Lm Funding America (LMFA -2.10%), a company primarily focused on Bitcoin mining and association funding solutions, released its earning results for the second quarter of fiscal 2025 on August 14, 2025. The most significant news in the report was a swing to positive earnings per share of $0.02, largely a result of a $3.8 million gain from revaluing its Bitcoin holdings. Roughly $0.10 million below analyst expectations (GAAP) and down sharply from $3.01 million in GAAP revenue in Q2 2024. The quarter showed some operational improvement with higher mining margins (41.0%, up from 38.5% in Q1 2025), but also highlighted falling revenue and tightening liquidity.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Diluted) | $0.02 | ($0.52) | ($2.26) | $2.28 |
| Revenue | $1.93 million | $2.0 million | $3.01 million | (36.0%) |
| Core EBITDA (Non-GAAP) | $2.58 million | ($2.26 million) | -214.2% |
Source: Analyst estimates for the quarter provided by FactSet.
Business Overview and Focus Areas
Lm Funding America is a financial and technology company that started as a specialty finance provider and now is shifting its core focus toward Bitcoin mining. It began by purchasing delinquent accounts from community associations and recovering funds through collections.
In recent years, it has ramped up its Bitcoin mining operations. The company operates a site equipped with specialized computers, called miners, which solve complex mathematical problems to secure the Bitcoin network in exchange for Bitcoin rewards. The transition toward digital asset mining has made this segment the leading contributor to company revenue, while traditional specialty finance has diminished in importance.
Key Developments and Results During the Quarter
The company produced 18.4 Bitcoins in Q2 2025, down 24.3% from the prior quarter. This decrease resulted from peak summer power curtailments and the redeployment of around 800 miners to its Oklahoma facility. Management pointed to weather-related downtime and efforts to transition away from third-party hosting partners, steps it claims are needed to enable more control and efficiency in mining operations.
The average price earned for Bitcoin mined in Q2 2025 was approximately $98,100. The mining margin, which reflects profit from mining activities as a percentage of related revenue, improved to 41.0% in Q2 2025. This increase was supported by $223,000 in power sales in Q2 2025—a result of selling energy back to the grid during peak demand periods. Power sales grew 49.2% compared to the previous quarter and supplemented core mining profits.
Bitcoin holdings totaled 155.5 at the end of Q2 2025, valued at $16.7 million, based on a Bitcoin price of approximately $107,170 as of June 30, 2025. By July 31, 2025, the company held 150.4 Bitcoins, valued at approximately $18.0 million based on a Bitcoin price of $120,000 as of August 11, 2025, with the increase in value owed to rising market prices rather than higher production. This demonstrates how much the balance sheet relies on digital asset valuations, a factor outside the company’s direct control.
Earnings improved, with the company reporting GAAP net income of $0.1 million in Q2 2025 compared to a GAAP net loss of $6.2 million in Q2 2024. Core EBITDA, a non-GAAP measure of operating profitability that excludes some non-cash and non-recurring items, swung positive to $2.6 million in Q2 2025 from negative $2.3 million in Q2 2024. However, most of this improvement resulted from the $3.8 million gain in Bitcoin value, not from higher underlying business revenues or profits. Cash reserves (GAAP) declined significantly, shrinking from $3.4 million at year-end 2024 to just $0.4 million by the end of Q2 2025, driven by higher costs for legal, consulting, and staffing as the company expanded its mining footprint.
Looking Ahead: Guidance and Priorities
Management outlined expansion plans, announcing a deal to acquire an 11 megawatt (MW) Bitcoin mining site in Mississippi for $3.9 million. This acquisition is expected to close by September 16, 2025, and should bring the company’s total owned infrastructure to as much as 26 MW. The company also plans to complete a 2 MW immersion cooling expansion later this year at its Oklahoma facility, which could improve operational efficiency and output.
No formal guidance on future earnings or revenue was provided. The quarterly filing and conference call highlighted that further expansion will be funded from the existing balance sheet—meaning the already-limited cash reserves will be further reduced. The company remains heavily dependent on the fluctuating price of Bitcoin. Investors should watch for updates on the Mississippi acquisition, progress on the Oklahoma expansion, and whether the company can strengthen earnings from operations rather than relying on asset revaluations.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
