1847 Holdings Reports 383.7% Revenue Growth to $10.1 Million, Net Loss Improves

1847 Holdings LLC reported significant financial developments in its latest 10-Q filing for the quarter ending March 31, 2025. The company achieved revenues of $10.1 million, a substantial increase of 383.7% compared to $2.1 million in the same period last year. This growth was primarily driven by the acquisition of CMD Inc., which contributed approximately $8.2 million to the revenue figures. Despite the increase in revenue, the company reported a net loss of $416,000, a notable improvement from a net loss of $10.4 million in the prior year, indicating a positive trend in operational efficiency.

The company's operating expenses also rose, totaling $10.2 million for the quarter, up from $5.3 million in the previous year. The increase in expenses was largely attributed to the costs associated with the CMD acquisition, which included higher costs of revenues and personnel expenses. Cost of revenues increased to $4.9 million, while personnel costs rose to $1.7 million, reflecting the integration of CMD's workforce. However, as a percentage of revenue, the cost of revenues decreased from 56.7% to 48.3%, suggesting improved operational efficiency.

In terms of strategic developments, 1847 Holdings is actively pursuing the sale of its automotive supplies segment, Wolo Mfg. Corp., which is expected to be completed in 2025. This decision is part of a broader strategy to streamline operations and focus on its construction segment, which now represents the company's primary business. The company also reported a significant reduction in professional fees, which fell to $2.1 million from $2.5 million, indicating a shift in operational focus and cost management.

Operationally, the company reported a cash and cash equivalents balance of $1.1 million as of March 31, 2025, down from $2.5 million at the end of 2024. The total liabilities decreased slightly to $127.9 million from $130.1 million, while the shareholders' deficit improved to $95.6 million from $96.5 million. The company continues to face challenges related to liquidity, with a working capital deficit of $111 million, raising concerns about its ability to sustain operations without additional financing.

Looking ahead, 1847 Holdings management has indicated plans to secure additional financing through debt and equity offerings to support ongoing operations and potential acquisitions. The company remains focused on improving its financial position and operational efficiency, with expectations of continued revenue growth from its construction segment. However, the ability to execute these plans is contingent upon favorable market conditions and successful integration of acquired businesses.