Executive Summary

EFSH reported FY 2024 revenue of $15.71M (+10.7% y/y) and gross margin of 49.5% (+330 bps y/y), driven by Construction; Automotive Supplies declined on inventory constraints. The company furnished FY results; Q4 2024 standalone figures were not disclosed in the 8‑K/press release package .
Reported net loss from continuing operations was $(106.8)M for FY 2024, heavily impacted by non‑cash warrant liability remeasurement ($77.6M), amortization of debt discounts, and extinguishment losses; Adjusted EBITDA modestly improved to $(3.31)M from $(3.46)M .
2025/2026 outlook introduced: management projects 2025 revenue “exceeding $45 million” with net income of ~$1.3M, and 2026 revenue “surpassing $60 million” with net income of ~$5.0M, supported by the December 2024 acquisition of CMD (pro forma 2024 revenue $30.8M, net income $7.5M) and portfolio optimization plans (exploring Wolo sale and CMD alternatives) .
Capital actions in Q4 included an $11.1M public offering (Oct 31) and an $11.424M private placement (Dec 16) used in part to fund CMD; the 10‑K disclosed a going concern qualification and a heavy convertible debt stack. In April 2025, NYSE American initiated delisting proceedings due to low price—an incremental stock overhang/catalyst post‑print .

What Went Well and What Went Wrong

What Went Well

Construction strength and mix lift: FY 2024 Construction revenue rose 24.1% to $11.96M on more multi‑family projects and higher average contract value; gross margin expanded 330 bps company‑wide to 49.5% .
Accretive CMD acquisition and portfolio pruning: Completed CMD (Las Vegas‑based cabinetry/millwork/doors); sold High Mountain for ~$17M (~7x adj. EBITDA); disposed ICU Eyewear, removing ~$4.5M net liabilities—illustrating the “arbitrage” strategy .
Management tone on transformation and forward trajectory: “2024 was a transformative year… On a pro forma basis for the year‑ended December 31, 2024, CMD reported revenues of $30.8 million… Net income grew… to $7.5 million,” and management is “more confident than ever” about driving value .

What Went Wrong

Heavy non‑cash and financing charges: FY 2024 other expense ballooned to $(95.5)M, driven by $(77.6)M warrant liability fair value loss, $(9.05)M amortization of debt discounts, and $(4.71)M debt extinguishment, swamping operating progress .
Automotive Supplies contraction: Segment revenue fell 17.6% y/y to $3.75M due to working capital constraints limiting inventory, pressuring scale and mix .
Liquidity/going concern and listing risk: Auditors flagged a going concern; cash at 12/31/24 was $2.50M (restricted $1.36M) with sizeable convertible notes; NYSE American began delisting action in April 2025—elevated financing and equity overhang risks .

Financial Results

Note: The company furnished FY 2024 results and did not disclose standalone Q4 2024 financials in the 8‑K/press release. Quarterly trend context is shown for Q2 and Q3.

FY performance (USD):

Metric	FY 2023	FY 2024
Revenues	$14.19M	$15.71M
Gross Profit	$6.6M	$7.8M
Gross Margin %	46.2%	49.5%
Total Operating Expenses	$29.90M	$27.71M
Loss from Operations	$(15.71)M	$(11.998)M
Net Loss from Continuing Ops	$(23.99)M	$(106.80)M
Adjusted EBITDA	$(3.46)M	$(3.31)M

Quarterly snapshots (sequential):

Metric	Q2 2024	Q3 2024
Revenues	$15.50M	$4.76M
Cost of Revenues	$8.76M	$2.00M
Total Operating Expenses	$18.05M	$8.17M
Loss from Operations	$(2.54)M	$(3.41)M
Net Loss from Continuing Ops	$(4.91)M	$(5.56)M

Q3 YoY:

Metric	Q3 2023	Q3 2024
Revenues	$4.68M	$4.76M
Net Loss from Continuing Ops	$(5.14)M	$(5.56)M

Segment revenue (FY):

Segment	FY 2023	FY 2024
Construction	$9.64M	$11.96M
Automotive Supplies	$4.55M	$3.75M

Balance sheet / liquidity KPIs:

KPI	FY 2024
Cash and Cash Equivalents (12/31/24)	$2.50M
Restricted Cash (12/31/24)	$1.36M
Convertible Notes Payable, net	$22.09M
Combined Total Debt, net	$31.07M

Non-GAAP: Adjusted EBITDA improved modestly to $(3.31)M; reconciliation components include add‑backs for warrant/derivative fair value changes, debt discounts, impairments, professional/management fees, etc. (see reconciliation in press release) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2025	None disclosed	“Exceeding $45M”	New
Net Income	FY 2025	None disclosed	~$1.3M	New
Revenue	FY 2026	None disclosed	“Surpassing $60M”	New
Net Income	FY 2026	None disclosed	~$5.0M	New
Portfolio Actions	N/A	N/A	Exploring Wolo sale; strategic alternatives for CMD	New disclosure

Earnings Call Themes & Trends

Note: No Q4 2024 earnings call transcript was found. Themes compiled from Q2/Q3 releases and the FY press release/10‑K.

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q4/FY)	Trend
Capital raising / balance sheet	Q2: $5.0M offering closed; debt reduction via ICU sale . Q3: $11.1M public offering; cash & restricted cash $10.2M at 9/30 .	Q4: $11.1M public offering (Oct), $11.424M private placement (Dec) used to fund CMD; heavy convertibles/debt remain .	Ongoing capital markets reliance; leverage仍 high.
Portfolio reshaping	Q2: Announced plan to sell a Cabinets division; targeting accretive millwork acquisition . Q3: Closed High Mountain sale (~$17M); ICU disposed; CMD definitive agreement .	Q4: Closed CMD; evaluating CMD alternatives and Wolo sale to “unlock value” .	Active M&A arbitrage remains core.
Operations & mix	Q2: Sequential revenue +~4% vs Q1; gross profit y/y +14% . Q3: Construction steady; Automotive improved y/y; personnel/admin rising .	FY: Construction +24.1% y/y; Automotive −17.6% on inventory constraints; gross margin +330 bps to 49.5% .	Mix shift toward construction; inventory constraints persisted.
Non‑GAAP vs GAAP	Q2/Q3: Losses driven by financing items (debt discounts/derivatives) .	FY: Large non‑cash warrant liability loss dominates GAAP loss; Adjusted EBITDA ~flat y/y .	GAAP volatility from capital structure continues.
Listing/Regulatory	—	Post‑period: NYSE American delisting proceedings due to low price .	Heightened listing risk post‑print.

Management Commentary

“2024 was a transformative year... On a pro forma basis for the year‑ended December 31, 2024, CMD reported revenues of $30.8 million… gross profit increased to $13.6 million… income from operations increased to $7.5 million… Net income grew to $7.5 million” — Ellery W. Roberts, CEO .
“We expect to generate net income, projecting approximately $1.3 million in 2025 with revenue exceeding $45 million… 2026… net income of $5.0 million and revenue surpassing $60 million” .
Strategy emphasis: “acquiring undervalued companies, enhancing their performance, and selling them for a profit” with HMDT sale at ~$17M (~7x adj. EBITDA) cited as exemplar .

Q&A Highlights

No Q4 2024 earnings call transcript was available; no Q&A could be reviewed. The company furnished FY results via press release/8‑K without a standalone Q4 call transcript .

Estimates Context

Wall Street consensus (S&P Global) for Q4 2024/FY 2024 revenue or EPS was unavailable; our attempts to retrieve S&P Global estimates for EFSH returned no mapping, implying limited or no analyst coverage. Values retrieved from S&P Global were unavailable due to missing company mapping.*

Key Takeaways for Investors

FY beat on mix/GM improvement vs 2023, but GAAP loss was dominated by capital‑structure driven non‑cash items; Adjusted EBITDA roughly flat—investors should focus on cash earnings trajectory post‑CMD .
2025–2026 targets (> $45M/$60M revenue; $1.3M/$5.0M net income) hinge on CMD integration, potential asset monetizations (CMD/Wolo), and access to inventory capital to restore Automotive growth .
Liquidity and convertibles are central: modest cash at year‑end vs ~$31.1M total debt, including ~$22.1M convertible notes net—dilution and refinancing risks persist .
Listing overhang: NYSE American delisting proceedings shortly after results add trading/liquidity risk; monitor appeal outcome and potential move to OTC .
Near‑term stock drivers: concrete steps on asset sales (CMD/Wolo), visibility into organic CMD pipeline in Las Vegas region, evidence of Automotive inventory normalization, and reduction of warrant/derivative overhang .
Risk management: going concern qualification and material weaknesses in controls highlight execution and financing dependency—watch remediation pace and funding mix .

Appendices

Q4 2024 Communications and Prior-Quarter Sources

FY 2024 8‑K/press release (Item 2.02; EX‑99.1) and non‑GAAP reconciliation .
Q3 2024 8‑K/press release (Nov 19, 2024) .
Q2 2024 8‑K/press release (Aug 19, 2024) .
Financing in Q4 2024: $11.1M public offering (Oct 31) and $11.424M private placement (Dec 16) .
10‑K FY 2024: liquidity, debt, going concern, and post‑period capital updates .
NYSE American delisting notice (Apr 3, 2025) .

Notes on Q4 2024 Disclosure

The company furnished FY 2024 results and did not provide a standalone Q4 2024 P&L in the 8‑K/press materials; therefore quarter‑specific comps to estimates (revenue/EPS) cannot be calculated from primary documents .

Citations:

FY 2024 press release/8‑K:
Q3 2024:
Q2 2024:
10‑K FY 2024:
Financing PRs:
NYSE delisting:

Estimates disclaimer: S&P Global consensus values were not available for EFSH due to missing company mapping; no alternative validated consensus was identified. Values retrieved from S&P Global were unavailable.

1847 Holdings LLC (EFSH)·Q4 2024 Earnings Summary