LM Funding America (LMFA) AI Stock Analysis

• Market Cap: $20.82M
• Dividend Yield: N/A
• Average Volume (3M): 2.15M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.24
• Revenue Growth: -50.52%
• EPS Growth: 3.90%
• Country: US
• Employees: 9
• Sector: Financial
• Sector Strength: 72
• Industry: Financial - Credit Services
• EPS (TTM): 0.02
• Shares Outstanding: 15,198,388
• 10 Day Avg. Volume: 815,245
• 30 Day Avg. Volume: 2,148,154
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.40
• Enterprise Value/Revenue: 1.10
• Enterprise Value/Gross Profit: 0.66
• Enterprise Value/Ebitda: -120.64
• 1Y Price Target: $5.00
• Price Target Upside: 264.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 45 Neutral
• Price Target: $1.50 ▲(9.49% Upside)

LM Funding America's overall stock score reflects significant financial challenges, including declining revenues and negative profitability, which are the most impactful factors. While recent corporate events and strategic advancements provide some positive outlook, the bearish technical indicators and poor valuation metrics weigh heavily on the stock's attractiveness.

Positive Factors

Acquisition

The acquisition of an 11MW Mississippi site from Greenidge Generation Holdings secures high-value megawatts and cements control over the power stack.

Financial Performance

LMFA significantly improved core EBITDA to $3.9M, reversing a prior-year loss of $0.2M through reduced energy costs, eliminated hosting fees, and increased operational uptime.

Revenue Growth

LMFA reported 4Q24 results with revenue of $2.0M, beating the estimate of $1.6M and consensus of $1.5M.

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.

Price Target

The 12-month price target is lowered to $4.50 from $6.00, due to LMFA's smaller scale and limited cash position.

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 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 interest and fees associated with the loans and advances it provides to homeowners' associations. The company earns interest on the principal amount of loans issued, which is typically structured to be repaid over a set period. Additionally, LMFA may charge origination fees, late payment fees, and other service-related charges that contribute to its income. Strategic partnerships with real estate management companies and community associations enhance its reach and customer base, thereby increasing the volume of transactions and revenue. The company's ability to scale its operations while managing risk effectively plays a crucial role in its financial performance.

LM Funding America Financial Statement Overview

Summary

LM Funding America is facing significant financial challenges, with declining revenues, negative profitability, and cash flow issues. While the balance sheet shows low leverage, the company's inability to generate positive returns and cash flows poses risks to its financial stability.

Income Statement

LM Funding America has experienced declining revenue growth, with a significant decrease of 12.56% in the TTM period. The company is facing profitability challenges, as indicated by negative net profit and EBIT margins. The gross profit margin has also deteriorated over time, reflecting operational inefficiencies.

Balance Sheet

The company's balance sheet shows a low debt-to-equity ratio, indicating conservative leverage. However, the return on equity is negative, suggesting that the company is not generating sufficient returns on shareholder investments. The equity ratio remains stable, indicating a solid capital structure.

Cash Flow

LM Funding America is struggling with negative operating and free cash flows, which have worsened over the TTM period. The free cash flow to net income ratio is positive, but the overall cash flow situation indicates liquidity challenges and potential sustainability issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.54M	11.00M	12.98M	1.67M	14.72M	1.26M
Gross Profit	12.56M	4.01M	-3.22M	4.33M	14.47M	933.84K
EBITDA	-68.48K	-324.97K	-14.88M	-20.77M	4.59M	-3.94M
Net Income	-9.73M	-7.32M	-15.94M	-29.24M	4.76M	-4.04M
Balance Sheet
Total Assets	39.03M	44.05M	37.71M	53.19M	62.10M	12.32M
Cash, Cash Equivalents and Short-Term Investments	366.81K	3.41M	2.42M	4.77M	50.68M	11.55M
Total Debt	619.44K	7.70M	763.75K	746.00K	182.69K	453.69K
Total Liabilities	8.91M	8.70M	2.85M	2.39M	1.09M	849.12K
Stockholders Equity	31.86M	37.03M	36.19M	49.19M	60.76M	11.46M
Cash Flow
Free Cash Flow	-13.04M	-13.68M	-5.03M	-24.79M	-14.72M	-3.52M
Operating Cash Flow	-11.67M	-11.95M	-3.40M	-9.14M	3.49M	-3.52M
Investing Cash Flow	769.59K	379.42K	2.30M	-18.89M	-23.96M	1.45M
Financing Cash Flow	11.11M	12.54M	-731.03K	-299.03K	41.48M	12.56M

LM Funding America Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.37
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1.37 is below the 20-day moving average (MA) of 2.03, below the 50-day MA of 2.33, and below the 200-day MA of 2.05, indicating a bearish trend. The MACD of -0.25 indicates Positive momentum. The RSI at 35.83 is Neutral, neither overbought nor oversold. The STOCH value of 8.17 is Positive, 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
MCVT	62 Neutral	$477.88M	26.84	7.58%	―	-39.95%	440.27%
Sector *	58 Neutral	HK$112.28B	6.37	-4.87%	3.89%	9.01%	-45.73%
NISN	52 Neutral	$16.90M	7.00	0.46%	―	-12.05%	-87.87%
LMFA	45 Neutral	$20.82M	―	-24.95%	―	-50.52%	3.90%
OMCC	39 Underperform	$37.21M	―	-6.39%	―	-23.86%	90.09%
SNTG	39 Underperform	$4.77M	―	-17.86%	―	-26.64%	-5.21%
PT	33 Underperform	$15.72M	―	20.04%	―	-34.85%	83.43%

LM Funding America Corporate Events

LM Funding America Closes $10.4M Private Placement

On August 18, 2025, LM Funding America announced the closing of a $10.4 million private placement and the pricing of a $12.6 million registered direct offering, raising approximately $23 million in total. The proceeds from these offerings will be primarily used to enhance the company’s Bitcoin treasury strategy and expand its mining capacity, including a planned acquisition of an 11 MW mining site in Columbus, Mississippi. This capital raise is expected to strengthen LM Funding’s balance sheet, facilitate future capital raising, and create long-term shareholder value.

LM Funding America Acquires Property in Mississippi

On August 1, 2025, LM Funding America, Inc., through its subsidiary, entered into an Asset Purchase Agreement with Greenidge Mississippi LLC to acquire a 6.4-acre property and associated business assets in Columbus, Mississippi for approximately $3.9 million. The transaction, expected to close by September 16, 2025, aims to enhance LMFA’s operational capabilities in digital mining, potentially impacting its industry positioning and stakeholder interests.