1847 Holdings Reports Significant Decline in Revenue and Net Loss for Q2 2026

1847 Holdings LLC reported a significant decline in financial performance for the second quarter of 2026, with revenues totaling $1.57 million, down 12.5% from $1.79 million in the same period of 2025. For the first half of 2026, revenues decreased by 40% to $2.74 million compared to $4.56 million in the first half of 2025. The company incurred a net loss of $6.79 million for the quarter, contrasting sharply with a net income of $22.53 million in the prior year. The loss attributable to common shareholders for the first six months of 2026 was $10.32 million, compared to a profit of $22.05 million in the same period of 2025.

The financial statements reveal a notable increase in operating expenses, which reached $2.03 million for the second quarter of 2026, compared to $2.85 million in the same quarter of 2025. This increase was driven by higher costs across various categories, including personnel and general administrative expenses. The company reported a loss from operations of $458,526 for the second quarter, an improvement from a loss of $1.06 million in the same quarter of the previous year. However, the overall financial health of the company remains concerning, with an accumulated deficit of $119.92 million as of June 30, 2026.

Strategically, 1847 Holdings is undergoing significant changes, including the decision to sell CMD Inc. and CMD Finish Carpentry LLC, which have been classified as discontinued operations. This strategic shift is expected to have a major impact on the company's operations and financial results. The assets and liabilities associated with CMD are now presented as held-for-sale, reflecting the company's intent to divest these segments. The company is also evaluating multiple non-binding offers for CMD, which, if successful, could provide necessary capital to address its outstanding debt obligations.

Operationally, the company has seen a decrease in customer engagement, with revenues from its construction operations, primarily from cabinetry and millwork, totaling $1.46 million in the second quarter of 2026, down from $1.55 million in the same quarter of 2025. The automotive supplies segment, represented by Wolo, generated $107,619 in revenue, a decline from $208,447 in the prior year. The company’s total current liabilities increased to $71.31 million as of June 30, 2026, up from $57.67 million at the end of 2025, indicating growing financial pressures.

Looking ahead, 1847 Holdings has expressed concerns regarding its liquidity and ability to meet obligations over the next twelve months. Management plans to secure additional capital through debt and equity financing, explore refinancing options, and implement cost-cutting measures. The company is actively pursuing the sale of CMD, which it believes could significantly alleviate its debt burden. However, management has acknowledged that there is substantial doubt about the company's ability to continue as a going concern, emphasizing the need for successful execution of its strategic plans to stabilize its financial position.