LM Funding America (NASDAQ:LMFA) Posts Earnings Results, Misses Estimates By $0.98 EPS

LM Funding America (NASDAQ:LMFA) released its quarterly earnings results on Friday. The financial services provider reported ($1.33) EPS for the quarter, missing the consensus estimate of ($0.35) by ($0.98), FiscalAI reports. LM Funding America had a negative return on equity of 30.25% and a negative net margin of 83.44%.The company had revenue of $2.37 million during the quarter, compared to analysts’ expectations of $2.80 million.

Here are the key takeaways from LM Funding America’s conference call:

• Company scaled to two wholly owned sites totaling 26 MW and reached a record energized hash rate of approximately 782 petahash (highest in company history), driving record monthly production in early 2026.
• Bitcoin treasury more than doubled during 2025, growing from ~150 BTC to ~356 BTC at year-end (including a 145 BTC receivable from Galaxy) and holding ~354.7 BTC as of Feb 28, 2026, enhancing underlying asset value.
• Immersion-cooling program is live and scaling—two BC40 immersion containers added ~35 PH each and contributed to improved uptime and lower curtailment (Q4 curtailment ~$135k vs. $150k in Q3), supporting efficiency gains.
• Q4 results showed margin compression (mining margin down to 25% from 49%) and a reported net loss of approximately $17.9 million with a core EBITDA loss of ~$9.3 million, driven by a ~$7.8M unrealized BTC fair-value adjustment, a ~$5.4M equipment impairment, depreciation, and integration costs.
• Despite a $51M asset base and active capital-structure moves (share repurchase, warrant retirement, and renegotiated Galaxy facility), the equity continues to trade at a material discount to NAV and the Galaxy loan remains a near-term liability (maturity extended to April 24, 2026), leaving valuation and liquidity execution as key risks.

LM Funding America Trading Down 5.3%

Shares of LMFA stock traded down $0.02 during trading hours on Friday, reaching $0.30. 265,768 shares of the stock were exchanged, compared to its average volume of 393,628. The firm has a market capitalization of $3.70 million, a price-to-earnings ratio of -0.13 and a beta of 2.29. LM Funding America has a 12-month low of $0.29 and a 12-month high of $5.14. The company’s 50-day moving average price is $0.36 and its 200-day moving average price is $0.74. The company has a current ratio of 1.84, a quick ratio of 1.84 and a debt-to-equity ratio of 0.03.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of LMFA. Armistice Capital LLC increased its stake in LM Funding America by 40.5% in the fourth quarter. Armistice Capital LLC now owns 527,611 shares of the financial services provider’s stock worth $234,000 after purchasing an additional 152,171 shares during the period. Jane Street Group LLC lifted its holdings in shares of LM Funding America by 782.6% in the 4th quarter. Jane Street Group LLC now owns 124,390 shares of the financial services provider’s stock worth $55,000 after buying an additional 110,297 shares during the period. Citadel Advisors LLC bought a new position in shares of LM Funding America during the 3rd quarter worth $139,000. Two Sigma Investments LP bought a new position in shares of LM Funding America during the 3rd quarter worth $100,000. Finally, XTX Topco Ltd purchased a new position in shares of LM Funding America during the second quarter valued at $54,000. Institutional investors own 22.73% of the company’s stock.

Analyst Ratings Changes

LMFA has been the subject of several analyst reports. Wall Street Zen raised LM Funding America from a “sell” rating to a “hold” rating in a research note on Friday, November 28th. Weiss Ratings restated a “sell (e+)” rating on shares of LM Funding America in a report on Monday, December 29th. One investment analyst has rated the stock with a Buy rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $5.00.

About LM Funding America

LM Funding America, Inc, headquartered in Miami, Florida, is a specialty finance company that provides retail installment contracts to subprime borrowers. The company originates, acquires, and manages motor vehicle retail financing through a network of franchised and independent automobile dealerships across the United States. LM Funding America holds and services its loan portfolio through its wholly owned subsidiary, LM Funding America Service Corp., and offers floorplan financing to new and used vehicle dealers through LM Funding Floorplan LLC.

Established in 2013, LM Funding America completed its initial public offering on the Nasdaq Stock Market in 2015, enabling the company to expand its lending operations and geographic presence.