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LMFA Nasdaq· LM Funding America Inc.
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LMFA Nasdaq· LM Funding America Inc.
Earnings report Q3 2023

LMFA Reports Increase in Revenue in Latest Quarter

Segments of Revenue

LM Funding America, Inc. (LMFA) reported total revenues of $3.42 million for the three months ended September 30, 2023, representing an increase of $3.2 million compared to the same period in 2022. The company's revenue is derived from two lines of business: its recently commenced cryptocurrency mining business and its historical specialty finance business.

Strengths

LMFA's increase in revenue can be attributed to the growth in its cryptocurrency mining business, which commenced operations in late September 2022. The company's computing power is deployed to mine Bitcoin and validate transactions on the Bitcoin network. LMFA believes that developments in Bitcoin mining have created an opportunity for capital deployment and large-scale mining operations.

Challenges

Despite the increase in revenue, LMFA reported a net loss of $4.42 million for the latest quarter. This loss can be attributed to operating costs and expenses, which amounted to $6.59 million. The company's operating loss for the quarter was $3.17 million.

Noteworthy

LMFA's foray into the cryptocurrency mining business marks a significant shift in its operations. The company's historical specialty finance business continues to contribute to its overall revenue, but the growth potential lies in the cryptocurrency mining sector. LMFA's decision to enter this market reflects its strategic response to the evolving landscape of digital assets.

Summary

LMFA reported an increase in revenue for the latest quarter, driven by its cryptocurrency mining business. The company's strategic entry into the Bitcoin mining ecosystem has provided an opportunity for capital deployment and large-scale mining operations. However, LMFA also faced challenges, as operating costs and expenses resulted in a net loss for the quarter. Overall, the company's performance reflects its transition towards the cryptocurrency sector while maintaining its historical specialty finance business.

Source documents

Form 10-Q  filed on Nov 14, 2023
44 pages scanned

Reference data

Company financials Q3 revenue 3.4M
Analyst estimates Q3 EPS beat by 6.45%
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