LM Funding America (LMFA) AI Stock Analysis

• Market Cap: $15.52M
• Dividend Yield: N/A
• Average Volume (3M): 529.28K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.39
• Revenue Growth: -50.52%
• EPS Growth: 3.90%
• Country: US
• Employees: 9
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.02
• Shares Outstanding: 15,517,988
• 10 Day Avg. Volume: 421,270
• 30 Day Avg. Volume: 529,282
• 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: 0.53
• Enterprise Value/Revenue: 1.10
• Enterprise Value/Gross Profit: 0.66
• Enterprise Value/Ebitda: -120.64
• 1Y Price Target: $4.50
• Price Target Upside: 336.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 43 Neutral
• Price Target: $1.00 ▼(-2.91% Downside)

LM Funding America's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues and negative cash flows. While the earnings call provided some positive developments, such as improved mining margins and a strategic acquisition, these were not enough to offset the significant financial and technical challenges. The valuation remains unattractive due to a negative P/E ratio and lack of dividends.

Positive Factors

Strategic Acquisition

The acquisition of a Bitcoin mining site enhances LMFA's mining capacity, supporting long-term growth in the cryptocurrency sector and expanding operational capabilities.

Improved Mining Margins

Improved mining margins reflect operational efficiency and cost management, which can enhance profitability and provide a competitive edge in the mining industry.

Bitcoin Treasury Strategy

A robust Bitcoin treasury strategy supports financial stability and provides liquidity for operational needs, positioning the company well in the volatile crypto market.

Negative Factors

Declining Revenue

A sequential decline in revenue indicates challenges in maintaining consistent income streams, which could impact long-term financial health and growth prospects.

Negative Cash Flow

Negative cash flows highlight liquidity challenges, potentially limiting the company's ability to invest in growth opportunities and sustain operations without external financing.

Declining Bitcoin Production

A decline in Bitcoin production can reduce revenue from mining activities, impacting profitability and the effectiveness of the company's cryptocurrency strategy.

LM Funding America Business Overview & Revenue Model

Company Description

LM Funding America (LMFA) is a financial services company that specializes in providing funding solutions primarily to homeowners' associations (HOAs) and condominium associations. The company operates in the real estate and financial sectors, offering products such as loans and advances to help these associations manage their finances, improve cash flow, and fund necessary projects. Through its innovative funding mechanisms, LMFA supports community development and maintenance, ensuring that associations can meet their operational needs effectively.

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: 1.03
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 1.03 is below the 20-day moving average (MA) of 1.18, below the 50-day MA of 1.20, and below the 200-day MA of 1.70, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 38.97 is Neutral, neither overbought nor oversold. The STOCH value of 46.47 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 *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SUIG	―	$249.73M	12.69	7.58%	―	-39.95%	440.27%
NISN	―	$16.90M	6.78	―	―	-12.05%	-87.87%
LMFA	―	$15.52M	-0.23	-24.95%	―	-50.52%	3.90%
OMCC	―	$35.52M	-14.93	-6.39%	―	-23.86%	90.09%
SNTG	―	$7.77M	-3.52	―	―	-26.64%	-5.21%
PT	―	$14.75M	-8.93	―	―	9.45%	71.81%

LM Funding America Corporate Events

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.

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.

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.

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.

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.

LM Funding America Reduces Warrant Exercise Price

On August 28, 2025, LM Funding America, Inc. announced a reduction in the exercise price of its common stock purchase warrants from $2.41 to $1.10 per share, increasing the total shares issuable from 9,553,946 to 20,931,827. Additionally, the exercise price for warrants from the October 2021 public offering was adjusted from $2.88 to $1.10 per share due to anti-dilution provisions, impacting the company’s financial structure and potentially benefiting stakeholders by making shares more accessible.

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.

LM Funding America: Strategic Gains Amid Revenue Challenges

The recent earnings call for LM Funding America painted a mixed picture, with strategic advancements and financial improvements being somewhat overshadowed by declines in revenue and Bitcoin production. The sentiment was cautiously optimistic, as the company reported a positive net income for the quarter, bolstered by improved mining margins and a robust Bitcoin treasury strategy, signaling a positive outlook despite some challenges.

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.

The most recent analyst rating on (LMFA) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on LM Funding America stock, see the LMFA Stock Forecast page.

LM Funding America Reports Q2 2025 Financial Results

LM Funding America, Inc., based in Tampa, Florida, operates as a Bitcoin mining and technology-based specialty finance company. The company recently released its financial results for the second quarter of 2025, showcasing a strategic focus on expanding its Bitcoin mining capabilities and improving operational efficiency.

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.

The most recent analyst rating on (LMFA) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on LM Funding America stock, see the LMFA Stock Forecast page.