American Rebel Holdings Reports $9.52 Million Revenue Decline and $34.33 Million Net Loss for 2025

American Rebel Holdings, Inc. reported revenues of $9.52 million for the year ended December 31, 2025, a decrease of 17% compared to $11.42 million in 2024. The company attributed this decline to slower sales due to current market conditions. Cost of goods sold also decreased by 16% to $9.72 million, mirroring the revenue decline. This resulted in a negative gross margin of $(197,752) for 2025, compared to $(119,637) in the previous year, with gross margin percentage decreasing from -1% to -2%.

Operating expenses for American Rebel increased by 20% to $14.56 million in 2025, up from $12.10 million in 2024. Consulting, payroll, and other costs rose by 59% due to increased payroll expenses related to the beer business and contract labor. Marketing and brand development expenses also saw a significant increase of 97%, driven by trade shows and marketing efforts for American Rebel Light Beer. However, rental, warehousing, and outlet expenses decreased by 62% due to cost-cutting measures on leases and properties.

The company's financial performance was further impacted by other expenses, including a 36% decrease in interest expense to $2.53 million. However, losses on debt extinguishment and settlement of liabilities significantly increased to $17.05 million, compared to $1.42 million in the previous year, due to debt conversions into equity. As a result, American Rebel reported a net loss of $34.33 million for 2025, or $(63,214.16) per share, compared to a net loss of $17.60 million, or $(12,276,404.46) per share, in 2024.

Operationally, American Rebel focused on expanding its brand through strategic acquisitions and new product categories. The company acquired a minority ownership interest in Schmitty's Herbal Snuff and Pouches and RAEK Data, LLC, and entered into an agreement to acquire 218 LLC, which owns a commercial retail building in Nashville. American Rebel also continued to develop its American Rebel Light Beer, expanding its availability to 40 US states through its website. The company's growth strategy includes scaling its safe business, pursuing strategic acquisitions, and expanding into high-growth consumer categories like the beer market. However, the company faces challenges including intense competition, dependence on distributors, and the need to protect its intellectual property.

American Rebel acknowledged substantial doubt about its ability to continue as a going concern, citing recurring losses, a working capital deficit of $20.32 million, and reliance on debt and equity financing. The company's ability to continue operations is dependent on securing additional funding and achieving increased operating revenues. Management plans to seek additional funding through loans and equity offerings, but there is no assurance that such funding will be available on acceptable terms. The company also received a deficiency notice from Nasdaq regarding its minimum bid price, adding further uncertainty to its financial outlook.