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LM Funding America, Inc. Reports First Quarter 2025 Financial Results

1. Q1 revenue of $2.4 million, down 48.9% year-over-year. 2. Mined 24.3 Bitcoins; operational efficiency boosted revenue by 25.3% sequentially. 3. Mining margin improved to 38.5% due to operational efficiencies. 4. Plans for 2 MW expansion at Oklahoma site leveraging immersion cooling. 5. Strategic initiatives aim to actively enhance Bitcoin holdings and operational agility.

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FAQ

Why Bullish?

The increase in mining efficiency and revenues reflects operational improvements likely to attract investor interest. Historically, efficiency upgrades in mining operations often correlate with stock price increases.

How important is it?

The recent operational achievements and proactive strategies position LMFA well for investor confidence, especially amidst fluctuating Bitcoin prices and market interest.

Why Short Term?

With planned improvements and immediate enhancements in margin and operational control, the company is likely to see short-term positive market reactions.

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BTCHUTMARA
- Mined 24.3 Bitcoin for total mining revenue of $2.3 million, up 25.3% sequentially- Operating expenses excluding direct mining costs and depreciation down 7.7% year-over-year- Held 148.7 Bitcoin on April 30, 2025 valued at approximately $15.5 million, as of May 13, 2025 TAMPA, Fla., May 15, 2025 (GLOBE NEWSWIRE) -- LM Funding America, Inc. (NASDAQ: LMFA) (“LM Funding” or the “Company”), a Bitcoin mining and technology-based specialty finance company, today reported financial results for the three months ended March 31, 2025. Q1’25 Financial Highlights Total revenue for the quarter was $2.4 million dollars, up 19.4% sequentially over Q4 2024 and down 48.9% year-over-year. Bitcoin mining revenue accounted for approximately $2.3 million, reflecting a 25.3% sequential increase and a 50.1% decline year-over-year. The Company mined 24.3 Bitcoins during the quarter, up 12.5% sequentially, at an average price of approximately $93,500. The sequential growth was driven by improved operational efficiency from vertical integration and the LuxOS firmware upgrade. The year-over-year decline was primarily due to the April 2024 halving, lower average hash rate and lower uptime from curtailment.The Company generated approximately $150,000 in curtailment and energy sales for the quarter. These proceeds were an offset to digital mining costs, improving operational efficiency and contributing to the Company's margin improvements.Mining margin improved to 38.5%, compared with 31.2% in the fourth quarter 2024, driven by the power sales offsetting power costs, increased operational efficiency from the Company’s vertical integration strategy and LuxOS firmware upgrades.Reduced certain operating expenses, including staff costs & payroll, professional fees, SG&A and other operating costs, by 7.7% year-over-year to $2.0 million.Net loss for the quarter was $5.4 million and Core EBITDA1 loss was $2.8 million, both driven by $1.8 million Bitcoin non-cash write down for fair market value of Bitcoin on the balance sheet as of March 31, 2025 and reduced revenue due to a portion of the Company’s machines nonoperational during the quarter.Cash was approximately $1.0 million and Bitcoin holdings totaled 160.2 Bitcoin, valued at $13.2 million based on Bitcoin price of approximately $82,600, as of March 31, 2025.Net book value of LM Funding stockholders’ equity was approximately $31.7 million, or $6.18 per share2, as of March 31, 2025.As of April 30, 2025, the Company held 148.7 Bitcoin, valued at approximately $15.5 million, or $3.01 per share2, based on a Bitcoin price of $104,000 as of May 13, 2025. Q1’25 and Recent Operational Highlights Power grid integration strategy: In the first quarter, the Company generated $150,000 in curtailment and energy sales by selling power back to the grid during peak demand periods. This amount was applied as a reduction to digital mining cost of revenue, contributing in part to the improvement in mining margins from 31.2% in the fourth quarter 2024 to 38.5% in the first quarter 2025. The initiative continued to gain momentum, with April 2025 curtailment and energy sales reaching approximately $115,000. This approach allows the Company to maximize the value of its power sites and create a partial hedge against Bitcoin price volatility.Hosting site machine relocation: The Company is in the process of relocating its 800 Bitcoin mining Bitmain S19 XP and S21 machines from a third-party hosting partner to its wholly owned Oklahoma mining facility. This move will provide the company with greater operational control and access to more favorable power rates.Oklahoma 2 MW expansion: The Company is expanding its Oklahoma Bitcoin mining facility with an additional 2 MW of capacity utilizing immersion cooling technology, with construction and energization anticipated to be completed by the end of the third quarter of 2025. This technology enables operations in crowded and harsh environments with access to lower-cost power, while reducing dust, heat, and humidity - supporting more consistent performance, longer equipment lifespan, and improved reliability. Management Commentary "Our first quarter results demonstrate our progress to build a more resilient and efficient Bitcoin mining operation, with our LuxOS firmware upgrade and power sales initiative driving direct improvements to our bottom line,” commented Bruce Rodgers, Chairman and CEO of LM Funding. “We’re also moving forward with our planned 2 MW expansion at our Oklahoma site, leveraging immersion cooling technology to enhance efficiency and extend the lifespan of our mining equipment. Beyond that, we're actively pursuing overlooked power sites in the 5 to 20 MW range, while continuing to scale our ability to sell power back to the grid — a program that gained strong momentum, with April’s power sales nearly equaling our first quarter total." Richard Russell, CFO of LM Funding, added, "The financial controls and strategic initiatives we've implemented are delivering tangible results. Bitcoin production increased by 12.5% sequentially, and Digital Mining revenue grew 25.3% sequentially to $2.3 million, reflecting the strength of our operational improvements. Our vertical integration strategy continues to enhance mining margins, with our curtailment and energy sales serving as a reduction to mining costs. By strategically managing our balance sheet, adopting a leaner operational model, and optimizing our fleet—through actions such as relocating equipment from hosting partners and selling nonoptimal assets—we’re building a more agile organization, well-positioned to navigate volatility and capitalize on unique opportunities in the Bitcoin mining landscape." Rodgers concluded, “We began our Bitcoin treasury strategy in 2021, and we actively manage our treasury to own as much Bitcoin as possible. Given the recent headlines from other forward-thinking companies, we are exploring potential partnerships and strategic relations to further expand our Bitcoin holdings. We remain bullish on our treasury strategy as we believe it is creating long-term value, particularly given that our Bitcoin holdings are valued at more than 1.5 times our market capitalization.” Investor Conference Call LM Funding will host a conference call today, May 15, 2025, at 8:00 A.M. Eastern Time to discuss the Company’s financial results for the quarter ended March 31, 2025, as well as the Company’s corporate progress and other developments. A copy of this earnings release and investor presentation are available on the Company’s Investor Relations website at https://www.lmfunding.com/investors.   Conference Call Details Date: May 15, 2025 Time: 8:00 AM EST Participant Call Links:  Live Webcast: Link Participant Call Registration: Link  About LM Funding America LM Funding America, Inc. (Nasdaq: LMFA), operates as a Bitcoin mining and specialty finance company. The company was founded in 2008 and is based in Tampa, Florida. For more information, please visit https://www.lmfunding.com. Forward-Looking Statements This press release may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” and “project” and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various risks and uncertainties. Some of these risks and uncertainties are identified in the Company's most recent Annual Report on Form 10-K and its other filings with the SEC, which are available at www.sec.gov. These risks and uncertainties include, without limitation, the risks of operating in the cryptocurrency mining business, our limited operating history in the cryptocurrency mining business and our ability to grow that business, the capacity of our Bitcoin mining machines and our related ability to purchase power at reasonable prices, our ability to identify and acquire additional mining sites, the ability to finance our site acquisitions and cryptocurrency mining operations, our ability to acquire new accounts in our specialty finance business at appropriate prices, changes in governmental regulations that affect our ability to collected sufficient amounts on defaulted consumer receivables, changes in the credit or capital markets, changes in interest rates, and negative press regarding the debt collection industry. The occurrence of any of these risks and uncertainties could have a material adverse effect on our business, financial condition, and results of operations. For investor and media inquiries, please contact: Investor RelationsOrange GroupYujia ZhailmfundingIR@orangegroupadvisors.com     LM Funding America, Inc. and Subsidiaries Unaudited Consolidated Balance Sheets     March 31, December 31, 2025 (unaudited) 2024    Assets   Cash$1,028,870  $3,378,152 Digital assets - current (Note 2) 8,231,963   9,021,927 Finance receivables 21,910   21,051 Marketable securities (Note 5) 18,340   27,050 Receivable from sale of Symbiont assets (Note 5) -   200,000 Prepaid expenses and other assets 899,036   827,237 Income tax receivable 31,187   31,187 Current assets 10,231,306   13,506,604     Fixed assets, net (Note 3) 16,377,635   18,376,948 Intangible assets, net (Note 3) 5,423,985   5,478,958 Deposits on mining equipment (Note 4) 947,348   467,172 Long-term investments - equity securities (Note 5) 7,251   4,255 Investment in Seastar Medical Holding Corporation (Note 5) 171,810   200,790 Digital assets - long-term (Note 2) 5,000,000   5,000,000 Right of use assets (Note 7) 888,049   938,641 Other assets 73,857   73,857 Long-term assets 28,889,935   30,540,621 Total assets$39,121,241  $44,047,225     Liabilities and stockholders' equity   Accounts payable and accrued expenses 1,359,891   989,563 Note payable - short-term (Note 6) 361,547   386,312 Due to related parties (Note 9) 37,312   15,944 Current portion of lease liability (Note 7) 188,763   170,967 Total current liabilities 1,947,513   1,562,786     Note payable - long-term (Note 6) 6,386,609   6,365,345 Lease liability - net of current portion (Note 7) 748,054   776,535 Long-term liabilities 7,134,663   7,141,880 Total liabilities 9,082,176   8,704,666     Stockholders' equity (Note 8)   Preferred stock, par value $.001; 150,000,000 shares authorized; no shares issued and outstanding as of March 31, 2025 and December 31, 2024 -   - Common stock, par value $.001; 350,000,000 shares authorized; 5,133,412 shares issued and outstanding as of March 31, 2025 and December 31, 2024 4,602   4,602 Additional paid-in capital 102,789,990   102,685,470 Accumulated deficit (71,061,405)  (65,662,731)Total LM Funding America stockholders' equity 31,733,187   37,027,341 Non-controlling interest (1,694,122)  (1,684,782)Total stockholders' equity 30,039,065   35,342,559 Total liabilities and stockholders' equity$39,121,241  $44,047,225      LM Funding America, Inc. and Subsidiaries Unaudited Consolidated Statements of Operations     Three months ended March 31, 2025 2024Revenues:   Digital mining revenues$2,273,940  $4,597,908 Specialty finance revenue 67,389   116,628 Rental revenue 30,008   33,068 Total revenues 2,371,337   4,747,604 Operating costs and expenses:   Digital mining cost of revenues (exclusive of depreciation and amortization shown below) 1,548,295   2,654,946 Curtailment and energy sales (149,686)  - Staff costs and payroll 1,050,477   1,243,026 Depreciation and amortization 2,037,578   1,976,196 Loss (gain) on fair value of Bitcoin, net 1,809,976   (4,257,515)Impairment loss on mining equipment -   1,188,058 Professional fees 364,485   509,893 Selling, general and administrative 309,964   177,906 Real estate management and disposal 36,314   27,189 Collection costs 17,352   926 Settlement costs with associations 3,693   - Loss on disposal of assets 186,781   8,170 Other operating costs 255,948   214,505 Total operating costs and expenses 7,471,177   3,743,300 Operating income (loss) (5,099,840)  1,004,304 Unrealized loss on marketable securities (8,710)  (2,160)Unrealized gain (loss) on investment and equity securities (25,984)  1,350,979 Gain (loss) on fair value of purchased Bitcoin, net (52,704)  57,926 Other income - coupon sales -   4,490 Interest expense (220,906)  (70,826)Interest income 1,145   9,125 Income (loss) before income taxes (5,406,999)  2,353,838 Income tax expense -   - Net income (loss)$ (5,406,999) $ 2,353,838 Less: loss (gain) attributable to non-controlling interest 8,325   (414,221)Net income (loss) attributable to LM Funding America Inc.$ (5,398,674) $ 1,939,617     Basic income (loss) per common share (Note 1)$(1.05) $0.80 Diluted income (loss) per common share (Note 1)$(1.05) $0.80     Weighted average number of common shares outstanding   Basic 5,133,412   2,428,203 Diluted 5,133,412   2,428,203      LM Funding America, Inc. and Subsidiaries Unaudited Consolidated Statements of Cash Flows   Three months ended March 31, 2025 2024CASH FLOWS FROM OPERATING ACTIVITIES:   Net income (loss)$(5,406,999) $2,353,838 Adjustments to reconcile net income (loss) to net cash used in operating activities   Depreciation and amortization 2,037,578   1,976,196 Noncash lease expense 50,592   26,043 Amortization of debt issue costs 21,264   - Stock compensation -   71,047 Stock option expense 110,805   110,804 Accrued investment income -   (8,568)Accrued interest expense on finance lease 14,710   - Digital assets other income -   (4,490)Loss (gain) on fair value of Bitcoin, net 1,862,680   (4,315,441)Impairment loss on mining machines -   1,188,058 Unrealized loss on marketable securities 8,710   2,160 Unrealized loss (gain) on investment and equity securities 25,984   (1,350,979)Loss on disposal of fixed assets 186,781   8,170 Change in operating assets and liabilities:   Prepaid expenses and other assets 96,526   1,583,843 Repayments to related party 21,368   32,445 Accounts payable and accrued expenses 370,328   (22,003)Mining of digital assets (2,273,940)  (4,597,908)Lease liability payments (25,395)  (25,863)Net cash used in operating activities (2,899,008)  (2,972,648)CASH FLOWS FROM INVESTING ACTIVITIES:   Net collections of finance receivables - original product 458   (8,238)Net collections of finance receivables - special product (1,317)  - Capital expenditures (170,073)  - Collection of note receivable 200,000   1,449,066 Investment in digital assets - tether (31,420)  - Proceeds from sale of Bitcoin 1,204,680   1,296,233 Proceeds from the sale of tether 27,964   - Deposits for mining equipment (480,176)  (1,096,961)Distribution to members (1,015)  - Net cash provided by investing activities 749,101   1,640,100 CASH FLOWS FROM FINANCING ACTIVITIES:   Insurance financing repayments (193,090)  (241,917)Issuance costs (6,285)  - Net cash used in financing activities (199,375)  (241,917)NET DECREASE IN CASH (2,349,282)  (1,574,465)CASH - BEGINNING OF PERIOD 3,378,152   2,401,831 CASH - END OF PERIOD$ 1,028,870   827,366      NON-GAAP CORE EBITDA RECONCILIATION Our reported results are presented in accordance with U.S. generally accepted accounting principles (“GAAP”). We also disclose Earnings before Interest, Tax, Depreciation and Amortization ("EBITDA") and Core Earnings before Interest, Tax, Depreciation and Amortization ("Core EBITDA") which adjusts for unrealized loss (gain) on investment and equity securities, loss on disposal of mining equipment, impairment loss on mining equipment and stock compensation expense and option expense, all of which are non-GAAP financial measures. We believe these non-GAAP financial measures are useful to investors because they are widely accepted industry measures used by analysts and investors to compare the operating performance of Bitcoin miners. The following tables reconcile net loss, which we believe is the most comparable GAAP measure, to EBITDA and Core EBITDA:      Three months ended March 31, 2025 2024    Net income (loss)$(5,406,999) $2,353,838 Income tax expense -   - Interest expense 220,906   70,826 Depreciation and amortization 2,037,578   1,976,196 Income (loss) before interest, taxes & depreciation$(3,148,515) $4,400,860 Unrealized loss (gain) on investment and equity securities 25,984   (1,350,979)Loss on disposal of mining equipment 186,781   8,170 Impairment loss on mining equipment -   1,188,058 Stock compensation and option expense 110,805   181,851 Core income (loss) before interest, taxes & depreciation$(2,824,945) $4,427,960      _________________1 Core EBITDA is a non-GAAP financial measure, and a reconciliation of Core EBITDA to net income can be found below.2 Calculated using 5,133,412 shares outstanding as of 12/31/24 from SEC Form 10-K filed March 31, 2025.

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