a $319M accumulated deficit. The headline +201% revenue growth is not organic momentum — the MD&A discloses the Dec 15, 2025 reverse merger with Motiv, where Motiv was the accounting acquirer, so FY2025 'Workhorse' results are effectively Motiv's history plus a few weeks of legacy Workhorse. That makes the growth optically strong but non-comparable, and it coincided with 103.9% share dilution (shares now 10.4M) that mechanically halves any per-share claim.

The balance sheet is the disqualifier. Cash is $12.9M against -$35.6M of operating cash outflow — under five months of runway on its own. Survival depends entirely on the controlling shareholder, MGMH (Motiv's former lead creditor, now Workhorse's controlling stockholder), via the December 2025 Credit Agreements: up to $40M tied to qualified purchase orders (advances capped at 70% of vehicle price and gated on MGMH's approval) plus a $10M working-capital line at SOFR+margin. This is lifeline financing on an insider's terms, not a sign of independent creditworthiness, and it structurally subordinates common holders. Liabilities/equity is 1.74x and $15.4M of debt is current.