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 ...

An intriguing microcap currently undergoing a capital structure transformation, FlexShopper (NASDAQ: FPAY ) is the subject of my piece today. The business primarily offers loans to consumers to buy home furnishings, electronics, and appliances, but also has a marketplace they operate and a Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call optio ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ Commission file number: 001-37945 FLEXSHOPPER, INC. (Exact name of registrant as specified in its charter) 20-5456087 Delaware | --- | --- | |------- ...

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]

Core Viewpoint - FlexShopper Inc. reported quarterly earnings of $0.05 per share, exceeding the Zacks Consensus Estimate of $0.02 per share, and showing a significant improvement from a loss of $0.01 per share a year ago, indicating a strong earnings surprise of 150% [1] Financial Performance - The company achieved revenues of $38.59 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 2.33% and reflecting a year-over-year increase from $31.39 million [2] - Over the last four quarters, FlexShopper has consistently exceeded consensus EPS estimates [2] Stock Performance - FlexShopper shares have declined approximately 23.1% since the beginning of the year, contrasting with the S&P 500's gain of 25.5% [3] - The current Zacks Rank for FlexShopper is 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $0.04 on revenues of $49.01 million, while for the current fiscal year, the estimate is -$0.12 on revenues of $152.42 million [7] - The trend of estimate revisions for FlexShopper is currently mixed, which may change following the recent earnings report [6] Industry Context - The Financial - Miscellaneous Services industry, to which FlexShopper belongs, is currently ranked in the top 28% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

BOCA RATON, Fla., Nov. 11, 2024 (GLOBE NEWSWIRE) -- FlexShopper, Inc. (Nasdaq: FPAY) (“FlexShopper”), a leading national online lease-to-own (“LTO”) retailer and payment solution provider for underserved consumers, announced today that it intends to release its financial results for its third quarter ended September 30, 2024, after the market closes on Wednesday, November 13, 2024. The Company intends to hold a conference call to discuss those results the next day, November 14, at 8:30 a.m. Eastern Time. Co ...

Partnership with the Aftermarket Auto Parts Alliance brings FlexShopper's proven and flexible payment solutions to more than 3,700 new retail locations Aftermarket Auto Parts Alliance is an independent network of service repair shops, including the Auto Value and Bumper to Bumper brands BOCA RATON, Fla., Nov. 06, 2024 (GLOBE NEWSWIRE) -- FlexShopper, Inc. (Nasdaq: FPAY), a prominent national online lease-to-own retailer and payment solutions provider, is proud to announce a strategic partnership with the Af ...

NEW YORK, Oct. 31, 2024 /PRNewswire/ -- Purcell & Lefkowitz LLP announces that it is investigating FlexShopper, Inc. (NASDAQ: FPAY) on behalf of the company's shareholders. The investigation seeks to determine whether FlexShopper's directors breached their fiduciary duties in connection with recent corporate actions. If you are a shareholder of FlexShopper, Inc. and are interested in obtaining additional information regarding your rights and options, free of charge, please visit us at: https://pjlfirm.com/f ...

FlexShopper to offer lease-to-own solutions within PayPossible's waterfall to new merchants, including RANDYS Worldwide, with a retail network of over 20,000 locations PayPossible to introduce new payment options on FlexShopper.com BOCA RATON, Fla., Oct. 31, 2024 (GLOBE NEWSWIRE) -- FlexShopper Inc. (Nasdaq: FPAY), a leading national lease-to-own (LTO) retailer and payment solutions provider, has announced a strategic partnership with PayPossible, a top financing waterfall platform. This partnership will in ...