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FlexShopper Inc (FPAY)
NASDAQ:FPAY
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FlexShopper
(NASDAQ:FPAY)
48Neutral
Positive Factors
Financial Performance
Improving profitability reflects both an improvement in asset quality and a realization of operating leverage as the business scales.
Strategic Growth
The company is expected to make significant progress in growing its B2B offering in 2025, expanding the signed store count by 250.0%.
Negative Factors
Market Valuation
FPAY shares are currently trading at a meaningful discount to peers, with expected revenue and EBITDA growth to outpace peers in 2024 and 2025.
Stock Performance
FPAY shares have declined 31.0% year to date, versus a 14.0% decline in the Russell 2000.
FlexShopper (FPAY) vs. S&P 500 (SPY)
Market Cap
$29.62M
Dividend YieldN/A
Average Volume (3M)54.71K
Price to Earnings (P/E)―
Beta (1Y)0.71
Revenue Growth19.51%
EPS Growth29.43%
CountryUS
Employees204
SectorIndustrials
Sector Strength82
IndustryRental & Leasing Services
Share Statistics
EPS (TTM)N/A
Shares Outstanding21,461,489
10 Day Avg. Volume52,140
30 Day Avg. Volume54,713
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap6.10
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit1.73
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$2.50Price Target Upside81.16% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
FlexShopper Business Overview & Revenue Model
Company DescriptionFlexShopper, Inc. (FPAY) is a financial technology company that operates in the lease-to-own sector, providing consumers with a flexible payment option for purchasing durable goods. The company primarily targets customers with limited access to traditional credit, offering them an online marketplace to shop for various products including electronics, appliances, and furniture. Through its proprietary technology platform, FlexShopper enables consumers to lease products and pay over time, making ownership more accessible to a broader audience.
How the Company Makes MoneyFlexShopper generates revenue primarily through its lease-to-own transactions. The company earns money by purchasing products from retailers and leasing them to consumers under lease agreements that allow customers to pay over time. Revenue is derived from the lease payments made by customers, which include both the cost of the product and a lease fee. Additionally, FlexShopper may charge fees for late payments or early purchase options. The company's technology platform facilitates these transactions, and partnerships with retailers expand its product offerings, contributing to its revenue growth.
FlexShopper Financial Statement Overview
Summary
FlexShopper shows revenue and operational growth, but profitability and cash flow remain challenging due to high leverage and low equity returns.Income Statement
FlexShopper's revenue has shown a positive trend with a substantial increase in the TTM period compared to previous years. The gross profit margin is healthy, indicating efficient management of production costs. However, the net profit margin is weak, and the company has struggled with profitability in past years. The EBIT and EBITDA margins have improved in the TTM period, reflecting better operational performance.65
Positive
Balance Sheet
The balance sheet reflects a high debt-to-equity ratio, highlighting significant leverage and potential risk in financial stability. Stockholders' equity has improved, giving a better equity ratio. However, the return on equity remains low due to past negative net income, suggesting challenges in generating returns from shareholders' investments.55
Neutral
Cash Flow
The cash flow statements indicate negative free cash flow growth, primarily due to high capital expenditure and operational cash outflows. The operating cash flow to net income ratio is unfavorable, highlighting inefficiencies in converting profits to cash. The free cash flow to net income ratio is also weak, indicating cash flow challenges.50
Neutral
| Breakdown | ||||
| Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 116.98M | 113.06M | 125.43M | 102.08M | 88.79M | Gross Profit |
| 104.48M | 109.67M | 46.25M | 35.35M | 28.57M | EBIT |
| 13.69M | -6.30M | 7.36M | 4.63M | 5.10M | EBITDA |
| 13.69M | 71.02M | 90.84M | 4.63M | 5.10M | Net Income Common Stockholders |
| -4.23M | 13.63M | 3.27M | -339.90K | 577.41K |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 4.41M | 6.05M | 5.09M | 8.54M | 6.87M | Total Assets |
| 156.49M | 148.29M | 84.81M | 68.25M | 52.21M | Total Debt |
| 115.57M | 97.74M | 56.81M | 45.98M | 35.79M | Net Debt |
| 111.16M | 91.69M | 51.72M | 37.44M | 28.92M | Total Liabilities |
| 127.26M | 117.25M | 68.67M | 57.10M | 42.25M | Stockholders Equity |
| 29.23M | 31.03M | 16.14M | 11.15M | 9.97M |
| Cash Flow | Free Cash Flow | |||
| -13.00M | -37.74M | -16.21M | -8.31M | -2.71M | Operating Cash Flow |
| -6.66M | -31.24M | -11.26M | -5.21M | -469.46K | Investing Cash Flow |
| -7.56M | -5.20M | -4.95M | -3.10M | -2.24M | Financing Cash Flow |
| 12.47M | 37.52M | 12.76M | 9.98M | 3.44M |
FlexShopper Technical Analysis
Positive
1.38
Price Trends
1.32
Positive
1.46
Negative
1.37
Positive
Market Momentum
0.02
Negative
56.84
Neutral
38.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FPAY, the sentiment is Positive. The current price of 1.38 is above the 20-day moving average (MA) of 1.27, above the 50-day MA of 1.32, and above the 200-day MA of 1.37, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 56.84 is Neutral, neither overbought nor oversold. The STOCH value of 38.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FPAY.
FlexShopper Risk Analysis
FlexShopper disclosed 43 risk factors in its most recent earnings report. FlexShopper reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
FlexShopper Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $4.30B | 11.84 | 5.23% | 249.82% | 4.10% | -10.59% | |
57 Neutral | $27.44M | 5.45 | 3.07% | ― | 3.83% | ― | |
56 Neutral | $21.58M | ― | 9.92% | ― | ― | ― | |
55 Neutral | $26.78M | 191.79 | -4.18% | ― | 2.57% | 83.28% | |
50 Neutral | $29.05M | ― | -4.54% | ― | -7.19% | -24.85% | |
48 Neutral | $29.62M | ― | -4.33% | ― | 19.51% | 29.43% |
* Industrials Sector Average
Performance Comparison
FPAY
FlexShopper
1.38
0.28
25.45%
FTEK
Fuel Tech
0.97
-0.27
-21.77%
SVT
Servotronics
10.48
-1.78
-14.52%
TOPS
Top Ships
5.93
-6.32
-51.59%
SPCB
SuperCom
6.87
3.01
77.98%
FlexShopper Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q3-2024)
| % Change Since: 5.34%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Positive
The earnings call showed strong revenue and EBITDA growth, successful expansion in the B2B channel, and improved asset quality. Despite some concerns over a decline in net loan revenues and a delayed audit, the overall performance and strategic initiatives indicate positive momentum for FlexShopper.Q3-2024 Updates
Positive Updates
Record-Breaking Revenue and Growth
Q3 2024 revenue increased 23% year-over-year to nearly $39 million, with adjusted EBITDA up 45% to more than $12 million, marking a quarterly record.
B2B Channel Expansion
Total lease funding approvals increased 33% to $77 million, with the signed store count growing 250% to approximately 7,800 locations.
Improved Asset Quality
Provision for doubtful accounts decreased from 32.1% to 22.2%, a 990 basis point improvement year-over-year.
Gross Profit and Margin Growth
Gross profit expanded 32.9% year-over-year, with the gross margin increasing to 58% in Q3 2024 from 54% in Q3 2023.
Retail Marketplace Growth
Retail revenue increased from $780,000 in Q1 2024 to $1.2 million in Q3 2024, with plans to expand product offerings and marketing.
Negative Updates
Delayed Audit and Earnings Release
Grant Thornton may need additional time to finalize the audit of the company's Q3 financial results, leading to a potential SEC extension filing.
Decline in Net Loan Revenues
Net loan revenues decreased from $10.3 million last year to $9 million in Q3 2024 due to a bank partner exiting the high APR business.
Company Guidance
During the third quarter of 2024, FlexShopper reported significant growth, with total revenue increasing by 23% to a quarterly record of nearly $39 million. The company's adjusted EBITDA rose by 45% to over $12 million, while net income attributable to common stockholders was $1.2 million, or $0.05 per diluted share. The B2B channel showcased impressive results, with lease funding approvals up 33% to $77 million, and the number of signed store locations increased by approximately 250% to 7,800. In the B2C segment, retail revenue grew from $780,000 in Q1 to $1.2 million in Q3. The provision for doubtful accounts improved significantly, dropping to 22.2% from 32.1% the previous year, contributing to a gross margin expansion to 58%. The company also announced strategic actions, including a proposed rights offering aimed at raising capital to redeem preferred stock at a 50% discount, potentially increasing annual net income to common shareholders by $9 million.FlexShopper Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
FlexShopper Amends Credit Agreement to Boost Capacity
Positive
May 8, 2025
FlexShopper, through its subsidiary FlexShopper 2, LLC, has amended its credit agreement with Powerscourt Investments 50, LP, an affiliate of Waterfall Asset Management, LLC. The amendments, executed on April 9, 2025, and May 1, 2025, increased the commitment amount to $200 million and extended the termination date to April 29, 2028, reflecting an enhanced financial capacity and potential growth in operations.
Spark’s Take on FPAY Stock
According to Spark, TipRanks’ AI Analyst, FPAY is a Neutral.
FlexShopper’s overall stock score of 51 reflects a balance of positive revenue growth and concerns about financial stability due to high leverage and negative cash flows. The earnings call highlights strong strategic progress, yet the negative P/E ratio and absence of dividends weigh on valuation. Technical indicators provide a mixed outlook, suggesting caution with a slight bullish trend in the short term.
To see Spark’s full report on FPAY stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.