1847 Holdings LLC reported significant financial improvements in its latest 10-Q filing for the third quarter of 2025, showcasing a substantial increase in revenue and a return to profitability. For the three months ended September 30, 2025, the company generated revenues of $13.6 million, a 256% increase from $3.8 million in the same period last year. The nine-month revenue figures also reflected a strong performance, totaling $36.5 million compared to $8.6 million in 2024. The company attributed this growth primarily to the acquisition of CMD, which contributed approximately $11.8 million to quarterly revenues.
The company's operating expenses for the third quarter were $10.9 million, up from $7.1 million a year earlier, largely due to increased costs associated with the CMD acquisition. Notably, the cost of revenues surged to $6.9 million, representing 50.9% of total revenues, compared to 37.5% in the prior year. Despite the rise in expenses, 1847 Holdings reported an operating income of $2.6 million, a significant turnaround from an operating loss of $3.3 million in Q3 2024. The net income from continuing operations reached $32.6 million, compared to a loss of $5.4 million in the previous year, driven by gains in the fair value of warrant liabilities.
Operationally, 1847 Holdings has been undergoing strategic changes, including the decision to sell its automotive supplies segment, Wolo, which is classified as held for sale. This strategic shift is expected to have a major impact on the company's operations and financial results. The company also reported a total current asset increase to $16 million, up from $12.6 million at the end of 2024, while total liabilities decreased significantly to $76.7 million from $130.1 million, reflecting a reduction in warrant liabilities.
Looking ahead, 1847 Holdings faces challenges related to liquidity, with a working capital deficit of $54.4 million as of September 30, 2025. The company has indicated that it will need to secure additional financing to sustain operations and meet obligations. Management plans to address these concerns by pursuing debt and equity offerings, while also implementing cost controls to conserve cash. The company’s ability to continue as a going concern is contingent upon successfully executing these plans and achieving profitable operations in the future.
About 1847 Holdings LLC
1847 Holdings LLC is an acquisition holding company focused on acquiring and managing small businesses with enterprise values under $50 million across various industries in North America. The company targets fragmented markets with significant growth potential, aiming to enhance shareholder value through strategic acquisitions and operational improvements. With a robust management team and a disciplined acquisition strategy, 1847 Holdings seeks to capitalize on opportunities in business services, consumer products, and specialty finance.
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