LM Funding America, Inc. (NASDAQ:LMFA) Q4 2024 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
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.
Key Financial Performance
Revenue Q4 2024 $2 million, a decrease of 51.2% from $4.1 million in Q4 2023 due to the April 2024 Bitcoin halving event and moving mining machines into storage.
Net Income Q4 2024 $2 million, a 220% improvement from a net loss of $1.6 million in Q4 2023, driven by $4.3 million gains on fair value of Bitcoin holdings.
Core EBITDA Q4 2024 $3.3 million, nearly 10x increase compared to the previous year.
Bitcoin Mined 2024 170.6 Bitcoin, with 21.7 Bitcoin mined in Q4 2024.
Bitcoin Holdings at Year-End 2024 150.2 Bitcoin, up from 95.1 Bitcoin at the end of December 2023.
Cash Holdings at Year-End 2024 $3.4 million, a 40% increase year-over-year.
Bitcoin Holdings Value at Year-End 2024 $14 million, a surge of over 300% year-over-year.
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Operating Highlights
New Mining Hardware: Placed orders for 256 new Bitmain S21 plus mining machines to improve fleet efficiency.
Firmware Upgrade: Partnered with Luxor Technology Corporation to install LuxOS firmware, expected to increase mining efficiency by 10% to 15%.
Market Positioning: Current market cap of $7.6 million is significantly lower than the value of Bitcoin holdings at $14.4 million, indicating a compelling investment opportunity.
Bitcoin Holdings: Increased Bitcoin holdings to 165.8 Bitcoin valued at approximately $2.81 per share.
Operational Efficiency: Achieved a 200% increase in combined cash and Bitcoin holdings in fiscal year 2024.
Cost Management: Staff costs, payroll, professional fees, and SG&A expenses down 18% year-over-year.
Vertical Integration: Transitioned to a vertically integrated model to manage mining infrastructure directly, improving margins and reducing energy costs.
Future Expansion Plans: Plans to acquire greenfield and brownfield power assets in the 5 to 20 megawatt range to scale operations.
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Risk or Challenges
Market Volatility: The company acknowledges the risks associated with market volatility in the digital asset sector, particularly following the April 2024 Bitcoin halving event, which impacted revenue.
Regulatory Risks: The company refers to potential regulatory uncertainties that could affect operations and market conditions, as indicated by their caution regarding forward-looking statements.
Supply Chain Challenges: There are challenges related to the supply chain, particularly in acquiring new mining hardware, as they placed orders for new machines to improve efficiency.
Competitive Pressures: The company faces competitive pressures in the Bitcoin mining sector, necessitating a focus on operational efficiency and cost management to maintain profitability.
Debt Financing Risks: The strategy of using Bitcoin-backed debt financing carries risks, particularly if Bitcoin prices do not perform as expected, which could impact liquidity and operational flexibility.
Operational Efficiency: The need to maintain operational efficiency is critical, especially as the company transitions to a vertically integrated model, which requires careful management of costs and resources.
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Guidance & Outlook
Vertical Integration Strategy: Transitioned to a vertically integrated model to manage infrastructure directly, ensuring better margins and mitigating risks associated with third-party hosting.
Cost Control: Maintained a low-cost structure through disciplined OPEX control, enabling profitability on a core-EBITDA basis in 2024.
Bitcoin Retention Strategy: Retained a portion of mined Bitcoin to capture potential upside for shareholders and align with the broader Bitcoin industry.
Infrastructure Expansion: Plans to invest in next-generation mining hardware, energy efficiency initiatives, and strategic site acquisitions.
Operational Efficiency: Installed LuxOS firmware to improve mining efficiency by 10% to 15% without adding more machines or power.
Revenue Expectations: Mined 170.6 Bitcoin in 2024, generating approximately $11 million in revenue.
Future Bitcoin Holdings: Expect to continue growing Bitcoin holdings, with 165.8 Bitcoin held as of February 2025.
Market Cap vs. Bitcoin Holdings: Current market cap of $7.6 million is significantly lower than the value of Bitcoin holdings at $14.4 million.
Operational Goals for 2025: Focus on acquiring power assets in the 5 to 20 megawatt range to scale operations efficiently.
Debt Financing Strategy: Utilizing Bitcoin-backed debt to capitalize on favorable market conditions.
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Shareholder Return Plan
Bitcoin Holdings: As of December 31, 2024, LM Funding held 150.2 Bitcoin valued at approximately $14 million.
Market Cap vs Bitcoin Holdings: As of March 26, 2025, the market cap was $7.6 million, while Bitcoin holdings were valued at $14.4 million, indicating a significant disparity.
Core EBITDA: Core EBITDA for Q4 2024 was $3.3 million, a nearly 10x increase from the previous year.
Net Income: Net income attributable to LM shareholders for Q4 2024 was $2 million, a 220% improvement from a net loss of $1.6 million a year ago.
Cash Holdings: Combined cash and Bitcoin holdings increased by 200% in fiscal year 2024, with cash growing 40% to $3.4 million.
Debt Financing Strategy: The company utilizes Bitcoin-backed debt financing, differentiating itself from competitors.
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Key Q&A
Q:Are the 256 new machines included in the 560 petahash?
A:Those new machines have not yet arrived. So they’ll be added to it once they’re installed.
Q:Are there open sockets within the 15 megawatts, are you deploying new boxes there, or just changing out machines?
A:We have space to add about two more megawatts, but right now, all of our sockets there are filled.
Q:Will the new machines replace less efficient ones in those sockets?
A:We’re looking to add the 2 megawatts fairly quickly and just plug it in.
Q:What is a good timeline for the addition of the new machines?
A:Groundwork would be about three weeks, and it should be within 90 days.
Q:What is the status of opportunities in Texas?
A:We’ve had a couple of sites we’ve looked at in Texas, but none of them are currently outstanding.
Q:Is the Luxor OS deployed across all machines?
A:Yes, it’s deployed on all of our machines at the Calumet mining site, but not on the machines at core.
Q:Can the Luxor OS run on S21s?
A:Yes, we can deploy those on newer machines as well.
Q:Can you clarify the details of the secured loan?
A:The $5 million secured loan is used mainly to help pay for the hosting side that we just purchased the mine site in Oklahoma.
Q:Is the loan a function of value or number of Bitcoin?
A:It’s secured by a $5 million Bitcoin as custody.
Q:Are you evaluating other assets beyond Texas?
A:We’re looking at somewhere between 2 and 15 megawatts, focusing on the price of electricity and contract terms.
Q:Are you considering diversifying into AI opportunities?
A:We’re focused on Bitcoin and do not see the capital lift necessary to build an AI facility.
Q:Review of Unclear Management Responses
A:Management did not provide a clear answer regarding the status of opportunities in Texas, stating that there are no outstanding LOIs but lacking detail on future prospects.
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
CEO Rodgers
Digital Mining
Funding America
Funding Investor
Funding participant
LM Funding
NASDAQ Transcript
President Digital
Relations LM
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Section LM
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asset
balance sheet
cap holding
cash holding
control
day LM
energy
filing
financing
firmware
fleet
focus
generation
income
industry
market cap
mining LM
mining efficiency
mining infrastructure
model
profitability
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website wwwlmfundingcominvestors
LMFA Transcript
LM Funding America, Inc. (LMFA) Q3 2025 Earnings Call Transcript
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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
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
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No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
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.
