LM Funding America, Inc. Reports Third Quarter 2025 Financial Results

About this update from Lm Funding America, Inc.

- Acquired 11 MW site in Mississippi with 7.5 MW mining in September and 26 MW total power capacity - Raised net $21.3 million in August to build Bitcoin Treasury - Mining margin improved to 49.0% from 41.0% in Q2 2025 - Executed private repurchase in October and authorized share buyback - As of October 31, 2025 held 294.9 Bitcoin valued at approximately $32.2 million TAMPA, Fla. , Nov. 14, 2025 (GLOBE NEWSWIRE) -- LM Funding America, Inc. (NASDAQ: LMFA) (“LM Funding” or the “Company”), a Bitcoin treasury and mining company, today reported financial results for the three months ended September 30, 2025 . Q3’25 Financial Highlights Total revenue for the quarter was $2.2 million dollars , up 13.0% sequentially from Q2 2025 and 73.5% year-over-year. The increase was driven by higher average Bitcoin prices and contributions from the Mississippi facility for the second half of September. The Company mined 17.6 Bitcoins during the quarter at an average price of approximately $114,000 , compared to 18.4 Bitcoins in Q2 2025 at an average price of approximately $98,000 . The sequential decline was due to higher curtailment and increased difficulty rate. Mining margin improved to 49.0%, compared with 41.0% in the second quarter 2025, driven by eliminating hosting costs, curtailment and energy sales offsetting mining costs, and higher fleet efficiency. The Company generated approximately $152,000 in curtailment and energy sales for the quarter. Mining margin is calculated as digital mining revenues minus digital mining cost of revenues net of curtailment and energy sales. Operating expenses increased $0.4 million driven by increase in staff costs related to the Mississippi site acquisition and performance compensation bonuses offset in part by gain on fair value of Bitcoin totaling $1.0 million . Net loss for the quarter was $3.7 million and Core EBITDA1 loss was $1.4 million as compared to the prior year quarter Net loss of $4.3 million and Core EBITDA loss of $1.9 million . Cash was approximately $0.3 million , and Bitcoin holdings totaled 304.5 Bitcoin, valued at $34.7 million based on Bitcoin price of approximately $114,000 , as of September 30, 2025 . Net book value of LM Funding stockholders’ equity was approximately $50.1 million , or $3.23 per share2, as of September 30, 2025 . As of October 31, 2025 the Company held 294.9 Bitcoin, valued at approximately $32.2 million , based on a Bitcoin price of $109,225 as of October 31, 2025 , or $2.64 Bitcoin per share3. Q3’25 and Recent Operational Highlights $21.3 Million Treasury Raise: During the third quarter, LM Funding successfully raised approximately net $21.3 million through a $12.6 million registered direct offering and a $10.4 million private placement in August 2025 , with the net proceeds primarily dedicated to enhancing the Company’s Bitcoin treasury. Proceeds from the financings were deployed to acquire 164 Bitcoin, increasing the Company’s holdings to approximately 304.5 Bitcoin as of quarter-end, further strengthening LM Funding’s balance sheet and long-term position. Mississippi 11 MW Acquisition: During the third quarter, LM Funding acquired an 11 MW Bitcoin mining facility in Columbus, Mississippi , advancing the Company’s vertical integration strategy. Approximately 7.5 MW of capacity were energized at closing, enabling immediate contribution to production. In addition, LM Funding redeployed more efficient miners to the site to optimize uptime and fleet performance. As a result, the Company achieved a 27.8% increase in Bitcoin production in October 2025 compared to September 2025 . Oklahoma 2 MW Expansion: The Company made meaningful progress on its 2 MW immersion expansion at its 15 MW site in Oklahoma and secured 320 Bitmain S21 immersion units to support the upgrade. Containerized immersion systems are scheduled to be delivered this month, with energization targeted for December 2025 , positioning the site to benefit from improved thermal performance, higher efficiency, and more consistent uptime year-round. Share Repurchase and Authorized Buyback Program: The Company recently completed a privately negotiated repurchase of approximately 3.3 million shares and warrants to purchase 7.3 million common shares that were originally issued in its August 2025 private placement, for a total purchase price of approximately $8.0 million . The transaction was financed through an $11 million credit facility with Galaxy Digital. Following the private repurchase, the Company’s Board of Directors authorized a $1.5 million share buyback program. Together, these actions reflect LM Funding’s conviction in its intrinsic value and commitment to increasing Bitcoin per share and mNAV for shareholders. Management Commentary “The third quarter was about execution, integration, and disciplined capital allocation,” said Bruce Rodgers , Chairman and CEO of LM Funding. “We strengthened our Bitcoin treasury through a $21.3 million financing, completed the acquisition and integration of a 11-megawatt Mississippi facility, and expanded our owned infrastructure to 26 megawatts across two sites. After quarter-end, we simplified our capital structure with a private repurchase of units and authorized a share buyback program — tangible actions that demonstrate our belief in the value we’re building. We are long on Bitcoin and confident in our strategy to build equity value, and every decision we make is focused on improving per-share intrinsic value over time.” “From closing and integrating the Mississippi facility to optimizing fleet performance and achieving a 28% month-over-month increase in Bitcoin production in October, we saw the benefits of control and scale take hold these last four months,” said Ryan Duran , President of US Digital Mining (“USDM”). “We now operate roughly 0.71 EH/s of capacity across 26 megawatts, with the next efficiency leap coming as our 2 MW immersion expansion in Oklahoma is anticipated to energize in December. The foundation continues to be built — owned power, efficient machines, and operational flexibility — and our focus from here is improving production, efficiency, and Bitcoin per share.” “Revenue increased 74% year-over-year, mining margins improved to 49%, and our corporate actions are aimed at materially enhancing per-share value,” said Richard Russell , CFO of LM Funding. “Following quarter-end, we deployed $8.0 million from our Galaxy loan facility to repurchase more than 3.3 million shares and 7.3 million warrants, removing dilution and reducing share count. With a $1.5 million authorized buyback in place and a balance sheet anchored by Bitcoin, we have the flexibility to fund operations, expand capacity, and increase shareholder value while growing our Bitcoin treasury.” Investor Conference Call LM Funding America, Inc. (Nasdaq: LMFA) operates as a Bitcoin treasury and mining company. The Company was founded in 2008 and is based in Tampa, Florida . The Company also operates a technology-enabled specialty finance business that provides funding to nonprofit community associations primarily in the State of Florida . For more information, please visit https://www.lmfunding.com . Conference Call Details Date: November 14, 2025 Time: 8:00 AM EST Participant Call Links: Live Webcast: Link Participant Call Registration: Link Forward-Looking Statements This press release may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” and “project” and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various risks and uncertainties. Some of these risks and uncertainties are identified in the Company's most recent Annual Report on Form 10-K and its other filings with the SEC , which are available at www.sec.gov . These risks and uncertainties include, without limitation, the risks of operating in the cryptocurrency mining business, our limited operating history in the cryptocurrency mining business and our ability to grow that business, the capacity of our Bitcoin mining machines and our related ability to purchase power at reasonable prices, our ability to identify and acquire additional mining sites, the ability to finance our site acquisitions and cryptocurrency mining operations, the risks associated with growing our Bitcoin treasury operations and strategy, our ability to acquire new accounts in our specialty finance business at appropriate prices, changes in governmental regulations that affect our ability to collected sufficient amounts on defaulted consumer receivables, changes in the credit or capital markets, changes in interest rates, and negative press regarding the debt collection industry. The occurrence of any of these risks and uncertainties could have a material adverse effect on our business, financial condition, and results of operations. For investor and media inquiries, please contact: Investor Relations Orange Group Yujia Zhai [email protected] LM Funding America, Inc. and Subsidiaries Unaudited Consolidated Balance Sheets September 30 , December 31 , 2025 (unaudited) 2024 Assets Cash $ 291,571 $ 3,378,152 Digital assets - current (Note 3) 11,399,701 9,021,927 Finance receivables 28,148 21,051 Marketable securities (Note 6) 23,630 27,050 Receivable from sale of Symbiont assets (Note 6) - 200,000 Prepaid expenses and other assets 904,079 827,237 Digital assets - collateral (Note 3) 5,500,000 - Income tax receivable 31,187 31,187 Current assets 18,178,316 13,506,604 Fixed assets, net (Note 4) 15,655,533 18,376,948 Intangible assets, net (Note 4) 6,748,137 5,478,958 Deposits on mining equipment (Note 5) 501,228 467,172 Long-term investments - equity securities (Note 6) 5,598 4,255 Investment in Seastar Medical Holding Corporation (Note 6) 58,995 200,790 Digital assets - long-term (Note 3) 16,402,955 - Digital assets - collateral (Note 3) 1,430,000 5,000,000 Right of use assets (Note 8) 785,918 938,641 Other assets 389,119 73,857 Long-term assets 41,977,483 30,540,621 Total assets $ 60,155,799 $ 44,047,225 Liabilities and stockholders' equity Accounts payable and accrued expenses 3,071,168 989,563 Note payable - short-term (Note 7) 6,579,828 386,312 Due to related parties (Note 10) 59,337 15,944 Current portion of lease liability (Note 8) 190,821 170,967 Total current liabilities 9,901,154 1,562,786 Note payable - long-term (Note 7) 1,243,397 6,365,345 Lease liability - net of current portion (Note 8) 605,234 776,535 Long-term liabilities 1,848,631 7,141,880 Total liabilities 11,749,785 8,704,666 Stockholders' equity (Note 9) Preferred stock, par value $.001 ; 150,000,000 shares authorized; no shares issued and outstanding as of September 30, 2025 and December 31, 2024 - - Common stock, par value $.001 ; 350,000,000 shares authorized; 15,517,988 and 5,133,412 shares issued and outstanding as of September 30, 2025 and December 31, 2024 14,987 4,602 Additional paid-in capital 124,810,596 102,685,470 Accumulated deficit (74,690,296 ) (65,662,731 ) Total LM Funding America stockholders' equity 50,135,287 37,027,341 Non-controlling interest (1,729,273 ) (1,684,782 ) Total stockholders' equity 48,406,014 35,342,559 Total liabilities and stockholders’ equity $ 60,155,799 $ 44,047,225 LM Funding America, Inc. and Subsidiaries Unaudited Consolidated Statements of Operations Three Months ended September 30 , Nine Months ended September 30 , 2025 2024 2025 2024 Revenues: Digital mining revenues $ 2,010,404 $ 1,127,455 $ 6,090,708 $ 8,618,436 Specialty finance revenue 141,634 97,558 303,968 303,222 Rental revenue 26,265 30,460 83,288 92,766 Total revenues 2,178,303 1,255,473 6,477,964 9,014,424 Operating costs and expenses: Digital mining cost of revenues (exclusive of depreciation and amortization shown below) 1,177,184 730,716 4,013,878 5,742,773 Curtailment and energy sales (151,887 ) - (524,842 ) - Staff costs and payroll 2,537,105 1,567,984 4,675,209 3,648,898 Depreciation and amortization 1,972,133 1,935,835 6,049,054 5,787,390 Gain on fair value of Bitcoin, net (1,032,374 ) (104,744 ) (2,983,537 ) (3,096,774 ) Impairment loss on mining equipment - - - 1,188,058 Professional fees 443,335 628,686 1,116,649 1,622,914 Selling, general and administrative 448,487 209,088 1,133,871 582,675 Real estate management and disposal 14,687 31,144 73,421 89,430 Collection costs 1,702 15,054 27,643 36,396 Settlement costs with associations - - 3,693 - Loss on disposal of assets - 12,449 286,359 54,506 Other operating costs 284,929 229,784 799,889 667,401 Total operating costs and expenses 5,695,301 5,255,996 14,671,287 16,323,667 Operating loss (3,516,998 ) (4,000,523 ) (8,193,323 ) (7,309,243 ) Unrealized gain (loss) on marketable securities 10,400 (3,296 ) (3,420 ) 984 Impairment loss on prepaid machine deposits - (12,941 ) - (12,941 ) Unrealized gain (loss) on investment and equity securities 16,422 (346,866 ) (140,452 ) (852,624 ) Gain (loss) on fair value of purchased Bitcoin, net - - (52,704 ) 57,926 Other income - coupon sales - - - 4,490 Interest expense (235,282 ) (124,035 ) (683,734 ) (231,754 ) Interest income 916 98,343 2,592 124,696 Loss before income taxes (3,724,542 ) (4,389,318 ) (9,071,041 ) (8,218,466 ) Income tax expense - - - - Net loss $ (3,724,542 ) $ (4,389,318 ) $ (9,071,041 ) $ (8,218,466 ) Less: loss (gain) attributable to non-controlling interest (4,903 ) 105,043 43,476 265,296 Net loss attributable to LM Funding America Inc. $ (3,729,445 ) $ (4,284,275 ) $ (9,027,565 ) $ (7,953,170 ) Less: deemed dividends (Note 9) (347,782 ) (1,704,305 ) (347,782 ) (1,704,305 ) Net loss attributable to common shareholders $ (4,077,227 ) $ (5,988,580 ) $ (9,375,347 ) $ (9,657,475 ) Basic loss per common share (Note 1) $ (0.41 ) $ (2.25 ) $ (1.39 ) $ (3.82 ) Diluted loss per common share (Note 1) $ (0.41 ) $ (2.25 ) $ (1.39 ) $ (3.82 ) Weighted average number of common shares outstanding Basic 9,986,433 2,659,974 6,768,862 2,525,160 Diluted 9,986,433 2,659,974 6,768,862 2,525,160 LM Funding America, Inc. and Subsidiaries Unaudited Consolidated Statements of Cash Flows Nine Months ended September 30 , 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ (9,071,041 ) $ (8,218,466 ) Adjustments to reconcile net loss to net cash used in operating activities Depreciation and amortization 6,049,054 5,787,390 Noncash lease expense 152,723 79,629 Amortization of debt issue costs 66,994 - Stock issued for services - 100,001 Stock compensation - 76,322 Stock option expense 259,384 332,415 Accrued investment income - (123,076 ) Accrued interest expense on finance lease 42,875 - Digital assets other income - (4,490 ) Gain on fair value of Bitcoin, net (2,930,833 ) (3,154,700 ) Impairment loss on mining machines - 1,188,058 Impairment loss on hosting deposits - 12,941 Unrealized loss (gain) on marketable securities 3,420 (984 ) Unrealized loss on investment and equity securities 140,452 852,624 Loss on disposal of fixed assets 286,359 54,506 Change in operating assets and liabilities: Prepaid expenses and other assets 391,857 3,650,696 Repayments to related party 43,393 41,541 Accounts payable and accrued expenses 2,081,605 (664,681 ) Mining of digital assets (6,090,708 ) (8,618,436 ) Lease liability payments (194,322 ) (81,304 ) Net cash used in operating activities (8,768,788 ) (8,690,014 ) CASH FLOWS FROM INVESTING ACTIVITIES: Net collections of finance receivables - original product (3,145 ) (4,618 ) Net collections of finance receivables - special product (3,952 ) (1,571 ) Capital expenditures (635,691 ) (1,228,428 ) Proceeds from sale of fixed assets 953,153 78,806 Collection of note receivable 200,000 1,449,066 Acquisition of hosting site (4,230,368 ) - Investment in notes receivable - (2,867,195 ) Investment in digital assets - Bitcoin (18,673,167 ) - Investment in digital assets - Tether (29,572 ) - Proceeds from sale of Bitcoin 6,984,091 6,821,185 Proceeds from the sale of Tether 29,460 3,003 Deposits for mining equipment (1,004,326 ) - Distribution to members (1,015 ) (19,616 ) Net cash provided by (used in) investing activities (16,414,532 ) 4,230,632 CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from borrowings, net of issuance costs 1,240,195 6,344,084 Insurance financing repayments (588,123 ) (547,022 ) Exercise of options - 25,000 Proceeds from warrant exercise 95,999 - Proceeds from the issuance of common stock, net of issuance costs 21,348,668 2,148,704 Net cash provided by financing activities 22,096,739 7,970,766 NET INCREASE (DECREASE) IN CASH (3,086,581 ) 3,511,384 CASH - BEGINNING OF PERIOD 3,378,152 2,401,831 CASH - END OF PERIOD $ 291,571 $ 5,913,215 SUPPLEMENTAL DISCLOSURES OF NON-CASH ACTIVITIES Insurance financing $ 352,501 $ - Change in accounting principle (see Note 1) $ - $ 614,106 Issuance of common stock as retainer for services $ 431,460 $ - SUPPLEMENTAL DISCLOSURES OF CASHFLOW INFORMATION Cash paid for taxes $ - $ - Cash paid for interest $ 489,083 $ 222,697 NON-GAAP CORE EBITDA RECONCILIATION Our reported results are presented in accordance with U.S. generally accepted accounting principles (“GAAP”). We also disclose Earnings before Interest, Tax, Depreciation and Amortization ("EBITDA") and Core Earnings before Interest, Tax, Depreciation and Amortization ("Core EBITDA") which adjusts for unrealized loss (gain) on investment and equity securities, loss on disposal of mining equipment, impairment loss on mining equipment and stock compensation expense and option expense, all of which are non-GAAP financial measures. We believe these non-GAAP financial measures are useful to investors because they are widely accepted industry measures used by analysts and investors to compare the operating performance of Bitcoin miners. The following tables reconcile net loss, which we believe is the most comparable GAAP measure, to EBITDA and Core EBITDA: Three Months ended September 30 , Nine Months ended September 30 , 2025 2024 2025 2024 Net income (loss) $(3,724,542) $(4,389,318) $(9,071,041) $(8,218,466) Income tax expense - - - - Interest expense 235,282 124,035 683,734 231,754 Depreciation and amortization 1,972,133 1,935,835 6,049,054 5,787,390 Loss before interest, taxes & depreciation $(1,517,127) $(2,329,448) $(2,338,253) $(2,199,322) Unrealized loss (gain) on investment and equity securities (16,422) 346,866 140,452 852,624 Loss on disposal of mining equipment - 12,449 286,359 54,506 Impairment loss on mining equipment - - - 1,188,058 Stock compensation and option expense 123,958 110,806 259,384 408,737 Core income (loss) before interest, taxes & depreciation $(1,409,591) $(1,859,327) $(1,652,058) $304,603 __________________________1 Core EBITDA is a non-GAAP financial measure, and a reconciliation of Core EBITDA to net income can be found below.2 Calculated using 15,517,988 shares outstanding as of September 30,2025 .3 Calculated using 12,209,413 shares outstanding as of October 31, 2025 . Source: LM Funding America, Inc.

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