LM Funding America (LMFA) AI Stock Analysis

• Market Cap: $10.20M
• Dividend Yield: N/A
• Average Volume (3M): 942.68K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.66
• 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: 12,209,413
• 10 Day Avg. Volume: 288,198
• 30 Day Avg. Volume: 942,679
• 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: 0.64
• Enterprise Value/Revenue: 0.46
• Enterprise Value/Gross Profit: 0.48
• Enterprise Value/Ebitda: 2.02
• 1Y Price Target: $4.00
• Price Target Upside: 412.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): -1.78
• Revenue Forecast (FY): $9.10M

• Rating: 49 Neutral
• Price Target: $0.89 ▲(13.59% Upside)

LM Funding America's overall stock score is primarily impacted by its financial performance, which shows significant challenges with profitability and cash flow management. Technical analysis indicates a bearish trend, and valuation metrics are weak due to ongoing losses. However, positive developments in Bitcoin mining operations and strategic initiatives provide some optimism, as reflected in the earnings call and corporate events.

Positive Factors

Expansion of Mining Capacity

Expanding mining capacity enhances operational scale, potentially increasing revenue and improving competitive positioning in the Bitcoin mining sector.

Improved Mining Margins

Improved margins indicate better cost management and operational efficiency, which can lead to enhanced profitability and cash flow over time.

Strategic Share Repurchase

Share repurchases reduce dilution, potentially increasing shareholder value and demonstrating management's confidence in the company's future prospects.

Negative Factors

High Mining Costs

High mining costs can erode profitability, making it challenging to sustain competitive margins, especially if Bitcoin prices fluctuate unfavorably.

Negative Cash Flow

Negative cash flow indicates liquidity issues, potentially limiting the company's ability to invest in growth opportunities and meet financial obligations.

Net Loss Reported

Ongoing net losses highlight challenges in achieving profitability, which can strain financial resources and hinder long-term business sustainability.

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: 0.78
• 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 0.78 is below the 20-day moving average (MA) of 0.88, below the 50-day MA of 1.04, and below the 200-day MA of 1.56, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 37.29 is Neutral, neither overbought nor oversold. The STOCH value of 6.96 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
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SUIG	62 Neutral	$207.84M	10.56	-20.35%	―	-19.68%	-1055.59%
NISN	50 Neutral	$15.59M	6.22	―	―	-12.05%	-87.87%
LMFA	49 Neutral	$10.20M	―	-17.58%	―	-35.26%	53.23%
OMCC	43 Neutral	$33.38M	―	-5.49%	―	-1.30%	81.87%
SNTG	39 Underperform	$6.37M	-2.88	―	―	-26.64%	-5.21%
PT	33 Underperform	$17.12M	-10.30	―	―	9.45%	71.81%

LM Funding America Corporate Events

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.

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.

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.

LM Funding America Approves Executive Stock Options and Bonuses

On September 30, 2025, LM Funding America, Inc. announced that its Board of Directors approved stock options for key executives Bruce Rodgers, Richard Russell, and Ryan Duran, under the 2021 Omnibus Incentive Plan, with a ten-year term and specific vesting conditions. Additionally, the Board approved one-time cash bonuses for these executives based on individual performance and corporate achievements, reflecting the company’s recognition of their contributions.

LM Funding America Expands with Bitcoin Mining Acquisition

On September 15, 2025, LM Funding America secured an additional $2.0 million loan to fund acquisitions, including a Bitcoin mining facility in Columbus, Mississippi. The acquisition, completed on September 16, 2025, includes an 11 MW site and approximately 2,300 Bitmain S19 series miners, enhancing the company’s mining capacity and diversifying its geographic footprint. This strategic move aims to strengthen LM Funding’s Bitcoin treasury and mining operations while leveraging favorable power pricing to optimize costs.