LM FUNDING AMERICA, INC. Q4 FY2025 earnings call

Key managerial messages include: In 2025, the company transitioned from building to scaling, with infrastructure achievements like ramping up the Oklahoma site, acquiring the Mississippi site, growing Bitcoin holdings from ~150 to over 356 Bitcoin. In Q4 2025, mined 22 Bitcoin, up from 17.6 in Q3, with the Mississippi facility ramping up and Oklahoma site benefiting from cooler conditions. Operational highlights also include completing relocation of machines, replacing older miners with more efficient ones, acquiring the Mississippi site with favorable power pricing, energizing immersion cooled units in Oklahoma, and seeing improved uptime and production in Q4.

For the fourth quarter of 2025, total revenue was $2.4 million, up 19% year over year and 8.7% sequentially. The sequential increase was due to higher Bitcoin production of 22 Bitcoin in Q4 versus 17.6 Bitcoin in Q3. For the full year 2025, total revenue was approximately $8.8 million and approximately 82.3 bitcoin were mined. Revenue contribution is primarily from Bitcoin mining operations.

Management's forward-looking guidance includes focusing on 2026 to grow production, improve efficiency, and increase Bitcoin per share. Tracking toward record monthly production in early 2026, with February 2026 being the highest production month in company history. Evaluating accretive M&A opportunities in the 5 to 20 megawatt range, similar to the Mississippi acquisition approach.

Risks discussed include that the remarks may include forward-looking statements subject to risks and uncertainties where actual results may differ materially. Also, reference to certain non-GAAP financial measures with need to refer to 10-K filing for reconciliation, and risks detailed in filings with the SEC and investor section of the website.

Q: Maybe firstly, will it take time to optimize production from the immersion cooled units, or are you kind of just right out of the gate where you want to be?

A: Yeah, so we, right out of the gate, we're maxed out our two foghash containers with S21 immersion miners that are the best we could get. So I guess in that context, yes, we are maxed out at roughly that 35 petahash per container as of right now and what's available on the market.

Q: As far as your pipeline for new site acquisition versus existing site expansion, can you maybe just go through how those two buckets look?

A: Yeah, so we're always on the hunt. We're always looking, keeping our finger on the pulse of what's out there. We are looking, as we've always maintained, in that less than 20 megawatt range at ideally a power price in that 3.5 to 4.5 cent range. And that's what we target, whether it be existing sites or greenfields. And also, we have... We also do, our main focus as of right now, I'd say the easiest thing to point to is the additional little over three megawatts that we have available at our current Mississippi site to continue building out.

Q: Maybe just reiterate how you know, you think about funding new site acquisition and minor acquisition and, you know, how your current discount to NAV might influence how you think about, you know, capital spending and site acquisition and, you know, hash rate expansion.

A: That's a good question, Matt. It's, You got the same answer, but a moving target. You have to look at the dollar, and then we look at projecting out as to where we want to be in terms of acquiring Bitcoin and holding Bitcoin when Bitcoin realizes price. So we put targets based on projections of where Bitcoin will be, and then we sort of back into it. We're currently trading Bitcoin outside of the range where our forecasts were, so it makes some of our thinking more difficult in the moment than using the long-range discipline. But it really boils down to, if you spend a dollar today, how much will it increase our Bitcoin holdings five years from now or three years from now? And that leans heavily towards both increasing the treasury and increasing the miners at this price point. And then some of the mining opportunities are just timing-based, so you have to take the opportunity when it's there and make it foot towards your future growth developments. It's always a challenge, and there's really no formula to it.