Flexshopper Stock Price, News & Analysis

FlexShopper (NASDAQ: FPAY) announced a strategic partnership with ICON Vehicle Dynamics to provide lease-to-own (LTO) financing for premium off-road vehicle upgrades. The partnership allows ICON's customers to access high-quality performance parts with flexible weekly payments and no credit requirements. However, the company is facing significant regulatory challenges as it received a Nasdaq notice of non-compliance due to delayed SEC filings, including its 2024 Form 10-K and Q1 2025 Form 10-Q. FlexShopper must submit a compliance plan by June 16, 2025, and if accepted, may receive up to 180 days (until October 13, 2025) to regain compliance. If Nasdaq rejects the plan, the company can appeal to a Nasdaq Hearings Panel.

FlexShopper (FPAY) reported strong financial results for Q4 and full-year 2024, with annual revenue increasing 19.5% to $139.8 million. Operating income rose 66% to $22.8 million, while adjusted EBITDA grew 43.1% to $33.3 million.

Key highlights include:

• Q4 total revenues up 17.3% to $35.5 million
• Gross profit margin improved from 47% to 55% annually
• LTO offerings expanded to 7,900 locations (250% increase)
• Total lease funding approvals increased 79.3% to $382.8 million

For 2025, FlexShopper projects gross profit between $90-100 million (17-30% increase) and adjusted EBITDA of $40-45 million (20-35% increase). The company is currently working with Grant Thornton LLP to finalize audit review and received a Nasdaq compliance notification regarding delayed 10-K filing.

FlexShopper (FPAY) reported strong operating results for January 2025, with total new customer applications increasing 130% year-over-year and total originations up 44% compared to January 2024. The company achieved its highest level of January lease originations in 4 years, with marketplace originations up 93% year-over-year.

Key performance indicators showed significant improvements, including a 105% increase in FlexShopper.com gross margin dollars, a 34% reduction in marketplace marketing cost per new customer, and stable asset quality. The B2B partnership saw substantial growth with application volume up 279% year-over-year, while marketplace application volume increased 58%. The Revolution Loan business recorded its 5th consecutive month of growth, with new customer originations up 88% year-over-year.

FlexShopper (Nasdaq: FPAY) provided an update on its rights offering, announcing the completion of its initial unit subscription that raised approximately $12 million, including $9.4 million in gross proceeds and $2.5 million from debt conversion with NRNS Capital Holdings. The proceeds were used to reduce borrowings under the company's credit agreement with Waterfall Asset Management.

The company estimates the initial unit subscription would have been approximately 15% accretive to pro-forma earnings per share for Q3 2024. Shareholders who participated in the unit subscription closing on January 10, 2025, can now participate in Series A, B, and C rights, with respective expiration dates of February 15, March 17, and April 16, 2025. Exercise prices start at $1.70 with varying VWAP calculations and maximum caps ranging from $2.55 to $4.25.

FlexShopper Inc. (Nasdaq: FPAY) announced the appointment of Patrick McCrory as an independent board member and the retirement of T. Scott King from the Board of Directors effective January 20. McCrory, who served as the 74th governor of North Carolina (2013-2017) and as Charlotte's longest-serving mayor (1995-2009), brings extensive leadership and public policy experience.

McCrory's background includes serving on the U.S. Homeland Security Advisory Council (2002-2006), chairing various U.S. Conference of Mayors committees, and holding senior executive positions at Duke Energy (1978-2008). He previously served on the boards of Kewaunee Scientific and LendingTree, and was Senior Director of Strategic Initiatives at Moore & Van Allen PLLC (2009-2012).

FlexShopper (Nasdaq: FPAY), a leading national online lease-to-own retailer and payment solutions provider, has announced its participation in the upcoming Sidoti Micro-Cap Virtual Conference. CEO Russ Heiser and COO John Davis will be presenting and conducting one-on-one meetings during the conference on January 22-23, 2025.

The company's presentation is scheduled for Thursday, January 23, 2025, at 9:15 AM ET. The event will include a live presentation and Q&A session, accessible through a webcast link. Registration for the conference is complimentary and open to all interested participants, regardless of Sidoti client status.

FlexShopper (NASDAQ: FPAY) has announced preliminary results of its unit rights offering, which expired on January 10, 2025. The company raised approximately $9.4 million in gross proceeds through the initial subscription rights exercise, with units sold at $1.70 (15% discount to 3-day VWAP). About 5,547,993 subscription rights were exercised, representing approximately 21% of the company's common stock.

Additionally, NRNS Capital Holdings has elected to convert $2.5 million of its $10.75 million subordinated debt into equity through the Rights Offering, reducing the proforma outstanding balance to $8.25 million and saving approximately $0.5 million in annual interest expense.

The company has an additional 21 million rights that can be exercised over the next 90 days at 30-day intervals. Similar participation levels in the Series A, B, and C rights could raise approximately $48 million, potentially saving $8.5 million in annual dividend and interest expense. Proceeds will be used to repurchase over 90% of Series 2 Convertible Preferred Stock and repay portions of credit facilities.

FlexShopper (FPAY) reported strong operating results for Q4 2024 and the holiday season, marking significant growth across key metrics. December 2024 saw record lease originations, up 35% year-over-year, with marketplace originations increasing 42%. The company achieved record new customer application volume, up 45% year-over-year, while reducing marketplace marketing costs per new customer by 40%.

Notable Q4 2024 achievements include a 58% increase in total lease originations compared to Q3 2024, and a 152% rise in flexshopper.com marketplace originations. The retail product margin reached a record $1.4 million in December, representing a 34% year-over-year increase. The Revolution Loan business showed strong performance with a 95% year-over-year increase in new customer originations.

Asset quality improved with 12 consecutive months of enhanced cumulative payment rates. The company expects these strong origination trends to support continued growth in revenue and profitability throughout 2025.

FlexShopper (FPAY) has successfully expanded its lease-to-own (LTO) payment solutions to over 100 Jiffy Lube and Meineke Car Care Center locations, with plans to add 75-100 additional stores within the next 60 days. The expansion comes through a strategic partnership with PayTomorrow, scaling from just 8 stores initially. The company aims to tap into approximately 2,100 franchise locations between both brands.

The implementation supports the owner/operator model of franchisees, helping optimize sales and profitability. This expansion adds to FlexShopper's existing network of over 2,000 tire and automotive locations with other national retailers, with a near-term pipeline of over 2,000 additional tire and auto retail locations.