1847 Holdings Reports 207% Revenue Surge, But Profit Story is Complex

NEW YORK, NY – March 16, 2026 – Diversified acquisition firm 1847 Holdings LLC (OTC: LBRA) today announced preliminary unaudited financial results for fiscal year 2025, painting a picture of dramatic growth and a massive swing to profitability. The company reported a 207% increase in consolidated revenue to $48.3 million and a staggering turnaround in net income, posting a $66.1 million gain compared to a $100.5 million loss in the prior year.

While the headline figures suggest a remarkable recovery, a closer examination of the company's financial disclosures reveals a more nuanced story. The impressive net income is materially driven by a large, non-cash accounting gain, while the company itself navigates a challenging market perception following its move from a major stock exchange to the over-the-counter market. Still, strong operational performance from key subsidiaries provides a foundation for the company's optimistic outlook.

Deconstructing the $166 Million Profit Swing

The most eye-catching figure in 1847 Holdings' announcement is the $166.6 million year-over-year improvement in net income. However, the reconciliation tables provided in the company’s own release show this is largely attributable to non-operating factors. Specifically, the 2025 results include a non-cash gain of $76.9 million from the change in fair value of warrant liabilities. In the prior year, the company booked a loss of $77.6 million on the same line item, accounting for the bulk of the swing.

This type of accounting gain or loss is tied to the fluctuating value of financial instruments and does not represent cash generated from the company's core business activities. For this reason, many analysts and sophisticated investors turn to other metrics like Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) to gauge a company's true operational health.

On this front, 1847 Holdings also showed significant improvement. The company reported a consolidated preliminary Adjusted EBITDA of $10.4 million for 2025, a strong reversal from the Adjusted EBITDA loss of $3.3 million in 2024. This figure, which strips out the impact of the warrant liability changes and other non-recurring items, points to genuine progress in the underlying profitability of its portfolio companies.

The Engine Room: Subsidiary Success Fuels Growth

The operational strength highlighted by the positive Adjusted EBITDA is primarily powered by the performance of 1847's subsidiaries, particularly in the construction sector. CMD, a key holding, was a standout performer, generating $40.5 million in revenue for the full year. This represents 32% year-over-year growth when compared to CMD's pro forma revenue for 2024, reflecting a full year of operations.

CMD’s Adjusted EBITDA surged 84% to $14.3 million from $7.7 million a year prior, demonstrating increased profitability and operational leverage. According to 1847 Holdings CEO Ellery W. Roberts, this momentum is just beginning. “Importantly, many of the strategic initiatives undertaken by CMD throughout 2025 — including geographic expansion into markets such as Utah and Arizona and deeper engagement with large national homebuilders — are only beginning to gain traction and are not yet fully reflected in our reported results,” he stated in the press release.

Future growth prospects for CMD appear robust, with management noting a record bid pipeline exceeding $160 million. The company has already secured over $4 million in new contracts in early 2026, reinforcing confidence in its growth trajectory. However, the company cautions that there is no assurance that pending bids will result in contract awards.

Another subsidiary, Kyle’s, also delivered strong results, with revenue climbing 24% to $6.6 million. More impressively, its Adjusted EBITDA more than doubled to $1.1 million from $0.6 million in 2024, signaling improved profitability and operational efficiency within that business as well.

The 'Deep-Value' Strategy in Action

The performance of CMD and Kyle's serves as a validation of 1847 Holdings' core investment thesis. The firm, founded by private equity veteran Ellery W. Roberts, specializes in acquiring what it terms “overlooked, deep-value businesses.” The strategy involves buying small to lower-middle market companies, often from founders with limited exit options, and then deploying resources to strengthen their infrastructure, improve operations, and scale the business.

In his comments, Roberts also highlighted progress at the parent company level. “At the corporate level, we also made significant progress simplifying and streamlining the organization,” he said. “Corporate operating expenses declined significantly compared to the prior year as we streamlined the organization and reduced holding company overhead, allowing management to focus resources on operational execution and growth within our subsidiaries.”

This two-pronged approach of optimizing subsidiary performance while controlling parent company costs is central to its goal of creating long-term shareholder value, either through the eventual sale of a subsidiary at a higher valuation or by holding it to generate ongoing cash flow.

Market Realities and A Call for Caution

Despite the positive operational results and the headline-grabbing profit figure, investors have remained cautious. 1847 Holdings' stock, which now trades on the OTC market under the ticker LBRA, hovers in penny-stock territory. The company's journey to the less-regulated OTC market came after it was delisted from the NYSE American exchange in 2025, a move that often dampens investor confidence and reduces liquidity.

This market skepticism underscores the importance of looking beyond the preliminary numbers. The significant reliance on non-cash, non-operating gains to achieve net profitability, combined with the company's delisting history, creates a complex picture for potential investors. The company itself acknowledges the tentative nature of its announcement, stating that the figures are unaudited and subject to change pending a full review by its independent accounting firm.

The final, audited results, which are expected to be filed with the Securities and Exchange Commission in the company's Annual Report on Form 10-K, will provide a clearer and more definitive picture of 1847 Holdings' financial health and the sustainability of its impressive turnaround.