FlexShopper, Inc. Reports听2024 Fourth-Quarter and Year-End Financial Results
FlexShopper (FPAY) reported strong financial results for Q4 and full-year 2024, with annual revenue increasing 19.5% to $139.8 million. Operating income rose 66% to $22.8 million, while adjusted EBITDA grew 43.1% to $33.3 million.
Key highlights include:
- Q4 total revenues up 17.3% to $35.5 million
- Gross profit margin improved from 47% to 55% annually
- LTO offerings expanded to 7,900 locations (250% increase)
- Total lease funding approvals increased 79.3% to $382.8 million
For 2025, FlexShopper projects gross profit between $90-100 million (17-30% increase) and adjusted EBITDA of $40-45 million (20-35% increase). The company is currently working with Grant Thornton LLP to finalize audit review and received a Nasdaq compliance notification regarding delayed 10-K filing.
FlexShopper (FPAY) ha riportato risultati finanziari solidi per il quarto trimestre e l'intero anno 2024, con un fatturato annuo in crescita del 19,5% a 139,8 milioni di dollari. L'utile operativo 猫 aumentato del 66% a 22,8 milioni di dollari, mentre l'EBITDA rettificato 猫 cresciuto del 43,1% raggiungendo 33,3 milioni di dollari.
Punti salienti includono:
- Ricavi totali del quarto trimestre in aumento del 17,3% a 35,5 milioni di dollari
- Margine lordo migliorato dal 47% al 55% su base annua
- Offerte LTO estese a 7.900 sedi (incremento del 250%)
- Approvazioni totali per finanziamenti a noleggio aumentate del 79,3% a 382,8 milioni di dollari
Per il 2025, FlexShopper prevede un margine lordo tra 90 e 100 milioni di dollari (incremento del 17-30%) e un EBITDA rettificato tra 40 e 45 milioni di dollari (incremento del 20-35%). L鈥檃zienda sta collaborando con Grant Thornton LLP per finalizzare la revisione contabile e ha ricevuto una notifica di conformit脿 da Nasdaq riguardo al ritardo nella presentazione del modulo 10-K.
FlexShopper (FPAY) report贸 s贸lidos resultados financieros para el cuarto trimestre y todo el a帽o 2024, con ingresos anuales que aumentaron un 19,5% hasta 139,8 millones de d贸lares. El ingreso operativo creci贸 un 66% hasta 22,8 millones de d贸lares, mientras que el EBITDA ajustado aument贸 un 43,1% alcanzando los 33,3 millones de d贸lares.
Aspectos destacados incluyen:
- Ingresos totales del cuarto trimestre aumentaron un 17,3% hasta 35,5 millones de d贸lares
- El margen bruto mejor贸 del 47% al 55% anual
- Las ofertas LTO se expandieron a 7,900 ubicaciones (incremento del 250%)
- Las aprobaciones totales de financiamiento de arrendamiento aumentaron un 79,3% hasta 382,8 millones de d贸lares
Para 2025, FlexShopper proyecta un margen bruto entre 90 y 100 millones de d贸lares (incremento del 17-30%) y un EBITDA ajustado de 40 a 45 millones de d贸lares (incremento del 20-35%). La compa帽铆a est谩 trabajando con Grant Thornton LLP para finalizar la revisi贸n de auditor铆a y recibi贸 una notificaci贸n de cumplimiento de Nasdaq respecto al retraso en la presentaci贸n del formulario 10-K.
FlexShopper (FPAY)電� 2024雲� 4攵勱赴 氚� 鞐瓣皠 鞁れ爜鞐愳劀 臧曤牓頃� 鞛 靹标臣毳� 氤搓碃頄堨姷雼堧嫟. 鞐瓣皠 毵れ稖鞚� 19.5% 歃濌皜頃� 1鞏� 3,980毵� 雼煬毳� 旮半頄堨姷雼堧嫟. 鞓侅梾鞚挫澋鞚� 66% 歃濌皜頃� 2,280毵� 雼煬, 臁办爼 EBITDA電� 43.1% 歃濌皜頃� 3,330毵� 雼煬鞐� 雼枅鞀惦媹雼�.
欤检殧 雮挫毄鞚� 雼れ潓瓿� 臧欖姷雼堧嫟:
- 4攵勱赴 齑� 毵れ稖 17.3% 歃濌皜頃� 3,550毵� 雼煬
- 鞐瓣皠 齑濎澊鞚惦鞚� 47%鞐愳劀 55%搿� 臧滌劆
- LTO 鞝滉车觳橁皜 7,900臧滌唽搿� 頇曤寑(250% 歃濌皜)
- 齑� 毽姢 鞛愱笀 鞀轨澑鞎� 79.3% 歃濌皜頃� 3鞏� 8,280毵� 雼煬
2025雲� FlexShopper電� 齑濎澊鞚奠潉 9,000毵寏1鞏� 雼煬(17~30% 歃濌皜), 臁办爼 EBITDA毳� 4,000毵寏4,500毵� 雼煬(20~35% 歃濌皜)搿� 鞓堨儊頃橁碃 鞛堨姷雼堧嫟. 順勳灛 Grant Thornton LLP鞕� 頃粯 臧愳偓 瓴�韱犽ゼ 毵堧毽� 欷戩澊氅�, 10-K 鞝滌稖 歆�鞐瓣臣 甏�霠暣 雮橃姢雼レ溂搿滊秬韯� 攴滌爼 欷�靾� 韱惦炒毳� 氚涭晿鞀惦媹雼�.
FlexShopper (FPAY) a publi茅 des r茅sultats financiers solides pour le quatri猫me trimestre et l'ann茅e compl猫te 2024, avec un chiffre d'affaires annuel en hausse de 19,5 % 脿 139,8 millions de dollars. Le r茅sultat d'exploitation a augment茅 de 66 % pour atteindre 22,8 millions de dollars, tandis que l'EBITDA ajust茅 a progress茅 de 43,1 % 脿 33,3 millions de dollars.
Les points cl茅s incluent :
- Revenus totaux du quatri猫me trimestre en hausse de 17,3 % 脿 35,5 millions de dollars
- Marge brute am茅lior茅e de 47 % 脿 55 % sur l'ann茅e
- Offres LTO 茅tendues 脿 7 900 sites (augmentation de 250 %)
- Approbations totales de financement de location en hausse de 79,3 % 脿 382,8 millions de dollars
Pour 2025, FlexShopper pr茅voit un b茅n茅fice brut compris entre 90 et 100 millions de dollars (augmentation de 17 脿 30 %) et un EBITDA ajust茅 de 40 脿 45 millions de dollars (augmentation de 20 脿 35 %). La soci茅t茅 collabore actuellement avec Grant Thornton LLP pour finaliser la r茅vision d'audit et a re莽u une notification de conformit茅 de Nasdaq concernant le retard dans le d茅p么t du formulaire 10-K.
FlexShopper (FPAY) meldete starke Finanzergebnisse f眉r das vierte Quartal und das Gesamtjahr 2024, mit einem Jahresumsatzanstieg von 19,5 % auf 139,8 Millionen US-Dollar. Das Betriebsergebnis stieg um 66 % auf 22,8 Millionen US-Dollar, w盲hrend das bereinigte EBITDA um 43,1 % auf 33,3 Millionen US-Dollar wuchs.
Wichtige Highlights umfassen:
- Gesamtumsatz im vierten Quartal um 17,3 % auf 35,5 Millionen US-Dollar gestiegen
- Bruttogewinnmarge verbesserte sich von 47 % auf 55 % j盲hrlich
- LTO-Angebote wurden auf 7.900 Standorte ausgeweitet (250 % Steigerung)
- Gesamte Leasing-Finanzierungsfreigaben stiegen um 79,3 % auf 382,8 Millionen US-Dollar
F眉r 2025 prognostiziert FlexShopper einen Bruttogewinn zwischen 90 und 100 Millionen US-Dollar (17-30 % Steigerung) und ein bereinigtes EBITDA von 40 bis 45 Millionen US-Dollar (20-35 % Steigerung). Das Unternehmen arbeitet derzeit mit Grant Thornton LLP zusammen, um die Abschlusspr眉fung abzuschlie脽en, und erhielt eine Nasdaq-Compliance-Benachrichtigung bez眉glich der versp盲teten Einreichung des 10-K-Berichts.
- Revenue growth of 19.5% YoY to $139.8 million
- Operating income increased 66% to $22.8 million
- Adjusted EBITDA grew 43.1% to $33.3 million
- Gross profit margin improved from 47% to 55%
- 250% expansion in LTO locations to 7,900
- Strong 2025 guidance projecting 20-35% EBITDA growth
- Successful rights offering raising $12.2 million
- Net loss of $4.7 million in 2024
- Delayed 10-K filing affecting Nasdaq compliance
- Pending audit review creating uncertainty around lease classification
- Q4 net loss increased to $1.9 million from $715,000 YoY
Insights
FlexShopper reports strong operational growth with 66% increase in operating income despite net losses and Nasdaq compliance issues.
FlexShopper's 2024 financial results demonstrate remarkable operational improvement and successful execution of strategic initiatives. The
The expansion of gross profit margin from
Particularly impactful is the company's repurchase of
Despite these operational improvements, FlexShopper still reported a net loss attributable to common stockholders of
The forward guidance is strongly positive, with Q1 2025 lease originations already up
Ongoing DTC and B2B growth strategies drove a
Operating income for 2024 increased
BOCA RATON, Fla., April 23, 2025 (GLOBE NEWSWIRE) -- FlexShopper, Inc. (Nasdaq: FPAY) (鈥淔lexShopper鈥�), a leading national online lease-to-own (鈥淟TO鈥�) retailer and payment solution provider for underserved consumers, today announced its unaudited financial results for the quarter and full year ended December 31, 2024.
Russ Heiser, Jr, Chief Executive Officer, stated, 鈥淎s expected, 2024 was a transformative year for FlexShopper highlighting the successful technology investments we made over the past two years and the progress of our DTC and B2B growth strategies. During 2024, we grew our market share and expanded FlexShopper鈥檚 LTO offerings to 7,900 locations, a ~
鈥淲e pursued opportunities that leverage our expanding financial performance to improve our balance sheet. This included raising
鈥淲e expect our growth strategies to continue to drive positive momentum in 2025, and for the first quarter of 2025, lease originations increased
Results for the Fourth Quarter Ended December 31, 2024(1) vs. the Fourth Quarter Ended December 31, 2023 (unaudited):
- Total lease funding approvals increased
65.6% to$142.4 million from$86 million - Total revenues increased
17.3% to$35.5 million from$30.3 million - Gross profit increased
29.8% to$20.4 million from$15.7 million - Gross profit margin increased from
52% to58% - Operating income of
$5.8 million , compared with operating income of$5.6 million - Adjusted EBITDA(2) increased by
5.7% to$8.6 million from$8.2 million - Net loss attributable to common stockholders of (
$1.9) million , or ($0.09) per diluted share, compared to net loss attributable to common stockholders of ($715) thousand or ($0.03) per diluted share
Results for the Twelve Months Ended December 31, 2024(1) vs. the Twelve Months Ended December 31, 2023 (unaudited):
- Total lease funding approvals听increased 79.3 % to
$382.8 million from$213.5 million - Total revenues increased
19.5% to$139.8 million from$117.0 million - Gross profit increased
40.3% to$76.7 million from$54.7 million - Gross profit margin increased from
47% to55% - Operating income of
$22.8 million , compared with operating income of$13.7 million - Adjusted EBITDA(2) increased
43.1% to$33.3 million , compared to$23.2 million - Net loss attributable to common stockholders of (
$4.7) million , or ($0.22) per diluted share, compared to net loss attributable to common stockholders of ($8.3) million , or ($0.38) per diluted share
(1)听 FlexShopper鈥檚 independent auditor, Grant Thornton LLP, is still in the process of finalizing the review of management鈥檚 position on the lease classification of the lease portfolio and whether it meets the definition of an operating lease.听 Management believes that, regardless of Grant Thorton LLP鈥檚 determination regarding this classification, there will be no material impact to FlexShopper鈥檚 gross profit or net loss.
(2) Adjusted EBITDA is a non-GAAP financial measure. Refer to the definition and reconciliation of this measure under 鈥淣on-GAAP Measures鈥�.
2025 Forward Guidance
FlexShopper remains committed to executing its strategic plan, which centers on scaling its lease and loan business while maintaining strong asset performance and capitalizing on the growing opportunity within the online retail space. This strategy has already begun to deliver meaningful results.
Throughout 2024, FlexShopper achieved consistent year-over-year revenue growth, driven by improving asset quality and a reduction in bad debt. Additionally, FlexShopper enhanced product margins, which has had a material positive impact on its income statement. FlexShopper is also realizing operating leverage across both marketing and general expenses, contributing to improved overall efficiency.
As a result of these disciplined efforts, the company generated significant year-over-year EBITDA growth in 2024. Building on this momentum, FlexShopper anticipates continued progress in 2025, with the following performance expectations:
- 2025 full year gross profit between
$90 million and$100 million which is a17% to30% increase from 2024 - 2025 full year adjusted EBITDA of
$40 million to$45 million which is a20% to35% increase from 2024
10-K Filing and Nasdaq Compliance
FlexShopper plans to issue audited financial results as soon as it receives approval from Grant Thorton LLP. As a result of the delay in the audit, the Company received a notification from Nasdaq on April 17, 2025 that it is no longer in compliance with Nasdaq鈥檚 listing rules. The Company intends to file the Form 10-K as soon as practicable and, if necessary, to submit a plan with Nasdaq to regain compliance.听If Nasdaq accepts the Company's plan, then Nasdaq may, at its discretion, grant the Company up to 180 days from the prescribed due date for filing the Form 10-K, or until October 13, 2025, to regain compliance.听听 This notification has no immediate effect on the listing of the Company's common stock on Nasdaq.听听
About FlexShopper
FlexShopper, Inc. is a leading national financial technology company that offers innovative payment options to consumers. FlexShopper provides a variety of flexible funding options for underserved consumers through its direct-to-consumer online marketplace at and in partnership with merchants both online and at brick-and-mortar locations. FlexShopper鈥檚 solutions are crafted to meet the needs of a wide range of consumer segments through lease-to-own and lending products.
Forward-Looking Statements
The consolidated financial statements and related information contained in this press release for the year ended December 31, 2023, are audited. For the year ended December 31, 2024, they are unaudited and, although we believe they accurately reflect the values of each item, no assurance thereof can be given, or that our independent auditor may not adjust one or more of such values to be set forth in our completed 2024 audited consolidated financial statements. Grant Thornton LLP has not audited or reviewed, in accordance with standards established by the American Institute of Certified Public Accountants, any of the 2024 financial or other information contained in this press release.
All statements in this release that are not based on historical fact are 鈥渇orward-looking statements鈥� within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as 鈥渂elieve,鈥� 鈥渆xpect,鈥� 鈥渕ay,鈥� 鈥渨ill,鈥� 鈥渟hould,鈥� 鈥渃ould,鈥� 鈥渟eek,鈥� 鈥渋ntend,鈥� 鈥減lan,鈥� 鈥済oal,鈥� 鈥渆stimate,鈥� 鈥渁nticipate,鈥� or other comparable terms. Examples of forward-looking statements include, among others, statements we make regarding expectations of lease originations, the expansion of our lease-to-own program; expectations concerning our partnerships with retail partners; investments in, and the success of, our underwriting technology and risk analytics platform; our ability to collect payments due from customers; expected future operating results and expectations concerning our business strategy. Forward-looking statements involve inherent risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, as a result of various factors including, among others, the following: our ability to obtain adequate financing to fund our business operations in the future; the failure to successfully manage and grow our e-commerce platform; our ability to maintain compliance with financial covenants under our credit agreement; our dependence on the success of our third-party retail partners and our continued relationships with them; our compliance with various federal, state and local laws and regulations, including those related to consumer protection; the failure to protect the integrity and security of customer and employee information; and the other risks and uncertainties described in the Risk Factors and in Management鈥檚 Discussion and Analysis of Financial Condition and Results of Operations sections of our Annual Report on Form 10-K and subsequently filed Quarterly Reports on Form 10-Q. The forward-looking statements made in this release speak only as of the date of this release, and听FlexShopper听assumes no obligation to update any such forward-looking statements to reflect actual results or changes in expectations, except as otherwise required by law.
| FLEXSHOPPER, INC. CONSOLIDATED BALANCE SHEETS (unaudited) | |||||||
| 听 | December 31, 2024 | 听 | December 31, 2023 | ||||
| 听 | 听 | 听 | 听 | ||||
| ASSETS | 听 | 听 | 听 | ||||
| CURRENT ASSETS: | 听 | 听 | 听 | ||||
| Cash | $ | 10,402,637 | 听 | 听 | $ | 4,413,130 | 听 |
| Lease receivables, net | 听 | 72,191,028 | 听 | 听 | 听 | 44,795,090 | 听 |
| Loan receivables at fair value | 听 | 54,330,006 | 听 | 听 | 听 | 35,794,290 | 听 |
| Prepaid expenses and other assets | 听 | 4,433,570 | 听 | 听 | 听 | 3,300,677 | 听 |
| Lease merchandise, net | 听 | 29,358,305 | 听 | 听 | 听 | 29,131,440 | 听 |
| Total current assets | 听 | 170,715,546 | 听 | 听 | 听 | 117,434,627 | 听 |
| 听 | 听 | 听 | 听 | ||||
| Property and equipment, net | 听 | 9,692,396 | 听 | 听 | 听 | 9,308,859 | 听 |
| Right of use asset, net | 听 | 1,042,954 | 听 | 听 | 听 | 1,237,010 | 听 |
| Intangible assets, net | 听 | 12,259,413 | 听 | 听 | 听 | 13,391,305 | 听 |
| Other assets, net | 听 | 2,589,533 | 听 | 听 | 听 | 2,175,215 | 听 |
| Deferred tax asset, net | 听 | 13,208,652 | 听 | 听 | 听 | 12,943,361 | 听 |
| Total assets | $ | 209,508,494 | 听 | 听 | $ | 156,490,377 | 听 |
| 听 | 听 | 听 | 听 | ||||
| LIABILITIES AND STOCKHOLDERS鈥� EQUITY | 听 | 听 | 听 | ||||
| CURRENT LIABILITIES: | 听 | 听 | 听 | ||||
| Accounts payable | $ | 5,589,866 | 听 | 听 | $ | 7,139,848 | 听 |
| Accrued payroll and related taxes | 听 | 467,596 | 听 | 听 | 听 | 578,197 | 听 |
| Promissory notes to related parties, including accrued interest, and net of unamortized issuance costs of | 听 | 10,730,853 | 听 | 听 | 听 | 198,624 | 听 |
| Accrued expenses | 听 | 6,955,810 | 听 | 听 | 听 | 3,972,397 | 听 |
| Lease liability - current portion | 听 | 287,412 | 听 | 听 | 听 | 245,052 | 听 |
| Total current liabilities | 听 | 24,031,537 | 听 | 听 | 听 | 12,134,118 | 听 |
| Loan payable under credit agreement to beneficial shareholder, net of unamortized issuance costs of | 听 | 143,934,508 | 听 | 听 | 听 | 96,384,220 | 听 |
| Promissory notes to related parties, net of unamortized issuance costs of | 听 | 鈥� | 听 | 听 | 听 | 10,100,047 | 听 |
| Loan payable under Basepoint credit agreement, net of unamortized issuance costs of | 听 | 7,358,109 | 听 | 听 | 听 | 7,319,641 | 听 |
| Lease liabilities, net of current portion | 听 | 1,034,166 | 听 | 听 | 听 | 1,321,578 | 听 |
| Total liabilities | 听 | 176,358,320 | 听 | 听 | 听 | 127,259,604 | 听 |
| 听 | 听 | 听 | 听 | ||||
| STOCKHOLDERS鈥� EQUITY | 听 | 听 | 听 | ||||
| Series 1 Convertible Preferred Stock, | 听 | 851,660 | 听 | 听 | 听 | 851,660 | 听 |
| Series 2 Convertible Preferred Stock, | 听 | 21,952,000 | 听 | 听 | 听 | 21,952,000 | 听 |
| Common stock, | 听 | 2,515 | 听 | 听 | 听 | 2,176 | 听 |
| Treasury shares, at cost- 527,222 shares at December听31, 2024 and 164,029 shares at December听31, 2023 | 听 | (563,991 | ) | 听 | 听 | (166,757 | ) |
| Additional paid in capital | 听 | 46,911,459 | 听 | 听 | 听 | 42,415,894 | 听 |
| Accumulated deficit | 听 | (36,003,469 | ) | 听 | 听 | (35,824,200 | ) |
| Total stockholders鈥� equity | 听 | 33,150,174 | 听 | 听 | 听 | 29,230,773 | 听 |
| 听 | $ | 209,508,494 | 听 | 听 | $ | 156,490,377 | 听 |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 |
| FLEXSHOPPER, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) | |||||||
| 听 | |||||||
| 听 | For the year ended December 31, | ||||||
| 听 | 听 | 2024 | 听 | 听 | 听 | 2023 | 听 |
| Revenues: | 听 | 听 | 听 | ||||
| Lease revenues and fees, net | $ | 106,959,906 | 听 | 听 | $ | 91,943,729 | 听 |
| Loan revenues and fees, net of changes in fair value | 听 | 28,539,495 | 听 | 听 | 听 | 25,031,278 | 听 |
| Retail revenue | 听 | 4,301,331 | 听 | 听 | 听 | - | 听 |
| Total revenues | 听 | 139,800,732 | 听 | 听 | 听 | 116,975,007 | 听 |
| 听 | 听 | 听 | 听 | ||||
| Costs and expenses: | 听 | 听 | 听 | ||||
| Depreciation and impairment of lease merchandise | 听 | 56,634,623 | 听 | 听 | 听 | 56,288,128 | 听 |
| Loan origination costs and fees | 听 | 3,063,012 | 听 | 听 | 听 | 6,007,598 | 听 |
| Cost of retail revenue | 听 | 3,383,704 | 听 | 听 | 听 | - | 听 |
| Marketing | 听 | 8,571,696 | 听 | 听 | 听 | 7,620,795 | 听 |
| Salaries and benefits | 听 | 16,977,744 | 听 | 听 | 听 | 12,499,099 | 听 |
| Operating expenses | 听 | 28,391,424 | 听 | 听 | 听 | 24,547,729 | 听 |
| Net change in fair value of promissory note related to acquisition | 听 | - | 听 | 听 | 听 | (3,678,689 | ) |
| Total costs and expenses | 听 | 117,022,203 | 听 | 听 | 听 | 103,284,660 | 听 |
| Operating income | 听 | 22,778,529 | 听 | 听 | 听 | 13,690,347 | 听 |
| Interest expense including amortization of debt issuance costs | 听 | (22,136,448 | ) | 听 | 听 | (18,913,773 | ) |
| Income/ (loss) before income taxes | 听 | 642,081 | 听 | 听 | 听 | (5,223,426 | ) |
| Income taxes (expense)/ benefit | 听 | (821,350 | ) | 听 | 听 | 989,809 | 听 |
| Net loss | 听 | (179,269 | ) | 听 | 听 | (4,233,617 | ) |
| 听 | 听 | 听 | 听 | ||||
| Dividends on Series 2 Convertible Preferred Shares | 听 | (4,514,001 | ) | 听 | 听 | (4,103,638 | ) |
| Net loss attributable to common and Series 1 Convertible Preferred shareholders | $ | (4,693,270 | ) | 听 | $ | (8,337,255 | ) |
| 听 | 听 | 听 | 听 | ||||
| Basic and diluted loss per common share: | 听 | 听 | 听 | ||||
| Basic | $ | (0.22 | ) | 听 | $ | (0.38 | ) |
| Diluted | $ | (0.22 | ) | 听 | $ | (0.38 | ) |
| 听 | 听 | 听 | 听 | ||||
| WEIGHTED AVERAGE COMMON SHARES: | 听 | 听 | 听 | ||||
| Basic | 听 | 21,534,674 | 听 | 听 | 听 | 21,705,406 | 听 |
| Diluted | 听 | 21,534,674 | 听 | 听 | 听 | 21,705,406 | 听 |
| FLEXSHOPPER, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS For the years ended December听31, 2024 and 2023 (unaudited) | |||||||
| 听 | |||||||
| 听 | |||||||
| 听 | 听 | 2024 | 听 | 听 | 听 | 2023 | 听 |
| CASH FLOWS FROM OPERATING ACTIVITIES: | 听 | 听 | 听 | ||||
| Net loss | $ | (179,269 | ) | 听 | $ | (4,233,617 | ) |
| Adjustments to reconcile net loss to net cash used in operating activities: | 听 | 听 | 听 | ||||
| Depreciation and impairment of lease merchandise | 听 | 56,634,623 | 听 | 听 | 听 | 56,288,128 | 听 |
| Other depreciation and amortization | 听 | 9,607,044 | 听 | 听 | 听 | 7,881,110 | 听 |
| Amortization of debt issuance costs | 听 | 1,166,302 | 听 | 听 | 听 | 571,538 | 听 |
| Amortization of discount on the promissory note related to acquisition | 听 | - | 听 | 听 | 听 | 236,952 | 听 |
| Compensation expense related to stock-based compensation | 听 | 888,380 | 听 | 听 | 听 | 1,677,708 | 听 |
| Provision for doubtful accounts | 听 | 34,333,462 | 听 | 听 | 听 | 42,505,647 | 听 |
| Deferred income tax | 听 | (265,291 | ) | 听 | 听 | (929,533 | ) |
| Net change in fair value of promissory note related to acquisition | 听 | - | 听 | 听 | 听 | (3,678,689 | ) |
| Net changes in the fair value of loans receivables at fair value | 听 | (17,046,488 | ) | 听 | 听 | (10,217,854 | ) |
| Changes in operating assets and liabilities: | 听 | 听 | 听 | ||||
| Lease receivables | 听 | (61,729,400 | ) | 听 | 听 | (51,760,694 | ) |
| Loans receivables at fair value | 听 | (1,489,228 | ) | 听 | 听 | 7,356,068 | 听 |
| Prepaid expenses and other assets | 听 | (1,254,627 | ) | 听 | 听 | 177,169 | 听 |
| Lease merchandise | 听 | (56,861,488 | ) | 听 | 听 | (53,869,127 | ) |
| Purchase consideration payable related to acquisition | 听 | - | 听 | 听 | 听 | 208,921 | 听 |
| Promissory note related to acquisition | 听 | - | 听 | 听 | 听 | 283,266 | 听 |
| Lease liabilities | 听 | (46,395 | ) | 听 | 听 | (30,268 | ) |
| Accounts payable | 听 | (1,549,982 | ) | 听 | 听 | 627,905 | 听 |
| Accrued payroll and related taxes | 听 | (110,601 | ) | 听 | 听 | 267,377 | 听 |
| Accrued expenses | 听 | 2,956,805 | 听 | 听 | 听 | (26,527 | ) |
| Net cash used in operating activities | 听 | (34,946,153 | ) | 听 | 听 | (6,664,520 | ) |
| 听 | 听 | 听 | 听 | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES | 听 | 听 | 听 | ||||
| Purchases of property and equipment, including capitalized software costs | 听 | (6,728,218 | ) | 听 | 听 | (6,335,276 | ) |
| Additions of intangible assets | 听 | (643,080 | ) | 听 | 听 | - | 听 |
| Purchases of data costs | 听 | (1,779,976 | ) | 听 | 听 | (1,225,983 | ) |
| Net cash used in investing activities | 听 | (9,151,274 | ) | 听 | 听 | (7,561,259 | ) |
| 听 | 听 | 听 | 听 | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES | 听 | 听 | 听 | ||||
| Proceeds from loan payable under credit agreement | 听 | 48,486,690 | 听 | 听 | 听 | 18,050,000 | 听 |
| Repayment of loan payable under credit agreement | 听 | - | 听 | 听 | 听 | (2,795,000 | ) |
| Repayment of promissory notes to related parties | 听 | - | 听 | 听 | 听 | (1,000,000 | ) |
| Repayment of loan payable under Basepoint credit agreement | 听 | - | 听 | 听 | 听 | (1,500,000 | ) |
| Debt issuance related costs | 听 | (1,605,446 | ) | 听 | 听 | (115,403 | ) |
| Proceeds from exercise of stock options | 听 | - | 听 | 听 | 听 | 1,185 | 听 |
| Principal payment under finance lease obligation | 听 | (4,601 | ) | 听 | 听 | (8,465 | ) |
| Tax payments associated with equity-based compensation transactions | 听 | (103,487 | ) | 听 | 听 | - | 听 |
| Proceeds from rights offering, net of transaction costs | 听 | 3,711,012 | 听 | 听 | 听 | - | 听 |
| Purchase of treasury stock | 听 | (397,234 | ) | 听 | 听 | (166,757 | ) |
| Net cash provided by financing activities | 听 | 50,086,934 | 听 | 听 | 听 | 12,465,560 | 听 |
| 听 | 听 | 听 | 听 | ||||
| INCREASE/ (DECREASE) IN CASH | 听 | 5,989,507 | 听 | 听 | 听 | (1,760,219 | ) |
| 听 | 听 | 听 | 听 | ||||
| CASH, beginning of period | 听 | 4,413,130 | 听 | 听 | 听 | 6,173,349 | 听 |
| 听 | 听 | 听 | 听 | ||||
| CASH, end of period | $ | 10,402,637 | 听 | 听 | $ | 4,413,130 | 听 |
| 听 | 听 | 听 | 听 | ||||
| Supplemental cash flow information: | 听 | 听 | 听 | ||||
| Interest paid | $ | 20,252,454 | 听 | 听 | $ | 17,337,292 | 听 |
| Noncash investing and financing activities | 听 | 听 | 听 | ||||
| Due date extension of warrants | $ | - | 听 | 听 | $ | 917,581 | 听 |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 |
Non-GAAP Financial Measures
We regularly review a number of metrics, including the following key metrics, to evaluate our business, measure our performance, identify trends affecting our business, formulate financial projections and make strategic decisions.
Adjusted EBITDA represents net income before interest, stock-based compensation, taxes, depreciation (other than depreciation of leased merchandise), amortization, and one-time or non-recurring items. We believe that Adjusted EBITDA provides us with an understanding of one aspect of earnings before the impact of investing and financing charges and income taxes.
Key performance metrics for the years ended December听31, 2024 and 2023 are as follows:
| 听 | 听 | 2024 | 听 | 听 | 听 | 2023 | 听 | 听 | $ Change | 听 | % Change | |||
| Gross Profit: | 听 | 听 | 听 | 听 | 听 | 听 | 听 | |||||||
| Gross lease billings and fees | $ | 140,887,693 | 听 | 听 | $ | 131,634,768 | 听 | 听 | $ | 9,252,925 | 听 | 听 | 7.0 | 听 |
| Provision for doubtful accounts | 听 | (34,333,462 | ) | 听 | 听 | (42,505,647 | ) | 听 | 听 | 8,172,185 | 听 | 听 | (19.2 | ) |
| Gain on sale of lease receivables | 听 | 98,179 | 听 | 听 | 听 | 2,814,608 | 听 | 听 | 听 | (2,716,429 | ) | 听 | (96.5 | ) |
| Lease placement collections | 听 | 307,496 | 听 | 听 | 听 | - | 听 | 听 | 听 | 307,496 | 听 | 听 | - | 听 |
| Net lease billing and fees | $ | 106,959,906 | 听 | 听 | $ | 91,943,729 | 听 | 听 | $ | 15,016,177 | 听 | 听 | 16.3 | 听 |
| Loan revenues and fees | 听 | 11,493,007 | 听 | 听 | 听 | 14,813,424 | 听 | 听 | 听 | (3,320,417 | ) | 听 | (22.4 | ) |
| Net changes in the fair value of loans receivable | 听 | 17,046,488 | 听 | 听 | 听 | 10,217,854 | 听 | 听 | 听 | 6,828,634 | 听 | 听 | 66.8 | 听 |
| Net loan revenues | $ | 28,539,495 | 听 | 听 | $ | 25,031,278 | 听 | 听 | $ | 3,508,217 | 听 | 听 | 14.0 | 听 |
| Retail revenue | 听 | 4,301,331 | 听 | 听 | 听 | - | 听 | 听 | 听 | 4,301,331 | 听 | 听 | - | 听 |
| Total revenues | $ | 139,800,732 | 听 | 听 | $ | 116,975,007 | 听 | 听 | $ | 22,825,725 | 听 | 听 | 19.5 | 听 |
| Depreciation and impairment of lease merchandise | 听 | (56,634,623 | ) | 听 | 听 | (56,288,128 | ) | 听 | 听 | (346,495 | ) | 听 | 0.6 | 听 |
| Loans origination costs and fees | 听 | (3,063,012 | ) | 听 | 听 | (6,007,598 | ) | 听 | 听 | 2,944,586 | 听 | 听 | (49.0 | ) |
| Cost of retail revenue | 听 | (3,383,704 | ) | 听 | 听 | - | 听 | 听 | 听 | (3,383,704 | ) | 听 | - | 听 |
| Gross profit | $ | 76,719,393 | 听 | 听 | $ | 54,679,281 | 听 | 听 | $ | 22,423,816 | 听 | 听 | 40.3 | 听 |
| Gross profit margin | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | |||||
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | |||||||
| 听 | 听 | 2024 | 听 | 听 | 听 | 2023 | 听 | 听 | $ Change | 听 | % Change | |||
| Adjusted EBITDA: | 听 | 听 | 听 | 听 | 听 | 听 | 听 | |||||||
| Net loss | $ | (179,269 | ) | 听 | $ | (4,233,617 | ) | 听 | $ | 4,054,348 | 听 | 听 | (95.8 | ) |
| Income taxes expense/ (benefit) | 听 | 821,350 | 听 | 听 | 听 | (989,809 | ) | 听 | 听 | 1,811,159 | 听 | 听 | (183.0 | ) |
| Amortization of debt issuance costs | 听 | 1,166,302 | 听 | 听 | 听 | 571,538 | 听 | 听 | 听 | 594,764 | 听 | 听 | 104.1 | 听 |
| Amortization of discount on the promissory note related to acquisition | 听 | - | 听 | 听 | 听 | 236,952 | 听 | 听 | 听 | (236,952 | ) | 听 | (100.0 | ) |
| Other amortization and depreciation | 听 | 9,607,044 | 听 | 听 | 听 | 7,881,110 | 听 | 听 | 听 | 1,725,934 | 听 | 听 | 21.9 | 听 |
| Interest expense | 听 | 20,970,146 | 听 | 听 | 听 | 18,105,282 | 听 | 听 | 听 | 2,864,864 | 听 | 听 | 15.8 | 听 |
| Stock-based compensation | 听 | 888,380 | 听 | 听 | 听 | 1,677,708 | 听 | 听 | 听 | (789,328 | ) | 听 | (47.0 | ) |
| Adjusted EBITDA | $ | 33,273,953 | 听 | 听 | $ | 23,249,164 | 听 | 听 | $ | 10,024,789 | 听 | 听 | 43.1 | 听 |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 |
Key performance metrics for the three months ended December 31, 2024 and 2023 are as follows:
| 听 | Three Months Ended December 31, | 听 | 听 | 听 | 听 | |||||||||
| 听 | 听 | 2024 | 听 | 听 | 听 | 2023 | 听 | 听 | $ Change | 听 | % Change | |||
| Gross Profit: | 听 | 听 | 听 | 听 | 听 | 听 | 听 | |||||||
| Gross lease billings and fees | $ | 34,534,844 | 听 | 听 | $ | 33,611,362 | 听 | 听 | $ | 923,482 | 听 | 听 | 2.7 | 听 |
| Provision for doubtful accounts | 听 | (8,959,977 | ) | 听 | 听 | (10,381,697 | ) | 听 | 听 | 1,421,720 | 听 | 听 | (13.7 | ) |
| Gain on sale of lease receivables | 听 | 20,954 | 听 | 听 | 听 | 10,863 | 听 | 听 | 听 | 10,091 | 听 | 听 | 92.9 | 听 |
| Lease placement collections | 听 | 92,112 | 听 | 听 | 听 | - | 听 | 听 | 听 | 92,112 | 听 | 听 | - | 听 |
| Net lease billing and fees | $ | 25,687,933 | 听 | 听 | $ | 23,240,528 | 听 | 听 | $ | 2,447,405 | 听 | 听 | 10.5 | 听 |
| Loan revenues and fees | 听 | 2,965,564 | 听 | 听 | 听 | 3,070,646 | 听 | 听 | 听 | (105,082 | ) | 听 | (3.4 | ) |
| Net changes in the fair value of loans receivable | 听 | 5,881,114 | 听 | 听 | 听 | 3,959,575 | 听 | 听 | 听 | 1,921,359 | 听 | 听 | 48.5 | 听 |
| Net loan revenues | $ | 8,846,678 | 听 | 听 | $ | 7,030,221 | 听 | 听 | $ | 1,816,457 | 听 | 听 | 25.8 | 听 |
| Retail revenue | 听 | 973,683 | 听 | 听 | 听 | - | 听 | 听 | 听 | 973,863 | 听 | 听 | - | 听 |
| Total revenues | $ | 35,508,474 | 听 | 听 | $ | 30,270,749 | 听 | 听 | $ | 5,237,725 | 听 | 听 | 17.3 | 听 |
| Depreciation and impairment of lease merchandise | 听 | (13,613,272 | ) | 听 | 听 | (13,394,865 | ) | 听 | 听 | (218,307 | ) | 听 | 1.6 | 听 |
| Loans origination costs and fees | 听 | (667,232 | ) | 听 | 听 | (1,129,440 | ) | 听 | 听 | 462,208 | 听 | 听 | (40.9 | ) |
| Cost of retail revenue | 听 | (790,199 | ) | 听 | 听 | - | 听 | 听 | 听 | (790,199 | ) | 听 | - | 听 |
| Gross profit | $ | 20,437,771 | 听 | 听 | $ | 15,746,344 | 听 | 听 | $ | 4,691,427 | 听 | 听 | 29.8 | 听 |
| Gross profit margin | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | |||||
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | |||||||
| 听 | Three Months Ended December 31, | 听 | 听 | 听 | 听 | |||||||||
| 听 | 听 | 2024 | 听 | 听 | 听 | 2023 | 听 | 听 | $ Change | 听 | % Change | |||
| Adjusted EBITDA: | 听 | 听 | 听 | 听 | 听 | 听 | 听 | |||||||
| Net loss | $ | (728,416 | ) | 听 | $ | 354,152 | 听 | 听 | ( | ) | 听 | (305.7 | ) | |
| Income taxes expense/ (benefit) | 听 | 605,800 | 听 | 听 | 听 | 195,438 | 听 | 听 | 听 | 410,362 | 听 | 听 | 210.0 | 听 |
| Amortization of debt issuance costs | 听 | 341,803 | 听 | 听 | 听 | 194,681 | 听 | 听 | 听 | 147,122 | 听 | 听 | 75.6 | 听 |
| Amortization of discount on the promissory note related to acquisition | 听 | - | 听 | 听 | 听 | 59,238 | 听 | 听 | 听 | (59,238 | ) | 听 | (100.0 | ) |
| Other amortization and depreciation | 听 | 2,472,471 | 听 | 听 | 听 | 2,206,179 | 听 | 听 | 听 | 266,292 | 听 | 听 | 12.1 | 听 |
| Interest expense | 听 | 5,580,802 | 听 | 听 | 听 | 4,813,168 | 听 | 听 | 听 | 767,634 | 听 | 听 | 15.9 | 听 |
| Stock-based compensation | 听 | 359,460 | 听 | 听 | 听 | 341,341 | 听 | 听 | 听 | 18,119 | 听 | 听 | 5.3 | 听 |
| Adjusted EBITDA | $ | 8,631,920 | 听 | 听 | $ | 8,164,197 | 听 | 听 | $ | 467,723 | 听 | 听 | 5.7 | 听 |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 |
The Company refers to Adjusted EBITDA in the above tables as the Company uses this measure to evaluate operating performance and to make strategic decisions about the Company. Management believes that Adjusted EBITDA provides relevant and useful information which is widely used by analysts, investors and competitors in its industry in assessing performance.
FAQ
What were FlexShopper's (FPAY) key financial results for 2024?
How much did FPAY's lease funding approvals grow in 2024?
What is FlexShopper's (FPAY) earnings guidance for 2025?
Why did FPAY receive a Nasdaq compliance notification in April 2025?
How many locations does FlexShopper's LTO offering cover in 2024?
