Company Performance - FlexShopper Inc. (FPAY) has seen a stock increase of 5.4% over the past month, reaching a new 52-week high of $2.3 [1] - The stock has gained 25.7% since the beginning of the year, outperforming the Zacks Finance sector's 21.3% and the Zacks Financial - Miscellaneous Services industry's 15.8% [1] Earnings and Forecast - FlexShopper has a strong record of positive earnings surprises, not missing earnings consensus estimates in the last four quarters [2] - In the latest earnings report on November 14, 2024, FlexShopper reported EPS of $0.05, exceeding the consensus estimate of $0.02 [2] - For the current fiscal year, FlexShopper is expected to post earnings of $0.39 per share on revenues of $146.85 million [2] Valuation Metrics - FlexShopper currently trades at 5.5X current fiscal year EPS estimates, below the peer industry average of 10.3X [6] - On a trailing cash flow basis, the stock trades at 0.8X compared to its peer group's average of 9.3X [6] Zacks Rank and Style Scores - FlexShopper holds a Zacks Rank of 2 (Buy) due to rising earnings estimates [7] - The company has a Value Score of A, a Growth Score of D, and a Momentum Score of B, resulting in a combined VGM Score of B [5][7] Industry Comparison - The Financial - Miscellaneous Services industry is in the top 21% of all industries, indicating favorable conditions for both FPAY and its peers [10] - StoneX Group Inc. (SNEX), a peer, has a Zacks Rank of 1 (Strong Buy) and is expected to post earnings of $8.04 per share on revenues of $3.39 billion for the current fiscal year [8][9]

Group 1: Momentum Investing Overview - Momentum investing deviates from the traditional strategy of "buying low and selling high," focusing instead on "buying high and selling higher" to achieve quicker profits [1] - Fast-moving trending stocks can be challenging to enter at the right time, as they may lose momentum if future growth does not justify their inflated valuations [2] Group 2: Investment Strategy and Stock Selection - Investing in bargain stocks that have recently shown price momentum can be a safer approach, with tools like the Zacks Momentum Style Score aiding in identifying such stocks [3] - FlexShopper Inc. (FPAY) is highlighted as a strong candidate, showing a four-week price change of 5.4% and a significant 66.7% gain over the past 12 weeks [4][5] Group 3: Performance Metrics and Valuation - FPAY has a beta of 1.43, indicating it moves 43% more than the market, suggesting strong momentum [5] - The stock has a Momentum Score of B, indicating a favorable time to invest, and it has a Zacks Rank 2 (Buy) due to positive earnings estimate revisions [6][7] - FPAY is trading at a Price-to-Sales ratio of 0.34, suggesting it is undervalued, as investors pay only 34 cents for each dollar of sales [7] Group 4: Additional Investment Opportunities - Besides FPAY, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - The Zacks Premium Screens offer over 45 different strategies to help identify potential winning stocks based on various investing styles [9]

Positive momentum remained strong for the month of December with record application volume, record lease and loan originations and record retail product margin Operating metrics substantially better than the results in the third quarter of 2024 and the fourth quarter of 2023, which produced prior record financial results for those respective periods BOCA RATON, Fla., Jan. 06, 2025 (GLOBE NEWSWIRE) -- FlexShopper, Inc. (Nasdaq: FPAY), a prominent national online lease-to-own retailer and payment solutions pr ...

BOCA RATON, Fla., Dec. 30, 2024 (GLOBE NEWSWIRE) -- FlexShopper, Inc. (NASDAQ:FPAY), a leading provider of lease-to-own (LTO) payment solutions, today announced the successful expansion of its services to new franchisees of Jiffy Lube and Meineke Car Care Centers through a strategic partnership with PayTomorrow, a leading provider of financing technology solutions. This collaboration supports the owner/operator model embraced by franchisees, optimizing sales and profitability across their locations. "The po ...

BOCA RATON, Fla., Dec. 16, 2024 (GLOBE NEWSWIRE) -- FlexShopper (NASDAQ:FPAY), a leading provider of lease-to-own payment solutions, is pleased to announce a new partnership with Tire Agent. Tire Agent currently originates over $100 million in lease-to-own transactions annually and is a two-time honoree on the Inc. 5000 list of the fastest-growing companies in 2023 and 2024. This new collaboration integrates FlexShopper's payment solutions directly onto Tire Agent's website and establishes Tire Agent as the ...

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" to maximize returns in a shorter time frame [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point, as stocks may lose momentum when their valuations exceed future growth potential [2] - Investing in bargain stocks that exhibit recent price momentum can be a safer strategy, utilizing tools like the Zacks Momentum Style Score to identify promising stocks [3] Group 2: FlexShopper Inc. (FPAY) Analysis - FlexShopper Inc. (FPAY) has shown significant price momentum, with a four-week price change of 66.4%, indicating growing investor interest [4] - FPAY has gained 91.1% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer time frame [5] - The stock has a beta of 1.43, suggesting it moves 43% more than the market in either direction, indicating fast-paced momentum [5] - FPAY holds a Momentum Score of B, suggesting it is an opportune time to invest in the stock [6] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investors [7] - FPAY is trading at a Price-to-Sales ratio of 0.31, indicating it is reasonably valued at 31 cents for each dollar of sales, providing room for growth [7] Group 3: Additional Investment Opportunities - Besides FPAY, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - The Zacks Premium Screens offer over 45 strategically created options to help investors find winning stock picks based on their investing style [9]

BOCA RATON, Fla., Dec. 04, 2024 (GLOBE NEWSWIRE) -- FlexShopper Inc. (Nasdaq: FPAY), a leading national lease-to-own (LTO) retailer and payment solutions provider, is excited to announce an exclusive strategic partnership with United Wheels Inc., a global holding company for a portfolio of outdoor brands, including Huffy, Niner Bikes, Batch Bicycles, VAAST Bikes, and Buzz E-Bikes. This partnership is made possible through FlexShopper’s growing relationship with PayPossible, a premier financing waterfall pla ...

BOCA RATON, Fla., Nov. 27, 2024 (GLOBE NEWSWIRE) -- FlexShopper, Inc. (Nasdaq: FPAY) (the “Corporation”) announced today the tentative calendar for its previously proposed rights offering (“Rights Offering”). The Corporation is planning to commence the Rights Offering to raise capital to equitize its balance sheet through funding the repurchase of over 90% of its Series 2 Convertible Preferred Stock, by repaying a portion of its credit facility and other outstanding debt facilities, and for other corporate ...

Financial Performance - Total revenue for Q3 2024 reached $38.6 million, a 22.9% increase from $31.4 million in Q3 2023[4] - Adjusted EBITDA for Q3 2024 increased by 45% year-over-year to a record $12.2 million, up from $8.4 million[4] - Gross profit for Q3 2024 increased 32.9% to $22.5 million, with a gross profit margin of 58%, up from 54%[4] - Operating income for Q3 2024 was $9.6 million, compared to $6.0 million in Q3 2023[4] - Total revenues for the nine months ended September 30, 2024, increased by 20.3% to $104.3 million from $86.7 million in the same period of 2023[4] - Net income for the nine months ended September 30, 2024, was $549,147, a significant improvement compared to a net loss of $4.6 million in the same period of 2023[17] - Total revenues for the three months ended September 30, 2024, reached $38,588,501, a 22.9% increase from $31,386,446 in Q3 2023[20] - Adjusted EBITDA for Q3 2024 was $12,150,771, representing a 44.9% increase from $8,388,467 in Q3 2023[20] - For the nine months ended September 30, 2024, total revenues were $104,292,258, up 20.3% from $86,704,258 in the same period of 2023[22] - Net income for the nine months ended September 30, 2024, was $549,147, a significant turnaround from a loss of $4,587,769 in the same period of 2023[22] Asset and Liability Management - Total current assets increased to $149.3 million as of September 30, 2024, up from $117.4 million at December 31, 2023, representing a growth of 27.1%[14] - Total liabilities increased to $157.5 million as of September 30, 2024, from $127.3 million at December 31, 2023, marking a rise of 23.7%[14] - Total stockholders' equity increased to $29.8 million as of September 30, 2024, compared to $29.2 million at December 31, 2023, indicating a growth of 1.9%[14] Cash Flow and Financing - Cash flow from operating activities showed a net cash outflow of $23.8 million for the nine months ended September 30, 2024, compared to a cash inflow of $2.6 million in 2023[17] - Cash at the end of the period increased to $7.3 million as of September 30, 2024, compared to $5.7 million at the end of September 2023, reflecting a year-over-year increase of 27.7%[17] - Proceeds from loans payable under credit agreements amounted to $34.96 million in 2024, a substantial increase from $7.8 million in 2023[17] - Interest paid for the nine months ended September 30, 2024, was $14.76 million, compared to $12.81 million in the same period of 2023, reflecting an increase of 15.2%[17] Operational Metrics - The provision for doubtful accounts as a percentage of gross lease billings improved by 1,000 basis points to 22% in Q3 2024 compared to the prior year[3] - Total lease funding approvals surged 111.2% to $122.2 million in Q3 2024, up from $57.9 million in Q3 2023[4] - Gross lease billings and fees for Q3 2024 increased to $36,381,080, up 16.4% from $31,266,666 in Q3 2023[20] - Net lease billing and fees rose to $28,364,190, reflecting a 34.5% increase compared to $21,082,199 in the same quarter last year[20] - Retail revenues for Q3 2024 were $1,177,146, marking the first reporting of this revenue stream[20] - Loan revenues and fees for the nine months ended September 30, 2024, decreased by 27.4% to $8,527,443 from $11,742,778 in the same period of 2023[22] Strategic Initiatives - The company expanded its signed store count to over 7,800 retail locations, a nearly 250% increase since the beginning of 2024[3] - The company is pursuing a rights offering to reduce its cost of capital and plans to redeem 91% of its Series 2 Preferred Stock at a discount of over 50% to its liquidation preference[3] Depreciation and Impairment - The company reported depreciation and impairment of lease merchandise at $43.02 million for the nine months ended September 30, 2024, slightly up from $42.89 million in 2023[17] Provision for Doubtful Accounts - Provision for doubtful accounts decreased by 21.0% to $(25,373,485) in the nine months ended September 30, 2024, from $(32,123,950) in 2023[22]

Financial Data and Key Metrics - Total revenue increased 23% to a quarterly record of nearly $39 million [11] - Adjusted EBITDA increased by 45% to a quarterly record of more than $12 million [11] - Net income attributable to common stockholders was $1.2 million or $0.05 per diluted share [11] - Gross profit expanded 32.9% year-over-year, producing a 58% gross margin in Q3 2024 compared to 54% in Q3 2023 [34] - Adjusted EBITDA margin was 31.5% compared to 26.7% for the same period last year [48] Business Line Data and Key Metrics - B2B channel lease funding approvals increased 33% during the third quarter to $77 million [11] - Signed store count increased nearly 250% from approximately 2,300 retail locations at the end of 2023 to approximately 7,800 locations [11] - B2C marketplace retail revenue increased from $780,000 for the quarter ended March 31, 2024 to $1.2 million for the quarter ended September 30, 2024 [14] - Total lease funding approvals were 33% higher at $77 million in Q3 of 2024, versus $57.9 million in Q3 of 2023 [42] Market Data and Key Metrics - The company has announced new partnerships with leading payment platforms, including Pay Tomorrow, Taris Finance, Versatile Credit, and Pay Possible [11] - The company has also announced retail partnerships with RANDYS Worldwide and Monro [11] - The company has a strong pipeline of potential payment and retail partners and expects to announce new partners in the coming months [12] Company Strategy and Industry Competition - The company is focused on pursuing proactive growth strategies within its B2C and B2B channels [11] - The company has invested in enhancing its internal underwriting, collections, and account servicing capabilities [11] - The company has filed patent infringement lawsuits against competitors Upbound and Katapult to protect its online LTO technology [20][21] - The company plans to expand its marketing spend to drive traffic and increase conversion on its B2C marketplace [15] Management Commentary on Operating Environment and Future Outlook - The company believes 2024 is shaping up to be a transformative year as its growth strategies take hold [9] - The company expects retail revenue to continue increasing over the coming quarters [15] - The company is optimistic about the direction of its business and the opportunities to create significant value for shareholders in 2025 and beyond [26] - The company plans to introduce AI-driven automation in collector servicing capabilities in 2025 [64] Other Important Information - The company has the opportunity to redeem 91% of its Series 2 Preferred Stock at a greater than 50% discount to its liquidation value of $44 million [22] - The redemption of the Series 2 Preferred Stock will be highly accretive to earnings and will contribute over $4 million to annual operating income [24] - The company has filed an S-1 registration statement with the SEC for a proposed rights offering to purchase up to 35 million units [54] Q&A Session Summary Question: Improvement in Payment Performance - The improvement in payment performance is driven by improved underwriting and fraud evaluation, quality of the customer, and servicing capabilities [62][63][64] Question: B2B Business Rollout Time - The rollout time for new locations typically takes six to nine months, with some variability due to seasonality and retailer adoption [66][67][68] Question: Revenue Mix Shift in Q4 - The fourth quarter typically sees a higher retail component, but many originations during the holiday season will not be fully represented until Q1 of the next year [69] Question: Gross Margin Benchmark - The company does not anticipate further significant reductions in bad debt but expects continued contribution from retail margin and top-line growth [71][72][73] Question: Retail Pipeline Acceleration - The acceleration in the retail pipeline is due to successful partnerships and the potential for more large deals in the future [81][82] Question: Debt Reduction and Net Income Utilization - The company plans to focus on deleveraging, growing the business, and lowering the cost of capital, with potential to transition to lower-cost debt capital as net income increases [84][85][86] Closing Remarks - The company looks forward to communicating its holiday season results on the next call [90]