American Rebel Holdings Reports 21% Revenue Decline and Significant Net Loss in Q1 2026

American Rebel Holdings, Inc. reported a significant decline in financial performance for the first quarter of 2026, with revenues of $1,985,191, down 21% from $2,511,324 in the same period of 2025. The company also experienced a gross margin loss of $394,045, compared to a gross profit of $289,054 in the prior year. This downturn is attributed to slower sales and increased costs of goods sold, which rose to $2,379,236, reflecting a 7% increase from the previous year. The net loss for the quarter was $6,854,231, resulting in a loss per share of $(71.28), compared to a net loss of $5,059,256 and a loss per share of $(937,997.93) in the first quarter of 2025.

In terms of operational changes, American Rebel Holdings has been actively pursuing strategic initiatives, including the launch of its American Rebel Beer, which debuted in 2024. The company has also formed a new subsidiary, American Rebel Licensing NIL I, Inc., to explore licensing opportunities, although it has not yet generated significant revenue from this venture. The company’s marketing expenses surged by 81% to $1,259,798, driven by efforts to promote its beer and other products, indicating a focus on brand awareness despite the overall revenue decline.

The company’s balance sheet reflects a working capital deficit of $16,697,295 as of March 31, 2026, an improvement from a deficit of $20,321,313 at the end of 2025. Total assets decreased to $30,724,380 from $31,823,595, primarily due to a reduction in cash and cash equivalents, which increased to $475,793 from $147,586. The company’s liabilities also decreased significantly, from $27,441,824 to $23,538,582, largely due to a reduction in working capital loans.

American Rebel Holdings has faced challenges in maintaining compliance with Nasdaq listing requirements, receiving a notice in February 2026 regarding its failure to maintain a minimum bid price for its common stock. Following a reverse stock split on March 23, 2026, the company was unable to meet the minimum requirement for publicly held shares, leading to a halt in trading. The company has appealed the delisting decision, but as of May 12, 2026, it was informed that its request to continue listing on Nasdaq was denied.

Looking ahead, American Rebel Holdings anticipates continued investment in inventory, marketing, and product development as it seeks to achieve profitability. The company acknowledges the need for additional funding to support its growth initiatives and plans to raise capital through equity or debt offerings. However, management has expressed uncertainty regarding the timing and amount of funds required, emphasizing the potential for significant dilution to existing shareholders.