1847 Holdings LLC (EFSH)·Q1 2025 Earnings Summary

Executive Summary

• Q1 2025 delivered rapid expansion: revenue rose 383.7% year over year to $10.1M, gross profit increased 477.6% to $5.2M, and gross margin expanded 840 bps to 51.7% as CMD Inc. drove the step change .
• Operating loss narrowed to $0.10M and net loss from continuing operations improved to $0.23M; importantly, cash flow from continuing operations turned positive at $0.77M, marking a key inflection in cash generation .
• Guidance was reaffirmed: FY 2025 revenue >$45M and net income ≈$1.3M; FY 2026 revenue >$60M and net income ≈$5.0M, signaling confidence in the growth and margin trajectory from CMD and core construction activities .
• A material overhang remains: NYSE American delisting proceedings commenced April 3, 2025 with trading suspended pending a June 5 hearing; EFSH will consider relisting timing if appeal is unsuccessful—this regulatory path is a near-term stock reaction catalyst .
• Balance sheet risk persists with a large warrant liability fair value and a significant working capital deficit; management disclosed going-concern uncertainty and plans to secure financing while continuing portfolio rationalization (e.g., Wolo sale) .

What Went Well and What Went Wrong

What Went Well

• CMD integration and demand: “Our strong first quarter results reflect the successful execution of our growth strategy, driven largely by robust demand at CMD Inc.” Revenue +384% YoY to $10.1M; gross margin +840 bps to 51.7% .
• Cash generation inflection: “positive cash flow from continuing operations of $765,599, a major milestone”—operational discipline and leverage of the scalable platform supported cash conversion .
• Guidance confidence maintained: Management reaffirmed FY25/FY26 net income and revenue targets, underpinned by CMD contribution and margin improvements .

What Went Wrong

• Listing risk and uncertainty: NYSE American initiated delisting due to low share price; trading suspended pending appeal, creating liquidity and perception challenges for equity holders .
• Going concern and financing needs: Management disclosed substantial doubt about continuing as a going concern absent additional financing; working capital deficit was $111.0M at quarter end .
• Capital structure complexity: Warrant liabilities remained high at $81.9M fair value; debt modifications included losses on extinguishment, and total combined net debt was ~$30.48M, weighing on equity value and flexibility .

Financial Results

Year-over-Year Comparison (Q1 2024 → Q1 2025)

Sequential Trend (Q2 2024 → Q3 2024 → Q1 2025)

Segment and Revenue Disaggregation (Construction Focus)

KPIs and Balance Sheet Highlights

Guidance Changes

Earnings Call Themes & Trends

No Q1 2025 earnings call transcript was available for EFSH; themes below are synthesized from company press releases and the Q1 2025 10-Q.

Management Commentary

• “Revenue surged 384% year-over-year, reaching $10.1 million, while gross profit climbed 478% to $5.2 million… We increased gross margin by 840 basis points to 51.7% and reduced our net loss from continuing operations by over $10 million… the Company generated positive cash flow from continuing operations of $765,599” — Ellery W. Roberts, CEO .
• “We reaffirm our full-year 2025 guidance… revenue expected to exceed $45 million and expected net income of approximately $1.3 million. For 2026… net income to increase to $5.0 million and revenue to surpass $60 million” .
• FY24 strategic update: CMD reported strong TTM performance, HMDT sale near 7x adjusted EBITDA, and exploring CMD/Wolo alternatives to unlock shareholder value .

Q&A Highlights

No Q1 2025 earnings call transcript was available; therefore, there are no Q&A themes or clarifications to report for this period [ListDocuments returned none].

Estimates Context

• Wall Street consensus via S&P Global/Capital IQ was unavailable for EFSH due to missing CIQ mapping; as a result, we cannot provide a beat/miss analysis versus Street for Q1 2025 or near-term periods. If/when SPGI mapping is added, we will anchor comparisons on S&P Global consensus data [GetEstimates error].

Key Takeaways for Investors

• CMD’s addition transformed the revenue base and margin structure; Q1 gross margin reached 51.7% with positive operating cash flow—a meaningful operational inflection that supports the FY25/FY26 profitability targets .
• Near-term equity risk is elevated due to NYSE American delisting proceedings and trading suspension; the June 5 appeal outcome is a key catalyst for liquidity and valuation .
• Balance sheet constraints persist: working capital deficit (~$111M) and sizable warrant liabilities ($81.9M FV) create financing and dilution risks; management plans additional financing and continued asset rationalization (e.g., Wolo sale) .
• Portfolio strategy continues to unlock value (e.g., HMDT sale), while CMD’s contribution should drive construction segment growth and margin durability; monitor execution against guidance and segment mix evolution .
• Debt structure remains complex with extinguishment losses and OID notes; refinancing terms and cash interest burden are critical to watch alongside cash generation trajectory .
• With Street estimates unavailable, trading likely reacts to regulatory and financing developments and demonstrated cash conversion; upside hinges on sustaining margins and securing cost-effective capital [GetEstimates error] .
• If appeal fails, management indicates it will evaluate relisting timing; any clarity on path to relisting and resolution of going-concern uncertainty would be stock-supportive .