Company Overview
LM Funding America, Inc. operates within the financial services sector, specifically functioning as a credit services company that engages in cryptocurrency mining and specialty finance activities through its two distinct segments: Specialty Finance and Bitcoin Mining Operations. The firm provides funding to nonprofit community associations while simultaneously executing Bitcoin mining operations, positioning it at the intersection of traditional lending and digital asset infrastructure. The company's current market capitalization stands at $4.48M, supported by a trailing twelve-month revenue of $7.71M, while the employee count is listed as N/A. These valuation and revenue figures indicate that LM Funding America, Inc. maintains a relatively small market presence, suggesting it operates with a limited scale compared to large-cap financial institutions but possesses a specialized niche within the credit services industry.
Financial Health
The company reported a trailing twelve-month revenue of $7.71M, yet this revenue generated a net income of $-28,499,216, highlighting a significant disparity between top-line sales and bottom-line profitability. Although EBITDA data is not available in the provided metrics, the substantial negative net income relative to revenue reveals a cost structure that is currently unsustainable and severely eroding overall profitability. The company's free cash flow is not disclosed, which implies a lack of reported positive cash generation from operations that could support capital expenditures or debt servicing. Analyzing the three reported margins provides further insight into this financial distress: the gross margin stands at 10.9%, indicating that costs of goods sold consume nearly 90% of revenue; the operating margin is -494.6%, signaling that operating expenses are vastly exceeding operating income; and the profit margin is 0.0%, reflecting the total loss relative to sales. On the balance sheet, the company holds $1.47M in cash against $20.65M in debt, resulting in a debt-to-equity ratio of 71.49, which indicates a highly leveraged position rather than a conservative one. The current ratio is 1.18, suggesting that the company possesses just enough current assets to cover its current liabilities, but the margin for short-term liquidity is extremely thin. Furthermore, the return on equity is -84.0% and the return on assets is -56.6%, metrics that reveal management is currently destroying value for shareholders and utilizing assets inefficiently rather than generating returns.
Valuation Assessment
The valuation metrics present a complex picture, as the P/E ratio (TTM) is N/A due to the loss position, while the forward P/E is reported as -0.07, implying that earnings are not expected to recover to positive levels in the near term based on current projections. The price-to-book ratio is 0.14, indicating that the market values the company at a fraction of its book value, which often suggests a distressed asset or significant concerns regarding the quality of the company's assets. The price-to-sales ratio is 0.58, showing that the market capitalization is roughly half of the company's annual sales, while the EV/EBITDA is N/A, preventing a standard enterprise value multiple analysis. The stock's 52-week high was $5.14 and the 52-week low was $0.29, meaning the current trading price sits significantly below the yearly peak and reflects the severe volatility inherent in the small-cap financial services sector. The beta is listed as N/A, so a direct comparison to the broader market's volatility cannot be made with the available data, though the wide range between the 52-week high and low suggests high price instability.
Growth & Income
Revenue growth year-over-year is 8.6%, demonstrating an expansion in top-line sales, whereas earnings growth is N/A, which implies that the company is not generating positive earnings growth to match its revenue increase and is instead deepening its losses. Since the company does not pay dividends, the dividend yield is N/A and the payout ratio is 0.0%, meaning the firm reinvests its limited resources or retains capital rather than distributing income to shareholders. The absence of a dividend payout and the negative earnings growth indicate that the company is currently focused on survival and operational restructuring rather than income distribution or sustainable earnings expansion. Overall, the growth and income profile is characterized by top-line revenue expansion that has failed to translate into profitability, coupled with a complete absence of dividend income for investors.