AREB earnings analysis
What we found in AREB's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
American Rebel’s Q2 results show substantial operating deterioration: revenue fell 30% year over year to $1,986,066, gross margin declined to negative 8%, and operating loss widened to $4,730,069. Net loss improved to $5,980,817 only because prior-year debt-extinguishment losses were unusually high. Liquidity remains critical, with $96,455 of cash, a $19,423,645 working-capital deficit, negative six-month free cash flow of $2,863,913, substantial debt and ongoing reliance on highly dilutive financing. The Nasdaq delisting, going-concern uncertainty and ineffective disclosure controls further elevate risk.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue fell 30% year over year
- Q2 2026 revenue declined 30% year over year to $1,986,066 from $2,842,596. Management attributed the $856,530 decline to slower sales and current market conditions.
- Gross and operating profitability deteriorated
- Gross loss widened to $155,975 from $31,373, reducing gross margin to negative 8% from negative 1%. Operating loss increased to $4,730,069 from $4,198,280 as operating expenses rose to $4,574,094.
- Net loss improved on lower financing losses
- Net loss improved to $5,980,817 from $18,137,743, and diluted loss per share improved to $0.59 from $213,385.21, primarily because debt-extinguishment losses declined to $171,755 from $11,817,991.
- Rental revenue added diversification
- Rental revenue contributed 8.0% of Q2 revenue, versus 0% in the prior-year quarter, while safes remained the dominant category at 88.3% of revenue.
- Operating cash burn moderated
- Six-month operating cash flow was negative $2,863,913 versus negative $3,359,662 in the prior-year period. No property and equipment purchases were reported in the six months ended June 30, 2026, implying free cash flow of negative $2,863,913.
- Working-capital deficit modestly improved
- Working capital loans declined to $14,612,819 from $19,616,386 at December 31, 2025, while the working-capital deficit improved to $19,423,645 from $20,321,313.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Severe liquidity and going-concern risk
- Cash and cash equivalents fell to $96,455 from $147,586 at December 31, 2025, while total cash, cash equivalents and restricted cash were $1,220,904. Management stated that revenue does not cover operating expenses and that substantial doubt remains regarding the Company’s ability to continue as a going concern.
- Nasdaq delisting and OTC trading
- The Company was delisted from Nasdaq after trading was suspended on May 13, 2026 and was moved to OTCID on June 30, 2026. Management is evaluating possible reclassification to OTCQB, OTCQX, or relisting on a national exchange.
- Extreme equity dilution
- Common shares outstanding increased to 21,004,164 from 3,362 at December 31, 2025. During the six months, $7,247,865 of debt was converted into common stock, and management stated that future equity or debt financing will likely be dilutive.
- Debt repayment and default pressure
- Current liabilities were $23,026,869 versus current assets of $3,603,224, including $14,612,819 of working-capital loans. Management disclosed missed payments under several financing agreements and stated that most current debt instruments carry high interest rates.
- Material weakness in financial controls
- Management concluded that disclosure controls were not effective as of June 30, 2026 and identified a material weakness in internal control over financial reporting related to inadequate management reviews and insufficient technical accounting competencies.
- Weak sales and inventory obsolescence
- Inventory declined to $1,786,533 from $2,755,320, but the reserve for excess and obsolete inventory increased to $510,038 from $469,370. Revenue declined 30% year over year to $1,986,066, increasing the risk of further inventory markdowns.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.59
- Gross margin
- -7.85%
- Operating margin
- -238.17%
- Segment
- Single reportable segment: patriotic goods. Q2 2026 revenue was $1,986,066; revenue mix was safes 88.3%, rental 8.0%, beverages 2.3%, and soft goods and other 1.4%.
What they said about what is next.
No quantitative revenue or EPS guidance was provided. Management expects additional losses during fiscal 2026 and beyond and anticipates raising additional funds through equity or debt offerings.
The filing reads worse than the one before it.
What came before.
- 10-Q · May 13, 2026
- American Rebel Holdings, Inc. reported a Q4 revenue of $1,985,191, a 21% decrease from $2,511,324 year-over-year, with a net loss of $6,972,464 leading to an EPS of $(71.28). The company's increased operational expenses…
- 10-K · April 27, 2026
- The 10-K/A primarily corrects the original 10-K to add Exhibit 97.1; the underlying 2025 filing shows a small retail/brand company with roughly $10.0M of revenue in 2025, persistent operating losses and negative free…
- 10-K · March 31, 2026
- American Rebel positions itself as “America’s Patriotic Brand,” selling safes, concealed-carry apparel and a nascent beer business while expanding via minority investments and real estate purchase agreements. 2025…
- 10-Q · November 10, 2025
- American Rebel reported Q3 revenue of $1,877,518, down from $2,337,786 in the prior-year quarter, producing a gross loss of $197,770 and an operating loss of $3,680,171. The quarter produced a GAAP loss per share of…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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