Flexshopper Stock Price, News & Analysis

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.

FlexShopper (FPAY) reported record initial holiday season results for October and November 2024, with lease gross revenue up 15% and lease net revenue increasing over 25% compared to the same period in 2023. The company experienced a 51% increase in lease gross profit while reducing lease marketing expenses by over 40%. Bad debt expense declined by 600 basis points, and new loan originations grew by 34%.

The company's success is attributed to its direct-to-consumer and business-to-business growth strategies. From January to November 2024, FlexShopper expanded to over 5,600 retail locations and added 12+ new eCommerce websites. In Q3 2024, total revenue increased 23% to $38.6 million, with Adjusted EBITDA growing 45% to $12.2 million, and net income reaching $1.2 million ($0.05 per diluted share).

FlexShopper (FPAY) has extended its rights offering expiration date to January 10, 2025, citing market disruption, budget deadlines, and Canadian postal strike delays. The offering allows stockholders of record as of December 2, 2024, to purchase up to 35 million units at $1.70 per unit. Each unit includes one common stock share plus Series A, B, and C rights for additional stock purchases at discounted market prices.

The offering provides two non-transferable subscription rights per share owned, with an over-subscription privilege for those who exercise all basic rights. Series A, B, and C rights expire 30, 60, and 90 days after the subscription offering closes. Moody Capital Solutions serves as dealer-manager, offering broker-dealers a $0.051 per unit fee and 3% on Series A, B, and C rights exercises.

FlexShopper (NASDAQ: FPAY) reminds right holders about upcoming deadlines for their rights offering subscription process. While the offering expires on December 20, 2024, many broker-dealers require submissions by December 18, 2024. The company aims to raise capital by offering up to 35,000,000 units at $1.70 per unit to stockholders of record as of December 2, 2024.

Each unit includes one common stock share and Series A, B, and C rights for additional shares at discounted market-based prices. The offering includes an over-subscription privilege for those who exercise all basic subscription rights. Officers and directors have indicated intentions to purchase at least $5.0 million in units. The capital raised will be used to repurchase over 90% of Series 2 Convertible Preferred Stock, repay credit facilities, and fund general corporate purposes including potential acquisitions.

FlexShopper (FPAY) has received coverage initiation from Argus Research, highlighting the company's position as a leader in LTO financing for nonprime consumers. The company achieved positive net income in Q3 2024 under new leadership and has shown significant improvements in loan quality, with bad debt declining by nearly 1000 basis points year over year.

Key developments include expansion of retail partnerships to approximately 7,800 locations (250% increase from 2023), an option to purchase 91% of Series 2 preferred stock at over 50% discount, and a rights offering of up to 70 million shares at $1.70 per share. The company has also filed patent infringement lawsuits against competitors. Argus Research sets a fair value of $5.50 per share based on EV/EBITDA analysis.

FlexShopper (NASDAQ: FPAY) has announced a strategic partnership with Tire Agent, a company that originates over $100 million in lease-to-own transactions annually. The collaboration integrates FlexShopper's payment solutions on Tire Agent's website and establishes Tire Agent as the preferred online tire retailer on the FlexShopper marketplace.

The partnership launches flexshopper.tireagent.com, combining Tire Agent's tire inventory with FlexShopper's flexible payment options. The initiative targets near-prime credit consumers who may not qualify for traditional financing. Customers can access FlexShopper's payment option through PayPair at checkout, enabling them to spread payments over time without traditional credit approvals.

FlexShopper (Nasdaq: FPAY) has announced an exclusive strategic partnership with United Wheels, a global holding company managing bicycle brands including Huffy, Niner Bikes, Batch Bicycles, VAAST Bikes, and Buzz E-Bikes. The partnership, facilitated through PayPossible's financing platform, will integrate FlexShopper's lease-to-own (LTO) financing options across United Wheels' websites.

United Wheels ships over 5 million bicycles annually to more than 50 countries, generating approximately $1 billion in revenue yearly. FlexShopper has observed that offering LTO options increases sales by more than 10% for retailers. The partnership aims to drive higher online sales while providing consumers with flexible financing options, and FlexShopper will add United Wheels' entire product range to its LTO marketplace.

FlexShopper (FPAY) has announced details for its proposed rights offering, setting December 2, 2024, as the record date. The offering will distribute two non-transferable subscription rights per common share, allowing holders to purchase units at $1.70 each. Each unit includes one common share and Series A, B, and C rights for additional share purchases. The offering aims to raise capital to repurchase over 90% of Series 2 Convertible Preferred Stock, repay credit facilities, and fund potential acquisitions. NRNS Capital Holdings may purchase up to $10.6 million in units, while officers and directors have indicated intentions to purchase at least $5.0 million worth.

FlexShopper (FPAY) reported strong Q3 2024 financial results, with total revenue reaching a record $38.6 million, up 22.9% year-over-year. The company achieved significant improvements in profitability with net income of $1.2 million ($0.05 per diluted share) and Adjusted EBITDA increasing 45% to $12.2 million. Gross profit rose 32.9% to $22.5 million, with margins expanding 400 basis points to 58%. The company expanded its retail presence to over 7,800 locations, representing a 250% increase since early 2024. The provision for doubtful accounts improved by 1,000 basis points to 22% of gross lease billings.