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Jun 30
LMFA Q2 2025 Earnings Report
LM Funding America, Inc. reported its second quarter 2025 financial results, highlighting a return to GAAP net income and improved Core EBITDA, driven by strategic operational efficiencies and a significant gain on Bitcoin fair value.
Key Takeaways
LM Funding America, Inc. reported a net income of $0.1 million for Q2 2025, a significant improvement from a net loss in the previous quarter. The company's Core EBITDA also turned positive at $2.6 million. This turnaround was primarily attributed to a $3.8 million gain on the fair value of Bitcoin held. Total revenue for the quarter was $1.9 million, experiencing a sequential and year-over-year decline due to higher curtailment and miner relocation, though mining margins improved to 41.0% due to power sales and operational efficiency.
LM Funding America, Inc. achieved a GAAP net income of $0.1 million in Q2 2025, a substantial improvement from a $5.4 million net loss in Q1 2025.
Core EBITDA for the quarter was $2.6 million, a positive shift from a negative $2.8 million in the prior quarter, largely due to a $3.8 million gain on Bitcoin fair value.
Total revenue for Q2 2025 was $1.9 million, a decrease of 18.7% sequentially and 36.0% year-over-year, primarily due to higher curtailment and miner relocation.
Despite revenue decline, digital mining margin improved to 41.0% from 38.5% in Q1 2025, driven by $223,000 in curtailment and energy sales and increased operational efficiency.
LMFA
LMFA
LMFA Revenue by Segment
Revenue by Segment
Digital Mining Revenues Revenue
CapyFin.comSpecialty Finance Revenue
CapyFin.comRental Revenue
CapyFin.com Forward Guidance
LM Funding America, Inc. is focused on advancing its vertical integration and disciplined growth strategy, with key initiatives including the acquisition of an 11 MW Bitcoin mining site in Mississippi and the 2 MW immersion mining expansion in Oklahoma, both expected to enhance owned capacity and operational efficiency.
Positive Outlook
- Acquisition of an 11 MW Bitcoin mining site in Mississippi for $3.9 million, expected to close by September 16, 2025, increasing owned capacity to 26 MW.
- Oklahoma 2 MW immersion mining expansion is on track for energization later this year, improving thermal performance and operational stability.
- Continued focus on power grid integration strategy, which generated $223,000 in curtailment and energy sales in Q2, partially hedging against Bitcoin price volatility.
- Completion of the final step of hosting exit by relocating approximately 800 hosted, next-generation miners.
- Confidence in steadily growing the asset base, specifically the Bitcoin Treasury, over time, to create long-term shareholder value.
Challenges Ahead
- No specific negative forward guidance was provided in the report.
- The company's ability to identify and acquire additional mining sites is subject to risks.
- Financing site acquisitions and cryptocurrency mining operations could pose challenges.
- Changes in governmental regulations affecting the ability to collect on defaulted consumer receivables could impact the specialty finance business.
- The cryptocurrency mining business inherently carries risks, including Bitcoin price volatility and operational challenges.