LM Funding America (NASDAQ:PWCM) Announces Quarterly Earnings Results

LM Funding America (NASDAQ:PWCM) issued its quarterly earnings data on Friday. The financial services provider reported $0.20 EPS for the quarter, FiscalAI reports. The business had revenue of $1.89 million for the quarter. LM Funding America had a negative net margin of 413.92% and a negative return on equity of 132.69%.

Here are the key takeaways from LM Funding America’s conference call:

• PowerCompute mined 23.9 Bitcoin, up 36% year over year, while mining margin after curtailment and energy sales rose to 50.7% from 29% in the prior quarter. Management put energy cost per Bitcoin at about $35,000, compared with average Bitcoin revenue of about $71,000.
• The company paid cash for 600 replacement miners, which it expects to deploy by mid-December and add about 10% to hash rate without increasing power capacity. It also reduced secured debt by about 94% since June, holds no Bitcoin pledged, and extended its remaining secured note’s maturity to December 2027.
• Third-quarter revenue fell 13.3% year over year to about $1.9 million as the average value of mined Bitcoin declined 37.5%, despite higher production. The reported $400,000 net income included significant, nonrecurring fair-value effects tied to the repaid Arch facility; the company also disclosed substantial doubt about its ability to continue as a going concern.
• PowerCompute said early GPU-hosting utilization and demand on Vast.ai exceeded expectations, but described its HPC business as being at an early stage and gave no quantitative results. Management is still evaluating whether future capital and power should go to Bitcoin mining or HPC.

LM Funding America Price Performance

NASDAQ PWCM traded up $0.02 during trading hours on Friday, reaching $0.50. The company’s stock had a trading volume of 176,414 shares, compared to its average volume of 97,443. The firm has a market capitalization of $889,809.00, a price-to-earnings ratio of -0.01 and a beta of 2.17. LM Funding America has a 1-year low of $0.43 and a 1-year high of $25.25. The company has a debt-to-equity ratio of 0.13, a current ratio of 0.99 and a quick ratio of 0.99. The company’s 50-day moving average is $0.82 and its two-hundred day moving average is $4.42.

Analysts Set New Price Targets

Several equities analysts recently issued reports on PWCM shares. Wall Street Zen cut shares of LM Funding America to a “strong sell” rating in a research note on Tuesday, August 25th. Weiss Ratings reissued a “sell (e+)” rating on shares of LM Funding America in a report on Monday, September 21st. One equities research analyst has rated the stock with a Sell rating. Based on data from MarketBeat.com, the stock has an average rating of “Sell”.

About LM Funding America

LM Funding America, Inc. is a specialty finance company that provides funding solutions to nonprofit community associations in the United States. Its core business involves advancing funds against delinquent association assessments, helping community associations maintain cash flow while pursuing collection of unpaid amounts from property owners. The company has offered several assessment-receivable funding programs, including traditional and cooperative arrangements. These programs are designed to provide associations with an alternative to waiting for delinquent assessments to be collected and may include services related to receivables management and collection support.