LM Funding America (LMFA) AI Stock Analysis

• Market Cap: $6.60M
• Dividend Yield: N/A
• Average Volume (3M): 581.24K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.61
• Revenue Growth: -35.26%
• EPS Growth: 53.23%
• Country: US
• Employees: 9
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): -0.41
• Shares Outstanding: 14,031,948
• 10 Day Avg. Volume: 475,451
• 30 Day Avg. Volume: 581,237
• PEG Ratio: 0.01
• Price to Book (P/B): 0.16
• Price to Sales (P/S): 0.55
• P/FCF Ratio: -0.44
• Enterprise Value/Market Cap: 0.05
• Enterprise Value/Revenue: 0.02
• Enterprise Value/Gross Profit: 0.02
• Enterprise Value/Ebitda: 0.10
• 1Y Price Target: $4.00
• Price Target Upside: 751.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: $0.45 ▼(-4.04% Downside)

The score is held down primarily by poor profitability and negative cash flows, reinforced by bearish technicals. Positive earnings-call operational improvements are outweighed by near-term listing/dilution risks and limited valuation support due to losses.

Positive Factors

Niche HOA lending model

Serving homeowners and condominium associations with secured loans creates a durable, niche revenue stream tied to predictable assessment receivables. Secured lending to HOAs reduces unsecured credit risk, supports stable fee and interest income, and strengthens client stickiness over multi-year maintenance cycles.

Low financial leverage

Minimal leverage provides financial flexibility and lowers solvency risk, enabling the company to fund operations or strategic initiatives without large interest burdens. This balance sheet strength supports resilience through cyclical stress and gives capacity to pursue growth or asset accumulation without excessive refinancing risk.

Built Bitcoin treasury and mining scale

Accumulating a sizable Bitcoin treasury and expanding mining capacity represents a strategic asset diversification that can bolster the balance sheet and generate production-linked revenue. Over time, owned crypto and in-house mining reduce reliance on lending margins and can improve per-share economics if execution and cost trends persist.

Negative Factors

Persistent net losses

Very large negative margins indicate the business currently fails to generate operating profit from core activities, eroding retained capital and investor returns. Structural loss-making undermines reinvestment ability, forces reliance on external financing, and raises long-term viability concerns unless margins sustainably recover.

Negative operating cash flow

Negative operating cash flow limits the firm's ability to fund operations, capex, or mining expansion internally, increasing reliance on equity raises or asset sales. Persistent cash deficits weaken liquidity cushions, raise financing costs, and can force dilutive capital actions that impair long-term shareholder value.

Dilution and listing risk

A minimum bid notice and concurrent warrant repricings and recent direct offerings signal meaningful dilution and listing vulnerability. Delisting risk and dilutive capital raises can erode investor base, force reverse splits or costly financing, and distract management from long-term operational execution.

LM Funding America Business Overview & Revenue Model

Company Description

LM Funding America, Inc. operates as a specialty finance company. It provides funding to nonprofit community associations (Associations) primarily located in the state of Florida, as well as in the states of Washington, Colorado, and Illinois. The company offers funding to Associations by purchasing their rights under delinquent accounts that are selected by the Associations arising from unpaid Association assessments. It is also involved in the business of purchasing delinquent accounts on various terms tailored to suit each Association's financial needs, including under its New Neighbor Guaranty program. LM Funding America, Inc. was founded in 2008 and is based in Tampa, Florida.

How the Company Makes Money

LM Funding America generates revenue primarily through the interest and fees associated with the loans it provides to community associations. The company typically charges interest on the amounts borrowed, which can vary based on the risk profile of the borrower and the specifics of the loan agreement. Additionally, LMFA may earn revenue through service fees related to the loan origination process and ongoing management of the loans. The company may also benefit from partnerships with various financial institutions and real estate developers, which can enhance its visibility in the market and facilitate access to a broader customer base. By strategically focusing on the niche of community associations, LMFA aims to create stable revenue streams while addressing the financial needs of this sector.

LM Funding America Financial Statement Overview

Summary

LM Funding America faces significant financial challenges, with persistent losses and negative cash flows. While there are some positive aspects, such as low leverage and recent revenue growth, the company struggles with profitability and cash flow management. The financial stability is questionable, and strategic improvements are necessary to enhance financial health.

Income Statement

LM Funding America has shown inconsistent revenue growth with a recent uptick of 12.24% in TTM, but overall profitability remains a concern. The company has a negative net profit margin of -129.10% and an EBIT margin of -95.12%, indicating significant operational challenges. Despite a positive gross profit margin of 166.59% in TTM, the historical volatility in margins suggests instability.

Balance Sheet

The balance sheet reflects a low debt-to-equity ratio of 0.019, indicating minimal leverage, which is a positive aspect. However, the return on equity is negative at -18.94%, highlighting inefficiencies in generating returns for shareholders. The equity ratio is relatively stable, suggesting a solid asset base, but the negative ROE remains a concern.

Cash Flow

Cash flow analysis reveals a challenging situation with negative operating cash flow and free cash flow. The free cash flow to net income ratio is positive at 1.12, indicating some ability to cover net losses, but the overall cash flow position is weak. The company has shown a slight improvement in free cash flow growth, but the negative operating cash flow coverage ratio of -3.45 highlights ongoing liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.30M	11.00M	6.19M	6.42M	14.02M	1.29M
Gross Profit	13.64M	4.01M	6.19M	1.48M	14.23M	1.74M
EBITDA	3.25M	-324.97K	-13.83M	-25.97M	5.33M	-4.05M
Net Income	-7.41M	-7.32M	-15.94M	-29.24M	4.76M	-4.04M
Balance Sheet
Total Assets	60.16M	44.05M	37.71M	53.19M	62.10M	12.32M
Cash, Cash Equivalents and Short-Term Investments	11.71M	3.41M	5.84M	5.13M	37.23M	11.55M
Total Debt	8.62M	7.70M	763.75K	746.00K	182.69K	453.69K
Total Liabilities	11.75M	8.70M	2.85M	2.39M	1.09M	849.12K
Stockholders Equity	50.14M	37.03M	36.19M	49.19M	60.76M	11.46M
Cash Flow
Free Cash Flow	-13.69M	-13.68M	-5.03M	-24.79M	-14.72M	-3.52M
Operating Cash Flow	-12.02M	-11.95M	-3.40M	-9.14M	3.49M	-3.52M
Investing Cash Flow	-20.27M	379.42K	2.30M	-18.89M	-23.96M	1.45M
Financing Cash Flow	26.67M	12.54M	-731.03K	-299.03K	41.48M	12.56M

LM Funding America Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.47
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 0.47 is below the 20-day moving average (MA) of 0.59, below the 50-day MA of 0.82, and below the 200-day MA of 1.48, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 31.88 is Neutral, neither overbought nor oversold. The STOCH value of 51.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LMFA.

LM Funding America Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SUIG	48 Neutral	$161.98M	-3.51	-20.35%	―	-19.68%	-1055.59%
NISN	46 Neutral	$4.89M	-0.06	―	―	-12.05%	-87.87%
OMCC	45 Neutral	$24.38M	-9.07	-5.49%	―	-1.30%	81.87%
PT	44 Neutral	$15.53M	-9.41	―	―	9.45%	71.81%
LMFA	42 Neutral	$6.60M	-0.20	-17.58%	―	-35.26%	53.23%
SNTG	41 Neutral	$5.75M	-3.16	-16.36%	―	-26.60%	15.28%

LM Funding America Corporate Events

LM Funding America Receives Nasdaq Minimum Bid Price Notice

On January 7, 2026, LM Funding America disclosed that it had received a notice from Nasdaq stating the company was no longer in compliance with the exchange’s $1.00 minimum bid price requirement, after its shares closed below that level for 35 consecutive business days through January 6, 2026. The notification does not immediately affect the listing of LM Funding’s common stock, and the company has until July 6, 2026, to regain compliance by maintaining a closing bid price of at least $1.00 for ten consecutive business days, with the potential for an additional 180‑day extension or a hearing process if needed; management said it will monitor the share price and evaluate options such as a reverse stock split, while emphasizing that the notice does not currently impact its business operations or SEC reporting obligations but could ultimately lead to delisting if compliance is not restored.

The most recent analyst rating on (LMFA) stock is a Hold with a $0.55 price target. To see the full list of analyst forecasts on LM Funding America stock, see the LMFA Stock Forecast page.

LM Funding America Reduces Warrant Exercise Price Significantly

On January 6, 2026, LM Funding America, Inc. notified holders of outstanding common stock warrants to purchase 16,670,623 shares that the exercise price on these securities had been adjusted. The company reduced the warrant exercise price from $0.97 to $0.48 per share pursuant to the price protection provisions embedded in the warrants, following an offering referenced in a December 22, 2025 filing, a move that makes exercising the warrants more attractive and could lead to increased share issuance and potential dilution for existing shareholders.

The most recent analyst rating on (LMFA) stock is a Hold with a $0.57 price target. To see the full list of analyst forecasts on LM Funding America stock, see the LMFA Stock Forecast page.

LM Funding America completes capital-raising direct offering

On December 19, 2025, LM Funding America entered into securities purchase agreements with institutional investors for a registered direct offering of 1,822,535 common shares, 7,332,395 pre-funded warrants and 9,154,930 common warrants at a combined effective price of $0.71 per share or pre-funded warrant plus accompanying warrant, with the transaction closing on December 22, 2025 and generating approximately $6.0–$6.5 million in gross proceeds before fees. The company intends to use the net proceeds to expand its Bitcoin treasury strategy and for general corporate purposes, while agreeing to short-term restrictions on additional equity issuance, repricing and extending the term of 3,472,740 outstanding warrants held by an RDO investor, and compensating Maxim Group LLC as sole placement agent, moves that collectively bolster LM Funding’s capital base but also increase potential future share dilution for existing shareholders.

The most recent analyst rating on (LMFA) stock is a Hold with a $0.57 price target. To see the full list of analyst forecasts on LM Funding America stock, see the LMFA Stock Forecast page.

LM Funding America Adjusts Warrant Exercise Price

On November 7, 2025, LM Funding America, Inc. announced a reduction in the exercise price of its August 2025 Warrants to $0.97 per share, increasing the total shares issuable to 15,516,850. This adjustment also affected warrants from the October 2021 public offering, reducing their exercise price to $0.97 per share, reflecting anti-dilution provisions.

The most recent analyst rating on (LMFA) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on LM Funding America stock, see the LMFA Stock Forecast page.

LM Funding America Announces Share Repurchase Program

On November 3, 2025, LM Funding America, Inc. announced a share repurchase program authorized by its Board of Directors, allowing the company to buy back up to $1.5 million of its common stock. The repurchases will be conducted through various methods, including open market purchases and privately negotiated transactions, and are subject to market conditions and legal requirements. The program, which may be funded by existing cash and credit facilities, is set to expire on September 30, 2026, but can be modified or discontinued at the Board’s discretion.

The most recent analyst rating on (LMFA) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on LM Funding America stock, see the LMFA Stock Forecast page.

LM Funding America Approves Key Proposals at Annual Meeting

On October 14, 2025, LM Funding America, Inc. held its annual meeting of stockholders, where three proposals were voted on. The election of directors resulted in the appointment of three Class III directors, while the appointment of MaloneBailey, LLP as the independent auditor for 2025 was ratified. Additionally, the issuance of more than 19.99% of the company’s outstanding common stock was approved, following two financing transactions in August 2025.

The most recent analyst rating on (LMFA) stock is a Buy with a $4.00 price target. To see the full list of analyst forecasts on LM Funding America stock, see the LMFA Stock Forecast page.