LM Funding America Reports Q2 2025 Financial Results with Revenue Decline and Net Income of $100,554

LM Funding America, Inc. reported its financial results for the second quarter of 2025, revealing a significant decline in revenue and a net income of $100,554, a stark contrast to the net loss of $5.6 million recorded in the same period last year. Total revenues for the three months ended June 30, 2025, were $1.93 million, down from $3.01 million in the prior year, primarily due to a decrease in digital mining revenues, which fell to $1.81 million from $2.89 million. The company mined 18.4 Bitcoin during the quarter, compared to 44.1 Bitcoin in the previous year, reflecting the impact of the Bitcoin halving event in April 2024 and increased mining difficulty.

Operating expenses also saw a notable reduction, decreasing to $1.50 million from $7.32 million year-over-year. This decline was largely attributed to a fair market adjustment on mined digital assets, which resulted in a gain of $3.76 million for the quarter, compared to a loss of $1.27 million in the prior year. Additionally, costs associated with Bitcoin mining decreased significantly, attributed to lower operational costs at the company's Oklahoma site and the idling of some mining machines. The overall mining costs as a percentage of revenue improved to 71.3% from 81.5% in the previous year.

In terms of strategic developments, LM Funding America continues to focus on its Bitcoin mining operations and specialty finance business, which provides funding to nonprofit community associations. The company has also made investments in mining equipment and hosting services, with a total of approximately 5,560 mining machines capable of producing 606 petahash per second as of June 30, 2025. The company is actively managing its energy consumption and curtailing operations when necessary to optimize profitability.

The balance sheet as of June 30, 2025, showed total assets of $39.03 million, a decrease from $44.05 million at the end of 2024. Cash and cash equivalents were reported at $353,580, down from $3.38 million, while digital assets increased to $11.68 million from $9.02 million. The company's liabilities totaled $8.91 million, with a notable increase in current liabilities driven by short-term notes payable. The stockholders' equity decreased to $30.12 million from $35.34 million, reflecting the accumulated deficit of $70.96 million.

Looking ahead, LM Funding America remains focused on expanding its operations and enhancing its mining capabilities. The company is currently evaluating opportunities for geographic expansion and potential acquisitions, including a recent agreement to acquire a mining site in Columbus, Mississippi, for approximately $3.9 million. The management expressed optimism about future growth, contingent on market conditions and the company's ability to navigate the volatile cryptocurrency landscape.