1847 Holdings Reports Second Quarter 2026 Financial Results and Provides Update on CMD Sale Process

Rhea-AI Summary

1847 Holdings (OTC: LBRA) reported Q2 2026 revenue from continuing operations of approximately $1.6 million versus $1.8 million in Q2 2025, while gross margin expanded about 600 basis points to 45.4% and operating expenses declined 29% to roughly $2.0 million.

Loss from operations from continuing operations improved 57% year-over-year to about $459,000. Net loss from continuing operations was approximately $5.9 million, compared with net income of $21.1 million a year earlier, largely due to a swing in non-cash warrant fair value and higher interest expense.

The company generated about $712,000 of positive operating cash flow from continuing operations in the first half of 2026, up 18% year-over-year. CMD, classified as held-for-sale and discontinued operations, produced Q2 2026 revenue of roughly $6.5 million and a net loss of about $0.9 million.

According to 1847 Holdings, four non-binding offers for CMD are under evaluation, each contemplating a purchase price of approximately $65 million versus the roughly $18.8 million paid in December 2024.

Positive

• CMD sale offers at ~$65M, about 3.5x the ~$18.8M 2024 purchase price
• Q2 2026 gross margin from continuing operations 45.4%, up ~600 bps year-over-year
• Q2 2026 operating expenses $2.0M, down ~29% from $2.8M in Q2 2025
• Q2 2026 loss from operations $0.46M, a ~57% improvement from $1.06M loss
• H1 2026 operating cash flow from continuing operations $712K, up ~18% from $604K

Negative

• Q2 2026 revenue from continuing operations $1.57M, down from $1.79M in Q2 2025
• Q2 2026 net loss from continuing operations $5.95M versus $21.05M net income a year earlier
• Q2 2026 net loss attributable to 1847 Holdings $6.8M versus $22.6M net income in Q2 2025
• Q2 2026 CMD discontinued operations recorded ~$0.9M net loss on ~$6.5M revenue

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Evaluating Four Separate Non-Binding Offers for the Sale of CMD, Each Contemplating a Purchase Price of Approximately $65 Million — Approximately 3.5x the $18.8 Million Purchase Price Paid in December 2024

Q2 2026 Operating Loss from Continuing Operations Improved 57% Year-over-Year to Approximately $459,000, Compared with $1.1 Million in Q2 2025

Q2 2026 Gross Margin from Continuing Operations Expanded Approximately 600 Basis Points to 45.4%, While Operating Expenses Declined 29% Year-over-Year

Company Generated Approximately $712,000 of Positive Operating Cash Flow from Continuing Operations in the First Half of 2026, an Increase of Approximately 18% Year-over-Year

NEW YORK, Aug. 14, 2026 (GLOBE NEWSWIRE) -- 1847 Holdings LLC (OTC: LBRA) (“1847 Holdings” or the “Company”), a diversified acquisition holding company focused on identifying and monetizing overlooked, deep-value businesses, today announced financial results for the second quarter ended June 30, 2026.

During the first quarter of 2026, the Company’s Board of Directors approved a plan to actively market CMD Inc. (“CMD”) for sale. CMD comprises the CMD segment within the Company’s Construction operations. As a result, CMD has been classified as held for sale and as discontinued operations under accounting principles generally accepted in the United States of America (“U.S. GAAP”) for all periods presented.

Accordingly, the Company’s reported continuing operations for the periods presented reflect the operations of Kyle’s, Wolo, ICD and Corporate Services.

“We made meaningful progress improving the underlying operating performance of our business during the second quarter,” said Ellery W. Roberts, CEO of 1847 Holdings. “While revenue remained below the prior-year period, primarily due to the timing of new contract awards at Kyle’s, we generated higher gross profit on a smaller revenue base, expanded gross margin by approximately 600 basis points and reduced operating expenses by approximately 29%. As a result, our operating loss improved approximately 57% year-over-year. Importantly, this improved operating performance was accompanied by positive operating cash flow. We believe these results demonstrate that the actions we have taken to streamline our cost structure and improve operating efficiency are delivering measurable results. With a leaner operating platform and improving cash flow, our focus is now on building revenue across our operating businesses and translating these efficiencies into stronger financial performance and long-term shareholder value.”

“We also continue to advance our strategic process for CMD,” continued Mr. Roberts. “While the previously announced prospective buyer was unable to complete the contemplated transaction, we have maintained strong interest in the business and are currently evaluating four separate non-binding offers, each contemplating a purchase price of approximately $65 million. We believe the continued level of interest at this valuation further reinforces the underlying value of CMD and the operational progress achieved during our ownership.”

“We acquired CMD in December 2024 for approximately $18.8 million, and a transaction at a contemplated purchase price of approximately $65 million would represent approximately 3.5 times our original purchase price in less than two years. We are working toward selecting a transaction and, subject to the execution of definitive agreements and satisfaction of applicable closing conditions and other customary requirements, would target closing within approximately 60 days following execution. If a transaction is successfully completed at the contemplated valuation, we expect to use the proceeds to repay outstanding debt and evaluate the deployment of remaining capital to strengthen our continuing operations and pursue future growth opportunities. While there can be no assurance that any of the current offers will result in a definitive agreement or completed transaction, we are encouraged by the level of interest in CMD.”

Results from Continuing Operations

Revenue from continuing operations for the second quarter of 2026 was approximately $1.6 million, compared to approximately $1.8 million in the prior-year period. The decrease primarily reflects the timing of new contract awards at Kyle’s and the commencement of related performance obligations, and management expects revenue to recover as newly awarded contracts advance toward completion and additional contract awards are obtained. Revenue was also impacted by the ongoing strategic repositioning of Wolo toward an e-commerce-focused model, which management believes positions the business for improved performance as its e-commerce channels mature. Despite the decrease in revenue, gross profit increased to approximately $712,000, compared to approximately $706,000 in the prior-year period, while gross margin improved to approximately 45%, compared to approximately 39% in the second quarter of 2025.

Total operating expenses from continuing operations declined to approximately $2.0 million for the second quarter of 2026, compared to approximately $2.8 million in the second quarter of 2025, representing a decrease of approximately 29%. The decrease was primarily driven by lower cost of revenues, personnel costs and professional fees.

Loss from operations from continuing operations improved to approximately $(0.5) million for the second quarter of 2026, compared to approximately $(1.1) million in the second quarter of 2025, representing an improvement of approximately 57%.

Net loss from continuing operations was approximately $(5.9) million for the second quarter of 2026, compared to net income from continuing operations of approximately $21.1 million in the prior-year period. The year-over-year comparison was primarily impacted by non-cash financing-related charges, including a $3.1 million loss on the change in fair value of warrant liabilities in the current period, compared to a $24.1 million gain in the prior-year period, as well as higher interest expense.

Net loss attributable to 1847 Holdings was approximately $(6.8) million for the second quarter of 2026, compared to net income attributable to 1847 Holdings of approximately $22.6 million in the prior-year period.

For the six months ended June 30, 2026, net cash provided by operating activities from continuing operations was approximately $712,000, compared to approximately $604,000 in the prior-year period, representing an increase of approximately 18%.

Condensed Consolidated Statements of Operations — Continuing Operations
(Unaudited)

	Three Months Ended June 30, 2026		Three Months Ended June 30, 2025
Revenue	$1,567,130		$1,791,544
Total Operating Expenses		2,025,656		2,849,513
Loss from Operations		(458,526)		(1,057,969)
Total Other Income (Expense)		(5,482,891)		22,031,532
Income (Loss) from Continuing Operations Before Income Taxes		(5,941,417)		20,973,563
Income Tax Benefit (Provision)		(4,000)		81,000
Net Income (Loss) from Continuing Operations	$(5,945,417)		$21,054,563

CMD Assets Held-for-Sale and Discontinued Operations Classification

Management determined that the planned sale of CMD represents a strategic shift that will have a major effect on the Company’s operations and financial results. Accordingly, CMD’s assets and liabilities are presented as held-for-sale in the Company’s condensed consolidated balance sheets, and CMD’s operating results are presented as discontinued operations in the Company’s condensed consolidated statements of operations and condensed consolidated statements of cash flows for all periods presented.

CMD generated revenue of approximately $6.5 million and net loss from discontinued operations of approximately $0.9 million for the second quarter of 2026.

About 1847 Holdings LLC

1847 Holdings LLC (OTC: LBRA), a diversified acquisition holding company, was founded by Ellery W. Roberts, a former partner of Parallel Investment Partners, Saunders Karp & Megrue, and Principal of Lazard Freres Strategic Realty Investors. 1847 Holdings' investment thesis is that capital market inefficiencies have left the founders and/or stakeholders of many small business enterprises or lower-middle market businesses with limited exit options despite the intrinsic value of their business. Given this dynamic, 1847 Holdings seeks to consistently acquire businesses it views as "solid" for reasonable multiples of cash flow and then deploy resources to strengthen the infrastructure and systems of those businesses in order to improve operations. These improvements may lead to a sale or IPO of an operating subsidiary at higher valuations than the purchase price and/or alternatively, an operating subsidiary may be held in perpetuity and contribute to 1847 Holdings' ability to pay regular and special dividends to shareholders. For more information, visit www.1847holdings.com.

For the latest insights, follow 1847 on Twitter.

Forward-Looking Statements

This press release may contain information about 1847 Holdings' view of its future expectations, plans and prospects that constitute forward-looking statements. All forward-looking statements are based on our management's beliefs, assumptions and expectations of our future economic performance, taking into account the information currently available to it. These statements are not statements of historical fact. Forward-looking statements are subject to a number of factors, risks and uncertainties, some of which are not currently known to us, that may cause our actual results, performance or financial condition to be materially different from the expectations of future results, performance or financial position. Our actual results may differ materially from the results discussed in forward-looking statements. Factors that might cause such a difference include but are not limited to the risks set forth in "Risk Factors" included in our SEC filings.

Contact:
Crescendo Communications, LLC
Tel: +1 (212) 671-1020
Email: LBRA@crescendo-ir.com

FAQ

What CMD sale offers is 1847 Holdings (OTC: LBRA) evaluating in August 2026?

1847 Holdings is evaluating four non-binding offers to acquire CMD, each contemplating a purchase price of approximately $65 million. According to 1847 Holdings, this compares with the approximately $18.8 million paid for CMD in December 2024, implying about 3.5x the original cost.

How did 1847 Holdings (LBRA) perform financially in Q2 2026 from continuing operations?

In Q2 2026, 1847 Holdings generated approximately $1.6 million in revenue from continuing operations and a loss from operations of about $459,000. According to 1847 Holdings, gross margin improved to roughly 45.4% and operating expenses fell about 29% year-over-year.

Why did 1847 Holdings report a net loss from continuing operations in Q2 2026?

1847 Holdings reported a Q2 2026 net loss from continuing operations of about $5.9 million, versus net income a year earlier. According to 1847 Holdings, this year-over-year change mainly reflects non-cash warrant fair value charges and higher interest expense, offsetting improved operating performance.

What was 1847 Holdings’ operating cash flow from continuing operations in the first half of 2026?

For the six months ended June 30, 2026, 1847 Holdings generated approximately $712,000 of net cash from operating activities from continuing operations. According to 1847 Holdings, this represents an increase of about 18% compared to roughly $604,000 in the prior-year period.

How is CMD presented in 1847 Holdings’ Q2 2026 financial statements?

CMD is classified as held-for-sale and reported as discontinued operations in 1847 Holdings’ financial statements. According to 1847 Holdings, CMD generated approximately $6.5 million in revenue and about $0.9 million of net loss from discontinued operations in Q2 2026.

What does the potential CMD sale mean for 1847 Holdings’ debt and growth plans?

If a CMD transaction is completed at the contemplated valuation, 1847 Holdings expects to use proceeds to repay outstanding debt and evaluate remaining capital deployment. According to 1847 Holdings, this could support strengthening continuing operations and pursuing future growth opportunities, though completion is not assured.

How did 1847 Holdings’ operating metrics change year-over-year in Q2 2026?

In Q2 2026, loss from operations from continuing operations improved about 57%, gross margin expanded roughly 600 basis points, and operating expenses declined about 29%. According to 1847 Holdings, these changes reflect cost-structure actions and efficiency improvements despite lower revenue versus Q2 2025.