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AMERICAN REBEL HOLDINGS INC

AREB
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Business Summary

American Rebel Holdings, Inc. operates as a lifestyle brand focused on patriotic values, primarily designing, manufacturing, and marketing branded safes, personal security, and self-defense products. The company also produces branded apparel and accessories, and has expanded into the beverage industry with American Rebel Light Beer. The business model generates revenue through wholesale distribution, personal appearances, musical venue performances, e-commerce, and television. The company's revenue streams are primarily transactional, with a small portion from recurring warranty income. Key customer segments are those who identify with American patriotic values, including collectors, hunters, sportsmen, competitive shooters, and gun enthusiasts, with a new focus on cannabis dispensary operators for secure storage solutions.

The company's core business is segmented into safes and personal security products, apparel and accessories, and beverages. The safes and personal security products, marketed under the American Rebel, Champion Safe Co., Superior Safe Company, and Safe Guard Safe Co. brands, are constructed primarily of U.S.-made steel for higher-end models and manufactured in Nogales, Mexico, under the Maquiladora Program for middle and value-line safes. These products are designed for firearm storage and protection of valuables, emphasizing quality, safety, reliability, and distinctive styling. Revenue from safes constituted 95% of total revenue for the year ended December 31, 2025, and 96% for the year ended December 31, 2024.

Apparel and accessories, including backpacks with a "Personal Protection Pocket" and concealed carry jackets with magnetic closures, are sold under the American Rebel brand. Revenue from soft goods and other categories was 0% for the year ended December 31, 2025, and 3% for the year ended December 31, 2024. The beverage segment, featuring American Rebel Light Beer, launched regionally in September 2024 and is available online in 40 US States. This segment contributed 3% of revenue in 2025 and 1% in 2024. The company also reported 2% of revenue from rental activities in 2025, with 0% in 2024.

For the fiscal year ended December 31, 2025, American Rebel Holdings, Inc. reported total revenue of $9,522,109 , a decrease from $11,420,268 in 2024. The cost of goods sold was $9,719,861 , down from $11,539,905 in the prior year. This resulted in a negative gross margin of $(197,752) for 2025, compared to $(119,637) in 2024. The gross margin percentage for 2025 was (2)% , a decline from (1)% in 2024. The company experienced an operating loss of $(14,762,427) in 2025, compared to $(12,220,115) in 2024. Net loss for the year was $(34,325,289) , resulting in a diluted EPS of $(63,214.16) . Cash and cash equivalents stood at $147,586 as of December 31, 2025, with total current liabilities of $25,966,301 and total liabilities of $27,441,824 . The working capital deficit was $20,321,313 as of December 31, 2025.

Year-over-year, total revenue decreased by $1,898,159 , or (17)% , primarily due to slower sales in current market conditions. Cost of goods sold decreased by $1,820,044 , or (16)% , directly correlating with the sales decline. Gross margin decreased by $78,115 , or (65)% . Total operating expenses increased by $2,464,197 , or 20% , driven by a 59% increase in consulting/payroll and other costs to $3,246,972 , and a 97% increase in marketing and brand development expenses to $4,633,182 , largely due to the beer business. Interest expense decreased by $1,442,143 , or (36)% , to $2,527,342 . However, loss on debt extinguishment and settlement of liability significantly increased by $15,629,070 , or 1099% , to $13,965,771 and $3,085,606 respectively, due to several debt-to-equity conversions. The net loss increased by $16,720,925 , or 95% .

During 2025, American Rebel made several significant operational developments. The company acquired a 19.01% ownership interest in Sydona Enterprises, LLC, d/b/a Schmitty's, for approximately $1.99 million in common stock and prefunded warrants, aiming to expand into the $10 billion smokeless category. It also acquired a minority membership interest in RAEK Data, LLC, issuing 200,000 shares of Series D Convertible Preferred Stock valued at $1,500,000 , and later exercised an option to purchase an additional 2.0% ownership for $1,000,000 in Series D Convertible Preferred Stock. The company acquired 100% of the membership interests in 218 LLC, which owns a 20,829 square foot commercial retail building in Nashville, Tennessee, for $14,100,000 , paid in Series D Convertible Preferred Stock, cash installments, and a $11,700,000 promissory note. Additionally, American Rebel purchased a $2,000,000 portion of a $6,470,000 secured promissory note in Damon, Inc. from Streeterville Capital, LLC, in exchange for 2,000 shares of Series E Preferred Stock. The company also formed American Rebel Licensing NIL I, Inc. in February 2026 to pursue licensing opportunities.

Business Outlook

American Rebel Holdings, Inc. has not issued formal revenue, margin, or EPS guidance for the upcoming period.

The company's growth strategy is structured around three core pillars, with a significant focus on expanding into high-growth consumer categories, particularly the U.S. light beer market. American Rebel Light Beer is positioned as a brand-defining initiative, targeting the estimated $118 to $122 billion annual U.S. beer market, where non-craft light, regular, and import beers account for over $93 billion . Light beer alone represents 43% to 50% of total U.S. beer consumption, equivalent to approximately 2.6 to 3.0 billion gallons annually. The company believes American Rebel Light Beer can achieve a modest 2% to 3% market share of the U.S. light beer segment, translating to an estimated $500 million to $700 million in annual revenue. This opportunity is supported by an established partnership with a leading U.S. co-packer capable of producing over 230 million cases per year and distribution already secured in over 10 U.S. states.

Another growth area is the organic growth in core markets, specifically scaling the safe business. The company believes its safe business is well-positioned to grow revenues by 3x to 5x over the next few years. This outlook is supported by increased consumer interest in personal safety and responsible firearm storage, legislative trends reinforcing firearm storage requirements, and a large, underpenetrated U.S. market estimated to include over 70 million gun owners and 400 million firearms. The company plans to expand its footprint through both brick-and-mortar retail expansion and e-commerce, supported by its distributor and dealer networks. Additionally, demand for American Rebel branded lifestyle merchandise has exceeded initial projections, and the company intends to expand these offerings and explore strategic licensing opportunities. The cannabis dispensary industry is also identified as a material growth segment for safes and vault doors, with dispensary operators, growers, and processors expressing interest in inventory control solutions.

Operationally, the company expects to maintain its current level of rental expense for leases and rented properties in the near term. The company has identified material weaknesses in its internal control over financial reporting and is undertaking remedial actions, including adding experienced accounting personnel and leveraging external accounting resources, with expected enhancements to remediation plans throughout the year ending December 31, 2026.

Regarding capital allocation, the company will need additional capital and continued access to operating lines of credit to finance its planned growth. It anticipates needing to raise additional funds through equity or debt offerings to meet expected future liquidity requirements. The company has no plans, programs, or other arrangements regarding repurchases of its common stock and did not repurchase any equity securities during the year ended December 31, 2025. The company does not expect to pay cash dividends on its common stock in the foreseeable future, intending to retain all future earnings for business development, expansion, and general corporate purposes.

The company explicitly flagged several structural headwinds and execution risks. These include substantial competition within the beer industry from large domestic and international brewers, as well as craft brewers, who possess greater financial resources, marketing strength, and distribution networks. The evolving global beer and alcohol industry, coupled with changing public attitudes and drinker tastes, could harm the business, potentially leading to restrictions on advertising, increased cautionary labeling, further restrictions on alcohol sales, or increased excise taxes. The company is dependent on distributors, and changes in control or ownership within the distribution network could lead to less support for its products, with distribution agreements generally terminable on relatively short notice. In the safe industry, performance is influenced by economic, social, and political factors, including speculation surrounding firearm control and ammunition regulation, which can cause volatile sales. A majority of the company's safes are built in Mexico, and a majority of soft goods suppliers are in China and Mexico, making financial results susceptible to new tariffs or border adjustment taxes or other import restrictions. Shortages of components and materials, as well as supply chain disruptions, may delay or reduce sales and increase costs. The company does not have long-term purchase commitments from customers, allowing them to cancel, reduce, or delay orders, which could reduce revenue and increase costs.

Management Priorities

Management's message to shareholders conveys a strong focus on establishing American Rebel as "America's Patriotic Brand" by leveraging a renewed wave of American Patriotism and consumer preference for USA-made goods and values-driven brands. They emphasize a multi-faceted growth strategy centered on organic growth in core markets, strategic acquisitions, and aggressive expansion into high-growth consumer categories, particularly the U.S. light beer market. Management believes the safe business is well-positioned to grow revenues by 3x to 5x over the next few years, and that American Rebel Light Beer has the potential to achieve an estimated $500 million to $700 million in annual revenue by capturing a 2% to 3% market share of the U.S. light beer segment. While no specific forward-looking EPS or revenue guidance was provided, management acknowledges the need for additional capital and continued access to operating lines of credit to fund planned growth and operations. The three strategic priorities emphasized are scaling the safe business through operational streamlining and product refinement, actively evaluating strategic acquisition opportunities that align with core competencies, and capitalizing on the transformative growth opportunity presented by American Rebel Light Beer in the U.S. light beer market.

View Source Annual Report on SEC.gov ↗

References

  1. [1] Item 7, MD&A — Revenue Percentage
  2. [2] Item 7, MD&A — Revenue Percentage
  3. [3] Item 7, MD&A — Revenue Percentage
  4. [4] Item 7, MD&A — Revenue Percentage
  5. [5] Item 7, MD&A — Revenue Percentage
  6. [6] Item 7, MD&A — Revenue Percentage
  7. [7] Item 7, MD&A — Revenue Percentage
  8. [8] Item 7, MD&A — Revenue Percentage
  9. [9] Item 7, MD&A — Revenue and cost of goods sold
  10. [10] Item 7, MD&A — Revenue and cost of goods sold
  11. [11] Item 7, MD&A — Revenue and cost of goods sold
  12. [12] Item 7, MD&A — Revenue and cost of goods sold
  13. [13] Item 7, MD&A — Revenue and cost of goods sold
  14. [14] Item 7, MD&A — Revenue and cost of goods sold
  15. [15] Item 7, MD&A — Revenue and cost of goods sold
  16. [16] Item 7, MD&A — Revenue and cost of goods sold
  17. [17] Item 7, MD&A — Operating loss
  18. [18] Item 7, MD&A — Operating loss
  19. [19] Item 7, MD&A — Net Loss
  20. [20] Item 7, MD&A — Net Loss
  21. [21] Item 8, Consolidated Balance Sheets — Cash and cash equivalents
  22. [22] Item 8, Consolidated Balance Sheets — Total Current Liabilities
  23. [23] Item 8, Consolidated Balance Sheets — Total Liabilities
  24. [24] Item 7, MD&A — Liquidity
  25. [25] Item 7, MD&A — Revenue and cost of goods sold
  26. [26] Item 7, MD&A — Revenue and cost of goods sold
  27. [27] Item 7, MD&A — Revenue and cost of goods sold
  28. [28] Item 7, MD&A — Revenue and cost of goods sold
  29. [29] Item 7, MD&A — Revenue and cost of goods sold
  30. [30] Item 7, MD&A — Revenue and cost of goods sold
  31. [31] Item 7, MD&A — Expenses
  32. [32] Item 7, MD&A — Expenses
  33. [33] Item 7, MD&A — Expenses
  34. [34] Item 7, MD&A — Expenses
  35. [35] Item 7, MD&A — Expenses
  36. [36] Item 7, MD&A — Expenses
  37. [37] Item 7, MD&A — Other income and expenses
  38. [38] Item 7, MD&A — Other income and expenses
  39. [39] Item 7, MD&A — Other income and expenses
  40. [40] Item 7, MD&A — Other income and expenses
  41. [41] Item 7, MD&A — Other income and expenses
  42. [42] Item 7, MD&A — Other income and expenses
  43. [43] Item 7, MD&A — Other income and expenses
  44. [44] Item 7, MD&A — Net Loss
  45. [45] Item 7, MD&A — Net Loss
  46. [46] Item 1, Business — Sydona Enterprises, LLC, d/b/a Schmitty’s
  47. [47] Item 1, Business — Sydona Enterprises, LLC, d/b/a Schmitty’s
  48. [48] Item 1, Business — Sydona Enterprises, LLC, d/b/a Schmitty’s
  49. [49] Item 1, Business — RAEK Data, LLC.
  50. [50] Item 1, Business — RAEK Data, LLC.
  51. [51] Item 1, Business — RAEK Data, LLC.
  52. [52] Item 1, Business — RAEK Data, LLC.
  53. [53] Item 1, Business — 218 3rd Avenue Asset Acquisition
  54. [54] Item 1, Business — 218 3rd Avenue Asset Acquisition
  55. [55] Item 1, Business — 218 3rd Avenue Asset Acquisition
  56. [56] Item 1, Business — 218 3rd Avenue Asset Acquisition
  57. [57] Item 1, Business — Damon Note Purchase Agreement
  58. [58] Item 1, Business — Damon Note Purchase Agreement
  59. [59] Item 1, Business — Damon Note Purchase Agreement
  60. [60] Item 1, Business — Expanding into High-Growth Consumer Categories – American Rebel Light Beer
  61. [61] Item 1, Business — Expanding into High-Growth Consumer Categories – American Rebel Light Beer
  62. [62] Item 1, Business — Expanding into High-Growth Consumer Categories – American Rebel Light Beer
  63. [63] Item 1, Business — Expanding into High-Growth Consumer Categories – American Rebel Light Beer
  64. [64] Item 1, Business — Expanding into High-Growth Consumer Categories – American Rebel Light Beer
  65. [65] Item 1, Business — Expanding into High-Growth Consumer Categories – American Rebel Light Beer
  66. [66] Item 1, Business — Expanding into High-Growth Consumer Categories – American Rebel Light Beer
  67. [67] Item 1, Business — Expanding into High-Growth Consumer Categories – American Rebel Light Beer
  68. [68] Item 1, Business — Organic Growth in Core Markets – Scaling Our Safe Business
  69. [69] Item 1, Business — Organic Growth in Core Markets – Scaling Our Safe Business
  70. [70] Item 1, Business — Organic Growth in Core Markets – Scaling Our Safe Business

Analysis on 5/22/2026