LM Funding America, Inc. (LMFA) Q1 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call revealed several concerns: a net loss of $5.4 million, core EBITDA loss, and cash flow issues with only $1 million on hand, indicating financial instability. Despite improved mining margins and cost reductions, Bitcoin price volatility and regulatory risks pose significant challenges. The Q&A section highlighted unclear management responses, raising doubts about strategic execution. Although Bitcoin holdings exceed market cap, the negative financial performance and liquidity risks suggest a negative stock price movement over the next two weeks.
Key Financial Performance
Bitcoin Mined 24.3 Bitcoins mined, up 12% sequentially.
Bitcoin Mining Revenue Approximately $2.3 million, up 25% sequentially, but down 50.5% year-over-year due to the impact of the April 2024 halving.
Mining Margins Improved from 31.2% in Q4 2024 to 38.5% in Q1 2025, driven by $150,000 generated from power sales back to the grid.
Net Loss $5.4 million, with a core EBITDA loss of $2.8 million, impacted by a $1.8 million non-cash write-down for Bitcoin.
Cash Position Finished the quarter with $1 million in cash.
Bitcoin Holdings Increased to 160.2 Bitcoins valued at $13.2 million as of March 31, 2025, or approximately $2.58 per share.
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Operating Highlights
Bitcoin Mining: Mined 24.3 Bitcoin in Q1 2025, continuing to scale production capabilities.
Immersion Mining Technology: Ordered two 1 megawatt immersion mining containers for expansion of Oklahoma site.
Bitcoin Holdings Value: As of May 13, 2025, Bitcoin holdings valued at approximately $15.5 million, or $3.01 per share.
Market Positioning: Current stock price of $1.87 compared to Bitcoin holdings value of $3.01 per share.
Operational Efficiency: Achieved 560 petahash at the end of March and executed first power sales back to the grid.
Cost Management: Reduced operating expenses by 7.7% year-over-year while maintaining performance.
Strategic Shift to Immersion Cooling: Shift to immersion cooling technology to enhance operational efficiency and reduce costs.
Treasury Strategy: Continued commitment to Bitcoin accumulation strategy, considering adding Bitcoin to balance sheet.
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Risk or Challenges
Bitcoin Price Volatility: The company is exposed to Bitcoin price volatility, which can significantly impact revenue and operational costs. They have implemented strategies such as curtailment energy sales to mitigate this risk.
Regulatory Risks: The company acknowledges potential regulatory risks associated with the cryptocurrency industry, which could affect operations and profitability.
Supply Chain Challenges: The company faces supply chain challenges, particularly in the international shipping of mining equipment, which could delay expansion plans.
Operational Risks: Transitioning to a vertically integrated model and implementing new technologies like immersion cooling may introduce operational risks during the execution phase.
Market Competition: Increased competition in the Bitcoin mining sector could pressure margins and market share, impacting overall business performance.
Financial Losses: The company reported a net loss of $5.4 million for the quarter, indicating financial challenges that could affect future operations and investments.
Cash Flow Concerns: With only $1 million in cash at the end of the quarter, the company may face liquidity risks that could hinder operational flexibility.
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Guidance & Outlook
Bitcoin Mining Transition: Transitioned from an asset-like model to a vertically integrated operator, gaining full control of fleet, improving margins, and reducing operational risks.
Operational Efficiency: Achieved 560 petahash at the end of March, deployed LuxOS upgrades, and executed first power sales back to the grid.
Immersion Cooling Technology: Ordered two 1 megawatt immersion mining containers for expansion, expected completion by end of Q3 2025.
Cost Management: Disciplined approach to cost management led to a 7.7% reduction in operating expenses year-over-year.
Bitcoin Holdings: As of May 13, 2025, Bitcoin holdings valued at approximately $15.5 million, or $3.01 per share.
Future Revenue Expectations: Expect immediate returns from immersion mining and continued revenue from curtailment energy sales.
Long-term Strategy: Committed to long-term Bitcoin accumulation strategy and exploring options to add Bitcoin to balance sheet.
Market Positioning: Seeking to deploy immersion technology at various sites to enhance operational flexibility and lower costs.
Financial Projections: Net loss for Q1 2025 was $5.4 million, with a core EBITDA loss of $2.8 million, but expect improvements with Bitcoin price recovery.
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Shareholder Return Plan
Bitcoin Holdings Value: As of May 13, 2025, the calculated value of Bitcoin holdings is approximately $15.5 million, or about $3 per share.
Stock Price Comparison: The stock was trading at $1.87 as of May 13, 2025.
Net Loss: Net loss for the quarter was $5.4 million.
Core EBITDA Loss: Core EBITDA loss was $2.8 million.
Cash Position: Finished the quarter with $1 million in cash.
Bitcoin Holdings: As of March 31, 2025, Bitcoin holdings increased to 160.2 Bitcoin valued at $13.2 million.
Power Sales Revenue: Generated approximately $150,000 from power sales back to the grid.
Operational Efficiency: Mining revenue for the quarter was approximately $2.3 million, up 25% sequentially.
Cost Reduction: Reduction in staff costs, professional fees, SG&A, and other costs by 7.7% year-over-year.
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Key Q&A
Q:Can you guys talk a little bit more about the Oklahoma site build-out and what you are thinking about currently in Texas?
A:Texas has got a counterpart issue, so I don't think that there's anything in the short tries and force at this point. Oklahoma, we are up and running, and we will continue to move containers to expand by the year, and that is on the timetable that we discussed earlier, and we'll update you as the quarter progresses.
Q:After that April sales of the S21, does that take care of all the machines that were in inventory and not plugged in?
A:Taking care of it, I don't know what that means. So, we did sell S21’s and [Technical Difficulty].
Q:With the new sites, do you have any geographies in mind targeting the 5 megawatt to 20 megawatt Greenfield, Brownfield build-outs or are you exploring?
A:Michael, the geography, [Technical Difficulty] that’s taking us right now a lot of business in Oklahoma, [Technical Difficulty].
Q:Review of Unclear Management Responses
A:Management's response to the question about whether the April sales of the S21 take care of all the machines in inventory was unclear, as they stated, "Taking care of it, I don't know what that means." Additionally, the response regarding geographies for new sites was vague due to technical difficulties.
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
CEO Rodgers
Chairman
Chief
Digital Mining
Duran President
Fletcher Investor
Officer
President Digital
cash
control
curtailment
date
detail
efficiency
energy
filing
fleet
hedge price
holding share
improvement
investor
model
period
power sale
presentation
price volatility
production
progress
reduction
sale grid
section
share stock
shift immersion
technology
upgrade
write
LMFA Transcript
LM Funding America, Inc. (LMFA) Q3 2025 Earnings Call Transcript
Unknown11-14
The earnings call summary shows some positive aspects like revenue growth and strategic expansions, but significant concerns exist. The company's liquidity constraints, net losses, and exposure to market risks overshadow the positives. Additionally, vague responses in the Q&A regarding future site acquisitions and strategy raise uncertainties. Despite the positive impact of share repurchases, the financial health and unclear guidance lead to a negative sentiment, likely resulting in a stock price decline of -2% to -8%.
LM Funding America, Inc. (LMFA) Q2 2025 Earnings Call Transcript
Unknown8-14
The company's financial performance shows mixed results: improved margins and positive net income compared to losses, but declining revenue and Bitcoin production. The Q&A section revealed uncertainties about future capacity and miner purchases. Risks include Bitcoin price volatility and operational challenges. Despite some operational improvements and a strategic focus on Bitcoin holdings, the lack of clear guidance on key aspects and potential risks balance out the positives, leading to a neutral sentiment.
LM Funding America, Inc. (LMFA) Q1 2025 Earnings Call Transcript
Unknown5-15
The earnings call revealed several concerns: a net loss of $5.4 million, core EBITDA loss, and cash flow issues with only $1 million on hand, indicating financial instability. Despite improved mining margins and cost reductions, Bitcoin price volatility and regulatory risks pose significant challenges. The Q&A section highlighted unclear management responses, raising doubts about strategic execution. Although Bitcoin holdings exceed market cap, the negative financial performance and liquidity risks suggest a negative stock price movement over the next two weeks.
LM Funding America, Inc. (NASDAQ:LMFA) Q4 2024 Earnings Call Transcript
Positive4-6
The earnings call reveals strong financial performance with a significant increase in net income and core EBITDA, despite a revenue decline due to external factors. Bitcoin holdings have surged, indicating financial strength. The Q&A highlighted operational plans and expansions, though some uncertainties remain. Overall, the financial improvements and strategic positioning suggest a positive outlook, potentially boosting the stock price within the 2% to 8% range.
LMFA Slides
LMFA Report
Frequently Asked Questions
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They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
