EX-99.1 2 lmfa-ex99_1.htm EX-99.1 EX-99.1

 

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LM Funding America, Inc. Reports First Quarter 2026 Financial Results

 

- Highest energized hashrate in Company history of approximately 790 PH/s reached in March 2026

- Highest monthly Bitcoin production in Company history of 9.6 BTC produced in March 2026

 

TAMPA, FL, May 15, 2026—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 March 31, 2026.

 

Q1’26 Financial Highlights

•
Total revenue for the quarter was $2.1 million, down 10.9% sequentially and 11.1% year-over-year. The sequential decrease reflects lower average Bitcoin prices.
•
The Company mined 26.1 Bitcoin during the first quarter at an average price of approximately $75,700, compared to 22.0 Bitcoin in Q4 2025 at an average Bitcoin value of approximately $99,700 and 24.3 Bitcoin in Q1 2025 at an average Bitcoin value of approximately $93,600. The increase in Bitcoin mined was due to higher energized hashrate in Q1 2026 as compared to prior periods.
•
Mining margin for the current quarter was 24.1% compared to a margin of 38.5% in Q1 2025. The Company generated approximately $368,000 in curtailment and energy sales for the 2026 quarter as compared to $150,000 in Q1 2025. Mining margin is calculated as digital mining revenues minus digital mining cost of revenues net of curtailment and energy sales.
•
The Company incurred a $3.8 million negative fair market value adjustment on mined digital assets due to Bitcoin price at approximately $68,300 on March 31, 2026 as compared to approximately $82,500 on March 31, 2025. The Company also incurred a $3.2 million negative fair market value adjustment on Bitcoin collateral receivable in Q1 2026.
•
Net loss for the first quarter of 2026 was approximately $10.1 million, and Core EBITDA2 loss was approximately $8.4 million, compared with Q1 2025 net loss of $5.4 million and Core EBITDA loss of $2.8 million with the change being driven primarily by non-cash loss on fair value of Bitcoin.
•
As of March 31, 2026, cash was approximately $0.8 million, and Bitcoin holdings totaled 338.2 Bitcoin, which includes 174 Bitcoin held by Galaxy Digital in a Digital assets receivable account. The total of the holdings was valued at approximately $23.1 million, based on a Bitcoin price of approximately $68,300 as of March 31, 2026.
•
As of April 30, 2026, the Company’s 334.0 Bitcoin holdings (inclusive of Galaxy holdings) were valued at approximately $25.3 million, based on a Bitcoin price of approximately $75,800 as of April 30, 2026, or $1.18 Bitcoin per share.1

 

1 Bitcoin per share calculated using 21,530,281 diluted shares outstanding as of April 30, 2026 which includes 17,352,281 shares outstanding and 4,178,000 warrants with an exercise price of $0.001 per share as of April 30, 2026.

2 Core EBITDA is a non-GAAP financial measure, and a reconciliation of Core EBITDA to net income can be found below.

 

 

Q1’26 and Recent Operational Highlights

•
Record energized hashrate: Reached approximately 790 PH/s of energized hashrate in March 2026, the highest level in the Company's history, driven by the late-February deployment of approximately 300 Bitmain S19 XP miners and the January energization of the second BC40 Elite immersion-cooled unit at Oklahoma. March 2026 also represented the highest monthly Bitcoin production in the Company's history at 9.6 Bitcoin.

 

Management Commentary

 

"The first quarter reflected strong operating performance in a softer Bitcoin price environment," said Bruce Rodgers, Chairman and Chief Executive Officer of LM Funding. "We increased production, reached record hashrate, and maintained margins from the fourth quarter 2025, while remaining focused on our Bitcoin mining and treasury strategy. Our priority is execution and closing the gap between our public valuation and the underlying value of our Bitcoin holdings and platform.”

 

"The first quarter was the first full period during which our expanded fleet operated at scale across both wholly-owned sites," said Ryan Duran, President of U.S. Digital Mining. "We produced 26.1 Bitcoin across Oklahoma and Mississippi, energized our second BC40 Elite immersion-cooled unit at Oklahoma in January, and deployed approximately 300 Bitmain S19 XP miners at Oklahoma in late February — driving energized hashrate to approximately 790 PH/s in March, the highest in the Company's history. With ASIC efficiency gains compressing across recent generations, we believe our deployed S19 XP, S21, and S21 immersion fleet will retain its competitive position in the network meaningfully longer than equivalent hardware would have in prior cycles."

 

"First quarter revenue declined approximately 11% year-over-year to $2.1 million, primarily reflecting a lower average realized Bitcoin price, partially offset by a 19% sequential increase in Bitcoin production," said Richard Russell, Chief Financial Officer of LM Funding. "Mining margin held at approximately 24%, in line with the 25% fourth quarter 2025 mining margin, supported by approximately $368,000 of curtailment and energy sales. The reported net loss of $10.1 million and Core EBITDA2 loss of $8.4 million were driven primarily by approximately $7.0 million of non-cash Bitcoin fair value adjustments and ongoing operating costs of the expanded platform. We extended the Galaxy Digital facility maturity to June 26, 2026 during the quarter and ended the period with $41.8 million of total assets, a 338.2 Bitcoin treasury, and $22.7 million of total liabilities — a balance sheet that we believe is positioned to support continued operating execution and selective accretive growth."

 

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: May 15, 2026
•
Time: 8:30 AM EST
•
Participant Call Links:
o
Live Webcast: Link

 

o
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 volatility in the market price of Bitcoin, 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 collect 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
OG Advisory Group
Yujia Zhai
lmfundingIR@orangegroupadvisors.com

 

LM FUNDING AMERICA, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

 

 

March 31,

 

December 31,

 

 

2026
(unaudited)

 

2025

Assets

 

 

 

 

Cash

 

 $ 801,201

 

 $ 1,424,426

Marketable securities (Note 5)

 

                  35,000

 

                  37,380

Prepaid expenses and other assets

 

              1,087,163

 

              1,198,486

Finance receivables

 

                  14,020

 

                  17,533

Digital assets - current (Note 2)

 

              3,514,903

 

              2,563,474

Digital assets - collateral (Note 2)

 

              5,500,000

 

              5,500,000

Digital assets receivable, net (Note 2)

 

            11,880,544

 

            12,678,014

Galaxy loan derivative asset (Note 6)

 

                         -

 

                  47,673

Income tax receivable

 

                         -

 

                  31,187

Current assets

 

            22,832,831

 

            23,498,173

 

 

 

 

 

Fixed assets, net (Note 3)

 

              9,362,777

 

              9,917,350

Intangible assets, net (Note 3)

 

              6,261,980

 

              6,327,769

Deposits on mining equipment (Note 4)

 

                         -

 

                    1,597

Investment in Seastar Medical Holding Corporation

 

                  39,097

 

                  25,073

Digital assets - long-term (Note 2)

 

                         -

 

              8,233,035

Digital assets - collateral (Note 2)

 

              2,200,000

 

              2,200,000

Right of use assets (Note 7)

 

                 671,434

 

                 728,995

Other assets

 

                 384,234

 

                 384,234

Long-term assets

 

            18,919,522

 

            27,818,053

Total assets

 

 $ 41,752,353

 

 $ 51,316,226

 

 

 

 

 

Liabilities and stockholders’ equity

 

 

 

 

Accounts payable and accrued expenses

 

              1,975,726

 

              1,745,875

Note payable - short-term (Note 6)

 

              6,797,473

 

              7,006,912

Master digital currency loan (Note 6)

 

            10,891,657

 

            10,920,838

Due to related parties (Note 9)

 

                  64,857

 

                  48,319

Galaxy loan derivative liability (Note 6)

 

                 213,793

 

                         -

Current portion of lease liability (Note 7)

 

                 198,524

 

                 194,618

Total current liabilities

 

            20,142,030

 

            19,916,562

 

 

 

 

 

Note payable - long-term (Note 6)

 

              1,942,627

 

              1,932,502

Lease liability - net of current portion (Note 7)

 

                 575,123

 

                 590,368

Long-term liabilities

 

              2,517,750

 

              2,522,870

Total liabilities

 

            22,659,780

 

            22,439,432

 

 

 

 

 

Stockholders’ equity (Note 8)

 

 

 

 

Preferred stock, par value $.001; 150,000,000 shares authorized; no shares issued and outstanding as of March 31, 2026 and December 31, 2025

 

                         -

 

                         -

Common stock, par value $.001; 350,000,000 shares authorized; 16,157,892 and 14,123,497 shares issued and outstanding as of March 31, 2026 and December 31, 2025

 

                  15,626

 

                  13,592

Additional paid-in capital

 

           123,516,208

 

           123,186,921

Accumulated deficit

 

          (102,702,142)

 

           (92,582,928)

Total LM Funding America stockholders’ equity

 

            20,829,692

 

            30,617,585

   Non-controlling interest

 

             (1,737,119)

 

             (1,740,791)

Total stockholders’ equity

 

            19,092,573

 

            28,876,794

Total liabilities and stockholders’ equity

 

 $ 41,752,353

 

 $ 51,316,226

 

 

 

 

 

 

 

 

 

LM FUNDING AMERICA, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

 

 

Three Months ended March 31,

 

 

2026

 

2025

Revenues:

 

 

 

 

Digital mining revenues

 

 $ 1,978,180

 

 $ 2,273,940

Specialty finance revenue

 

                 107,657

 

                  67,389

Rental revenue

 

                  23,130

 

                  30,008

           Total revenues

 

              2,108,967

 

              2,371,337

Operating costs and expenses:

 

 

 

 

Digital mining cost of revenues (exclusive of depreciation and amortization shown below)

 

              1,868,344

 

              1,548,295

Curtailment and energy sales

 

                (367,595)

 

                (149,686)

Staff costs and payroll

 

              1,317,275

 

              1,050,477

Depreciation and amortization

 

                 829,828

 

              2,037,578

Loss on fair value of Bitcoin, net

 

              3,784,418

 

              1,809,976

Professional fees

 

                 345,694

 

                 364,485

Selling, general and administrative

 

                 376,428

 

                 309,964

Real estate management and disposal

 

                  13,375

 

                  36,314

Collection costs

 

                  12,380

 

                  17,352

Settlement costs with associations

 

                         -

 

                    3,693

Loss on disposal of assets

 

                         -

 

                 186,781

Other operating costs

 

                 361,095

 

                 255,948

Total operating costs and expenses

 

              8,541,242

 

              7,471,177

            Operating loss

 

             (6,432,275)

 

             (5,099,840)

Unrealized loss on marketable securities

 

                   (2,380)

 

                   (8,710)

Unrealized gain (loss) on investment and equity securities

 

                  14,024

 

                 (25,984)

Gain on Galaxy loan derivative

 

                  22,374

 

                         -

Loss on fair value of purchased Bitcoin, net

 

                         -

 

                 (52,704)

Loss on fair value of digital assets receivable

 

             (3,178,440)

 

                         -

Change in credit loss reserve on digital assets receivable

 

                    5,794

 

                         -

Interest expense

 

                (545,171)

 

                (220,906)

Interest income

 

                       532

 

                    1,145

Loss before income taxes

 

           (10,115,542)

 

             (5,406,999)

Income tax expense

 

                         -

 

                         -

Net loss

 

 $ (10,115,542)

 

 $ (5,406,999)

Less: loss (gain) attributable to non-controlling interest

 

                   (3,672)

 

                    8,325

Net loss attributable to LM Funding America Inc.

 

 $ (10,119,214)

 

 $ (5,398,674)

 

 

 

 

 

Basic loss per common share (Note 1)

 

 $ (0.47)

 

 $ (1.05)

Diluted loss per common share (Note 1)

 

 $ (0.47)

 

 $ (1.05)

 

 

 

 

 

Weighted average number of common shares outstanding

 

 

 

 

Basic

 

 $ 21,455,856

 

 $ 5,133,412

Diluted

 

            21,455,856

 

              5,133,412

 

 

 

 

 

LM FUNDING AMERICA, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

 

 

Three Months ended March 31,

 

 

2026

 

2025

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

Net loss

 

 $ (10,115,542)

 

 $ (5,406,999)

Adjustments to reconcile net loss to net cash used in operating activities

 

 

 

 

Depreciation and amortization

 

                      829,828

 

                    2,037,578

Noncash lease expense

 

                        57,561

 

                         50,592

Amortization of debt issue costs and debt discount

 

                      286,045

 

                         21,264

Stock option expense

 

                      331,149

 

                       110,805

Accrued interest expense on finance lease

 

                        12,957

 

                         14,710

Loss on fair value of Bitcoin, net

 

                   3,784,418

 

                    1,862,680

Loss on fair value of digital assets receivable

 

                   3,178,440

 

                                -

Unrealized loss on marketable securities

 

                          2,380

 

                           8,710

Gain on Galaxy loan derivative

 

                      (22,374)

 

                                -

Change in credit loss reserve on digital assets receivable

 

                        (5,794)

 

                                -

Unrealized loss (gain) on investment and equity securities

 

                      (14,024)

 

                         25,984

Loss on disposal of fixed assets

 

                                -

 

                       186,781

Write-off of income tax receivable

 

                        31,187

 

                                -

Change in operating assets and liabilities:

 

 

 

 

Prepaid expenses and other assets

 

                      111,323

 

                         96,526

Advances to related party

 

                        16,538

 

                         21,368

Accounts payable and accrued expenses

 

                      229,851

 

                       370,328

Mining of digital assets

 

                 (1,978,180)

 

                  (2,273,940)

Lease liability payments

 

                      (24,296)

 

                       (25,395)

Net cash used in operating activities

 

                 (3,288,533)

 

                  (2,899,008)

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

Net collections of finance receivables - original product

 

                          4,602

 

                              458

Net investment in finance receivables - special product

 

                        (1,089)

 

                         (1,317)

Capital expenditures

 

                    (207,869)

 

                     (170,073)

Collection of note receivable

 

                                -

 

                       200,000

Investment in digital assets - Tether

 

                        (3,198)

 

                       (31,420)

Proceeds from sale of Bitcoin

 

                   3,100,216

 

                    1,204,680

Proceeds from the sale of Tether

 

                          3,174

 

                         27,964

Change in deposits for mining equipment

 

                                -

 

                     (480,176)

 

Distribution to members

 

                                -

 

                         (1,015)

Net cash provided by investing activities

 

                   2,895,836

 

                       749,101

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

Insurance financing repayments

 

                    (230,700)

 

                     (193,090)

Proceeds from warrant exercise, net of issuance costs

 

                             172

 

                                -

Issuance costs

 

                                -

 

                         (6,285)

Net cash used in financing activities

 

                    (230,528)

 

                     (199,375)

NET DECREASE IN CASH

 

                    (623,225)

 

                  (2,349,282)

CASH - BEGINNING OF PERIOD

 

                   1,424,426

 

                    3,378,152

CASH - END OF PERIOD

 

 $ 801,201

 

 $ 1,028,870

 

 

 

 

 

SUPPLEMENTAL DISCLOSURES OF NON-CASH ACTIVITIES

 

 

 

 

Insurance financing

 

 $ -

 

 $ 168,324

Recognition of Galaxy loan derivative

 

 $ 237,487

 

 $ -

Digital assets transferred to digital assets receivable, net

 

 $ 2,375,176

 

 $ -

SUPPLEMENTAL DISCLOSURES OF CASHFLOW INFORMATION

 

 

 

 

Cash paid for taxes

 

 $ -

 

 $ -

Cash paid for interest

 

 $ 210,029

 

 $ 184,932

 

 

 

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 income (loss), which we believe is the most comparable GAAP measure, to EBITDA and Core EBITDA:

 

 

Three Months ended March 31,

 

 

2026

 

2025

 

 

 

 

 

Net loss

 

 $ (10,115,542)

 

 $ (5,406,999)

Income tax expense

 

                                -

 

                         -

Interest expense

 

                        545,171

 

                 220,906

Depreciation and amortization

 

                        829,828

 

              2,037,578

Loss before interest, taxes & depreciation

 

 $ (8,740,543)

 

 $ (3,148,515)

Unrealized loss (gain) on investment and equity securities

 

                         (14,024)

 

                   25,984

Loss on disposal of mining equipment

 

                                -

 

                 186,781

Stock compensation and option expense

 

                        331,149

 

                 110,805

Core loss before interest, taxes & depreciation

 

 $ (8,423,418)

 

 $ (2,824,945)