1847 Holdings LLC reported a significant decline in financial performance for the first quarter of 2026, with revenues dropping to $1.17 million from $2.77 million in the same period last year. The company experienced a net loss of $3.45 million, compared to a loss of $0.42 million in the prior year. This downturn is attributed to reduced revenues across its segments, particularly in its construction operations and automotive supplies, as well as increased operating expenses.
The company's total operating expenses decreased to $1.97 million from $4.19 million year-over-year, primarily due to lower costs associated with revenues and a reduction in professional fees. However, the cost of revenues still accounted for 64.5% of total revenues, reflecting a gross profit of $414,971, down from $1.23 million in the previous year. The decline in revenues was particularly pronounced in the automotive supplies segment, where revenues fell by 92.6% to $66,878, as the company transitioned its business model to focus on e-commerce.
In terms of operational changes, 1847 Holdings has initiated a strategic shift by classifying CMD Inc. and CMD Finish Carpentry LLC as held-for-sale, reflecting a decision to sell these subsidiaries. This move is expected to have a significant impact on the company's operations and financial results. The company has entered into a non-binding letter of intent for the sale of CMD, which could generate proceeds sufficient to address a substantial portion of its outstanding debt obligations.
As of March 31, 2026, 1847 Holdings reported total assets of $33.27 million, a decrease from $34.16 million at the end of 2025. The company’s liabilities increased to $66.16 million, resulting in a shareholders' deficit of $32.88 million. The company’s cash and cash equivalents rose to $534,868 from $263,691, but it faces substantial doubt about its ability to continue as a going concern due to significant near-term debt maturities and a working capital deficit of $34.20 million.
Looking ahead, management plans to secure additional capital through debt and equity financing, explore refinancing options, and implement cost reductions. The company remains focused on executing its strategy to improve operational performance and stabilize its financial condition, although it acknowledges the challenges posed by current market conditions and the need for successful execution of its plans.
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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