The company's pivot to mining has resulted in severe margin deterioration, highlighted by a deeply negative gross margin of -151.2% reported in 2025Q4.
LM Funding America, Inc. (LMFA) annual income statement — 13-year revenue, gross profit & net income history
| 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 |
|---|
| Net Interest Income | 3.44M | 7.61M | -136.38K | 249.59K | 390.26K | 682.7K | 616.6K | 1.41M | 1.62M | 2.32M | 3.05M | 4.67M | 5.45M | 4.22M |
| NII Growth % | 7586.51% | 5683.01% | -154.64% | -36.05% | -42.84% | 10.72% | -56.19% | -13.1% | -30.24% | -23.78% | -34.8% | -14.26% | 29.19% | - |
| Net Interest Margin % | 9.28% | 14.84% | -0.31% | 0.66% | 0.73% | 1.1% | 5.01% | 18.42% | 26.73% | 117.94% | 30.41% | 32.41% | 80.45% | 66.85% |
| Interest Income | 2.36M | 8.74M | 307.32K | 249.59K | 394.68K | 683.35K | 623.79K | 1.51M | 2.08M | 2.94M | 3.64M | 5.59M | 6.43M | 5.43M |
| Interest Expense | -791.31K | 1.12M | 443.7K | 0 | 4.42K | 653 | 7.19K | 102.84K | 464.81K | 614.11K | 594.6K | 917.49K | 985.02K | 1.21M |
| Loan Loss Provision | 11.49M | 20.51M | 6.55M | 0 | 4.93M | -210K | -449.2K | -189.73K | 581 | 1.55M | 0 | 125K | 0 | 0 |
| Non-Interest Income | 6.18M | 53.01K | 10.69M | 5.94M | 6.02M | 13.34M | 669.74K | 899.65K | 1.29M | 1.23M | 966.81K | 1.37M | 1.22M | 1.47M |
| Non-Interest Income % | 64.21% | 0.69% | 101.29% | 95.97% | 93.91% | 95.13% | 52.07% | 39% | 44.27% | 34.59% | 24.1% | 22.7% | 18.25% | 25.79% |
| Total Net Revenue | 9.62M | 7.67M | 10.56M | 6.19M | 6.41M | 14.02M | 1.29M | 2.31M | 2.91M | 3.55M | 4.01M | 6.04M | 6.66M | 5.68M |
| Revenue Growth % | -23.97% | -27.36% | 70.56% | -3.49% | -54.26% | 989.91% | -44.24% | -20.6% | -18.13% | -11.55% | -33.6% | -9.32% | 17.29% | - |
| Non-Interest Expense | 26.63M | 5.28M | 10.47M | 25M | 27.93M | 8.9M | 5.79M | 5.58M | 3.38M | 7.19M | 7.69M | 4.19M | 4.12M | 3.83M |
| Efficiency Ratio | 276.77% | 68.9% | 99.19% | 404% | 435.49% | 63.49% | 450.48% | 241.72% | 116.23% | 202.72% | 191.75% | 69.39% | 61.79% | 67.33% |
| Operating Income | -28.79M | -18.13M | -6.46M | -18.81M | -26.45M | 5.33M | -4.06M | -3.08M | -472.16K | -5.2M | -3.68M | 1.73M | 2.55M | 1.86M |
| Operating Margin % | -299.3% | -236.44% | -61.21% | -304% | -412.37% | 38.01% | -315.56% | -133.49% | -16.25% | -146.39% | -91.75% | 28.55% | 38.21% | 32.67% |
| Operating Income Growth % | - | -180.56% | 65.66% | 28.85% | -596.22% | 231.29% | -31.8% | -552.27% | 90.91% | -41.13% | -313.4% | -32.25% | 37.18% | - |
| Pretax Income | -36.66M | -26.98M | -7.66M | -18.81M | -26.45M | 5.33M | -4.06M | -3.08M | -472.16K | -5.2M | -3.68M | 1.73M | 2.55M | 1.86M |
| Pretax Margin % | -381.04% | -351.82% | -72.52% | -304% | -412.37% | 38.01% | -315.56% | -133.49% | -16.25% | -146.39% | -91.75% | 28.55% | 38.21% | 32.67% |
| Income Tax | -3.67K | 0 | 0 | 60.57K | 1.44M | 326.18K | 0 | 0 | 0 | 3.43M | -1.31M | -146.56K | 0 | 0 |
| Effective Tax Rate % | 0.01% | 0% | 0% | -0.32% | -5.44% | 6.12% | 0% | 0% | 0% | -66.05% | 35.61% | -8.5% | 0% | 0% |
| Net Income | -36.65M | -26.92M | -7.32M | -15.94M | -29.24M | 4.76M | -4.04M | -3M | -472.16K | -8.63M | -2.37M | 1.73M | 2.38M | 1.73M |
| Net Margin % | -380.97% | -351.1% | -69.3% | -257.62% | -455.96% | 33.95% | -314.18% | -130.25% | -16.25% | -243.08% | -59.08% | 28.66% | 35.75% | 30.47% |
| Net Income Growth % | -356.4% | -267.99% | 54.12% | 45.47% | -714.39% | 217.76% | -34.5% | -536.41% | 94.53% | -263.96% | -236.88% | -27.31% | 37.61% | - |
| Net Income (Continuing) | -32.09M | -26.98M | -7.66M | -18.88M | -27.88M | 5M | -4.06M | -3.08M | -472.16K | -8.63M | -2.37M | 1.87M | 2.55M | 1.86M |
| EPS (Diluted) | -41.88 | -82.00 | -65.25 | -174.50 | -335.25 | 22.00 | -373.50 | -118.00 | -59.25 | -3209.50 | -897.75 | -12.50 | 902.50 | 655.75 |
| EPS Growth % | 22.64% | -25.67% | 62.61% | 47.95% | -1623.86% | 105.89% | -216.53% | -99.16% | 98.15% | -257.5% | -7082% | -101.38% | 37.63% | - |
| EPS (Basic) | - | -82.00 | -65.25 | -174.50 | -335.25 | 22.00 | -373.50 | -118.25 | -59.25 | -3210.00 | -900.00 | -12.50 | 902.50 | 655.75 |
| Diluted Shares Outstanding | 875.05K | 348.01K | 112.32K | 91.35K | 87.23K | 216.86K | 10.82K | 25.47K | 7.97K | 2.69K | 2.64K | 2.65K | 2.64K | 2.64K |
Quick answers to the most common questions about buying LMFA stock.
For fiscal year 2025, LM Funding America, Inc. (LMFA) reported total revenue of $7.7M. This represents a 34.9% increase compared to $5.7M in 2013.
LM Funding America, Inc. (LMFA) reported a net loss of $26.9M for the fiscal year ending 2025.
LM Funding America, Inc. (LMFA) reported an operating income of $-18.1M, resulting in an operating profit margin of -236.4%. This margin reflects the operational efficiency of the business before interest and taxes.
LM Funding America, Inc. (LMFA) generated $-12.8M in gross profit for the year, representing a gross profit margin of -167.5%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Liquidity and operational insolvency
Metrics are mathematically derived from official filings.
Revenue Volatility Masks Structural Decline
As reported in recent financial statements, LMFA's revenue trajectory exhibits extreme volatility, with quarterly figures swinging from $10.4M in 2024Q1 to negative values in 2024Q2, suggesting that the company's transition toward Bitcoin mining has introduced unpredictable revenue streams that lack the stability of its legacy finance operations.
The erratic nature of top-line performance appears to stem from the integration of digital asset production, which is inherently sensitive to market pricing and mining difficulty. Investors should monitor whether the company can achieve any semblance of consistent organic growth, as current figures suggest a reliance on volatile asset sales rather than sustainable service-based revenue.
Severe Margin Compression From Mining
Based on the company's reported figures, gross margins have deteriorated significantly, reaching a deeply negative -151.2% in 2025Q4, which indicates that the cost of energy and hardware maintenance is currently far outpacing the market value of the Bitcoin produced by the company's mining operations.
This structural margin collapse suggests that the current mining fleet is operating well above the break-even point, rendering the segment a net drain on capital. The inability to maintain positive gross margins implies that the company lacks the scale or energy efficiency required to compete effectively in the current digital asset environment.
Operating Leverage Remains Critically Negative
According to recent SEC filings, LMFA's operating income has consistently failed to scale with revenue, evidenced by a -181% operating margin in 2025Q3, which highlights a fundamental inability to cover fixed overhead costs through its current mix of specialty finance and digital asset mining activities.
The persistent operating losses suggest that the company's SG&A burden is disproportionately high relative to its revenue-generating capacity. This lack of operating leverage warrants further investigation into whether management can rationalize the cost structure before the company exhausts its remaining cash reserves.
Liquidity Risks Threaten Going Concern
Based on the provided financial data, the company's cash position of $1.4M appears insufficient to sustain its current burn rate, as net losses have frequently exceeded $5M per quarter, suggesting that the firm may face an imminent need for dilutive financing to maintain its operations.
Short-sellers would likely focus on the widening gap between operating cash outflows and the company's limited liquidity, which may force management to liquidate assets at unfavorable prices. The reliance on equity issuance to fund ongoing losses appears to be a primary risk factor that could lead to significant shareholder dilution in the near term.