Operating Expenses from Continuing Operations Declined Approximately 53%; Loss from Operations Improved Approximately 44%; Achieved Positive Cash Flow From Operations
NEW YORK, May 15, 2026 (GLOBE NEWSWIRE) -- 1847 Holdings LLC (OTC:LBRA) ("1847 Holdings" or the "Company"), a diversified acquisition holding company focused on identifying and monetizing overlooked, deep-value businesses, today announced financial results for the first quarter ended March 31, 2026.
During the first quarter of 2026, the Company's Board of Directors approved a plan to actively market for sale of CMD Inc. ("CMD"), which comprises the CMD segment within the Company's Construction operations. As a result, CMD has been classified as held-for-sale and discontinued operations under U.S. GAAP for all periods presented.
Accordingly, the Company's reported continuing operations for the periods presented reflect the operations of Kyle's, Wolo, ICD, and Corporate Services. Supplemental unaudited pro forma information reflecting CMD within continuing operations is included later in this release to assist investors in evaluating comparative operating performance.
"During the first quarter, we continued to focus on cost controls, liquidity management and portfolio optimization," said Ellery W. Roberts, CEO of 1847 Holdings. "Our reported net loss was impacted by higher interest expense and non-cash financing-related charges, including a warrant liability revaluation; however, total operating expenses from continuing operations declined significantly year-over-year, loss from operations improved, and cash flow from operating activities from continuing operations was positive for the quarter."
"In addition, we recently announced the execution of a non-binding letter of intent for the proposed sale of CMD in a potential $65 million all-cash transaction. While there can be no assurance that a definitive agreement will be executed or that the transaction will ultimately be consummated, we believe this milestone reflects the operational progress achieved at CMD during our ownership period and the underlying value of the business," continued Mr. Roberts.
"We acquired CMD in December 2024 for approximately $18.75 million. If consummated at the contemplated purchase price, the proposed transaction would represent approximately three times our original purchase price over a holding period of approximately one and a half years. If the transaction is completed as contemplated, we expect to use the proceeds to repay all outstanding debt and subsequently evaluate the deployment of remaining capital to support our continuing operations and potential future acquisitions."
"On a continuing operations basis, we reduced total operating expenses by approximately 53% year-over-year to $2.0 million in the first quarter of 2026 from $4.2 million in the prior-year period, reflecting our continued focus on cost controls and operational efficiency. In addition, loss from operations improved by approximately 44% year-over-year to $(0.8) million, compared to $(1.4) million in the first quarter of 2025. We believe these results demonstrate the progress we are making toward improving operational efficiency, reducing our cost structure, and positioning the Company for stronger long-term financial performance," concluded Mr. Roberts.
Results from Continuing Operations
Revenue from continuing operations for the first quarter of 2026 was approximately $1.2 million, compared to approximately $2.8 million in the prior-year period. The decrease was primarily attributable to lower revenue at Kyle's and Wolo, reflecting the timing of new project activity at Kyle's and the ongoing repositioning of Wolo's business model.
Total operating expenses from continuing operations declined to approximately $2.0 million for the first quarter of 2026, compared to approximately $4.2 million in the first quarter of 2025. The decrease was primarily driven by lower cost of revenues, personnel costs, general and administrative expenses, and professional fees.
Loss from operations from continuing operations improved to approximately $(0.8) million for the first quarter of 2026, compared to approximately $(1.4) million in the first quarter of 2025.
Net loss from continuing operations was approximately $(3.8) million for the first quarter of 2026, compared to approximately $(1.6) million in the prior-year period. The increase was primarily attributable to higher interest expense and non-cash financing-related charges, including a $1.3 million loss on the change in the fair value of warrant liabilities in the current period, compared to a $3.7 million gain in the prior-year period.
Net loss attributable to 1847 Holdings was approximately $(3.4) million for the first quarter of 2026, compared to approximately $(0.4) million in the prior-year period.
Cash flow from operating activities from continuing operations was approximately $0.7 million for the first quarter of 2026, compared to approximately $0.4 million in the prior-year period. The Company's positive operating cash flow from continuing operations reflected working-capital timing and disciplined cash management during the quarter.
Condensed Consolidated Statements of Operations, Continuing Operations(Unaudited)
Three Months EndedMarch 31, 2026
Three Months EndedMarch 31, 2025
Revenue
$1,168,408
$2,770,791
Total Operating Expenses
1,967,611
4,185,691
Loss from Operations
(799,203
)
(1,414,900
)
Total Other Expense
(3,110,746
)
(307,402
)
Loss from Continuing Operations Before Income Taxes
(3,909,949
)
