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 period ended                           June 30, 1998
                     -----------------------------------------------------------

[ ] 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                        33-94458
                       ---------------------------------------------------------

                       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)


              600 Mamaroneck Avenue, Harrison, New York 10528-1632
--------------------------------------------------------------------------------
(Address of principal executive offices)                         (Zip code)


                                 (914) 698-0600
--------------------------------------------------------------------------------
               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


<PAGE>


PART I  - FINANCIAL INFORMATION
Item 1.  Financial Statements

                       ICON Cash Flow Partners L.P. Seven
                        (A Delaware Limited Partnership)

                           Consolidated Balance Sheets

                                   (unaudited)
<TABLE>

                                                                  June 30,      December 31,
                                                                    1998            1997

       Assets

<S>                                                           <C>              <C>          
Cash                                                          $    3,264,973   $   4,516,385
                                                              --------------   -------------

Investment in finance leases
   Minimum rents receivable                                      139,526,265      89,824,617
   Estimated unguaranteed residual values                         76,356,456      33,168,213
   Initial direct costs                                            5,013,093       2,851,751
   Unearned income                                               (45,892,615)    (23,581,783)
   Allowance for doubtful accounts                                  (550,000)       (155,000)
                                                              --------------   -------------

                                                                 174,453,199     102,107,798

Investment in estimated unguaranteed residual values              26,531,664      26,531,664
                                                              --------------   -------------

Net investment in leveraged leases                                11,845,650      11,146,488
                                                              --------------   -------------

Equity investment in joint ventures                                2,261,808       1,828,454
                                                              --------------   -------------

Investment in financings
   Receivables due in installments                                   884,498         906,283
   Initial direct costs                                               15,855          16,480
   Unearned income                                                  (192,281)       (197,918)
   Allowance for doubtful accounts                                   (27,222)        (22,222)
                                                              --------------   -------------

                                                                     680,850         702,623

Accounts receivable - General Partner and affiliates, net            259,265              -
                                                              --------------   ------------

Other assets                                                         998,415       1,046,030
                                                              --------------   -------------

Total assets                                                  $  220,295,824   $ 147,879,442
                                                              ==============   =============
</TABLE>



                                                       (continued on next page)


<PAGE>


                       ICON Cash Flow Partners L.P. Seven
                        (A Delaware Limited Partnership)

                           Balance Sheets (Continued)
<TABLE>

                                                                  June 30,      December 31,
                                                                    1998            1997

       Liabilities and Partners' Equity

<S>                                                           <C>             <C>           
Notes payable - non-recourse                                  $  141,868,975  $   90,575,890
Note payable - recourse                                            9,868,054      10,075,000
Accounts payable - other                                             354,439         238,586
Security deposits and deferred credits                               161,548          29,162
Accounts payable-equipment                                            48,687       1,011,196
Minority interest in joint venture                                    22,575          20,335
Accounts payable - General Partner and affiliates                         -           28,150
                                                              --------------  --------------
                                                                 152,324,278     101,978,319

Commitments and Contingencies

Partners' equity (deficiency)
   General Partner                                                   (53,319)        (23,323)
   Limited partners (857,628.88 and 559,842.19 units
     outstanding, $100 per unit original
     issue price in 1998 and 1997, respectively)                  68,024,865      45,924,446
                                                              --------------  --------------

     Total partners' equity                                       67,971,546      45,901,123
                                                              --------------  --------------

Total liabilities and partners' equity                        $  220,295,824  $  147,879,442
                                                              ==============  ==============

</TABLE>














See accompanying notes to consolidated financial statements.



<PAGE>


                              ICON Cash Flow Partners L.P. Seven
                               (A Delaware Limited Partnership)

                            Consolidated Statements of Operations

                                         (unaudited)
<TABLE>

                                            For the Three Months        For the Six Months
                                               Ended June 30,             Ended June 30,
                                            1998            1997         1998          1997
                                            ----            ----         ----          ----
Revenues

<S>                                     <C>           <C>            <C>          <C>       
   Finance income                       $  3,018,746  $  1,320,681   $ 5,583,648  $2,420,206
   Income from leveraged leases, net         354,253       371,683       699,162     752,313
   Income from equity investment
     in joint ventures                       161,846       133,925       255,379     154,733
   Interest income and other                  74,693        16,342       167,512      40,507
   Net gain on sales or remarketing
     of equipment                              8,087         6,289         8,087      39,180
                                        ------------  ------------   -----------  ----------

   Total revenues                          3,617,625     1,848,920     6,713,788   3,406,939
                                        ------------  ------------   -----------  ----------

Expenses

   Interest                                1,536,428       915,035     3,067,666   1,489,576
   Management fees - General Partner         613,753       310,152     1,092,054     667,629
   Amortization of initial direct costs      399,314       295,312       822,640     605,921
   Administrative expense
     reimbursements - General Partner        262,604       137,178       470,152     288,372
   Provision for bad debts                   250,000        75,000       400,000      75,000
   General and administrative                168,160        71,789       225,396     109,350
   Minority interest in joint venture          1,124         1,085         2,240       2,179
                                        ------------  ------------   -----------  ----------

   Total expenses                          3,231,384     1,805,551     6,080,148   3,238,027
                                        ------------  ------------   -----------  ----------

Net income                              $    386,241  $     43,369   $   633,640  $  168,912
                                        ============  ============   ===========  ==========

Net income allocable to:
   Limited partners                     $    382,379  $     42,935   $   627,304  $  167,223
   General Partner                             3,862           434         6,336       1,689
                                        ------------  ------------   -----------  ----------

                                        $    386,241  $     43,369   $   633,640  $  168,912
                                        ============  ============   ===========  ==========

Weighted average number of limited
   partnership units outstanding             813,275       371,828       747,141     343,141
                                        ============  ============   ===========  ==========

Net income per weighted average
   limited partnership unit             $        .48  $        .12   $       .84  $       .49
                                        ============  ============   ===========  ===========
</TABLE>

See accompanying notes to consolidated financial statements.

<PAGE>


                       ICON Cash Flow Partners L. P. Seven
                        (A Delaware Limited Partnership)

             Consolidated Statements of Changes in Partners' Equity

    For the Six Months Ended June 30, 1998, the Years Ended December 31, 1997
        and 1996 and the Period from May 23, 1995 (date of inception) to
                                December 31, 1995

                                   (unaudited)
<TABLE>

                          Limited Partner Distributions

                               Return of Investment        Limited     General
                                Capital    Income         Partners     Partner       Total
                           (Per weighted average unit)
<S>                            <C>         <C>           <C>            <C>       <C>        
Initial partners'
  capital contribution
  - May 23, 1995                                       $      1,000  $    1,000  $     2,000
                                                       ------------  ----------  -----------

Balance at
  December 31, 1995                                           1,000       1,000        2,000

Refund of initial
  limited partners'
  capital contribution                                       (1,000)         -        (1,000)

Proceeds from issuance
  of limited partnership
  units (275,540.47 units)                               27,554,047          -    27,554,047

Sales and
  offering expenses                                      (3,719,796)         -    (3,719,796)

Cash distributions
  to partners                  $  8.18     $ 2.57        (1,361,099)    (13,749)  (1,374,848)

Net income                                                  401,396       4,055      405,451
                                                       ------------  ----------  -----------

Balance at
  December 31, 1996                                      22,874,548      (8,694)  22,865,854

Proceeds from issuance
  of limited partnership
  units (285,927.35 units)                               28,592,735          -    28,592,735

Sales and
  offering expenses                                      (3,862,277)         -    (3,862,277)

Limited partnership units
  redeemed (1,625.63 units)                                (155,815)         -      (155,815)
</TABLE>

                                                        (continued on next page)


<PAGE>


                       ICON Cash Flow Partners L. P. Seven
                        (A Delaware Limited Partnership)

              Statements of Changes in Partners' Equity (Continued)

    For the Six Months Ended June 30, 1998, the Years Ended December 31, 1997
        and 1996 and the Period from May 23, 1995 (date of inception) to
                                December 31, 1995

                                   (unaudited)
<TABLE>

                          Limited Partner Distributions

                               Return of Investment        Limited     General
                                Capital    Income         Partners     Partner       Total
                           (Per weighted average unit)

<S>                            <C>         <C>           <C>            <C>       <C>        
Cash distributions
  to partners                  $  4.41     $ 6.34        (4,147,829)    (41,125)  (4,188,954)

Net income                                                2,623,084      26,496    2,649,580
                                                       ------------  ----------  -----------

Balance at
  December 31, 1997                                      45,924,446     (23,323)  45,901,123

Proceeds from issuance
  of limited partnership
  units (298,386.69 units)                               29,838,669           -   29,838,669

Sales and offering expenses                              (4,028,220)          -   (4,028,220)

Cash distributions to partners $  4.59     $  .79        (4,289,724)    (36,332)  (4,326,056)

Limited partnership units
  redeemed (600 units)                                      (47,610)          -             -

Net income                                                  627,304       6,336      633,640
                                                       ------------  ----------  -----------

Balance at June 30, 1998                               $ 68,024,865  $  (53,319) $67,971,546
                                                       ============  =========== ===========


</TABLE>









See accompanying notes to consolidated financial statements.


<PAGE>


                             ICON Cash Flow Partners L. P. Seven
                               (A Delaware Limited Partnership)

                            Consolidated Statements of Cash Flows

                              For the Six Months Ended June 30,

                                         (unaudited)
<TABLE>

                                                                     1998           1997
                                                                     ----           ----

Cash flows from operating activities:
<S>                                                            <C>              <C>         
  Net income                                                   $     633,640    $    168,912
                                                               -------------    ------------
  Adjustments to reconcile net income to
   net cash provided by operating activities:
     Finance income portion of receivables paid directly
       to lenders by lessees                                      (4,730,591)     (2,190,935)
     Amortization of initial direct costs                            822,640         605,921
     Gain on sale of equipment                                        (8,087)        (39,180)
     Interest expense on non-recourse financing paid
       directly by lessees                                         3,038,992       1,376,939
     Collection of principal  - non-financed receivables             300,489         477,046
     Allowance for doubtful accounts                                 400,000          75,000
     Distribution from equity investment in joint venture            163,156         397,564
     Income from equity investment in joint venture                 (255,379)       (154,733)
     Income from leveraged leases, net                              (699,162)       (752,313)
     Change in operating assets and liabilities:
        Accounts payable - General Partner and affiliates, net       (28,150)       (438,297)
        Account receivable - General Partner and affiliates, net                (259,265)            -
        Accounts payable - other                                     115,853          13,346
        Security deposits and deferred credits                       132,386           8,725
        Minority interest in joint venture                             2,240           2,179
        Other assets                                                 (61,070)       (817,866)
        Other, net                                                  (104,979)        208,355
                                                               -------------    ------------

          Total adjustments                                       (1,170,927)     (1,228,249)
                                                               -------------    ------------

       Net cash used in operating activities                        (537,287)     (1,059,337)
                                                               -------------    ------------

Cash flows from investing activities:
  Equipment and receivables purchased                            (18,583,362)     (8,917,036)
  Initial direct costs                                            (2,730,941)     (1,678,530)
  Investment in joint venture                                       (341,131)              -
  Proceeds from sale of equipment                                     65,963       1,986,542
                                                               -------------    ------------

        Net cash used in investing activities                    (21,589,472)     (8,609,024)
                                                               -------------    ------------


</TABLE>


                                                        (continued on next page)


<PAGE>


                       ICON Cash Flow Partners L. P. Seven
                        (A Delaware Limited Partnership)

                Consolidated Statements of Cash Flows (Continued)

                        For the Six Months Ended June 30,

                                   (unaudited)
<TABLE>

                                                                     1998           1997
                                                                     ----           ----

Cash flows from financing activities:
  Issuance of limited partnership units, 
<S>                                                               <C>             <C>       
    net of offering expenses                                      25,810,449      10,226,311
  Redeemed units                                                     (47,610)              -
  Proceeds from recourse notes payable                             2,181,892               -
  Principal payments on recourse debt                             (2,388,838)     (2,150,000)
  Cash distributions to partners                                  (4,326,056)     (1,702,255)
  Principal payment on non-recourse notes                           (354,490)              -
  Proceeds from note payable affiliate                                    -        4,250,000
                                                               -------------    ------------

        Net cash provided by financing activities                 20,875,347      10,624,056
                                                               -------------    ------------

Net increase (decrease) in cash                                   (1,251,412)        955,695

Cash, beginning of period                                          4,516,385         698,301
                                                               -------------    ------------

Cash, end of period                                            $   3,264,973    $  1,653,996
                                                               =============    ============

</TABLE>



















See accompanying notes to consolidated financial statements.


<PAGE>


                             ICON Cash Flow Partners L. P. Seven
                               (A Delaware Limited Partnership)

                      Consolidated Statements of Cash Flows (Continued)

Supplemental Disclosure of Cash Flow Information

     For the six  months  ended  June 30,  1998 and  1997,  non-cash  activities
included the following:
<TABLE>

                                                                     1998           1997
                                                                     ----           ----

Fair value of equipment and receivables
<S>                                                            <C>              <C>          
  purchased for debt and payables                              $ (64,079,135)   $(49,162,092)
Non-recourse notes payable assumed in
  purchase price                                                  64,030,448      49,162,092
Accounts payable - equipment                                          48,687               -

Principal and interest on direct
  finance receivables paid directly
  to lenders by lessees                                           15,421,865      11,138,659
Principal and interest on non-recourse
  financing paid directly to lenders
  by lessees                                                     (15,421,865)    (11,138,659)

Decrease in investments in finance leases and financings
  due to contributions to joint venture                               -            5,190,238
Increase in equity investment in joint venture                        -           (5,190,238)
                                                               -------------    ------------

                                                               $     -          $     -
                                                               =============    ===========
</TABLE>

     Interest expense of $3,067,666 and $1,489,576 for the six months ended June
30, 1998 and 1997 consisted of interest  expense on non-recourse  financing paid
or  accrued  directly  to  lenders by  lessees  of  $3,038,992  and  $1,376,939,
respectively, and other interest of $28,674 and $112,637, respectively.


<PAGE>


                              ICON Cash Flow Partners L.P. Seven
                               (A Delaware Limited Partnership)

                          Notes to Consolidated Financial Statements

                                        June 30, 1998

1.   Basis of Presentation

     The  financial  statements  of ICON  Cash Flow  Partners  L.P.  Seven  (the
"Partnership")  have been prepared  pursuant to the rules and regulations of the
Securities  and  Exchange   Commission  (the  "SEC")  and,  in  the  opinion  of
management,  include  all  adjustments  (consisting  only  of  normal  recurring
accruals)  necessary  for a fair  statement  of income  for each  period  shown.
Certain information and footnote  disclosures  normally included in consolidated
financial  statements  prepared in accordance with generally accepted accounting
principles  have  been  condensed  or  omitted  pursuant  to such SEC  rules and
regulations.  Management believes that the disclosures made are adequate to make
the information  represented not misleading.  The results for the interim period
are  not  necessarily  indicative  of the  results  for  the  full  year.  These
consolidated  financial  statements  should  be read  in  conjunction  with  the
consolidated  financial  statements and notes included in the Partnership's 1997
Annual Report on Form 10-K.

2.   Net Investment in Leveraged Leases

     In August 1996 the Partnership acquired,  subject to a leveraged lease, the
residual interest in an aircraft.  The aircraft is a McDonnell Douglas DC-10-30F
currently  on lease to Federal  Express.  The  purchase  price was  $40,973,585,
consisting of $6,000,000 in cash and $34,973,585 in non-recourse debt.

     In December 1996 the Partnership  acquired,  subject to a leveraged  lease,
the residual  interest in an aircraft.  The aircraft is a 1976 McDonnell Douglas
DC-10-30  currently on lease to  Continental  Airlines.  The purchase  price was
$11,320,923,  consisting of $2,104,262  in cash and  $9,216,661 in  non-recourse
debt.

The net  investment  in  leveraged  leases as of June 30, 1998  consisted of the
following:

  Non-cancelable minimum rents receivable (net of
    principal and interest on non-recourse debt)            $      -
  Estimated unguaranteed residual values                       24,818,001
  Initial direct costs                                          1,100,878
  Unearned income                                             (14,073,229)
                                                            --------------
                                                            $  11,845,650



<PAGE>


                       ICON Cash Flow Partners L. P. Seven
                        (A Delaware Limited Partnership)

             Notes to Consolidated Financial Statements - Continued

3.   Related Party Transactions

     Fees and other  expenses paid or accrued by the  Partnership to the General
Partner or its  affiliates  for the six months ended June 30, 1998 and 1997 were
as follows:

                                1998           1997
                                ----           ----

Underwriting commissions     $  596,773    $  236,447     Charged to Equity
Organization and offering     1,044,353       413,781     Charged to Equity
Acquisition fees              2,852,838     1,678,530     Capitalized
Management fees               1,092,054       667,629     Charged to operations
Administrative expense
 reimbursements                 470,152       288,372     Charged to operations
                             ----------    ----------

Total                        $6,056,170    $3,284,759
                             ==========    ==========

     The Partnership and affiliates  formed three joint ventures for the purpose
of acquiring and managing various assets. (See Note 4 for additional information
relating to the joint ventures.)

4.   Investment in Joint Ventures

     The  Partnership  Agreement  allows  the  Partnership  to  invest  in joint
ventures  with other  limited  partnerships  sponsored  by the  General  Partner
provided that the  investment  objectives of the joint  ventures are  consistent
with that of the Partnership.

ICON Cash Flow L.L.C. III

     In  December  1996,  the  Partnership  and an  affiliate,  ICON  Cash  Flow
Partners,  L.P., Series E ("Series E") formed ICON Cash Flow Partners L.L.C. III
("ICON L.L.C. III"), for the purpose of acquiring and managing an aircraft.  The
Partnership  and Series E  contributed  99% and 1% of the cash received for such
acquisitions, respectively, to ICON Cash Flow L.L.C.
III.

ICON Receivables 1997-A L.L.C.

     In March 1997,  the  Partnership,  ICON Cash Flow Partners,  L.P.  Series D
("Series D") and ICON Cash Flow Partners L.P. Six ("L.P.  Six")  contributed and
assigned  equipment  lease  and  finance   receivables  and  residuals  to  ICON
Receivables 1997-A L.L.C.  ("1997-A"),  a special purpose entity created for the
purpose of originating  new leases,  managing  existing  contributed  assets and
securitizing its portfolio.


<PAGE>


                       ICON Cash Flow Partners L. P. Seven
                        (A Delaware Limited Partnership)

             Notes to Consolidated Financial Statements - Continued

     In September 1997, the  Partnership,  Series E and L.P. Six contributed and
assigned  additional  equipment  lease and finance  receivables and residuals to
1997-A.  The  Partnership,  Series D, Series E and L.P.  Six  (collectively  the
"1997-A  Members")  received  a  19.97%,  17.81%  31.19%  and  31.03%  interest,
respectively,   in  1997-A  based  on  the  present   value  of  their   related
contributions.

Information as to the unaudited  financial position and results of operations of
1997-A as of and for the six months ended June 30, 1998 is summarized below:

                                            June 30, 1998

               Assets                       $41,416,083

               Liabilities                  $35,235,264

               Equity                       $ 6,180,819
                                            ===========

                                          Six Months Ended
                                            June 30, 1998

               Net income                   $   915,589
                                            ===========

ICON Receivables 1997-B L.L.C.

     In August 1997, the Partnership,  Series E and L.P. Six (collectively,  the
"1997-B Members") formed ICON Receivables  1997-B L.L.C.  ("1997-B"),  a special
purpose entity created for the purpose of  originating  leases and  securitizing
its portfolio.  On July 30, 1998,  1997-B  securitized  substantially all of its
equipment  leases and finance  receivables and residuals.  The net proceeds from
the  securitization  totaled  $40,806,901,  of which $30,930,921 was used to pay
down 1997-B's debt, and the remaining proceeds,  after establishing reserves for
expenses,  were  distributed  to the 1997-B  Members  based on their  respective
interests.  1997-B became the beneficial  owner of a trust.  The trustee for the
trust is Manufacturers  and Traders Trust Company  ("M&T").  In conjunction with
this  securitization,  the portfolio as well as the General Partner's  servicing
capabilities were rated by Duff & Phelps and Fitch,  both nationally  recognized
rating agencies.  The General Partner, as servicer, is responsible for managing,
servicing,  reporting on and  administering  the  portfolio.  1997-B  remits all
monies  received from the portfolio to M&T. M&T is responsible for disbursing to
the noteholders their respective principal and interest and to 1997-B the excess
of cash  collected  over debt service  from the  portfolio.  The 1997-B  Members
receive  their pro rata share of any excess cash on a monthly basis from 1997-B.
The  Partnership,  Series E and L.P.  Six  received  16.67%,  75.00%  and  8.30%
interest, respectively, in 1997-B based on their contributions.


<PAGE>


                       ICON Cash Flow Partners L. P. Seven
                        (A Delaware Limited Partnership)

             Notes to Consolidated Financial Statements - Continued

Information as to the unaudited  financial position and results of operations of
1997-B at June 30, 1998 is summarized below:


                                             June 30, 1998

               Assets                        $32,114,372

               Liabilities                   $26,508,355

               Equity                        $ 5,606,017
                                             ===========

                                           Six Months Ended
                                             June 30, 1998

               Net income                    $   436,309
                                             ===========



<PAGE>


                       ICON Cash Flow Partners L.P. Seven
                        (A Delaware Limited Partnership)

                                  June 30, 1998

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

    ICON Cash Flow Partners L.P. Seven (the "Partnership") was formed on May 23,
1995 as a Delaware  limited  partnership.  The  Partnership  commenced  business
operations on its initial closing date.  January 19, 1996, with the admission of
26,367.95 limited partnership units at $100 per units representing $2,636,795.17
of capital  contributions.  Between  January 19,  1996 and  December  31,  1996,
249,172.52   units   were   admitted   representing   $24,917,252   of   capital
contributions.  In 1997, 285,927.35 units were admitted representing $28,592,735
of capital  contributions  while 1,625.63  units were redeemed.  From January 1,
1998 to June 30, 1998 298,386.69 units were admitted representing $29,838,669 of
capital contributions while 600.00 units were redeemed, bringing the total units
and capital subscriptions to 857,628.88 and $85,762,888, respectively.

    The Partnership's portfolio consisted of a net investment in finance leases,
estimated  unguaranteed  residual value,  leveraged leases, equity investment in
joint  venture and  financings  representing  81%,  12%,  5%, 1% and 1% of total
investments at June 30, 1998,  respectively and 71%, 13%, 10%, 5% and 1% at June
30, 1997, respectively.

Results of Operations

Three Months Ended June 30, 1998 and 1997

    For the three months ended June 30, 1998 and 1997 the Partnership  leased or
financed  equipment  with  an  initial  cost  of  $35,217,661  and  $12,121,225,
respectively to 146 and 6 lessees or equipment users respectively.

    Revenue  for  the  three  months  ended  June  30,  1998  were   $3,617,625,
representing  an  increase  of  $1,768,705  or 96% from 1997.  The  increase  in
revenues resulted  primarily from the increase in finance income of $1,698,065 ,
an increase in interest income and other of $58,353,  an increase in income from
an equity  investment in joint venture of $27,921 or 21%, and an increase in net
gain on sales or remarketing of equipment of $1,798 or 29%. These increases were
partially  offset by a decrease in income from leveraged leases of $17,430 or 4%
from 1997.  The  increase in finance  income  resulted  from the increase in the
average  size of the  portfolio  from 1997 to 1998.  Interest  income  and other
increased primarily as a result of the increase in the average cash balance from
1997 to 1998. Income from equity  investment in joint ventures  increased due to
the Partnership's increased investment in joint ventures.

    Expenses  for  the  three  months  ended  June  30,  1998  were  $3,231,384,
representing  an  increase  of  $1,425,833  or 79% from 1997.  The  increase  in
expenses  was due to an  increase  in  interest  expense of  $621,393 or 68%, an
increase in management  fees of $303,601 or 98%, an increase in provision of bad
debts of  $175,000,  an increase in  administrative  expense  reimbursements  of
$125,426  or 91%,  an  increase in  administrative  expense in  amortization  of
initial   direct   costs  of  $104,002  or  35%,  an  increase  in  general  and
administrative expense of $96,372, and an increase in minority interest in joint
venture of $39 or 3%. Interest  expense  increased due to an increase in average
debt outstanding  from 1997 to 1998.  Management  fees,  administrative  expense
reimbursement,   amortization   of  initial   direct   costs  and   general  and
administrative  expense  increased due to an increase in the average size of the
portfolio  from 1997 to 1998.  As a result of an  analysis  of  delinquency,  an
assessment of overall risk and a review of historical  loss  experience,  it was
determined  that a $250,000  provision  for bad debts was required for the three
months ended June 30. 1998.


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                       ICON Cash Flow Partners L.P. Seven
                        (A Delaware Limited Partnership)

                                  June 30, 1998

    Net income for the three  months  ended June 30, 1998 and 1997 was  $386,241
and  $43,369,   respectively.  The  net  income  per  weighted  average  limited
partnership unit was $.48 and $.12, respectively.

Six Months Ended June 30, 1998 and 1997

    For the six months  ended June 30, 1998 and 1997 the  Partnership  leased or
financed  equipment  with  an  initial  cost  of  $81,651,301  and  $56,130,601,
respectively to 150 and 21 lessees or equipment users respectively.  The weighed
average  initial  transaction  term  for  each  period  was  54  and  51  months
respectively.

    Revenues  for  the  six  months   ended  June  30,  1998  were   $6,713,788,
representing  an  increase  of  $3,306,849  or 97% from 1997.  The  increase  in
revenues resulted from an increase in finance income of $3,163,442,  an increase
in interest income of $127,005 and an increase in income from equity  investment
in joint venture of $100,646 or 65%. These increases were partially  offset by a
decrease in net gain on sales or  remarketing of equipment of $31,093 or 79% and
a decrease  in income  from  leveraged  leases of  $53,151 or 7% from 1997.  The
increase in finance income resulted from the increase in the average size of the
portfolio from 1997 and 1998. Interest income and other increased primarily as a
result of the increase in the average  cash  balance  from 1997 to 1998.  Income
from equity  investment  in joint  venture  increased  due to the  Partnership's
increased investment in joint ventures.  The net gain on sales or remarketing of
equipment  decreased due to a decrease in the number of leases  maturing and the
underlying  equipment being sold or remarketed for which proceeds  received were
in excess of the remaining carrying value of the equipment.

    Expenses  for  the  six  months   ended  June  30,  1998  were   $6,080,148,
representing  an  increase  of  $2,842,121  or 88% from 1997.  The  increase  in
expenses was due to the increase in interest expense of $1,578,090,  an increase
in management  fees of $424,425 or 64%, an increase in  amortization  of initial
direct  costs  of  $216,719  or  36%,  an  increase  in  administrative  expense
reimbursements  of $181,780  or 63%,  an increase in general and  administrative
expense of $116,046,  an increase in  provision  for bad debt of $325,000 and an
increase in minority  interest in joint venture of $61 or 3%.  Interest  expense
increased due to an increase in the average debt  outstanding from 1997 to 1998.
Management fees,  amortization of initial direct costs,  administrative  expense
reimbursement  and  general  and  administrative  expense  increased  due  to an
increase in the average size of the portfolio  from 1997 to 1998. As a result of
an  analysis  of  delinquency,  an  assessment  of overall  risk and a review of
historical  loss  experience,  it was  determined  that a $400,000  and  $75,000
provision  for bad debts was required for the six months ended June 30, 1998 and
1997, respectively.

    Net income for the six months  ended June 30, 1998 and 1997 was $633,640 and
$168,912,  respectively.  The net income per weighed average limited partnership
unit was $.84 and $.49, respectively.

Liquidity and Capital Resources

    The Partnership's primary sources of funds for the six months ended June 30,
1998  and  1997  were  capital  contributions,  net  of  offering  expenses,  of
$25,810,449  and  $10,226,311,  respectively.  These  funds  were  used  to make
payments on borrowings,  fund cash distributions and to purchase equipment.  The
Partnership intends to purchase additional equipment and fund cash distributions
utilizing capital contributions cash provided by operations, proceeds from sales
of equipment and borrowings.


<PAGE>


                       ICON Cash Flow Partners L.P. Seven
                        (A Delaware Limited Partnership)

                                  June 30, 1998

    Cash  distributions  to limited  partners  for the six months ended June 30,
1998 and 1997,  which were paid  monthly,  totaled  $4,289,724  and  $1,685,232,
respectively,   of  which  $627,304  and  $167,223  was  investment  income  and
$3,662,420  and $1,518,009  was a return of capital,  respectively.  The monthly
annualized cash  distribution  rate to limited  partners was 10.75% for 1998 and
1997,  of which 1.57% and 1.1% was  investment  income and 9.18% and 9.65% was a
return of capital  respectively,  calculated as a percentage  of each  partner's
initial  capital  contribution.  The limited partner  distribution  per weighted
average  unit  outstanding  for the six months  ended June 30, 1998 and 1997 was
$5.38,  of which $.79 and $.49 was  investment  income and $4.59 and $4.89 was a
return of capital, respectively.

    As of June 30, 1998,  except as noted  above,  there were no known trends or
demands,  commitments,  events or  uncertainties  which  are  likely to have any
material  effect on liquidity.  As cash is realized from capital  contributions,
operations,  sales of equipment and borrowings,  the Partnership  will invest in
equipment leases and financings and fund cash distributions where it deems it to
be prudent while retaining  sufficient cash to meet its reserve requirements and
recurring obligations as they become due.



<PAGE>


                       ICON Cash Flow Partners L. P. Seven
                        (A Delaware Limited Partnership)


PART II  - OTHER INFORMATION

Item 6 - Exhibits and Reports on Form 8-K

No reports on Form 8-K were filed by the  Partnership  during the quarter  ended
June 30, 1998.



<PAGE>


                       ICON Cash Flow Partners L. P. Seven
                        (A Delaware Limited Partnership)



                                   SIGNATURES


           Pursuant to the requirements of the Securities  Exchange Act of 1934,
the  registrant  has duly  caused  this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                  ICON Cash Flow Partners L. P. Seven
                                  File No. 33-94458 (Registrant)
                                  By its General Partner,
                                  ICON Capital Corp.



 August 14, 1998                  /s/ Gary N. Silverhardt
----------------                  ----------------------------------------------
    Date                          Gary N. Silverhardt
                                  Chief Financial Officer
                                  (Principal financial and account officer
                                  of the General Partner of the Registrant)


                                
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