📊 LMFA Key Takeaways
Is LMFA a Good Investment? Thesis Analysis
LM Funding America is in severe financial distress with unsustainable cash burn of $16.2M annually against only $1.4M in cash reserves. The company is burning cash operationally, posting massive losses (-$26.9M net income), and experiencing declining revenue (-19.6% YoY), indicating fundamental business deterioration with no clear path to profitability.
Why Buy LMFA? Key Strengths
- Moderate debt/equity ratio of 0.66x limits leverage risk relative to peer distressed situations
- Current ratio of 1.18x provides minimal near-term liquidity buffer
- Losses improving slightly YoY (EPS -3.28 vs worse prior year), though absolute loss amounts remain catastrophic
LMFA Investment Risks to Consider
- Unsustainable cash burn trajectory: depletes $1.4M cash position in ~6 weeks at current operating cash flow burn rate
- Revenue declining 19.6% YoY indicates core business deterioration and inability to generate positive top-line growth
- Unable to cover debt service from operations: negative interest coverage of -20.3x and negative operating cash flow of -$14M
- Massive profitability destruction: -304.4% net margin and -258.7% operating margin signal broken business model
- ROA of -52.9% and ROE of -87.9% demonstrate severe shareholder value destruction
Key Metrics to Watch
- Cash balance and runway to insolvency
- Revenue stabilization and path to positive operating cash flow
- Operating margin improvement trajectory and timeline to profitability
- Debt covenant compliance and refinancing risk
LMFA Financial Metrics
💡 AI Analyst Insight
LM FUNDING AMERICA, INC. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
LMFA Profitability Ratios
LMFA vs Finance Sector
How LM FUNDING AMERICA, INC. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is LMFA Overvalued or Undervalued?
Based on fundamental analysis, LM FUNDING AMERICA, INC. has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
LMFA Balance Sheet & Liquidity
LMFA 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: LM FUNDING AMERICA, INC.'s revenue has grown significantly by 770% over the 5-year period, indicating strong business expansion. The most recent EPS of $-5.02 indicates the company is currently unprofitable.
LMFA Growth Metrics (YoY)
LMFA Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.3M | -$3.7M | $-0.41 |
| Q2 2025 | $1.9M | $100.6K | $0.02 |
| Q1 2025 | $2.4M | $1.9M | $0.80 |
| Q3 2024 | $1.3M | -$4.4M | $-1.97 |
| Q2 2024 | $3.0M | -$4.5M | $-1.87 |
| Q1 2024 | $2.3M | $1.5M | $0.61 |
| Q3 2023 | $187.8K | -$4.4M | $-0.33 |
| Q2 2023 | $234.5K | $2.8M | $-0.22 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
LMFA Capital Allocation
LMFA SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for LM FUNDING AMERICA, INC. (CIK: 0001640384)
📋 Recent SEC Filings
❓ Frequently Asked Questions about LMFA
What is the AI rating for LMFA?
LM FUNDING AMERICA, INC. (LMFA) has an AI rating of STRONG SELL with 92% confidence, based on fundamental analysis of SEC EDGAR filings.
What are LMFA's key strengths?
Claude: Moderate debt/equity ratio of 0.66x limits leverage risk relative to peer distressed situations. Current ratio of 1.18x provides minimal near-term liquidity buffer.
What are the risks of investing in LMFA?
Claude: Unsustainable cash burn trajectory: depletes $1.4M cash position in ~6 weeks at current operating cash flow burn rate. Revenue declining 19.6% YoY indicates core business deterioration and inability to generate positive top-line growth.
What is LMFA's revenue and growth?
LM FUNDING AMERICA, INC. reported revenue of $8.8M.
Does LMFA pay dividends?
LM FUNDING AMERICA, INC. does not currently pay dividends.
Where can I find LMFA SEC filings?
Official SEC filings for LM FUNDING AMERICA, INC. (CIK: 0001640384) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is LMFA's EPS?
LM FUNDING AMERICA, INC. has a diluted EPS of $-3.28.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is LMFA a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, LM FUNDING AMERICA, INC. has a STRONG SELL rating with 92% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is LMFA stock overvalued or undervalued?
Valuation metrics for LMFA: ROE of -87.9% (sector avg: 12%), net margin of -304.4% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
Should I buy LMFA stock in 2026?
Our dual AI analysis gives LM FUNDING AMERICA, INC. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is LMFA's free cash flow?
LM FUNDING AMERICA, INC.'s operating cash flow is $-14.0M, with capital expenditures of $2.2M. FCF margin is -183.1%.
How does LMFA compare to other Finance stocks?
Vs Finance sector averages: Net margin -304.4% (avg: 25%), ROE -87.9% (avg: 12%), current ratio 1.18 (avg: 1.2).