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LM Funding America
(NASDAQ:LMFA)
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Rating:43Neutral
Price Target:
$0.13
▼(-56.21% Downside)
Action:Reiterated
Date:06/24/26
LMFA scores low primarily due to very weak financial performance—persistent large losses, deeply negative returns, and ongoing cash burn—despite some balance-sheet cushion. Technicals are also bearish with the stock trading below all major moving averages, although oversold readings provide only limited support. Earnings-call commentary and recent corporate actions add strategic upside optionality (mining efficiency gains and AI/HPC expansion), but the near-term financial losses, funding needs, and volatility risks keep the overall score depressed.
Positive Factors
Operational Scale & Mining Productivity
Sustained increases in energized hash rate and record monthly BTC production signal durable operational scale and improving fleet efficiency. Higher steady-state output raises long-term revenue capacity per unit of capital invested and strengthens the company's core mining cash-generation potential.
Negative Factors
Persistent Large Losses & Cash Burn
Substantial recurring net losses and sustained negative operating and free cash flow erode capital and compress strategic flexibility. Continued cash burn increases the probability management must rely on external financing, dilutive equity actions, or asset sales, undermining long-term shareholder returns if not reversed.
Read all positive and negative factors
Positive Factors
Negative Factors
Operational Scale & Mining Productivity
Sustained increases in energized hash rate and record monthly BTC production signal durable operational scale and improving fleet efficiency. Higher steady-state output raises long-term revenue capacity per unit of capital invested and strengthens the company's core mining cash-generation potential.
Read all positive factors
LM Funding America (LMFA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.21M
Dividend YieldN/A
Average Volume (3M)581.24K
Price to Earnings (P/E)―
Beta (1Y)2.55
Revenue Growth-0.48%
EPS Growth67.66%
CountryUS
Employees16
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)-2.57
Shares Outstanding17,352,282
10 Day Avg. Volume475,451
30 Day Avg. Volume581,237
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.13
Price to Sales (P/S)0.44
P/FCF Ratio-0.24
Enterprise Value/Market Cap10.42
Enterprise Value/Revenue1.91
Enterprise Value/Gross Profit8.46
Enterprise Value/Ebitda-1.15
Forecast
1Y Price Target
$1.00Price Target Upside244.83% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.9
Revenue Forecast (FY)$7.90M
LM Funding America Business Overview & Revenue Model
Company Description
LM Funding America, Inc. functions as a specialized financial services provider. The company offers capital to non-profit community associations (referred to as Associations), with a primary focus on Florida, extending its services to Washington, ...
How the Company Makes Money
LMFA generates revenue primarily through (1) specialty finance/assessment recovery and (2) bitcoin mining. In its specialty finance business, the company provides capital to community associations and, in return, obtains economic rights tied to th...
LM Funding America Earnings Call Summary
Earnings Call Date:May 15, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 17, 2026
Earnings Call Sentiment Positive
The call emphasizes strong operational progress — record energized hash rate, highest monthly production, successful fleet upgrades, and meaningful post-quarter recovery in the Bitcoin treasury value — while noting the quarter's reported financial performance was materially impacted by Bitcoin price weakness and noncash fair value adjustments. Liquidity and near-term debt maturity are manageable but require monitoring. Seasonal headwinds and industry-driven price volatility present short-term challenges, but management portrays the company as well positioned to benefit if Bitcoin prices recover.Positive Updates
Record Energized Hash Rate and Monthly Production
Energized hash rate reached ~790 PH in March, the highest in company history, and March produced 9.6 BTC, the strongest monthly output of the quarter.
Negative Updates
Revenue Decline Year-over-Year and Sequential Pressure
Total revenue was ~$2.1M in Q1 2026 versus $2.4M in both Q4 2025 and Q1 2025, representing an ~11% year-over-year decline, driven primarily by a significantly lower average Bitcoin price (average BTC ~$75.7k in Q1 2026 vs ~$99.7k in Q4 2025).
Read all updates
Q1-2026 Updates
Positive
Negative
Record Energized Hash Rate and Monthly Production
Energized hash rate reached ~790 PH in March, the highest in company history, and March produced 9.6 BTC, the strongest monthly output of the quarter.
Read all positive updates
Company Guidance
Guidance from the call focused on priorities for the remainder of 2026—grow Bitcoin production, improve fleet efficiency, increase Bitcoin-per-share and evaluate accretive 5–20 MW site acquisitions (including additional Mississippi capacity)—while preserving capital flexibility (Galaxy facility maturity extended to June 26, 2026). Key metrics cited: Q1 production 26.1 BTC (up 19% sequential from 22 BTC in Q4), energized hash rate rose from ~750 PH/s at year-end to a record ~790 PH/s with monthly outputs of ~8.7 BTC in February and 9.6 BTC in March; fleet changes included ~35 PH from a second BC40 Elite immersion unit (160 S21 immersion miners) and deployment of ~300 S19 XP units. Financial and balance-sheet metrics: revenue ≈ $2.1M, mining margin ≈ 24.1% (supported by ~$368k curtailment/energy sales and ~$305k earned in January, roughly equivalent to ~4 BTC), Q1 net loss ≈ $10.1M and core EBITDA loss ≈ $8.4M; March 31 treasury 338.2 BTC valued ≈ $23.1M ($1.06/diluted share), 334 BTC on April 30 ≈ $25.3M ($1.18/sh) and ≈ $27.3M ($1.27/sh) as of May 11 after a ~21% BTC price recovery; total assets ≈ $41.8M, total liabilities ≈ $22.7M (Galaxy loan $10.9M; other notes ≈ $8.7M), and cash ≈ $0.8M—with a caution about seasonal Q2 heat headwinds and plans for incremental upgrades to offset them.LM Funding America Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
47
Neutral
Cash Flow
22
Negative
| Breakdown | TTM | Dec 2025 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.09M | 8.79M | 11.00M | 6.19M | 6.42M | 14.02M |
| Gross Profit | 2.73M | -12.85M | 4.01M | 6.19M | 1.48M | 14.23M |
| EBITDA | -20.01M | -17.68M | -324.97K | -13.83M | -25.97M | 5.33M |
| Net Income | -31.99M | -26.92M | -7.32M | -15.94M | -29.24M | 4.76M |
Balance Sheet | ||||||
| Total Assets | 41.75M | 51.32M | 44.05M | 37.71M | 53.19M | 62.10M |
| Cash, Cash Equivalents and Short-Term Investments | 836.20K | 1.46M | 3.41M | 5.84M | 5.13M | 37.23M |
| Total Debt | 20.41M | 20.65M | 7.70M | 763.75K | 746.00K | 182.69K |
| Total Liabilities | 22.66M | 22.44M | 8.70M | 2.85M | 2.39M | 1.09M |
| Stockholders Equity | 20.83M | 30.62M | 37.03M | 36.19M | 49.19M | 60.76M |
Cash Flow | ||||||
| Free Cash Flow | -21.71M | -16.20M | -13.68M | -5.03M | -24.79M | -14.72M |
| Operating Cash Flow | -14.38M | -13.99M | -11.95M | -3.40M | -9.14M | 3.49M |
| Investing Cash Flow | -17.40M | -19.54M | 379.42K | 2.30M | -18.89M | -23.96M |
| Financing Cash Flow | 31.55M | 31.58M | 12.54M | -731.03K | -299.03K | 41.48M |
LM Funding America Technical Analysis
Negative
0.29
Price Trends
0.21
Negative
0.26
Negative
0.53
Negative
Market Momentum
-0.02
Positive
26.12
Positive
42.55
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 0.29 is above the 20-day moving average (MA) of 0.17, above the 50-day MA of 0.21, and below the 200-day MA of 0.53, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 26.12 is Positive, neither overbought nor oversold. The STOCH value of 42.55 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 59 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
52 Neutral | $28.82M | -11.22 | -4.98% | ― | 19.62% | 21.85% | |
47 Neutral | $5.84M | -2.39 | -17.08% | ― | -35.90% | -9.68% | |
46 Neutral | $89.86M | -0.29 | -193.33% | ― | -1578.63% | -2350.69% | |
43 Neutral | $2.21M | -0.05 | -17.58% | ― | -0.48% | 67.66% |
* Financial Sector Average
LMFA
LM Funding America
0.13
-2.53
-95.04%
OMCC
Old Market Capital
4.15
-2.01
-32.63%
SUIG
Sui Group Holdings
1.25
-0.67
-34.90%
SNTG
Sentage Holdings
2.02
0.08
4.12%
LM Funding America Corporate Events
Business Operations and StrategyDelistings and Listing ChangesRegulatory Filings and ComplianceShareholder MeetingsStock Split
LM Funding America Announces Reverse Stock Split Plan
Neutral
Jul 10, 2026
LM Funding America said it will implement a 1-for-25 reverse stock split of its common stock, effective July 13, 2026, following shareholder approval at its June 16 annual meeting and board authorization on June 24. The move comes after Nasdaq not...
Business Operations and StrategyFinancial Disclosures
LM Funding Expands from Bitcoin Mining into AI Infrastructure
Positive
Jun 23, 2026
On June 23, 2026, LM Funding America announced a strategic expansion from its core Bitcoin mining operations into high-performance computing and AI infrastructure, underpinned by 26 megawatts of low-cost, wholly owned power at its Oklahoma and Mis...
Business Operations and StrategyExecutive/Board ChangesPrivate Placements and FinancingShareholder MeetingsStock Split
LM Funding America Shareholders Approve Key Capital Actions
Positive
Jun 18, 2026
At its June 16, 2026 annual meeting, LM Funding America, Inc. shareholders elected Bruce Rodgers and Carollinn Gould as Class I directors, ensuring continuity in board leadership, and ratified MaloneBailey, LLP as the independent auditor for the 2...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.