UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

[x] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934 for the

quarterly period ended                      September 30, 2006
                       ---------------------------------------------------------

[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934 for the

transition period from _________________________to _____________________________


Commission File Number                      000-27926
                       ---------------------------------------------------------

                       ICON Cash Flow Partners L.P. Seven
             (Exact name of registrant as specified in its charter)


         Delaware                                              13-3835387
--------------------------------------------------------------------------------
(State or other jurisdiction of             (IRS Employer Identification Number)
incorporation or organization)

 100 Fifth Avenue, 4th Floor, New York, New York                10011-1505
--------------------------------------------------------------------------------
(Address of principal executive offices)                      (Zip code)

                                 (212) 418-4700
--------------------------------------------------------------------------------
               Registrant's telephone number, including area code

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. [x] Yes [ ] No

Indicate by check mark whether the registrant is a large  accelerated  filer, an
accelerated  filer or a  non-accelerated  filer.  See definition of "accelerated
filer and large  accelerated  filer" in Rule 12b-2 of the  Exchange  Act.  Large
accelerated filer [ ] Accelerated filer [ ] Non-accelerated filer [x]

Indicate by check mark whether the  registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act). [ ] Yes [x] No

Number of outstanding limited partnership units of the registrant on October 31,
2006 is 987,378.

<PAGE>

                       ICON Cash Flow Partners L.P. Seven
                                      Index


<TABLE>
<CAPTION>


PART I - FINANCIAL INFORMATION                                                            Page

<S>                                                                                        <C>
     Item 1.  Condensed Consolidated Financial Statements

         Condensed Consolidated Balance Sheets at September 30, 2006 (Unaudited) and
           December 31, 2005                                                                1

         Condensed Consolidated Statements of Operations for the Three and Nine Months
           Ended September 30, 2006 and 2005 (Unaudited)                                    2

         Condensed Statement of Changes in Partners' Equity for the Nine Months Ended
           September 30, 2006 (Unaudited)                                                   3

         Condensed Consolidated Statements of Cash Flows for the Nine Months Ended
           September 30, 2006 and 2005 (Unaudited)                                          4

         Notes to Condensed Consolidated Financial Statements (Unaudited)                   6

     Item 2. General Partner's Discussion and Analysis of Financial Condition and
              Results of Operations                                                        13

     Item 3.  Quantitative and Qualitative Disclosures About Market Risk                   19

     Item 4.  Controls and Procedures                                                      19

PART II - OTHER INFORMATION

     Item 1.  Legal Proceedings                                                            20

     Item 1A. Risk Factors                                                                 20

     Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds                  20

     Item 3.  Defaults Upon Senior Securities                                              20

     Item 4.  Submission of Matters to a Vote of Security Holders                          20

     Item 5.  Other Information                                                            20

     Item 6.  Exhibits                                                                     21

Signatures                                                                                 22

</TABLE>

<PAGE>

                         PART I - FINANCIAL INFORMATION

                       ICON Cash Flow Partners L.P. Seven
                        (A Delaware Limited Partnership)
                      Condensed Consolidated Balance Sheets

                                     ASSETS

<TABLE>
<CAPTION>


                                                                                (Unaudited)
                                                                                September 30,      December 31,
                                                                                    2006              2005
                                                                                -------------      -----------
<S>                                                                             <C>                <C>
 Cash and cash equivalents                                                      $     502,176      $   151,326
                                                                                -------------      -----------

 Investment in operating lease:
      Equipment, at cost                                                                    -        2,565,000
      Accumulated depreciation                                                              -       (1,388,850)
                                                                                -------------      -----------

         Net investment in operating lease                                                  -        1,176,150
                                                                                -------------      -----------

 Investment in joint venture                                                        7,588,203       11,241,860
 Equipment held for sale                                                               26,000          165,152
 Restricted cash                                                                            -        2,285,723
 Other assets, net                                                                          -          233,114
                                                                                -------------      -----------

         Total assets                                                           $   8,116,379      $15,253,325
                                                                                =============      ===========

                        LIABILITIES AND PARTNERS' EQUITY

 Note payable - recourse                                                        $           -      $ 4,698,538
 Security deposits and other payables                                                  20,000          219,327
 Due to General Partner                                                                     -          132,499
 Maintenance reserve payable                                                                -        2,185,723
                                                                                -------------      -----------

      Total liabilities                                                                20,000        7,236,087
                                                                                -------------      -----------

 Commitments and contingencies

 Partners' equity:
      General Partner                                                                (638,046)        (768,734)
      Limited Partners (987,378 and 987,548 units outstanding,
         $100 original unit original issue price)                                   8,734,425        8,785,972
                                                                                -------------      -----------

      Total partners' equity                                                        8,096,379        8,017,238
                                                                                -------------      -----------

      Total liabilities and partners' equity                                    $   8,116,379      $15,253,325
                                                                                =============      ===========
</TABLE>

See accompanying notes to condensed consolidated financial statements.

                                       1
<PAGE>

                       ICON Cash Flow Partners L.P. Seven
                        (A Delaware Limited Partnership)
                 Condensed Consolidated Statements of Operations
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                       Three Months Ended September 30,  Nine Months Ended September 30,
                                                           2006              2005             2006             2005
                                                       ------------     -------------    -------------   -------------
<S>                                                    <C>              <C>              <C>             <C>
 Revenue:
      Rental income                                    $     50,000     $     150,000    $     350,000   $     450,000
      Finance income                                              -                 -                -           1,928
      (Loss) income from investments in joint ventures      (85,823)           383,780         305,027       1,262,752
      Gain on transfer of investment in joint ventures            -                 -                -       1,171,786
      Net gain on sales of equipment                      1,124,804                 -        1,112,070               -
      Interest and other income                              18,672             3,327           42,112          24,031
                                                       ------------     -------------    -------------   -------------

         Total revenue                                    1,107,653           537,107        1,809,209       2,910,497
                                                       --------- --     -------------    -------------   -------------

 Expenses:
      Impairment loss                                        64,500                 -           84,789       1,320,826
      Depreciation and amortization                          46,295           165,616          555,733         496,848
      Gain on early retirement of debt                     (121,693)                -         (121,693)              -
      Interest                                               21,710                 -          134,403         237,160
      Remarketing expense                                    20,917            75,000          145,046         225,000
      General and administrative                             80,651           169,963        1,060,779         425,827
      Minority interest                                           -              (638)               -          (1,916)
                                                       ------------     -------------    -------------   -------------

         Total expenses                                     112,380           409,941        1,859,057        2,703,745
                                                       ------------     -------------    -------------   -------------

 Net income (loss)                                     $    995,273     $     127,166    $     (49,848)  $     206,752
                                                       ============     =============    =============   =============


 Net income (loss) allocable to:
      Limited partners                                 $    985,320     $     125,894    $     (49,350)  $     204,684
      General Partner                                         9,953             1,272             (498)          2,068
                                                       ------------     -------------    -------------   -------------

                                                       $    995,273     $     127,166    $     (49,848)  $     206,752
                                                       ============     =============    =============   =============

 Weighted average number of limited partnership
      units outstanding                                     987,378           987,548          987,405         987,548
                                                       ============     =============    =============   =============

 Net (loss) income per weighted average limited
      partnership units outstanding                    $       1.00     $        0.13    $       (0.05)  $        0.21
                                                       ============     =============    =============   =============

</TABLE>

See accompanying notes to condensed consolidated financial statements.

                                       2
<PAGE>

                       ICON Cash Flow Partners L.P. Seven
                        (A Delaware Limited Partnership)
         Condensed Consolidated Statement of Changes in Partners' Equity
                      Nine Months Ended September 30, 2006
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                                                            Total
                                         Units             Limited          General        Partners'
                                      Outstanding         Partners          Partner         Equity
                                      ------------     -------------    -------------   -------------

<S>                                   <C>             <C>               <C>             <C>
 Balance, January 1, 2006                  987,548     $   8,785,972    $    (768,734)  $   8,017,238

 Limited partnership units redeemed           (170)           (2,197)               -          (2,197)
 Capital contribution                            -                 -          131,186         131,186
 Net loss                                        -           (49,350)            (498)        (49,848)
                                      ------------     --------------   -------------   -------------

 Balance, September 30, 2006               987,378     $   8,734,425    $    (638,046)  $   8,096,379
                                      ============     =============    =============   =============

</TABLE>

See accompanying notes to condensed consolidated financial statements.

                                       3
<PAGE>


                       ICON Cash Flow Partners L.P. Seven
                        (A Delaware Limited Partnership)
                 Condensed Consolidated Statements of Cash Flows
                         Nine Months Ended September 30,
                                   (Unaudited)


<TABLE>
<CAPTION>

                                                                    2006               2005
                                                                -------------      -----------
<S>                                                             <C>                 <C>
 Cash flows from operating activities:
      Net (loss) income                                         $     (49,848)     $   206,752
      Adjustments to reconcile net (loss) income to net cash
         (used in) provided by operating activities:
            Income from investments in joint ventures                (305,027)      (1,262,752)
            Gain on transfer of investment in joint venture                 -       (1,171,786)
            Net gain on sales of equipment                         (1,112,070)               -
            Impairment loss                                            84,789        1,320,826
            Depreciation  and amortization                            555,733          601,230
            Gain on early retirement of debt                         (121,693)               -
            Minority interest                                               -           (1,916)
      Changes in operating assets and liabilities:
         Collection of principal - non-financed receivables                 -          366,567
         Other assets                                                     453           (5,521)
         Security deposits and other payables                        (154,690)        (114,305)
         Accrued interest expense                                           -           92,529
         Due from/to General Partner and affiliates, net                    -          (22,462)
         Decrease in restricted cash                                2,285,723                -
         Maintenance reserve payable                               (2,185,723)               -
                                                                -------------      -----------

 Net cash (used in) provided by operating activities               (1,002,353)           9,162
                                                                -------------      -----------

 Cash flows from investing activities:
      Proceeds from sales of equipment                              3,994,502          234,487
      Residual sharing payments made                               (1,976,437)               -
      Distributions received from joint ventures                    3,958,684           16,764
                                                                -------------      -----------

 Net cash provided by investing activities                          5,976,749          251,251
                                                                -------------      -----------

 Cash flows from financing activities:
      Cash paid for redemption of limited partner units                (2,197)               -
      Principal payments on notes payable - recourse               (4,621,349)      (2,422,992)
      Loans and advances from affiliates                                    -        2,172,992
      Distributions to minority interest in joint ventures                  -           (2,250)
                                                                -------------      -----------

 Net cash used in financing activities                             (4,623,546)        (252,250)
                                                                -------------      -----------

 Net increase in cash and cash equivalents                            350,850            8,163
 Cash and cash equivalents, beginning of the period                   151,326           96,364
                                                                -------------      -----------

 Cash and cash equivalents, end of the period                   $     502,176      $   104,527
                                                                =============      ===========

</TABLE>

See accompanying notes to condensed consolidated financial statements.

                                       4
<PAGE>


                       ICON Cash Flow Partners L.P. Seven
                        (A Delaware Limited Partnership)
                 Condensed Consolidated Statements of Cash Flows
                         Nine Months Ended September 30,
                                   (Unaudited)

<TABLE>
<CAPTION>


                                                                                     2006             2005
                                                                                -------------      -----------
<S>                                                                             <C>                <C>
 Supplemental disclosure of cash flow information:
      Cash paid during the period for interest                                  $     201,790      $    40,249
                                                                                =============      ===========

 Supplemental disclosure of non-cash investing and financing activities:
      Joint venture interests assigned to affiliates in exchange
         for amounts owed                                                       $           -      $ 1,427,992
                                                                                =============      ===========
      Assignment of finance lease interest in exchange for amounts owed         $           -      $   745,000
                                                                                =============      ===========
      Non-cash repayments of loan and advances from affiliates                  $           -      $ 2,172,992
                                                                                =============      ===========
      Non-cash capital contributions                                            $     131,186      $         -
                                                                                =============      ===========

</TABLE>

See accompanying notes to condensed consolidated financial statements.

                                       5
<PAGE>
                       ICON Cash Flow Partners L.P. Seven
                        (A Delaware Limited Partnership)
              Notes To Condensed Consolidated Financial Statements
                               September 30, 2006
                                   (Unaudited)

(1)    Basis of Presentation and Consolidation

     The accompanying  condensed  consolidated financial statements of ICON Cash
Flow Partners L.P.  Seven (the  "Partnership")  have been prepared in accordance
with accounting  principles  generally  accepted in the United States of America
for interim  financial  information and pursuant to the rules and regulations of
the  Securities  and Exchange  Commission  for  Quarterly  Reports on Form 10-Q.
Accordingly,  they do not include all of the information and footnotes  required
by accounting  principles generally accepted in the United States of America for
complete  financial  statements.  In the  opinion of the  General  Partner,  all
adjustments  (consisting only of normal recurring accruals) considered necessary
for a  fair  presentation  have  been  included.  These  condensed  consolidated
financial  statements  should  be  read in  conjunction  with  the  consolidated
financial  statements and notes included in the Partnership's 2005 Annual Report
on Form 10-K. The results for the interim period are not necessarily  indicative
of the results for the full year.

     The condensed consolidated financial statements include the accounts of the
Partnership and its majority owned  subsidiary.  All  intercompany  accounts and
transactions have been eliminated in consolidation.

     The Partnership accounts for its noncontrolling interests in joint ventures
where the  Partnership  has  influence on  financial  and  operational  matters,
generally greater than 5% but less than 50% ownership interest, under the equity
method of accounting.  In such cases, the Partnership's original investments are
recorded  at  cost  and  adjusted   for  its  share  of  earnings,   losses  and
distributions.  The Partnership accounts for investments in joint ventures where
the  Partnership  has  virtually no influence  over  financial  and  operational
matters using the cost method of accounting.  In such cases,  the  Partnership's
original  investments  are recorded at cost and any  distributions  received are
recorded to operations.  All of the Partnership's  investments in joint ventures
are subject to its impairment review policies.

(2)    Organization

     The  Partnership  was  formed  on  May  23,  1995  as  a  Delaware  limited
partnership for the purpose of acquiring  equipment  subject to leases and, to a
lesser degree,  acquiring ownership rights to items of leased equipment at lease
expiration.  The  Partnership  will  continue  until  December 31, 2015,  unless
terminated sooner.

     The General  Partner of the Partnership is ICON Capital Corp. (the "General
Partner"), a Connecticut  corporation.  The General Partner manages and controls
the  Partnership's  business affairs,  including,  but not limited to, equipment
leases and financing transactions under the terms of a management agreement with
the  Partnership.  Additionally,  the  General  Partner has a 1% interest in the
profits, losses, cash distributions and disposition proceeds of the Partnership.

     The  Partnership's  reinvestment  period  ended  November  9,  2002 and the
Partnership commenced its disposition period. During the disposition period, the
Partnership is distributing substantially all distributable cash from operations
and equipment sales to the partners and will continue the orderly termination of
its operations and affairs.  The  Partnership  will not invest in any additional
finance or lease transactions during the disposition period.

                                       6
<PAGE>

                       ICON Cash Flow Partners L.P. Seven
                        (A Delaware Limited Partnership)
              Notes To Condensed Consolidated Financial Statements
                               September 30, 2006
                                   (Unaudited)

(2)    Organization - continued

     Partners'   capital  accounts  are  increased  for  their  initial  or  any
additional capital  contribution plus their  proportionate share of earnings and
decreased by their  proportionate  share of losses and  distributions.  Profits,
losses,  cash  distributions  and disposition  proceeds are allocated 99% to the
limited  partners and 1% to the General  Partner until each limited  partner has
received cash distributions and disposition  proceeds sufficient to reduce their
adjusted capital  contribution  account to zero and receive, in addition,  other
distributions  and  allocations  which would  provide an 8% per year  cumulative
return on their outstanding  adjusted capital contribution  account.  After such
time, distributions will be allocated 90% to the limited partners and 10% to the
General Partner.

     Certain  reclassifications  have  been made to the  accompanying  condensed
consolidated  financial statements for the three and nine months ended September
30, 2005 to conform to the current period presentation.

(3)    Use of Estimates

     The  preparation  of financial  statements  in conformity  with  accounting
principles  generally  accepted  in the United  States of America  requires  the
General  Partner to make  estimates  and  assumptions  that affect the  reported
amounts of assets and  liabilities  and the disclosure of contingent  assets and
liabilities as of the date of the financial  statements and the reported amounts
of revenues and expenses  during the  reporting  period.  Significant  estimates
primarily  include  allowance for doubtful  accounts,  the value of unguaranteed
residual values,  depreciation and  amortization and impairment  losses.  Actual
results could differ from those estimates.

(4)    Investment in Operating Lease

         The joint venture described below is consolidated by the Partnership.

     ICON Cash Flow Partners L.L.C. III

     ICON Cash Flow Partners L.L.C. III was originally formed for the purpose of
acquiring  and  managing  a  1976  McDonnell   Douglas  DC-10-30  Aircraft  (the
"Aircraft").  Effective May 1, 2003,  the Aircraft was leased to World  Airways,
Inc. ("World Airways").  Effective September 1, 2004, this lease was modified to
a fixed rental of $50,000 per month plus  maintenance  reserves and the term was
extended through September 2006.

     Aviation Investors, Inc. ("Aviation"), an unrelated third party who was the
seller in the Partnership's acquisition of the Aircraft, was entitled to receive
approximately  50% of all excess residual proceeds from the Aircraft pursuant to
a Residual Sharing Agreement (the "Agreement").  Residual proceeds include gross
proceeds  from the sale,  lease,  renewal lease or extension or financing of the
Aircraft and casualty payments. The gross proceeds may be reduced, but not below
zero, for recovery expenses,  remarketing expenses, any reasonable out-of-pocket
costs incurred by the Partnership,  including remarketing fees paid to Aviation,
and an amount  calculated to provide the  Partnership  with a consistent rate of
return,  as defined in the  Agreement.  Additionally,  Aviation  entered  into a
management  agreement  with the  Partnership  to manage the operations of and to
remarket the Aircraft for sale or lease. For this service,  Aviation  received a
monthly fee of $10,667.

                                       7
<PAGE>

                       ICON Cash Flow Partners L.P. Seven
                        (A Delaware Limited Partnership)
              Notes To Condensed Consolidated Financial Statements
                               September 30, 2006
                                   (Unaudited)

(4)    Investment in Operating Lease - continued

     In accordance with the terms of the lease agreement with World Airways, the
Partnership  received  a monthly  amount  which was  reserved  as a  maintenance
reserve to cover  scheduled  heavy  maintenance  work as required by the Federal
Aviation  Administration.  If the maintenance reserve was not fully utilized for
the  Aircraft,   any  unused  amount  would  have  been  allocated  between  the
Partnership and Aviation as stipulated in the Agreement.

     On August 9, 2006, the  Partnership  sold the Aircraft to World Airways for
approximately  $1,300,000 in cash, plus the maintenance reserve of approximately
$2,664,000.  Pursuant  to the  Agreement  with  Aviation,  the  Partnership  and
Aviation  shared the  proceeds of the sale of the  Aircraft  equally.  The gross
proceeds  of the sale were  approximately  $3,964,000,  reduced by legal fees of
approximately  $10,500,  for net proceeds of  $3,953,000  to be divided  equally
between the Partnership and Aviation.  The  Partnership  received  approximately
$1,976,000 in cash,  net of residual  proceeds paid to Aviation,  and recorded a
gain on the sale of the Aircraft of approximately $1,124,000 after a remarketing
expense of approximately $1,976,000.

     The  Partnership's  investment in the operating  lease  discussed  above is
summarized as follows:

                                   (Unaudited)
                                    September 30,    December 31,
                                       2006             2005
                                   -----------     -------------
 Aircraft                          $       -       $  2,565,000
 Less: accumulated depreciation                      (1,388,850)
                                   -----------     ------------
                                   $        -      $  1,176,150
                                   ===========     ============

(5)    Joint Venture

     The Partnership  formed a limited  partnership with an unaffiliated  entity
for the purpose of owning an interest in a mobile off-shore drilling rig.

     North Sea (Connecticut) Limited Partnership

     The Partnership entered into a limited partnership agreement with North Sea
(Connecticut)   Limited  Partnership  ("North  Sea"),   pursuant  to  which  the
Partnership  acquired 100% of the Class C limited partnership  interest in North
Sea giving the  Partnership  a 50% equity  interest in North Sea.  The  original
purchase price for the Class C limited  partnership  interest was  approximately
$14,726,000,  consisting of approximately  $12,325,000 in cash and approximately
$2,401,000 of  non-recourse  debt.  North Sea exercised its option to acquire an
interest in a drilling rig from its owner,  which  drilling  rig had  previously
been acquired from, and  simultaneously  leased back to the operator.  The lease
was financed on a non-recourse  basis with a bank; it was then  refinanced and a
portion  of the loan  proceeds  were used to pay for the  exercise  price of the
option, with the excess loan proceeds of $20,002,567 distributed to the partners
(the  Partnership  received a $10,001,284  distribution  which  represented  the
Partnership's  original 50% share).  The other parties to this joint venture are
not affiliates of the Partnership or the General Partner. At September 30, 2006,
the Partnership has a right to 87.65% of the profits, losses and cash flows from
its Class C limited partnership interest in North Sea.

                                       8
<PAGE>

                       ICON Cash Flow Partners L.P. Seven
                        (A Delaware Limited Partnership)
              Notes To Condensed Consolidated Financial Statements
                               September 30, 2006
                                   (Unaudited)

(5)    Joint Venture - continued

     The  operator  had  entered  into a charter  with the owner  trustee of the
drilling rig which had a monthly rental of approximately  $436,000 that was paid
semi-annually  and was  scheduled to expire on March 15,  2008.  Pursuant to the
terms of the charter,  the oil-rig charterer (the "Charterer"),  was required to
make its  semi-annual  payment of the charter hire following an "Event of Loss,"
(as  discussed  below)  which  payment was made in the quarter  ending March 31,
2006. For the three and nine months ended  September 30, 2006,  the  Partnership
recognized a net loss of  approximately  $36,000 and net income of approximately
$385,000, respectively, from its investment in North Sea.

     On October 5, 2005,  the  Charterer  notified the owner  trustee of the rig
that an "Event of Loss"  occurred with respect to the rig in September 2005 as a
result of Hurricane  Rita.  The charter  provides that the Charterer will pay to
the lender (and upon satisfaction of all of the debt  outstanding,  to the owner
trustee on behalf of North Sea) an amount equal to the  "Stipulated  Loss Value"
of the rig. The "Stipulated Loss Value" for the rig will be determined according
to the terms of the charter  between the  Charterer and the owner trustee of the
rig. The  "Stipulated  Loss Value" is defined as the sum of (i) the charter hire
payment  payable on the first  charter hire payment date  following an "Event of
Loss," (ii) the present value of the remaining  charter hire payments due to the
lender and (iii) the present  value of the fair  market  value of the rig at the
end of the charter,  as determined by the appraisal procedure under the charter.
As  permitted  by and  in  compliance  with  the  terms  and  conditions  of the
Partnership's limited partnership agreement, an affiliate of the General Partner
financed, on behalf of the Class C limited partner's interest, certain costs and
expenses that were incurred by North Sea.

     Prior to North  Sea  initiating  the  appraisal  procedure,  the  Charterer
commenced a declaratory judgment action in Texas State Court requesting that the
court  declare,  among other  things,  that  "Stipulated  Loss Value"  should be
determined  by "the value  estimated  in  advance"  of the  renewal  term of the
charter,  which amount was never documented or agreed by the parties.  North Sea
immediately  filed a counterclaim  against the Charterer to, among other things,
have the charter enforced in accordance with its terms, and the owner trustee of
the rig  initiated  the  appraisal  procedure  required  under the charter.  The
appraisal   procedure  has  been  completed  and  it  was  determined  that  the
"Stipulated Loss Value" of the rig at the end of the charter is $80,235,317.

     On or about May 22,  2006,  the  Charterer  paid (i) the March 2006 charter
hire payment and (ii) the  component of the  "Stipulated  Loss Value" of the rig
represented  by the present value of the remaining  charter hire payments due to
the  lender,  which  amounts  were  used  to  fully  satisfy  the  approximately
$9,300,000 of the outstanding non-recourse debt on the rig. On May 31, 2006, the
Partnership  received a distribution  of $3,944,250  with respect to its limited
partnership  interest in North Sea, which  distribution was net of the repayment
by North  Sea of all of the  outstanding  obligations  owed by North  Sea to the
affiliate  of  the  General  Partner  (the  "Distribution").   The  Distribution
represented  the  Partnership's  portion  of the  $10,941,943  in net  insurance
proceeds  that the  Charterer  agreed to distribute to North Sea with respect to
the rig. The insurance  proceeds  received by North Sea neither  represents  the
full amount of the insurance  proceeds,  nor the final amount of the "Stipulated
Loss Value" of the rig, that North Sea expects to receive in accordance with the
terms of the charter.

     On September 1, 2006,  the  Charterer  and North Sea each filed motions for
complete summary judgment.  Oral argument on the motions occurred on November 7,
2006,  and the Texas  State Court has taken the motions  under  advisement.  The
parties are currently  awaiting the Texas State Court's decision;  however,  the
timing of that  ruling is  entirely  within the  discretion  of the Texas  State
Court.  It is not  possible at this stage to  determine  the  likelihood  of the
outcome,  but the Partnership and the other North Sea partners  believe that the
Charterer's   request  for  declaratory   judgment  is  without  merit  and  the
Partnership  is working with the other North Sea partners to  vigorously  defend
this claim and pursue North Sea's counterclaims.

                                       9
<PAGE>

                       ICON Cash Flow Partners L.P. Seven
                        (A Delaware Limited Partnership)
              Notes To Condensed Consolidated Financial Statements
                               September 30, 2006
                                   (Unaudited)

(5)    Joint Venture - continued

     During  the  quarter  ended  June  30,  2006,  the  Partnership   amortized
approximately   an  additional   $178,000,   which   represented  the  remaining
unamortized  balance of loan  costs  incurred  in  connection  with North  Sea's
non-recourse debt financing.

     The results of  operations of North Sea for the three and nine months ended
September 30, 2006 and 2005 are summarized below:

<TABLE>
<CAPTION>
                                                   Three Months Ended       Nine Months Ended
                                                      September 30,           September 30,
                                               ----------------------    ------------------------
                                                  2006         2005          2006         2005
                                               -----------  ----------   ----------    ---------
<S>                                            <C>          <C>          <C>           <C>
 Net (loss) income                             $ (198,149)  $  861,220   $  679,419    $2,529,422
                                               ==========   ==========   ==========    ==========
 Partnership's share of net (loss) income      $  (86,839)  $  377,430   $  297,755    $1,108,519
                                               ==========   ==========   ==========    ==========
</TABLE>

(6)    Investment in Estimated Unguaranteed Residual Values

     During July 1997,  the  Partnership  entered  into an option to acquire the
residual  interests in three Boeing 737-300 aircraft (the "Boeing  Aircraft") on
lease to Continental Airlines. On August 29, 2003, the Partnership re-negotiated
the option,  which resulted in the termination of the option in exchange for the
Partnership  obtaining an  investment  in the  estimated  unguaranteed  residual
values in the Boeing Aircraft. As part of the re-negotiation, the three recourse
promissory notes payable by the Partnership,  and incurred by the Partnership in
connection  with the  original  purchase of the option,  were  converted  into a
single recourse  promissory  note payable  aggregating  $5,843,538.  This single
recourse  promissory note payable was due on November 27, 2006, accrued interest
at 5.0% per year and required  monthly  interest  only  payments  which began on
December 31, 2005. The  Partnership was required to prepay  $500,000,  which was
amortized into operations as interest  expense through the date monthly interest
payments began in 2005.

     On February 28, 2005, AAR Corp., the entity which owned the Boeing Aircraft
on lease to Continental  Airlines,  sold an interest in the Boeing  Aircraft for
approximately  $15,000,000.  As a result of this sale, the  Partnership  reduced
both the principal  balance on its recourse debt  obligation  and its balance in
its  investment  in  estimated  unguaranteed  residual  value by  $1,145,000  in
accordance  with the terms of its  agreement  with AAR Corp.  Additionally,  the
Partnership  recorded an impairment loss of $3,542,000 on the remaining  balance
of its  investment  in estimated  unguaranteed  residual  values at December 31,
2005.  At  September  30,  2006,  the  Partnership  had a zero  balance  for its
investment in estimated unguaranteed residual values.

     If the  Boeing  Aircraft  are sold the  Partnership  would be  entitled  to
receive  one-third  of the net  proceeds  in excess of the net book value of the
Boeing Aircraft, as defined in the agreement.

     On July 31, 2006 the Partnership  made a payment of $3,100,000  toward this
recourse  obligation.  On August 30, 2006, the Partnership  repaid the remaining
outstanding  balance of the recourse obligation thus enabling the Partnership to
take  advantage  of an agreed upon  reduction of  approximately  $121,700 in the
remaining principal amount.  This approximately  $121,700 has been recognized as
gain on early  retirement  of debt in the current  quarter.  The pay-off  amount
including accrued interest was approximately $1,523,000.

                                       10
<PAGE>

                       ICON Cash Flow Partners L.P. Seven
                        (A Delaware Limited Partnership)
              Notes To Condensed Consolidated Financial Statements
                               September 30, 2006
                                   (Unaudited)

(7)    Equipment Held for Sale

     The  Partnership  currently  owns  rotables  for Boeing 737 and Airbus A310
aircraft.  Aircraft  rotables  are  replacement  spare  parts  that  are held in
inventory  by an  airline.  These  rotables  were  formerly  on lease to  Sabena
Technics and are currently off lease and in the process of being  remarketed for
sale.

     At September 30, 2006, the General  Partner  determined,  based upon recent
negotiations with potential buyers,  that the aircraft rotables may be impaired.
Accordingly,  the  Partnership  recorded an  impairment  loss for  approximately
$64,500 to more closely  approximate the adjusted book value to the current fair
value of the aircraft  rotables.  The total  impairment  loss on these  rotables
during 2006 was approximately  $84,800.  The carrying value of these rotables at
September 30, 2005 was $26,000.

(8)    Transactions with Related Parties

     The General Partner has a 1% interest in the Partnership's profits,  losses
and distributions.  The Partnership did not pay any distributions to the General
Partner  during the nine months  ended  September  30, 2006.  Additionally,  the
General Partner's  interest in the Partnership's net income for the three months
ended  September  30,  2006 and 2005 was $9,953 and  $1,272,  respectively.  The
General  Partner's  interest in the Partnership's net (loss) income for the nine
months ended September 30, 2006 and 2005 was $(498) and $2,068, respectively.

     At September 30, 2006, the Partnership had a payable totaling approximately
$131,200 due to its General Partner for management fees,  administrative expense
reimbursements,  General  Partner fees and  operating  expenses  incurred by the
Partnership in prior years.  Effective  September 30, 2006, the General  Partner
has decided to no longer seek to collect these amounts from the Partnership.  As
a result, these amounts were recognized as a capital contribution by the General
Partner in the current quarter.

(9)    Contingencies

     In August 2004, Fleet Capital Corp.  ("Fleet")  commenced an action against
the Partnership for unspecified damages,  alleging that the Partnership breached
its  obligations  owed  to  Fleet  under  certain  performance   guaranties  the
Partnership  entered into in connection with  non-recourse  loans made by Fleet.
The loans were made to the  Partnership's  wholly-owned  subsidiaries when these
entities entered into transactions to acquire supply tug vessels on charter with
affiliates  of  SEACOR  Marine,   Inc.  The  Partnership  and  its  subsidiaries
counterclaimed,  alleging,  among other things, that Fleet breached its covenant
of good faith and fair dealing.  On May 31, 2006,  the  Partnership  settled its
action with Fleet.  While the precise terms of the settlement are  confidential,
the settlement  provided for the full release of all of Fleet's claims,  as well
as  the  Partnership's  counterclaims.   The  settlement  payment  made  by  the
Partnership   is  included  in  general  and   administrative   expense  in  the
accompanying condensed consolidated statements of operations for the nine months
ended September 30, 2006.

                                       11
<PAGE>

                       ICON Cash Flow Partners L.P. Seven
                        (A Delaware Limited Partnership)
              Notes To Condensed Consolidated Financial Statements
                               September 30, 2006
                                   (Unaudited)

(10)   Recent Accounting Pronouncements

     In September 2006, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial  Accounting  Standards No. 157 "Accounting for Fair Value
Measurements"  ("SFAS  157").  SFAS 157  establishes  a separate  framework  for
determining  fair values of assets and  liabilities  that are  required by other
authoritative  generally  accepted  accounting  principal  pronouncements  to be
measured at fair value.  In addition,  SFAS 157  incorporates  and clarifies the
guidance in FASB  Concepts  Statement  No. 7 regarding  the use of present value
techniques  in  measuring  fair  value.  SFAS  157 is  effective  for  financial
statements  with fiscal years  beginning after November 15, 2007. The Manager is
currently  evaluating  the impact of this  pronouncement  but does not currently
believe it will have a material impact on the financial statements.

     The General  Partner does not believe that any other recently  issued,  but
not yet effective accounting pronouncements,  if currently adopted, would have a
material effect on the accompanying condensed consolidated financial statements.

                                       12
<PAGE>

Item 2. General  Partner's  Discussion  and Analysis of Financial  Condition and
Results of Operations

     The  following is a  discussion  of our results of  operations  and current
financial  position.  This discussion should be read together with our unaudited
condensed consolidated financial statements and related notes included elsewhere
in this  report,  Item 1A. Risk Factors and the audited  consolidated  financial
statements  and related notes included in our Annual Report on Form 10-K for the
year ended December 31, 2005.

     As used in this  Quarterly  Report on Form 10-Q,  references to "we," "us,"
"our" or  similar  terms  include  ICON Cash Flow  Partners  L.P.  Seven and its
consolidated subsidiaries.

Forward-Looking Statements

     Certain statements within this Quarterly Report on Form 10-Q may constitute
forward-looking   statements  within  the  meaning  of  the  Private  Securities
Litigation  Reform  Act of 1995  ("PSLRA").  These  statements  are  being  made
pursuant to the PSLRA, with the intention of obtaining the benefits of the "safe
harbor"  provisions of the PSLRA,  and, other than as required by law, we assume
no  obligation  to  update  or  supplement  such   statements.   Forward-looking
statements are those that do not relate solely to historical fact. They include,
but are not limited to, any statement  that may predict,  forecast,  indicate or
imply future  results,  performance,  achievements  or events.  You can identify
these   statements  by  the  use  of  words  such  as  "may,"  "will,"  "could,"
"anticipate," "believe," "estimate," "expects," "intend," "predict" or "project"
and variations of these words or comparable words or phrases of similar meaning.
These  forward-looking  statements  reflect our current beliefs and expectations
with respect to future  events and are based on  assumptions  and are subject to
risks and  uncertainties  and other  factors  outside our control that may cause
actual results to differ materially from those projected.

Overview

     We are an  equipment  leasing  business  formed on May 23,  1995.  We began
active  operations on January 19, 1996. We primarily  engaged in the business of
acquiring  equipment  subject  to  lease  and,  to a  lesser  degree,  acquiring
ownership rights to items of leased equipment at lease  expiration.  Some of our
equipment leases were acquired for cash and provided current cash flow, which we
refer to as "income"  leases.  The majority of the  purchase  price of our other
equipment  leases was financed,  so those leases  generated little or no current
cash flow because  substantially  the entire rental payments received from those
lessees were paid to lenders. For those "growth" leases, we anticipated that the
future value of the leased  equipment  exceeded the cash portion of the purchase
price paid for the equipment.  We ended our "reinvestment" period on November 9,
2002 and began our  disposition  period where we began to sell our assets in the
ordinary course of business.

     During  the  disposition  period,  we are  distributing  substantially  all
distributable  cash from operations and equipment sales to the partners and will
continue the orderly  termination  of our  operations  and affairs.  We will not
invest in any additional  finance or lease  transactions  during the disposition
period. Our goal was to complete the disposition period within three years after
the end of the reinvestment period, but it is taking longer to do so.

     At September  30, 2006,  our  portfolio,  which we hold either  directly or
through joint venture investments with affiliates and others, consists primarily
of the following equipment:

Mobile Off-Shore Drilling Rig:

o    We originally acquired 100% of the Class C limited partnership  interest in
     the North Sea (Connecticut)  Limited Partnership ("North Sea"), giving us a
     50% interest in a mobile offshore drilling rig subject to lease with an oil
     rig  charterer  (the  "Charterer").  The  charter  had a monthly  rental of
     approximately  $436,000  that was paid  semi-annually  and was scheduled to
     expire on March  15,  2008.  The  original  purchase  price for the Class C
     limited partnership interest was approximately  $14,726,000,  consisting of
     approximately   $12,325,000  in  cash  and   approximately   $2,401,000  of
     non-recourse debt.

                                       13
<PAGE>

     We currently  have a right to 87.65% of the profits,  losses and cash flows
     from our Class C limited partnership interest in North Sea. During November
     2004 and February 2005, we assigned 6.64% and 5.71%,  respectively,  of our
     rights  in and to the  profits,  losses  and cash  flows  from our  Class C
     limited  partnership  interest to several of our  affiliates as a repayment
     under the  terms of a  contribution  agreement  we  entered  into with such
     affiliates in connection with the line of credit we had with Comerica Bank.

     On October 5, 2005,  the  Charterer  notified the owner  trustee of the rig
     that an "Event of Loss"  occurred with respect to the rig in September 2005
     as a result of Hurricane Rita. The charter provides that the Charterer will
     pay to the lender (and upon satisfaction of all of the debt outstanding, to
     the  owner  trustee  on  behalf  of  North  Sea)  an  amount  equal  to the
     "Stipulated Loss Value" of the rig. The "Stipulated Loss Value" for the rig
     will be  determined  according  to the  terms of the  charter  between  the
     Charterer and the owner trustee of the rig. The "Stipulated  Loss Value" is
     defined as (i) the sum of the  charter  hire  payment  payable on the first
     charter hire  payment  date  following an "Event of Loss," (ii) the present
     value of the  remaining  charter hire  payments due to the lender and (iii)
     the  present  value of the fair  market  value of the rig at the end of the
     charter,  as determined by the appraisal  procedure  under the charter.  At
     this time, the Stipulated  Loss Value has not been agreed.  As permitted by
     and in  compliance  with the  terms  and  conditions  of the  Partnership's
     limited  partnership  agreement,   an  affiliate  of  our  General  Partner
     financed,  on behalf of the Class C  limited  partner's  interest,  certain
     costs and expenses that were incurred by North Sea.

     Prior to North  Sea  initiating  the  appraisal  procedure,  the  Charterer
     commenced a  declaratory  judgment  action in Texas State Court  requesting
     that the court declare,  among other things,  that  "Stipulated Loss Value"
     should be  determined  by "the value  estimated  in advance" of the renewal
     term of the  charter,  which amount was never  documented  or agreed by the
     parties.  North Sea immediately filed a counterclaim  against the Charterer
     to, among other things,  have the charter  enforced in accordance  with its
     terms,  and the owner trustee of the rig initiated the appraisal  procedure
     required under the charter.  The appraisal procedure has been completed and
     it was determined that the "Stipulated Loss Value" of the rig at the end of
     the charter is $80,235,317.

     On or about May 22,  2006,  the  Charterer  paid (i) the March 2006 charter
     hire payment and (ii) the component of the  "Stipulated  Loss Value" of the
     rig represented by the present value of the remaining charter hire payments
     due  to  the  lender,   which  amounts  were  used  to  fully  satisfy  the
     approximately  $9,300,000 of outstanding  non-recourse  debt on the rig. On
     May 31, 2006, we received a distribution  of $3,944,250 with respect to our
     limited  partnership  interest in North Sea, which  distribution was net of
     the repayment by North Sea of all of the  outstanding  obligations  owed by
     North Sea to the affiliate of our General Partner (the "Distribution"). The
     Distribution  represented  our portion of the  $10,941,943 in net insurance
     proceeds that the Charterer  agreed to distribute to North Sea with respect
     to the rig. The insurance proceeds received by North Sea neither represents
     the full  amount of the  insurance  proceeds,  nor the final  amount of the
     "Stipulated  Loss  Value" of the rig,  that North Sea expects to receive in
     accordance with the terms of the charter.

     On September 1, 2006,  the  Charterer  and North Sea each filed motions for
     complete  summary  judgment.  Oral  argument  on the  motions  occurred  on
     November 7, 2006,  and the Texas  State  Court has taken the motions  under
     advisement.  The parties are  currently  awaiting  the Texas State  Court's
     decision;  however,  the  timing of that  ruling  is  entirely  within  the
     discretion  of the Texas State  Court.  As noted in the  following  excerpt
     taken  from the  Charterer's  Quarterly  Report on Form 10-Q for the period
     ending  September 30, 2006,  which was filed with the Securities & Exchange
     Commission  on November 9, 2006:  "Should the owner prevail on [its claims,
     the Charterer] could be liable for the approximately $40 million difference
     between the owner's claim [of  approximately $83 million] and the insurance
     coverage [of  approximately $43 million]." It is not possible at this stage
     to determine the likelihood of the outcome,  but we and the other North Sea
     partners believe that the Charterer's  request for declaratory  judgment is
     without  merit and we are  working  with the other  North Sea  partners  to
     vigorously defend this claim and pursue North Sea's counterclaims.

                                       14
<PAGE>

Air Transportation Equipment:

o    We have a 100%  interest  in 34 Boeing  737  rotables  and 48  Airbus  A310
     rotables. These assets are currently off lease and are being remarketed for
     sale.

Lease and Other Significant Transactions

Aircraft Rotables

     We currently own rotables for Boeing 737 and Airbus A310 aircraft. Aircraft
rotables are  replacement  spare parts that are held in inventory by an airline.
These  rotables were formerly on lease to Sabena  Technics and are currently off
lease and in the process of being remarketed for sale.

     At September 30, 2006, the General  Partner  determined,  based upon recent
negotiations with potential buyers,  that the aircraft rotables may be impaired.
Accordingly,  we recorded an impairment loss for  approximately  $64,500 to more
closely  approximate  the  adjusted  book value to the current fair value of the
aircraft  rotables.  The total impairment loss on these rotables during 2006 was
approximately  $84,800.  The carrying  value of these  rotables at September 30,
2006 was $26,000.

1976 McDonnell Douglas DC-10-30F

     On August 9, 2006, we sold our 1976 McDonnell  Douglas  DC-10-30F  aircraft
which  had been on  lease to World  Airways,  Inc.  ("World  Airways")  to World
Airways for  approximately  $1,300,000 in cash, plus the maintenance  reserve of
approximately  $2,664,000.  Pursuant  to the  residual  sharing  agreement  with
Aviation Investors,  Inc.  ("Aviation"),  we and Aviation shared the proceeds of
the  sale  of  the  aircraft  equally.  The  gross  proceeds  of the  sale  were
approximately  $3,964,000,  reduced by legal fees of approximately  $10,500, for
net proceeds of $3,953,000  to be divided  equally  between us and Aviation.  We
received  approximately  $1,976,000  in cash,  net of residual  proceeds paid to
Aviation,  and  recorded  a gain on the sale of the  aircraft  of  approximately
$1,124,000 after a remarketing expense, of approximately $1,976,000.

New Accounting Pronouncements

     In September 2006, The Financial Accounting Standards Board ("FASB") issued
Statement of Financial  Accounting  Standards No. 157 "Accounting for Fair Value
Measurements"  ("SFAS  157").  SFAS 157  establishes  a separate  framework  for
determining  fair values of assets and  liabilities  that are  required by other
authoritative  generally  accepted  accounting  principal  pronouncements  to be
measured at fair value.  In addition,  SFAS 157  incorporates  and clarifies the
guidance in FASB  Concepts  Statement  No. 7 regarding  the use of present value
techniques  in  measuring  fair  value.  SFAS  157 is  effective  for  financial
statements  with fiscal years  beginning after November 15, 2007. The Manager is
currently  evaluating  the impact of this  pronouncement  but does not currently
believe it will have a material impact on the financial statements.

     The General  Partner does not believe that any other recently  issued,  but
not yet effective accounting pronouncements,  if currently adopted, would have a
material effect on the accompanying condensed consolidated financial statements.

Results of Operations  for the Three Months Ended  September 30, 2006 (the "2006
Quarter") and 2005 (the "2005 Quarter")

     We began our  disposition  period on  November  10,  2002.  Our goal was to
complete the disposition  period within three years,  but it has taken longer to
do so.  During the  disposition  period,  we have been selling our assets in the
ordinary  course of business.  As we have been  selling our assets,  both rental
income and finance income have  decreased over time as have expenses  related to
our assets,  such as depreciation  expense.  Additionally,  interest expense has
decreased as we reached the expiration of leases that were financed and the debt
was repaid to the lender.  As leased equipment is sold, we have experienced both
gains and losses on these sales.

                                       15
<PAGE>

     Revenue  for the  2006  Quarter  and the 2005  Quarter  are  summarized  as
follows:

<TABLE>
<CAPTION>
                                                                   Three Months Ended September 30,
                                                                2006               2005               Change
                                                            -------------     ---------------      -----------
<S>                                                         <C>               <C>                  <C>
 Total revenue                                              $   1,107,653     $       537,107      $   570,546
                                                            =============     ===============      ===========

 Rental income                                              $      50,000     $       150,000       $(100,000)
 (Loss) income from investments in joint ventures           $     (85,823)    $       383,780       $(469,603)
 Net gain on sales of equipment                             $   1,124,804     $             -     $  1,124,804
 Interest and other income                                  $      18,672     $         3,327         $ 15,345

</TABLE>

     Total revenue for the 2006 Quarter increased $570,546, or 106.2%,  compared
to the 2005 Quarter.  This increase was  primarily  attributable  to the gain in
revenue from our sales of  equipment.  During the 2006  Quarter,  we  recognized
approximately  $1,125,000 of gain from our sales of  equipment.  During the 2006
Quarter we sold our only remaining  equipment  held as a operating  lease to the
lessee, World Airways, Inc. During the 2006 Quarter, we recognized approximately
$85,000 of net loss from our investments in joint ventures,  which was primarily
derived from our investment in a limited partnership.

     Expenses  for the 2006  Quarter  and the 2005  Quarter  are  summarized  as
follows:

<TABLE>
<CAPTION>

                                                                   Three Months Ended September 30,
                                                                2006              2005           Change
                                                            -------------     ------------   -------------
<S>                                                         <C>               <C>            <C>
 Total expenses                                             $     112,380     $    409,941   $    (297,561)
                                                            =============     ============   =============

 Impairment loss                                            $      64,500     $          -   $      64,500
 Gain on early retirement of debt                           $    (121,693)    $          -   $    (121,693)
 Depreciation and amortization                              $      46,295     $    165,616   $    (119,321)
 Interest                                                   $      21,710     $          -   $      21,710
 Remarketing expense                                        $      20,917     $     75,000   $     (54,083)
 General and administrative                                 $      80,651     $    169,963   $     (89,312)
 Minority interest                                          $           -     $       (638)  $         638

</TABLE>


     Total expenses for the 2006 Quarter decreased $297,561,  or 72.6%, compared
to the 2005  Quarter.  The  decrease in  expenses  was  primarily  offset by our
recording an impairment loss relating to our aircraft  rotables of approximately
$64,500 during the 2006 Quarter. During the 2006 Quarter we repaid the remaining
outstanding  balance of a recourse obligation which was due on November 27, 2006
and were able to take advantage of an agreed upon  reduction of the  outstanding
principal  balance of approximately  $122,000 which we recorded as gain on early
retirement of debt. The decrease in expenses during the 2006 Quarter was also as
a result  of a  decrease  in  depreciation  and  amortization  of  approximately
$119,000,  which is a result  of sold  equipment  no longer  being  depreciated.
Likewise, the general and administrative  expenses have decreased  approximately
$89,300 as a result of fewer assets requiring administrative attention.

Net Income

     As a result of the foregoing  factors,  the net income for the 2006 Quarter
was  $995,273,  as compared to net income for the 2005 Quarter of $127,166.  The
net income per weighted average number of limited  partnership units outstanding
for the 2006  Quarter  was $1.00 as  compared  to the net  income  per  weighted
average number of limited  partnership units outstanding for the 2005 Quarter of
$0.13.

                                       16
<PAGE>

Results of  Operations  for the Nine Months Ended  September 30, 2006 (the "2006
Period") and 2005 (the "2005 Period")

     Revenue for the 2006 Period and the 2005 Period are summarized as follows:

<TABLE>
<CAPTION>
                                                                   Nine Months Ended September 30,
                                                                2006            2005          Change
                                                           ------------     ------------   ------------

<S>                                                        <C>              <C>            <C>
 Total revenue                                             $  1,809,209     $  2,910,497   $ (1,101,288)
                                                           ============     ============   ============

 Rental income                                             $    350,000     $    450,000   $   (100,000)
 Finance income                                            $          -     $      1,928   $     (1,928)
 (Loss) income from investments in joint ventures          $    305,027     $  1,262,752   $   (957,725)
 Gain on transfer of investment in joint ventures          $          -     $  1,171,786   $ (1,171,786)
 Net gain on sales of equipment                            $  1,112,070     $          -   $  1,112,070
 Interest and other income                                 $     42,112     $     24,031   $     18,081

</TABLE>

     Total revenue for the 2006 Period decreased $1,101,288,  or 37.8%, compared
to the 2005 Period. This decrease was primarily  attributable to our recording a
gain on  transfer of  investment  in joint  ventures  during the 2005 Period for
which we had no similar transaction during the 2006 Period,  which was offset by
the gain on sales of equipment during the 2006 Period. During the 2006 Period we
sold our only remaining equipment held as a operating lease to the lessee, World
Airways,  Inc.  During  the 2005  Period,  we  assigned  a total of 5.71% of our
interest in one of our joint ventures to two affiliates  which created a gain of
approximately  $1,172,000.  During the 2006 Period, we recognized  approximately
$305,000  of net  income  from  our  investments  in  joint  ventures  of  which
approximately $298,000 was derived from our investment in a limited partnership,
as  compared  to  the  net  income  from   investments   in  joint  ventures  of
approximately  $1,263,000 for the 2005 Period.  The Charterer is not required to
make any additional  charter hire payments,  therefore we expect that our income
from investments in joint ventures will continue to decrease.  Additionally, the
decrease  in income from  investments  in joint  ventures  was due to a net gain
during the 2005  Period  relating to our  assignment  of several  joint  venture
interests to several of our affiliates to repay those affiliates pursuant to the
terms of a contribution agreement we entered into with some of our affiliates in
connection with a line of credit agreement we had with Comerica Bank.

     Expenses for the 2006 Period and the 2005 Period are summarized as follows:

<TABLE>
<CAPTION>
                                                                   Nine Months Ended September 30,
                                                                2006            2005          Change
                                                           ------------     ------------   ------------
<S>                                                        <C>              <C>            <C>
 Total expenses                                            $  1,859,057     $  2,703,745   $   (844,688)
                                                           ============     ============   ============

 Impairment loss                                           $     84,789     $  1,320,826   $ (1,236,037)
 Gain on early retirement of debt                          $   (121,693)    $          -   $   (121,693)
 Depreciation and amortization                             $    555,733     $    496,848   $     58,885
 Interest                                                  $    134,403     $    237,160   $   (102,757)
 Remarketing expense                                       $    145,046     $    225,000   $    (79,954)
 General and administrative                                $  1,060,779     $    425,827   $    634,952
 Minority interest                                         $          -     $     (1,916)  $      1,916

</TABLE>

     Total expenses for the 2006 Period decreased $844,688,  or 31.2%,  compared
to the 2005  Period.  The  decrease  in  expenses  was  primarily a result of an
impairment  loss  relating to our  aircraft  rotables of  approximately  $84,800
incurred  during the 2006 Period as compared to an  impairment  loss relating to
our aircraft  rotables of approximately  $1,021,000 and  approximately  $300,000
relating to our marine vessels during the 2005 Period. During the 2006 Period we
repaid the remaining  outstanding balance of a recourse obligation which was due
on November 27, 2006 and were able to take advantage of an agreed upon reduction
of the outstanding principal balance of approximately $122,000 which we recorded
as gain on early  retirement of debt.  This decrease was partially  offset by an
increase in  depreciation  and  amortization  of  approximately  $59,000,  which
represented a one-time  charge to amortize the  remaining  balance of loan costs
incurred  as part of the North Sea  acquisition.  The  increase  in general  and
administrative expenses is due to the litigation settlement with Fleet.

                                       17
<PAGE>

Net Income (Loss)

     As a result of the foregoing factors,  the net loss for the 2006 Period was
$(49,848),  as compared to the net income for the 2005 Period of  $206,752.  The
net loss per weighted average number of limited  partnership  units  outstanding
for the 2006 Period was  $(0.05),  as  compared  to the net income per  weighted
average  number of limited  partnership  units  outstanding  for 2005  Period of
$0.21.

Liquidity and Capital Resources

Sources and Uses of Cash

     At September 30, 2006, we had cash and cash equivalents of $502,176. During
our  disposition  period,  our main  source  of cash  has  generally  been  from
investing  activities.  Our main use of cash during the  disposition  period has
generally   been  for   operations,   consisting   principally  of  general  and
administrative   expenses  and   financing   activities  in  the  form  of  cash
distributions to our partners.

     Our  main  source  of cash  during  the  2006  Period  was  from  investing
activities.  During  the 2006  Period,  our main  source of cash from  investing
activities  was from the sales of  equipment  of  approximately  $3,995,000.  In
addition,   distributions   received  from  joint  ventures  were  approximately
$3,959,000. Of this amount, approximately $3,951,000 was a distribution from our
investment in a limited partnership.

     Our main use of cash during the 2006 Period was for  operating  activities.
Our primary use of cash for operating  activities  was increasing our restricted
cash by  approximately  $2,286,000  and due to a one-time  payment to settle the
Fleet  litigation.  We  anticipate  that our use of cash going  forward  will be
generally be used for administrative expenses.

Financings and Borrowings

     We had one recourse debt obligation which was satisfied on August 30, 2006.
On July 21, 2006, we utilized a portion of the  Distribution to repay $3,100,000
of the  outstanding  principal  of the  recourse  obligation  in exchange  for a
reduction in the remaining  principal amount of the recourse  obligation so long
as the  outstanding  balance was paid on or before  November 27, 2006. We repaid
the remaining outstanding balance of the recourse obligation on August 30, 2006.
At September 30, 2006 we had no debt.

     Based upon our current level of operations,  our General  Partner  believes
that  with the cash we have  currently  available,  cash  distributions  that we
expect to receive from our joint venture and proceeds from equipment  sales,  we
have  sufficient  cash to meet our short-term  liquidity  needs and complete our
disposition  period.  However,  our  ability to  generate  cash in the future is
subject  to  general  economic,  financial,  competitive,  regulatory  and other
factors that affect our lessee's business that are beyond our control.

Contractual Obligations and Commitments and Off Balance Sheet Transactions

     Our  other  contractual   obligations  and  commitments  have  not  changed
materially from the amounts  disclosed in our Annual Report on Form 10-K for the
year ended December 31, 2005. We do not have any off balance sheet transactions.

                                       18
<PAGE>

Item 3. Quantitative and Qualitative Disclosures About Market Risk

     We, like most other companies,  are exposed to certain market risks,  which
include  changes in interest rates and the demand for equipment (and the related
residuals)  owned by us. We believe  that our  exposure to other  market  risks,
including foreign currency  exchange rate risk,  commodity risk and equity price
risk, are  insignificant,  at this time, to both our financial  position and our
results of operations.  There were no material changes to the disclosure related
to these items  since the filing of our Annual  Report on Form 10-K for the year
ended December 31, 2005.

Item 4.  Controls and Procedures

Evaluation of disclosure controls and procedures

     In connection  with the  preparation of this Quarterly  Report on Form 10-Q
for the period ended September 30, 2006, as well as the financial statements and
Quarterly  Reports on Form 10-Q for the period ended  September 30, 2006 for our
affiliates, our General Partner carried out an evaluation, under the supervision
and with the  participation of the management of our General Partner,  including
its Chief Executive Officer and the Principal  Financial and Accounting Officer,
of the  effectiveness  of the  design and  operation  of our  General  Partner's
disclosure  controls and  procedures as of the end of the period covered by this
report pursuant to the Securities  Exchange Act of 1934.  Based on the foregoing
evaluation, except as noted below, the Chief Executive Officer and the Principal
Financial and Accounting Officer concluded that our General Partner's disclosure
controls and procedures were effective.

     While evaluating our General Partner's  disclosure controls and procedures,
our General Partner recognized that greater internal controls were needed to aid
in a more efficient closing of our financial  statements,  thereby requiring our
General  Partner to hire  additional  skilled  accounting  staff to support  the
senior vice president of accounting  hired by our General  Partner at the end of
the third quarter of 2004. In addition, our General Partner hired two additional
accounting  staff members during 2005 who are certified  public  accountants and
are  experienced  with public  reporting  entities.  Subsequently  in 2006,  our
General Partner hired an additional  accounting  staff member who is a certified
public accountant and is experienced with public reporting entities. Our General
Partner will  continue to evaluate its  disclosure  controls and  procedures  to
determine their effectiveness and adequacy and will take the steps necessary, in
our General Partner's  opinion,  to ensure the adequacy of our General Partner's
disclosure controls and procedures.

     In designing and evaluating our General Partner's  disclosure  controls and
procedures,   our  General  Partner  recognized  that  disclosure  controls  and
procedures,  no  matter  how well  conceived  and  operated,  can  provide  only
reasonable,  not  absolute,  assurance  that the  objectives  of the  disclosure
controls and procedures are met. Our General Partner's  disclosure  controls and
procedures have been designed to meet reasonable assurance standards. Disclosure
controls  and  procedures  cannot  detect or prevent  all error and fraud.  Some
inherent  limitations  in disclosure  controls and  procedures  include costs of
implementation, faulty decision-making,  simple error and mistake. Additionally,
controls  can be  circumvented  by the  individual  acts  of  some  persons,  by
collusion of two or more people, or by management override of the controls.  The
design of any system of controls is based,  in part,  upon  certain  assumptions
about the  likelihood of future  events,  and there can be no assurance that any
design will succeed in  achieving  its stated  goals under all  anticipated  and
unanticipated  future  conditions.  Over time,  controls  may become  inadequate
because of changes in conditions,  or the degree of compliance with  established
policies or procedures.

     Our General Partner's Chief Executive  Officer and Principal  Financial and
Accounting  Officer have determined that no weakness in disclosure  controls and
procedures  had any  material  effect on the accuracy  and  completeness  of our
financial reporting and disclosure included in this report.

                                       19
<PAGE>

                           PART II - OTHER INFORMATION

Item 1.  Legal Proceedings

     In August 2004, Fleet Capital Corp.  ("Fleet")  commenced an action against
us for unspecified  damages,  alleging that we breached our obligations  owed to
Fleet under certain  performance  guaranties we entered into in connection  with
non-recourse  loans  made by  Fleet.  The loans  were  made to our  wholly-owned
subsidiaries when these entities entered into transactions to acquire supply tug
vessels  on  charter  with  affiliates  of  SEACOR  Marine,   Inc.  We  and  our
subsidiaries  counterclaimed,  alleging, among other things, that Fleet breached
its covenant of good faith and fair  dealings.  On May 31, 2006,  we settled our
action with Fleet.  While the precise terms of the settlement are  confidential,
the settlement  provides for the full release of all of Fleet's claims,  as well
as our counterclaims.

Item 1A. Risk Factors

     There have been no material  changes  from the risk  factors  disclosed  in
"Item 1A.  Risk  Factors"  of our Annual  Report on Form 10-K for the year ended
December 31, 2005.

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds

     Our General Partner consented to us redeeming 170 limited partnership units
during the 2006 Period.  The redemption  amounts are  calculated  according to a
specified  redemption  formula in  accordance  with the  partnership  agreement.
Redeemed  units  have no voting  rights and do not share in  distributions.  The
partnership  agreement limits the number of limited  partnership units which can
be redeemed in any one year and redeemed  limited  partnership  units may not be
reissued. The following table details our limited partnership unit redemptions:

                                                      Total
                                                    Number of       Price
                                                     Limited       Paid Per
                                                     Partner       Limited
                                                     Units         Partner
                                                    Redeemed        Units
                                                    --------       --------
 January 1, 2006 through January 31, 2006                 -       $     -
 February 1, 2006 through February 28, 2006              170      $  12.92
 March 1, 2006 through March 31, 2006                     -       $    -
 April 1, 2006 through April 30, 2006                     -       $    -
 May 1, 2006 thorugh May 31, 2006                         -       $    -
 June 1, 2006 through June 30, 2006                       -       $    -
 July 1, 2006 through July 31, 2006                       -       $    -
 August 1, 2006 through August 31, 2006                   -       $    -
 September 1, 2006 through September 30, 2006             -       $    -



Item 3.  Defaults Upon Senior Securities

         Not applicable.

Item 4.  Submission of Matters to a Vote of Security Holders

         No matters were submitted to a vote of security holders during the 2006
Quarter.

Item 5.  Other Information

         Not applicable.

                                       20
<PAGE>

Item 6.  Exhibits

     31.1 Rule 13a-14(a)/15d-14(a) certifications.

     31.2 Rule 13a-14(a)/15d-14(a) certifications.

     32.1 Certification  pursuant to 18 U.S.C.  ss.1350,  as adopted pursuant to
          Section 906 of the Sarbanes-Oxley Act of 2002.

     32.2 Certification  pursuant to 18 U.S.C.  ss.1350,  as adopted pursuant to
          Section 906 of the Sarbanes-Oxley Act of 2002.

                                       21
<PAGE>

                                   SIGNATURES

Pursuant to the  requirements of Section 13 or 15(d) of the Securities  Exchange
Act of 1934,  the  Partnership  has duly  caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.

ICON Cash Flow Partners L.P. Seven  (Registrant)  By its General  Partner,  ICON
Capital Corp.

Date: November 13, 2006

/s/ Beaufort J.B. Clarke
----------------------------------
Beaufort J.B. Clarke
Chairman, Chief Executive Officer and Director
(Principal Executive Officer)

Date: November 13, 2006

/s/ Thomas W. Martin
----------------------------------
Thomas W. Martin
Chief Operating Officer and Chief Financial Officer
(Principal Financial and Accounting Officer)

                                       22