FlexShopper (FPAYQ) AI Stock Analysis

FlexShopper

(Other OTC:FPAYQ)

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Rating:44Neutral

Price Target:$0.01▲(0.00% Upside)

Action:reiterated

Date:12/09/25

FlexShopper's overall stock score of 44 reflects major concerns in financial performance, driven by poor profitability, high debt, and negative cash flows, alongside negative corporate events like delisting risks and leadership turmoil. While revenue growth offers some upside, these critical risks dominate the outlook.

Positive Factors

Revenue GrowthThe company's ability to increase revenue suggests strong demand for its lease-to-own solutions, which can support long-term business expansion.

Negative Factors

Leadership InstabilityFrequent leadership changes can disrupt strategic direction and operational stability, impacting long-term company performance.

FlexShopper Business Overview & Revenue Model

Company Description

FlexShopper, Inc., a financial technology company, operates an e-commerce marketplace to shop electronics, home furnishings, and other durable goods on a lease-to-own (LTO) basis. The company offers consumer electronics; home appliances; computers, s...

How the Company Makes Money

FlexShopper generates revenue primarily through fees associated with its lease-to-own agreements. The company charges consumers a lease payment that includes a markup over the cost of the product, which may consist of an initial payment, monthly paym...

FlexShopper Earnings Call Summary

Earnings Call Date:Nov 13, 2024(Q3-2024)|Next Earnings Date:May 10, 2023

Earnings Call SentimentPositive

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.

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.

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.

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 Financial Statement Overview

Summary

FlexShopper's financial performance is mixed. Strong revenue growth of 19.5% and a high gross profit margin of 97.6% are positive, but near-zero net profit margin (-0.1%), high debt-to-equity ratio (4.93), and negative free cash flow (-$43.5M) highlight significant risks to profitability and liquidity.

Income Statement

65Positive

Balance Sheet

40Negative

Cash Flow

30Negative

Financial statement breakdown
Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Dec 2021	Dec 2020
Income Statement
Total Revenue	139.80M	139.80M	116.98M	113.06M	125.43M	102.08M
Gross Profit	136.42M	136.42M	104.48M	109.67M	46.25M	35.35M
EBITDA	64.95M	32.39M	21.57M	1.85M	12.71M	72.05M
Net Income	-1.35M	-179.27K	-4.23M	13.63M	3.27M	-339.90K
Balance Sheet
Total Assets	209.51M	209.51M	156.49M	148.29M	84.81M	68.25M
Cash, Cash Equivalents and Short-Term Investments	10.40M	10.40M	4.41M	6.05M	4.99M	8.54M
Total Debt	163.35M	163.34M	115.57M	97.74M	56.81M	45.98M
Total Liabilities	176.36M	176.36M	127.26M	117.25M	68.67M	57.10M
Stockholders Equity	33.15M	33.15M	29.23M	31.03M	16.14M	11.15M
Cash Flow
Free Cash Flow	-42.58M	-43.45M	-13.00M	-37.74M	-16.21M	-8.31M
Operating Cash Flow	-34.95M	-34.95M	-6.66M	-31.24M	-11.26M	-5.21M
Investing Cash Flow	-9.15M	-9.15M	-7.56M	-5.20M	-4.95M	-3.10M
Financing Cash Flow	50.09M	50.09M	12.47M	37.52M	12.76M	9.98M

FlexShopper Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

FPAYQ against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SEZL	76Outperform	$4.56B	28.27	85.55%	―	43.06%	53.71%
OPFI	74Outperform	$478.87M	2.44	38.14%	―	5.58%	―
ENVA	71Outperform	$4.26B	11.32	26.36%	―	20.08%	33.74%
OMF	67Neutral	$6.51B	8.59	22.64%	7.43%	6.46%	11.49%
OPRT	65Neutral	$454.81M	24.73	4.95%	―	-2.34%	―
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
FPAYQ	44Neutral	$21	0.00	-0.57%	―	―	―

* Industrials Sector Average

Performance Comparison

FPAYQ and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
OMF	OneMain Holdings, Inc.	56.55	-0.60	-1.05%
ENVA	Enova International Inc.	174.09	51.66	42.20%
OPRT	Oportun Financial Corp.	9.89	4.53	84.51%
OPFI	Oppfi Inc	5.62	-4.43	-44.08%
SEZL	Sezzle Inc.	134.85	70.76	110.41%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.

Date of analysis: Dec 09, 2025

FlexShopper AI Stock Analysis