LM Funding America (LMFA) AI Stock Analysis

• Market Cap: $13.60M
• Dividend Yield: N/A
• Average Volume (3M): 114.02K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.07
• Revenue Growth: -44.09%
• EPS Growth: -64.95%
• Country: US
• Employees: 9
• Sector: Financial
• Sector Strength: 82
• Industry: Financial - Credit Services
• EPS (TTM): -1.05
• Shares Outstanding: 5,133,412
• 10 Day Avg. Volume: 198,409
• 30 Day Avg. Volume: 114,022
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.07
• Enterprise Value/Market Cap: 0.42
• Enterprise Value/Revenue: 0.17
• Enterprise Value/Gross Profit: <0.01
• Enterprise Value/Ebitda: 0.96
• 1Y Price Target: $6.00
• Price Target Upside: 126.42% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 52 Neutral
• Price Target: $3.00 ▲(13.21%Upside)

LM Funding America's stock score is driven primarily by its challenging financial performance and valuation concerns. While technical analysis shows positive momentum, it is overshadowed by significant overbought signals. The earnings call reflects some operational improvements, but the negative financial trajectory and valuation issues weigh heavily on the overall score.

Positive Factors

Earnings

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

Financial Performance

LuxOS firmware upgrades helped further widen the mining margin to 38.5% from 31.2%.

Negative Factors

Financial 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.

Revenue

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. (LMFA) is a financial services company primarily engaged in providing funding solutions to community associations. The company specializes in offering accounts receivable funding by purchasing delinquent accounts from community associations, such as homeowner associations (HOAs) and condominium associations, allowing them to quickly access cash flow needed for operational expenses and maintenance of community properties.

How the Company Makes Money

LM Funding America generates revenue by purchasing delinquent accounts receivable from community associations at a discount. The company then collects the full amount owed from the delinquent homeowners, which includes late fees, interest, and any legal costs incurred in the collection process. This difference between the purchase price and the amount collected represents the company's profit. Additionally, LM Funding America may engage in other financing arrangements and partnerships that align with its core business model, although these are less significant compared to its primary revenue stream from delinquent account collections.

LM Funding America Financial Statement Overview

Summary

LM Funding America faces significant financial challenges, with declining revenues, persistent losses, and negative cash flows. The balance sheet shows some strength in equity, but the company's ability to generate cash and profits is concerning. The need for strategic changes is evident to improve profitability and cash flow generation.

Income Statement

The income statement shows declining revenue with a significant drop in TTM revenue compared to the previous periods. Gross profit is inconsistent, and there are persistent net losses, indicating poor profitability. EBIT and EBITDA margins are negative, further highlighting operational inefficiencies.

Balance Sheet

The balance sheet reflects a relatively stable equity position, but the equity ratio has been decreasing over time, indicating increased leverage and risk. The debt-to-equity ratio remains reasonable, but the company has been struggling with maintaining a positive net income, affecting return on equity.

Cash Flow

The cash flow statement indicates negative operating and free cash flows, demonstrating challenges in generating cash from operations. The company has relied on financing activities to manage cash flow, raising concerns about sustainability without improvements in operational cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.35M	11.00M	12.98M	5.36M	14.02M	1.29M
Gross Profit	833.83B	4.01M	-3.22M	4.33M	13.77M	956.58K
EBITDA	-2.62M	-324.97K	-14.88M	-20.87M	4.44M	-4.04M
Net Income	-15.91M	-7.32M	-15.94M	-27.88M	4.76M	-4.04M
Balance Sheet
Total Assets	39.12M	44.05M	37.71M	53.19M	62.10M	12.32M
Cash, Cash Equivalents and Short-Term Investments	1.05M	3.41M	2.40M	4.24M	34.69M	11.55M
Total Debt	748.05K	7.70M	763.75K	746.00K	182.69K	453.69K
Total Liabilities	9.08M	8.70M	2.85M	2.39M	646.34K	849.12K
Stockholders Equity	31.73M	37.03M	36.19M	49.19M	60.76M	11.46M
Cash Flow
Free Cash Flow	-13.16M	-13.68M	-5.03M	-24.79M	-14.72M	-3.52M
Operating Cash Flow	-11.87M	-11.95M	-3.40M	-9.14M	3.49M	-3.52M
Investing Cash Flow	-511.58K	379.42K	2.30M	-18.89M	-23.96M	1.45M
Financing Cash Flow	12.59M	12.54M	-731.03K	-299.03K	41.48M	12.56M

LM Funding America Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LMFA, the sentiment is Positive. The current price of 2.65 is above the 20-day moving average (MA) of 2.08, above the 50-day MA of 1.85, and above the 200-day MA of 2.10, indicating a bullish trend. The MACD of 0.26 indicates Negative momentum. The RSI at 65.76 is Neutral, neither overbought nor oversold. The STOCH value of 85.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LMFA.

LM Funding America Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	58 Neutral	HK$92.58B	5.09	-2.79%	5.18%	5.88%	-56.03%
CNFR	56 Neutral	$9.29M	0.39	-251.22%	―	-25.13%	―
LMFA	52 Neutral	$13.60M	―	-40.46%	―	-44.09%	-64.95%
PNBK	50 Neutral	$124.63M	―	-84.06%	―	-10.46%	-984.80%
SNTG	39 Underperform	$5.40M	―	-17.86%	―	―	25.25%
AIEV	22 Underperform	$5.07M	―	-22.28%	―	―	-149.24%

LM Funding America Corporate Events

LM Funding America Expands and Strengthens Financial Position

LM Funding America has completed a $7.3 million acquisition of Tech Infrastructure JV I LLC’s assets, enhancing its digital mining capabilities. Furthermore, the company entered a warrant exercise deal, raising $5.1 million by enabling an institutional investor to exercise existing warrants. This move is anticipated to bolster LM Funding’s position in the cryptocurrency mining sector while addressing outstanding loans and leveraging new financial opportunities.

LM Funding America Expands with New Bitcoin Mining Site

LM Funding America, Inc. is set to acquire a 15 MW mining site in Oklahoma for $7.3 million, marking a strategic move to expand its Bitcoin mining operations. This acquisition includes essential infrastructure and is part of LM Funding’s plan to become a vertically integrated Bitcoin mining operation, enhancing its capacity and reducing costs. The deal underscores LM Funding’s commitment to growth in the cryptocurrency mining sector, with plans to optimize current facilities and reinvest in new opportunities.

LM Funding America Announces Key Approvals and Elections

LM Funding America, Inc. held its 2024 Annual Meeting where stockholders approved key proposals, including an Amended and Restated Incentive Plan to increase stock issuance and extend plan terms. Directors were elected, and the appointment of Malone Bailey, LLP as an accounting firm was ratified. Additionally, stockholders approved significant stock issuances under Nasdaq rules and executive compensation, reflecting active shareholder participation in strategic decisions.