Liquidity is under extreme pressure, evidenced by a cash position that dwindled to $836.2K in 2026Q1 while the company simultaneously executed an $8.0M share buyback in 2025Q4.
LM Funding America, Inc. (LMFA) cash flow statement — 13-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 |
|---|
| Cash from Operations | -15.5M | -13.99M | -11.95M | -3.4M | -9.14M | 3.49M | -3.52M | -1.16M | -758.32K | -1.81M | -3.35M | 2.25M | 2.42M | 1.91M |
| Operating CF Growth % | -126.59% | -17.09% | -250.88% | 62.73% | -361.98% | 198.98% | -203.59% | -53.04% | 58.12% | 46% | -248.99% | -7.11% | 27.04% | - |
| Net Income | -36.65M | -26.92M | -7.66M | -15.94M | -27.88M | 5M | -4.04M | -3M | -472.16K | -8.63M | -2.37M | 1.73M | 2.38M | 0 |
| Depreciation & Amortization | 5.76M | 8.17M | 7.77M | 4.98M | 478.02K | 1.38K | 11.14K | 63.76K | 68.26K | 95.45K | 72.11K | 47.47K | 152.67K | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | -326.18K | -33.74M | 0 | 1.45M | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 16.34M | 12.02M | -4.73M | 6.03M | -246.65K | 29.47M | -281.07K | 7.04K | 34.06K | 6.32M | -1.31M | 193.49K | 163.87K | 1.91M |
| Working Capital Changes | -1.72M | -7.26M | -7.85M | -1.41M | 1.17M | -80.8K | 649.09K | 311.13K | -413.25K | 373.71K | -22.32K | 277.51K | -276.43K | 0 |
| Cash from Investing | -16.33M | -19.54M | 379.42K | 2.3M | -18.89M | -23.96M | 1.45M | -1.12M | -1.14M | 891.74K | 347.49K | 934.25K | 1.09M | 241.63K |
| Purchase of Investments | -27.02M | -22.82M | -7.72M | -125K | -3.75M | -7.74M | 0 | -1.5M | -1.5M | 0 | 0 | 0 | 0 | 0 |
| Sale/Maturity of Investments | 9.06M | 200K | 9.77M | 2.65M | 3.43M | 34.09M | 0 | 5K | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Investment Activity | -17.96M | -22.62M | 2.05M | 2.53M | -318.35K | 26.35M | 0 | -1.5M | -1.5M | 0 | 0 | 0 | 0 | 0 |
| Acquisitions | -504.69K | -4.23M | 78.81K | 0 | -3.43M | -34.09M | -246.91K | 51.33K | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Investing | 3.22M | 9.52M | -21.45K | 1.4M | 520.32K | 1.98M | 1.7M | 339.15K | 356.88K | 900.41K | 615.45K | 978.02K | 1.23M | 274.25K |
| Cash from Financing | 31.99M | 31.58M | 12.54M | -731.03K | -299.03K | 41.48M | 12.56M | -171.82K | 4.83M | -759.03K | -3.72M | 3.79M | -2.24M | -3.23M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -3.9M | -979.16K | -1.34M |
| Share Repurchases | -7.97M | -7.97M | 0 | -106.55K | 0 | 0 | 0 | 0 | -1.89K | 0 | 0 | 0 | 0 | 0 |
| Stock Issued | 21.45M | 27.36M | 2.15M | 0 | 0 | 41.7M | 9.45M | 0 | 5.21M | 0 | 0 | 0 | 0 | 0 |
| Net Stock Activity | 13.48M | 19.39M | 2.15M | -106.55K | 0 | 41.7M | 9.45M | 0 | 5.2M | 0 | 0 | 0 | 0 | 0 |
| Debt Issuance (Net) | 592.05K | 1000K | 1000K | -624.48K | -299.03K | -220.36K | 19.99K | -194.14K | -80.82K | -759.03K | -1000K | 1000K | 1000K | -1000K |
| Other Financing | 7.39M | 0 | 4.77M | 0 | 0 | 0 | 3.09M | 0 | -291.76K | 0 | -1.26M | -4.17M | -8.7M | -245.96K |
| Net Change in Cash | 447.62K | -1.95M | 976.32K | -1.84M | -28.32M | 21.01M | 10.48M | -2.45M | 2.93M | -1.68M | -6.73M | 6.97M | 1.26M | -1.08M |
| Exchange Rate Effect | 0 | -572 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 801.2K | 3.38M | 2.4M | 4.24M | 32.56M | 11.55M | 1.07M | 3.52M | 590.39K | 2.27M | 9M | 2.03M | 764.85K | 1.84M |
| Cash at End | 0 | 1.42M | 3.38M | 2.4M | 4.24M | 32.56M | 11.55M | 1.07M | 3.52M | 590.39K | 2.27M | 9M | 2.03M | 764.85K |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 7.19K | 0 | 29.4K | 334.96K | 0 | 0 | 0 | 0 |
| Income Taxes Paid | 0 | 0 | 0 | 0 | 2.06M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | -16.59M | -16.2M | -13.68M | -5.03M | -24.79M | -14.72M | -3.52M | -1.17M | -758.32K | -1.82M | -3.62M | 2.21M | 2.28M | 1.87M |
| FCF Growth % | -22.53% | -18.4% | -171.94% | 79.71% | -68.38% | -317.71% | -200.06% | -54.89% | 58.32% | 49.76% | -264.09% | -3.06% | 21.45% | - |
Quick answers to the most common questions about buying LMFA stock.
LM Funding America, Inc. (LMFA) generated $-14.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
LM Funding America, Inc. (LMFA) reported negative free cash flow of $16.2M in 2025, indicating capital requirements exceeded cash from operations.
LM Funding America, Inc. (LMFA) spent $2.2M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, LM Funding America, Inc. (LMFA) spent $8.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Imminent liquidity and insolvency
Metrics are mathematically derived from official filings.
Persistent Disconnect Between Earnings Cash
As reported in financial statements, LMFA consistently records negative operating cash flows that frequently exceed net losses, with the OCF/NI ratio reaching -27.99 in 2025Q2, indicating that the company's reported earnings are not supported by actual cash generation from its core business activities.
The persistent gap between net income and operating cash flow suggests that the company is struggling to convert its operational activities into tangible liquidity. Investors should monitor this divergence, as it implies that the underlying business model is consuming cash at a rate that far outpaces accounting profitability.
Negative Free Cash Flow Trajectory
Based on recent SEC filings, LMFA's free cash flow remains deeply negative across all observed periods, with a quarterly burn rate often exceeding $3M, which highlights the structural inability of the current hybrid business model to achieve self-sustaining cash flow without external capital injections.
The consistent negative FCF margins suggest that the company's transition into capital-intensive Bitcoin mining has exacerbated its cash burn rather than providing a new source of internal funding. This trajectory warrants further investigation into how long the company can maintain operations before exhausting its limited cash reserves.
Working Capital Drag on Liquidity
According to the provided cash flow data, working capital changes have been a consistent drain on liquidity, with a significant $3.5M outflow in 2025Q4, suggesting that the company is struggling to manage its payables and receivables effectively amidst its pivot to digital asset mining.
The recurring negative impact of working capital changes implies that the company's operational cycle is inefficient, likely due to the complexities of managing both legacy HOA receivables and volatile crypto-mining inputs. This trend appears to be a primary contributor to the company's ongoing liquidity constraints.
Capital Allocation Amidst Cash Scarcity
As indicated by historical data, LMFA has engaged in share repurchases and acquisitions, such as the $8.0M buyback in 2025Q4, despite generating negative operating cash flow, which suggests a questionable capital allocation strategy that may have further depleted the company's already thin cash cushion.
The decision to deploy capital into buybacks while the core business is burning cash appears to be a significant misallocation of resources that has likely accelerated the company's current liquidity crisis. Analysts should scrutinize whether these actions were intended to support the share price at the expense of operational viability.