1847 Holdings LLC (LBRA)·Q3 2025 Earnings Summary

Executive Summary

• Q3 2025 marked a sharp operational turnaround driven by CMD, with revenue up 256% YoY to $13.56M, gross profit up 180% to $6.70M, and operating income at $2.63M; reported net income benefited from a $32.00M non‑cash gain from warrant revaluation, with underlying net income at ~$0.6M ex‑warrant gain .
• Trajectory improving: Q1→Q2→Q3 revenue stepped up from $10.08M → $12.81M → $13.56M as CMD scaled; operating income moved from a small loss in Q1 to ~$2.47M in Q2 and ~$2.63M in Q3 .
• Guidance: 2025 outlook reaffirmed (revenue >$45M; net income ~+$1.3M). 2026 outlook reframed to income from operations ~+$12.0M on revenue >$50M vs prior 2026 guide of net income ~+$5.0M on revenue >$60M; the change in metric complicates comparability and revenue target appears lower .
• Consensus estimates (S&P Global) were unavailable for Q3 2025 due to missing mapping; therefore, no beat/miss vs Wall Street can be assessed from SPGI at this time [GetEstimates error—see note in Estimates Context].

What Went Well and What Went Wrong

• What Went Well

  • CMD outperformance drove the turnaround: “driven primarily by the outstanding performance of our CMD Inc. (‘CMD’) subsidiary,” with Q3 revenue $13.6M (+256% YoY) and operating income $2.6M .
  • Operating leverage: operating income improved by $5.9M YoY to $2.6M; personnel and G&A scaled down as a percentage of revenue vs prior year .
  • Portfolio actions under way: Wolo cost structure streamlined (lease exit, 3PL, e‑commerce shift to O’Reilly, Grainger, Amazon) and plan to leverage Innovative Cabinets’ IP and Boise footprint to accelerate Kyle’s recovery .

• What Went Wrong

  • Quality of earnings: Q3 reported net income from continuing ops of $32.62M was largely driven by a $32.00M non‑cash gain from warrant liabilities; ex‑warrant, underlying net income was ~$0.6M, highlighting non‑recurring drivers .
  • Revenue mix and margins: cost of revenues rose to 50.9% of revenue in Q3 from 37.5% a year ago (mix/scale effects), though still supported gross profit of $6.7M; continued focus on mix and procurement is needed .
  • Legal noise: company issued late‑October/early‑November legal updates (civil lawsuit developments), an overhang that can distract and increase headline risk .

Financial Results

Quarterly trend (oldest → newest)

Q3 2025 YoY comparison

Segment/Category revenue mix

Additional KPIs and notes

Estimates vs Actuals (SPGI consensus)

Guidance Changes

Note: The shift from net income to income from operations for 2026 complicates comparability; the revenue target moved from >$60M to >$50M .

Earnings Call Themes & Trends

Management Commentary

• “This quarter marked a meaningful operational turnaround... driven primarily by the outstanding performance of our CMD Inc. (‘CMD’) subsidiary... Operating income improved by $5.9 million to $2.6 million. Even after excluding the non-cash gain related to the change in fair value of warrant liabilities, we achieved profitability for the quarter.” — Ellery W. Roberts, CEO .
• “We elected to retain and rebuild [Wolo]... exiting an existing lease, shifting to third‑party logistics, and refocusing on e‑commerce growth channels, including O’Reilly Auto Parts, Grainger Industrial Supply and Amazon.” .
• “We are reaffirming our 2025 guidance of revenue exceeding $45 million and net income of approximately $1.3 million, and we project 2026 revenue to surpass $50 million with income from operations of about $12.0 million.” .

Q&A Highlights

• A live call was held Nov 12, 2025 at 8:30 a.m. EST; replay and webcast details were provided, but a transcript was not available in filings/search at the time of this analysis, so Q&A themes cannot be summarized .

Estimates Context

• S&P Global consensus estimates for Q3 2025 were unavailable due to missing mapping, so we cannot provide a beat/miss vs Wall Street consensus at this time (S&P Global data unavailable via tool).
• Given the absence of SPGI consensus, we anchor the analysis on company‑reported actuals and YoY/seq comparisons from SEC filings and press releases .

Key Takeaways for Investors

• Core operating momentum is real: back‑to‑back quarters of 19% operating margin with CMD scaling; underlying Q3 profitability ex‑warrant gain ($0.6M) signals the model is inflecting positively .
• Quality of earnings matters near term: headline net income is non‑cash driven; focus on operating income, cash from operations ($3.0M YTD) and category mix as truer indicators of health .
• 2025 outlook de‑risked (reaffirmed), but 2026 revenue target moderated (> $50M vs > $60M prior), with a shift to operating income guidance (~$12M), which could reset medium‑term expectations .
• Category mix shifting toward doors/frames/hardware/trim in Q3; watch gross margin durability as mix evolves and procurement scales .
• Legal developments introduce headline risk; monitor for resolution to avoid distraction and incremental costs .
• Near‑term trading setup: absent SPGI consensus, narrative catalysts are CMD execution, continued operating leverage, and clarity on 2026 framing; headline risk from legal items and listing status remain tactical considerations .

Notes:

• All quantitative figures are drawn from the company’s 8‑K press release, 10‑Q filings, and prior‑quarter press releases as cited.
• SPGI consensus estimates were not retrievable via tool for LBRA; therefore, no S&P Global consensus values are presented.