1847 Holdings LLC Annual Report: A Simple Breakdown

I’ve put together this guide to help you understand how 1847 Holdings LLC works. Think of them as a "business collector"—they buy small, established companies and try to improve them. Here is the latest update on their performance.

1. What does this company do?

1847 Holdings operates like a mini-private equity firm. They hunt for small, profitable businesses that are too tiny for larger investors to notice. Once they buy a company, they bring in partners to improve management, upgrade systems, and grow the business.

Their business now sits in two buckets:

• Construction (97.6% of revenue): They specialize in finish carpentry—installing doors, cabinets, and millwork in Boise and Las Vegas. In 2025, this segment brought in about $48.8 million.
• Automotive Supplies (2.4% of revenue): They own Wolo, which sells horns, sirens, and warning lights. This segment has shrunk significantly, falling from 24% of revenue in 2024 to just $1.2 million in 2025.

2. Recent "Housekeeping"

The company has been "spring cleaning" to shed underperforming assets.

• The Exits: They lost control of Asien’s Appliance and ICU Eyewear due to financial trouble and loan defaults, resulting in a $12 million loss in value. They also sold High Mountain Door & Trim for $3.5 million to simplify operations.
• The New Addition: They bought CMD, a carpentry business, for $8.2 million in late 2024 to grow their regional market share.
• The Takeaway: They are becoming a regional construction contractor. They are betting their future on the Boise and Las Vegas housing markets, which make up 85% of their current project backlog.

3. Who runs the show? (And what it costs you)

1847 Holdings doesn't have a large corporate staff. Instead, they pay an outside manager, 1847 Partners LLC, to run everything.

• The Fees: You pay a 2% annual fee based on total assets, plus transaction fees of 1–2% whenever they buy or sell a business. In 2025, these fees totaled $1.4 million.
• The "Profit Split": The manager takes 20% of profits once they hit an 8% return for shareholders.
• The "Gotcha": The manager gets paid before you do. If cash is tight, they can sell assets or borrow money to pay their own fees. This happened in late 2025, when the company borrowed $500,000 just to cover administrative and management costs.

4. The "Going Concern" Warning

This is the most important part of the report: the auditors issued a "going concern" warning.

Even with a $3.9 million profit in 2025, the company faces a massive debt pile. They have a $43.2 million gap between what they owe in the next year and the cash they have on hand. Management acknowledges that current cash flow is insufficient to cover these debts. They are actively trying to refinance $25 million in debt and sell assets to raise cash.

My take: This is a high-stakes situation. While they are focusing on growing construction markets, the "going concern" warning is a major red flag. You are betting on their ability to survive a debt crunch while paying an aggressive management contract that takes its cut first. The company’s survival depends entirely on securing new financing or selling assets quickly. Before investing, ask yourself if the potential growth in their construction segment outweighs the significant risk that they may not be able to pay their upcoming bills.