1847 Holdings, LLC

What they do

The company acquires majority interests in small businesses and actively manages them as subsidiaries, targeting industries with long-term growth, stable earnings and strong incumbent management. Continuing operations as of the second quarter of 2026 consist of Kyle's (custom cabinetry), Wolo (electronics/accessories), ICD (components) and Corporate Services, while CMD (construction) is classified as held for sale. The company is externally managed by 1847 Partners LLC and has historically aimed to pay distributions to common shareholders.

Revenue drivers

• CMD (Construction, held for sale) — CMD Inc. was acquired in December 2024 for approximately $18.8 million and is being actively marketed; four non-binding offers of approximately $65 million each were under evaluation as of August 2026. Its results are now reported as discontinued operations.
• Kyle's — Acquired September 2020, Kyle's is a custom cabinetry maker serving contractors and homeowners in Boise, Idaho and surrounding areas. Management attributed Q2 2026 revenue decline to the timing of new contract awards at Kyle's.
• Wolo and ICD — Wolo is being repositioned toward an e-commerce-focused model, which management says affected revenue in Q2 2026. ICD is another continuing operating subsidiary; the excerpts do not quantify either segment.
• Corporate Services — Listed among continuing operations alongside Kyle's, Wolo and ICD in the Q2 2026 release; no separate revenue figure is disclosed in the excerpts.

Recent performance

Second quarter 2026 revenue from continuing operations was approximately $1.6 million, down from approximately $1.8 million a year earlier, which management tied to contract timing at Kyle's and the Wolo repositioning. Gross margin from continuing operations expanded about 600 basis points to 45.4%, and operating expenses declined 29% year-over-year. The operating loss from continuing operations improved 57% to about $459,000 from $1.1 million in Q2 2025. The company reported roughly $712,000 of positive operating cash flow from continuing operations in the first half of 2026, up about 18% year-over-year. For full-year 2025, reported revenue was $48.3 million, net income was $65.8 million and operating cash flow was $3.4 million.

Strategy

The company's stated goals are to make and grow distributions to common shareholders and increase shareholder value by acquiring small businesses with enterprise values under $50 million. It says it intends to limit third-party acquisition leverage so debt does not exceed the market value of acquired assets and subsidiary debt-to-EBITDA does not exceed 1.25x. In the first quarter of 2026 the board approved a plan to market CMD for sale, and management is evaluating four non-binding offers of approximately $65 million each. If a CMD transaction closes, management says it expects to repay outstanding debt and consider deploying remaining capital into continuing operations. Management also cites streamlining costs and improving operating efficiency across the remaining businesses.

Risks

• Going concern qualification — The auditors issued a going concern opinion on the 2025 financial statements, and management states it does not expect sufficient liquid resources to meet obligations over the next twelve months.
• Severe leverage and negative equity — At June 30, 2026 total assets were $32.1 million against total liabilities of $71.9 million, leaving shareholder equity of negative $37.6 million, with only $442,279 of cash and equivalents.
• CMD sale may not close — The previously announced prospective CMD buyer was unable to complete the transaction, and management states there can be no assurance the current non-binding offers lead to a definitive agreement or closing.
• Shrinking continuing revenue — Continuing operations revenue fell to approximately $1.6 million in Q2 2026 from $1.8 million a year earlier, with declines tied to the timing of Kyle's contract awards and the Wolo e-commerce transition.

Outlook

Management says it expects revenue to recover as newly awarded Kyle's contracts advance toward completion and additional awards are obtained, and believes the Wolo e-commerce repositioning will improve performance as those channels mature. It targets closing a CMD sale within roughly 60 days of executing definitive agreements, subject to closing conditions, and would use proceeds to repay debt. The company also says its focus is on building revenue across continuing operations and converting cost reductions into stronger financial performance.