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.
| 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 |
|---|
| Sales/Revenue | 12.09M | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 2.73M | -12.85M | 4.01M | 6.19M | 1.48M | 14.23M | 1.74M | 2.5M | 2.91M | 2M | 4.01M | 5.92M | 6.66M | 5.68M |
| Gross Margin % | 22.57% | -146.11% | 36.44% | 100% | 23.1% | 101.49% | 134.17% | 103.61% | 86.19% | 48.02% | 87.09% | 85.02% | 87.12% | 82.4% |
| Gross Profit Growth % | - | -420.45% | -35.23% | 317.5% | -89.58% | 719.91% | -30.49% | -14.06% | 45.31% | -50.17% | -32.2% | -11.2% | 17.29% | - |
| Operating Expenses | 27.61M | 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 |
| OpEx % of Revenue | - | 60.08% | 95.19% | 404% | 435.19% | 63.48% | 447.98% | 231.4% | 100.2% | 172.82% | 167% | 60.24% | 53.83% | 55.48% |
| Selling, General & Admin | 6.14M | 3.22M | 817.04K | 6.71M | 20.06M | 6.68M | 3.72M | 1.44M | 1.7M | 2.7M | 4.3M | 2.99M | 3.11M | 3.55M |
| SG&A % of Revenue | - | 36.66% | 7.43% | 108.43% | 312.56% | 47.61% | 287.37% | 59.96% | 50.35% | 64.81% | 93.34% | 42.92% | 40.61% | 51.42% |
| Research & Development | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | -24.88M | -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 % | -205.82% | -206.19% | -58.74% | -304% | -412.09% | 38.01% | -313.81% | -127.8% | -14.01% | -124.8% | -79.91% | 24.78% | 33.29% | 26.92% |
| 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% | - |
| EBITDA | -17.92M | -9.96M | 1.31M | -13.83M | -25.97M | 5.33M | -4.05M | -3.02M | -403.9K | -5.1M | -3.61M | 1.77M | 2.7M | 1.95M |
| EBITDA Margin % | -148.21% | -113.25% | 11.93% | -223.48% | -404.64% | 38.02% | -312.95% | -125.15% | -11.98% | -122.51% | -78.34% | 25.46% | 35.28% | 28.23% |
| EBITDA Growth % | -168.73% | -858.56% | 109.49% | 46.74% | -587.13% | 231.68% | -34.22% | -646.73% | 92.08% | -41.31% | -303.62% | -34.33% | 38.66% | - |
| D&A (Non-Cash Add-back) | 6.96M | 8.17M | 7.77M | 4.98M | 478.02K | 1.38K | 11.14K | 63.76K | 68.26K | 95.45K | 72.11K | 47.47K | 152.67K | 90.3K |
| EBIT | -26.97M | -25.85M | -8.1M | -18.81M | -26.45M | 5.33M | -4.06M | -3.08M | -472.16K | -5.2M | -3.68M | 1.73M | 2.55M | 1.86M |
| Net Interest Income | 3.22M | 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 |
| Interest Income | 4.43M | 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 | 1.21M | 1.12M | 443.7K | 0 | 4.42K | 653 | 7.19K | 102.84K | 464.81K | 614.11K | 594.6K | 917.49K | 985.02K | 1.21M |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | -32.03M | -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 % | -264.99% | -306.81% | -69.6% | -304% | -412.09% | 38.01% | -313.81% | -127.8% | -14.01% | -124.8% | -79.91% | 24.78% | 33.29% | 26.92% |
| Income Tax | 0 | 0 | 0 | 60.57K | 1.44M | 326.18K | 0 | 0 | 0 | 3.43M | -1.31M | -146.56K | 0 | 0 |
| Effective Tax Rate % | 0% | 0% | 0% | -0.32% | -5.44% | 6.12% | 0% | 0% | 0% | -66.05% | 35.61% | -8.5% | 0% | 0% |
| Net Income | -31.99M | -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 % | -264.63% | -306.19% | -66.51% | -257.62% | -455.64% | 33.94% | -312.44% | -124.69% | -14.01% | -207.22% | -51.45% | 24.88% | 31.15% | 25.11% |
| Net Income Growth % | -132.82% | -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) | -32.03M | -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 |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 16.43K | 74.88K | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | -1.74M | -1.74M | -1.68M | -1.33M | 1.61M | 249.09K | 5.19K | 0 | 0 | 0 | 0 | 0 | 11.04K | 1.72K |
| EPS (Diluted) | -1.49 | -3.28 | -2.61 | -6.98 | -13.41 | 0.88 | -14.94 | -4.72 | -2.37 | -128.38 | -35.91 | -0.50 | 36.10 | 26.23 |
| EPS Growth % | 50.57% | -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) | - | -3.28 | -2.61 | -6.98 | -13.41 | 0.88 | -14.94 | -4.73 | -2.37 | -128.40 | -36.00 | -0.50 | 36.10 | 26.23 |
| Diluted Shares Outstanding | 21.46M | 8.7M | 2.81M | 2.28M | 2.18M | 5.42M | 270.49K | 636.72K | 199.34K | 67.2K | 66K | 66.12K | 66K | 66K |
| Basic Shares Outstanding | 21.46M | 8.7M | 2.81M | 2.28M | 2.18M | 5.41M | 270.49K | 635.87K | 199.34K | 67.19K | 65.84K | 66K | 66K | 66K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | 225.46% | 41.1% | 75.07% |
Liquidity and operational insolvency
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.
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.
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.
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.
Quick answers to the most common questions about buying LMFA stock.
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 -206.2%. 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 -146.1%. This demonstrates the company's core pricing power and production efficiency.