FlexShopper(US:FPAY)2025-04-28 20:01markdown [Financial Performance Highlights](index=1&type=section&id=Financial%20Performance%20Highlights) The company achieved significant revenue and operating income growth in 2024, driven by strategic investments and expanded market reach, with momentum continuing into 2025 [CEO Commentary and Strategic Progress](index=1&type=section&id=CEO%20Commentary%20and%20Strategic%20Progress) The CEO highlighted 2024 as a transformative year with successful technology investments, increased LTO locations, a new retail revenue strategy, and a 66% rise in operating income, with momentum continuing into 2025 - DTC and B2B growth strategies led to a **~250%** increase in LTO offerings to **7,900** locations during **2024**[3](index=3&type=chunk) - The new retail revenue strategy on the flexshopper.com marketplace, in its first year, added incremental revenues and profits[3](index=3&type=chunk) - The company raised **$12.2 million** in proceeds through a rights offering between **November 2024** and early **2025** to improve its balance sheet[4](index=4&type=chunk) - Lease originations for the first quarter of **2025** increased by **49.7%** compared to the same period in **2024**[5](index=5&type=chunk) [Fourth Quarter 2024 Financial Highlights](index=1&type=section&id=Results%20for%20the%20Fourth%20Quarter%20Ended%20December%2031%2C%202024) In Q4 2024, FlexShopper reported increased total revenues and gross profit, stable operating income, and higher Adjusted EBITDA, despite a widened net loss attributable to common stockholders Q4 2024 vs Q4 2023 Key Metrics | Metric | Q4 2024 | Q4 2023 | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $35.5M | $30.3M | +17.3% | | Gross Profit | $20.4M | $15.7M | +29.8% | | Gross Profit Margin | 58% | 52% | +6 p.p. | | Operating Income | $5.8M | $5.6M | +3.6% | | Adjusted EBITDA | $8.6M | $8.2M | +5.7% | | Net Loss to Common Stockholders | ($1.9M) | ($0.7M) | Widened | | Diluted EPS | ($0.09) | ($0.03) | Widened | | Total Lease Funding Approvals | $142.4M | $86.0M | +65.6% | [Full Year 2024 Financial Highlights](index=1&type=section&id=Results%20for%20the%20Twelve%20Months%20Ended%20December%2031%2C%202024) For the full year 2024, the company achieved significant increases in total revenues, operating income, and Adjusted EBITDA, while narrowing its net loss attributable to common stockholders Full Year 2024 vs 2023 Key Metrics | Metric | FY 2024 | FY 2023 | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $139.8M | $117.0M | +19.5% | | Gross Profit | $76.7M | $54.7M | +40.3% | | Gross Profit Margin | 55% | 47% | +8 p.p. | | Operating Income | $22.8M | $13.7M | +66.4% | | Adjusted EBITDA | $33.3M | $23.2M | +43.1% | | Net Loss to Common Stockholders | ($4.7M) | ($8.3M) | Narrowed | | Diluted EPS | ($0.22) | ($0.38) | Improved | | Total Lease Funding Approvals | $382.8M | $213.5M | +79.3% | [2025 Outlook and Corporate Updates](index=3&type=section&id=2025%20Outlook%20and%20Corporate%20Updates) The company provides positive financial guidance for 2025 while addressing a Nasdaq compliance issue related to its 10-K filing [2025 Forward Guidance](index=3&type=section&id=2025%20Forward%20Guidance) FlexShopper anticipates continued growth in 2025, projecting full-year gross profit between $90 million and $100 million and Adjusted EBITDA between $40 million and $45 million 2025 Full Year Guidance | Metric | 2025 Guidance | YoY Growth vs 2024 | | :--- | :--- | :--- | | Gross Profit | $90M - $100M | 17% - 30% | | Adjusted EBITDA | $40M - $45M | 20% - 35% | [10-K Filing and Nasdaq Compliance](index=3&type=section&id=10-K%20Filing%20and%20Nasdaq%20Compliance) The company received a Nasdaq non-compliance notification due to a delayed 10-K filing but intends to regain compliance, potentially with an extension until October 13, 2025 - Received a non-compliance notification from Nasdaq on **April 17, 2025**, due to a delay in filing the Form **10-K**[12](index=12&type=chunk) - The company intends to file the **10-K** as soon as practicable and may be granted up to **180 days** (until **October 13, 2025**) to regain compliance[12](index=12&type=chunk) [Consolidated Financial Statements (Unaudited)](index=5&type=section&id=CONSOLIDATED%20FINANCIAL%20STATEMENTS%20(unaudited)) The unaudited financial statements show increased assets and liabilities, with improved net loss and cash flow from financing activities [Consolidated Balance Sheets](index=5&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) As of December 31, 2024, FlexShopper's total assets and liabilities increased, primarily due to growth in receivables, while total stockholders' equity also rose Selected Balance Sheet Data (as of Dec 31) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Total Assets | $209,508,494 | $156,490,377 | | Total Liabilities | $176,358,320 | $127,259,604 | | Total Stockholders' Equity | $33,150,174 | $29,230,773 | | Cash | $10,402,637 | $4,413,130 | | Lease receivables, net | $72,191,028 | $44,795,090 | [Consolidated Statements of Operations](index=6&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For the year ended December 31, 2024, total revenues and operating income increased, and the net loss attributable to common shareholders significantly narrowed despite higher interest expenses Selected Statement of Operations Data (Year ended Dec 31) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Total Revenues | $139,800,732 | $116,975,007 | | Operating Income | $22,778,529 | $13,690,347 | | Interest Expense | ($22,136,448) | ($18,913,773) | | Net Loss | ($179,269) | ($4,233,617) | | Net Loss Attributable to Common Shareholders | ($4,693,270) | ($8,337,255) | | Diluted Loss Per Share | ($0.22) | ($0.38) | [Consolidated Statements of Cash Flows](index=7&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) For the year ended December 31, 2024, net cash used in operating and investing activities was offset by significant cash provided by financing activities, leading to an increased year-end cash balance Selected Cash Flow Data (Year ended Dec 31) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | ($34,946,153) | ($6,664,520) | | Net cash used in investing activities | ($9,151,274) | ($7,561,259) | | Net cash provided by financing activities | $50,086,934 | $12,465,560 | | Increase/(Decrease) in Cash | $5,989,507 | ($1,760,219) | | Cash, end of period | $10,402,637 | $4,413,130 | [Non-GAAP Financial Measures](index=9&type=section&id=Non-GAAP%20Financial%20Measures) The company utilizes Adjusted EBITDA as a key non-GAAP metric to assess operational performance, demonstrating significant growth in 2024 [Definition of Non-GAAP Measures](index=9&type=section&id=Definition%20of%20Non-GAAP%20Measures) The company uses Adjusted EBITDA as a key non-GAAP metric to evaluate operating performance, defined as net income before specific non-cash and non-recurring adjustments - Adjusted EBITDA is defined as net income excluding interest, stock-based compensation, taxes, depreciation (other than leased merchandise), amortization, and non-recurring items[26](index=26&type=chunk) [Full Year 2024 Reconciliation](index=9&type=section&id=Full%20Year%202024%20Reconciliation) For the full year 2024, FlexShopper's gross profit increased significantly, and Adjusted EBITDA rose **43.1%** to **$33.3 million** after reconciliation from net loss Full Year 2024 Gross Profit and Adjusted EBITDA Reconciliation | Metric | 2024 | 2023 | % Change | | :--- | :--- | :--- | :--- | | Gross Profit | $76,719,393 | $54,679,281 | 40.3% | | Net Loss | ($179,269) | ($4,233,617) | 95.8% | | Adjusted EBITDA | $33,273,953 | $23,249,164 | 43.1% | [Fourth Quarter 2024 Reconciliation](index=10&type=section&id=Fourth%20Quarter%202024%20Reconciliation) In Q4 2024, gross profit grew significantly, and Adjusted EBITDA increased **5.7%** to **$8.6 million**, despite the company reporting a net loss for the quarter Q4 2024 Gross Profit and Adjusted EBITDA Reconciliation | Metric | Q4 2024 | Q4 2023 | % Change | | :--- | :--- | :--- | :--- | | Gross Profit | $20,437,771 | $15,746,344 | 29.8% | | Net Loss | ($728,416) | $354,152 | (305.7%) | | Adjusted EBITDA | $8,631,920 | $8,164,197 | 5.7% |