📊 LMFA Key Takeaways
Is Lm Funding America, Inc.. (LMFA) a Good Investment?
LM Funding America demonstrates severe financial distress with persistent operating losses (-$6.4M), negative operating cash flow (-$3.3M), and declining revenue (-19.6% YoY). Critical liquidity concerns exist with only $801.2K cash against $19.8M long-term debt and zero ability to service debt from operations (interest coverage: -11.8x).
Fundamentals are severely challenged: revenue is shrinking while operating and net margins are deeply negative, with interest coverage far below 0 and large cash burn. Liquidity is tight with just $1.42M in cash against continued operating cash outflows, making sustainability and refinancing key concerns despite a moderate debt/equity profile. Incremental YoY loss improvement is insufficient to offset the immediate liquidity and profitability risks.
Lm Funding America, Inc.. Key Strengths (LMFA)
- Positive stockholders equity of $20.8M provides minimal asset base
- Debt-to-equity ratio of 0.95x shows moderate leverage relative to competitors in financial distress
- No insider selling activity suggests management may be conserving shares
- Positive equity base relative to liabilities
- Moderate debt/equity (0.66x)
- Slight YoY improvement in net loss/EPS
LMFA Stock Risks: Lm Funding America, Inc.. Investment Risks
- Negative operating margins (-305%) with persistent GAAP losses and deteriorating net income
- Severe cash burn with -$3.5M free cash flow and only $801.2K cash reserves; debt service sustainability highly questionable
- Revenue declining 19.6% YoY combined with negative operating leverage creates existential business model risk
- Current ratio of 1.13x indicates tight liquidity with limited runway before covenant violations or restructuring
- Unable to generate cash from operations to fund interest expenses, creating refinancing dependency
- Persistent large operating losses and negative FCF
- Very weak liquidity (low cash, slim current ratio)
- Negative interest coverage indicating inability to service debt from operations
Key Metrics to Watch
- Operating cash flow trend and path to cash flow positive
- Cash and equivalents balance relative to quarterly burn rate
- Revenue stabilization and gross margin recovery
- Debt refinancing schedule and covenant compliance status
- Operating cash flow
- Cash & equivalents
Lm Funding America, Inc.. (LMFA) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Lm Funding America, Inc.. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
LMFA Profit Margin, ROE & Profitability Analysis
LMFA vs Finance Sector: How Lm Funding America, Inc.. Compares
How Lm Funding America, Inc.. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Lm Funding America, Inc.. Stock Overvalued? LMFA Valuation Analysis 2026
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.
Lm Funding America, Inc.. Balance Sheet: LMFA Debt, Cash & Liquidity
LMFA Revenue & Earnings Growth: 5-Year Financial Trend
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 Revenue Growth, EPS Growth & YoY Performance
LMFA Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $2.1M | -$5.4M | $-0.47 |
| 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 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Lm Funding America, Inc.. Dividends, Buybacks & Capital Allocation
LMFA SEC Filings: Latest 10-K & 10-Q 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 a Combined AI Grade of D from Claude (D) and ChatGPT (D) with 90% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are LMFA's key strengths?
Claude: Positive stockholders equity of $20.8M provides minimal asset base. Debt-to-equity ratio of 0.95x shows moderate leverage relative to competitors in financial distress. ChatGPT: Positive equity base relative to liabilities. Moderate debt/equity (0.66x).
What are the risks of investing in LMFA?
Claude: Negative operating margins (-305%) with persistent GAAP losses and deteriorating net income. Severe cash burn with -$3.5M free cash flow and only $801.2K cash reserves; debt service sustainability highly questionable. ChatGPT: Persistent large operating losses and negative FCF. Very weak liquidity (low cash, slim current ratio).
What is LMFA's revenue and growth?
Lm Funding America, Inc.. reported revenue of $2.1M.
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 $-0.47.
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 grade reflects both perspectives for balanced insights.
What is LMFA's fundamental grade?
Based on our AI fundamental analysis in May 2026, Lm Funding America, Inc.. has a D grade with 90% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is LMFA stock overvalued or undervalued?
Valuation metrics for LMFA: ROE of -48.6% (sector avg: 12%), net margin of -479.8% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
What is LMFA's AI grade for 2026?
Our dual AI analysis gives Lm Funding America, Inc.. a combined D grade 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 $-3.3M, with capital expenditures of $207.9K. FCF margin is -165.8%.
How does LMFA compare to other Finance stocks?
Vs Finance sector averages: Net margin -479.8% (avg: 25%), ROE -48.6% (avg: 12%), current ratio 1.13 (avg: 1.2).