American Rebel Holdings Reports 38% Revenue Decline and Increased Net Loss in Q1 2025

American Rebel Holdings, Inc. reported a significant decline in financial performance for the first quarter of 2025, with revenues of $2.51 million, down 38% from $4.04 million in the same period last year. The company's cost of goods sold also decreased to $2.22 million from $3.20 million, resulting in a gross margin of $289,054, a 66% drop compared to $841,323 in Q1 2024. The net loss for the quarter was $5.06 million, compared to a loss of $2.70 million in the prior year, reflecting increased operational expenses and interest costs.

The company’s total operating expenses rose to $3.26 million from $3.12 million year-over-year, driven by higher marketing and administrative costs. Marketing expenses surged by 162% to $695,491, largely due to efforts related to the launch of American Rebel Beer and other promotional activities. Administrative expenses also increased significantly, reflecting higher professional fees. The company’s accumulated deficit reached $70.15 million as of March 31, 2025, compared to $65.09 million at the end of 2024.

In terms of operational developments, American Rebel Holdings has been actively expanding its product offerings, including the launch of American Rebel Beer, which began distribution in 2024. The company has also established a wholly-owned subsidiary, American Rebel Beverages, LLC, to manage its alcohol-related operations. Additionally, the company is exploring new markets, including the cannabis industry, by offering tailored safes for dispensaries, which management believes could be a significant growth area.

The company’s financial position remains precarious, with a working capital deficit of $9.45 million as of March 31, 2025, compared to $8.94 million at the end of 2024. American Rebel Holdings has relied heavily on debt financing, with total promissory notes amounting to $4.60 million. The company is currently negotiating with lenders to address its financial obligations and is seeking additional capital to support its growth initiatives. Management has indicated that future funding may come from equity offerings or loans, but there is no assurance that such funding will be secured.

Looking ahead, American Rebel Holdings faces challenges in achieving profitability and maintaining compliance with Nasdaq listing requirements. The company has submitted a compliance plan to address its stockholders' equity deficiency and is actively working to improve its financial health. Despite the current difficulties, management remains optimistic about the potential for growth through new product launches and market expansion, particularly in the beverage and cannabis sectors.