Education
About Us
Working with TipRanks
Follow Us
LM Funding America Inc (LMFA)
NASDAQ:LMFA
Top Page
LM Funding America
(NASDAQ:LMFA)
Rating:43Neutral
Price Target:
$1.50
▼( -9.64% Downside)
Positive Factors
Financial Performance
Power sales and better efficiency lift margins for LM Funding America.
Operational Efficiency
LuxOS firmware upgrades helped further widen the mining margin to 38.5% from 31.2%.
Negative Factors
Cash Position
LMFA reported a cash balance of $1.0M at March 31, 2025, from $3.4M at December 31, 2024, reflecting fleet migration expenses and operating cash burn.
Revenue Decline
Revenue declined 51% from $4.1M y/y due to the bitcoin halving in April 2024, which reduced the effective mining output.
LM Funding America (LMFA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.55M
Dividend YieldN/A
Average Volume (3M)88.91K
Price to Earnings (P/E)―
Beta (1Y)1.67
Revenue Growth-44.09%
EPS Growth-64.95%
CountryUS
Employees9
SectorFinancial
Sector Strength82
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)-1.05
Shares Outstanding5,133,412
10 Day Avg. Volume130,965
30 Day Avg. Volume88,913
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)0.27
Price to Sales (P/S)0.00
P/FCF Ratio-0.65
Enterprise Value/Market Cap0.97
Enterprise Value/Revenue0.24
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda1.37
Forecast
1Y Price Target
$6.00Price Target Upside261.45% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
LM Funding America Business Overview & Revenue Model
Company DescriptionLM Funding America, Inc. (LMFA) is a financial services company primarily engaged in providing funding solutions to community associations. The company specializes in offering funding to condominium associations, homeowners associations, and other community associations that are facing financial challenges due to delinquent accounts. By purchasing the rights to delinquent association receivables, LM Funding America enables these associations to maintain financial stability and continue their operations effectively.
How the Company Makes MoneyLM Funding America makes money by purchasing delinquent accounts from community associations at a discounted rate and then collecting the full amount owed from the delinquent property owners. This business model allows the company to generate revenue from the difference between the discounted purchase price and the full collection amount. Additionally, LM Funding America may charge fees for its services, contributing further to its revenue streams. The company's financial performance can also be influenced by the efficiency of its collection processes and its ability to manage and mitigate risks associated with delinquent accounts.
LM Funding America Financial Statement Overview
Summary
LM Funding America faces significant financial challenges, with declining revenues, persistent losses, and negative cash flows. While the balance sheet shows some strength in equity, the company's ability to generate cash and profits is a major concern. The financial trajectory suggests the need for strategic changes to improve profitability and cash flow generation.Income Statement
The income statement shows declining revenue with a significant drop in TTM revenue compared to the previous periods. Gross profit is inconsistent, and there are persistent net losses, indicating poor profitability. EBIT and EBITDA margins are negative, further highlighting operational inefficiencies.35
Negative
Balance Sheet
The balance sheet reflects a relatively stable equity position, but the equity ratio has been decreasing over time, indicating increased leverage and risk. The debt-to-equity ratio remains reasonable, but the company has been struggling with maintaining a positive net income, affecting return on equity.50
Neutral
Cash Flow
The cash flow statement indicates negative operating and free cash flows, demonstrating challenges in generating cash from operations. The company has relied on financing activities to manage cash flow, raising concerns about sustainability without improvements in operational cash generation.40
Negative
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 5.35M | 11.00M | 12.98M | 5.36M | 14.02M | 1.29M | Gross Profit |
| 833.83B | 4.01M | -3.22M | 4.33M | 13.77M | 956.58K | EBIT |
| -10.92M | -6.46M | -10.06M | -27.80M | 5.09M | -4.04M | EBITDA |
| -2.62M | -324.97K | -14.88M | -20.87M | 4.44M | -4.04M | Net Income Common Stockholders |
| -15.91M | -7.32M | -15.94M | -27.88M | 4.76M | -4.04M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.05M | 3.41M | 2.40M | 4.24M | 34.69M | 11.55M | Total Assets |
| 39.12M | 44.05M | 37.71M | 53.19M | 62.10M | 12.32M | Total Debt |
| 748.05K | 7.70M | 763.75K | 746.00K | 182.69K | 453.69K | Net Debt |
| -280.82K | 3.85M | -1.66M | -3.49M | -32.38M | -11.10M | Total Liabilities |
| 9.08M | 8.70M | 2.85M | 2.39M | 646.34K | 849.12K | Stockholders Equity |
| 31.73M | 37.03M | 36.19M | 49.19M | 60.76M | 11.46M |
| Cash Flow | Free Cash Flow | ||||
| -13.16M | -13.68M | -5.03M | -24.79M | -14.72M | -3.52M | Operating Cash Flow |
| -11.87M | -11.95M | -3.40M | -9.14M | 3.49M | -3.52M | Investing Cash Flow |
| -511.58K | 379.42K | 2.30M | -18.89M | -23.96M | 1.45M | Financing Cash Flow |
| 12.59M | 12.54M | -731.03K | -299.03K | 41.48M | 12.56M |
LM Funding America Technical Analysis
Negative
1.66
Price Trends
1.47
Positive
1.66
Positive
2.21
Negative
Market Momentum
0.07
Positive
52.02
Neutral
36.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LMFA, the sentiment is Negative. The current price of 1.66 is below the 20-day moving average (MA) of 1.70, above the 50-day MA of 1.47, and below the 200-day MA of 2.21, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 52.02 is Neutral, neither overbought nor oversold. The STOCH value of 36.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LMFA.
LM Funding America Risk Analysis
LM Funding America disclosed 48 risk factors in its most recent earnings report. LM Funding America reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
LM Funding America Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $12.67B | 9.74 | 7.58% | 17015.08% | 12.21% | -6.96% | |
58 Neutral | $411.80M | ― | -84.06% | ― | -6.52% | -866.16% | |
58 Neutral | $9.41M | 0.39 | -251.22% | ― | -25.13% | ― | |
43 Neutral | $8.55M | ― | -40.46% | ― | -44.09% | -64.95% | |
39 Underperform | $4.77M | ― | -17.86% | ― | ― | 25.25% | |
22 Underperform | $750.73K | ― | -22.28% | ― | ― | -149.24% |
* Financial Sector Average
Performance Comparison
LMFA
LM Funding America
1.66
-1.50
-47.47%
PNBK
Patriot National Bancorp
5.40
3.20
145.45%
CNFR
Conifer Holdings
0.77
-0.33
-30.00%
SNTG
Sentage Holdings
1.70
-0.49
-22.37%
AIEV
Thunder Power Holdings Inc Class A
0.01
-11.00
-99.91%
LM Funding America Earnings Call Summary
Earnings Call Date:May 15, 2025
(Q1-2025)
| % Change Since: 0.61%|
Next Earnings Date:Aug 18, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant progress in operational efficiency, strategic transitions, and monetization of energy sales, which contributed to improved margins and a promising outlook with new technologies. However, the company faced challenges with a year-over-year revenue decline and a net loss, mainly due to external factors like Bitcoin halving.Q1-2025 Updates
Positive Updates
Strategic Transition to Vertically Integrated Bitcoin Mining
LM Funding America transitioned from an asset-light model to a vertically integrated operator, gaining full control of their fleet, improving margins, and reducing operational risks.
Operational Efficiency and Cost Reduction
The company mined 24.3 Bitcoin in Q1 2025, improved operational efficiency, and reduced operating expenses. Operating margins improved from 31.2% in Q4 2024 to 38.5% in Q1 2025.
Monetizing Energy Sales
Generated $150,000 from power sales back to the grid in Q1 2025, contributing to improved mining margins. Continued to generate $120,000 in power sales in April.
Immersion Cooling Technology Adoption
Ordered two 1 megawatt immersion mining containers for expansion at the Oklahoma site, expected to improve operational strategy and add shareholder value.
Bitcoin Holdings Value
As of April 30, 2025, LM Funding held 148.7 Bitcoin valued at $15.5 million, significantly higher than their market capitalization.
Negative Updates
Revenue Decline Year-over-Year
Bitcoin mining revenue declined 50.5% year-over-year, largely due to the impact of the April 2024 Bitcoin halving.
Net Loss and Core EBITDA Loss
Reported a net loss of $5.4 million and a core EBITDA loss of $2.8 million in Q1 2025, driven by a $1.8 million Bitcoin non-cash write-down.
Company Guidance
During the first quarter of 2025, LM Funding America reported significant operational and financial metrics. The company mined 24.3 Bitcoins, achieving a 12% increase in Bitcoin production sequentially, with an average price of $93,500 per Bitcoin. Despite a 50.5% year-over-year revenue decline due to the April 2024 halving, Bitcoin mining revenue reached approximately $2.3 million, up 25% sequentially. The company generated $150,000 from power sales to the grid, contributing to improved mining margins, which rose from 31.2% in Q4 2024 to 38.5% in Q1 2025. Operating expenses saw a 7.7% year-over-year reduction, reflecting enhanced cost management. As of March 31, 2025, LM Funding held 160.2 Bitcoins valued at $13.2 million. The net loss for the quarter was $5.4 million, with a core EBITDA loss of $2.8 million, impacted by a $1.8 million non-cash Bitcoin write-down. By April, power sales reached $120,000, further supporting the company's strategy to hedge against Bitcoin price volatility.LM Funding America Corporate Events
Private Placements and FinancingM&A TransactionsBusiness Operations and Strategy
LM Funding America Expands and Strengthens Financial Position
Positive
Dec 9, 2024
LM Funding America has completed a $7.3 million acquisition of Tech Infrastructure JV I LLC’s assets, enhancing its digital mining capabilities. Furthermore, the company entered a warrant exercise deal, raising $5.1 million by enabling an institutional investor to exercise existing warrants. This move is anticipated to bolster LM Funding’s position in the cryptocurrency mining sector while addressing outstanding loans and leveraging new financial opportunities.
M&A TransactionsBusiness Operations and Strategy
LM Funding America Expands with New Bitcoin Mining Site
Positive
Nov 18, 2024
LM Funding America, Inc. is set to acquire a 15 MW mining site in Oklahoma for $7.3 million, marking a strategic move to expand its Bitcoin mining operations. This acquisition includes essential infrastructure and is part of LM Funding’s plan to become a vertically integrated Bitcoin mining operation, enhancing its capacity and reducing costs. The deal underscores LM Funding’s commitment to growth in the cryptocurrency mining sector, with plans to optimize current facilities and reinvest in new opportunities.
Executive/Board ChangesShareholder Meetings
LM Funding America Announces Key Approvals and Elections
Neutral
Nov 12, 2024
LM Funding America, Inc. held its 2024 Annual Meeting where stockholders approved key proposals, including an Amended and Restated Incentive Plan to increase stock issuance and extend plan terms. Directors were elected, and the appointment of Malone Bailey, LLP as an accounting firm was ratified. Additionally, stockholders approved significant stock issuances under Nasdaq rules and executive compensation, reflecting active shareholder participation in strategic decisions.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.