FPAY FlexShopper Inc

FlexShopper, Inc. (Nasdaq: FPAY), a prominent national online lease-to-own retailer and payment solutions provider, today announced record initial holiday season financial results, as the Company benefits from the continued success of its direct-to-consumer (DTC) and business-to-business (B2B) growth strategies. For the first two months of the 2024 fourth quarter, compared to the same two-month period in 2023, lease gross revenue increased 15%, and lease net revenue increased over 25%, as bad debt expense, as a percent of gross revenue declined by 600 basis points. As a result, lease gross profit increased 51% for the first two months of the 2024 fourth quarter, while lease marketing expense has declined over 40% for the same period. New loan originations increased over 34% versus the same two-month period last year.

“I am encouraged by the positive contribution our DTC and B2B growth strategies are having on our initial holiday results in this last quarter of 2024, and I am excited by the opportunities we are pursuing in 2025 and beyond,” said Russ Heiser, CEO at FlexShopper. “FlexShopper has experienced robust and profitable year-over-year growth, while simultaneously improving credit quality as a result of the innovative platform we have developed. We expect these positive trends will continue, as prior period lease originations are recognized as lease revenue and benefit financial results in future quarters. As a result, we expect a record fourth quarter of 2024 and strong start to 2025.”

Mr. Heiser continued, “We have experienced favorable demand trends on our flexshopper.com marketplace during the 2024 holiday season. In fact, online originations set a daily record on December 18, 2024, driven by higher consumer traffic and expanded product offerings. As we close out 2024, we are seeing additional opportunities to grow our B2B partnerships and increase our exposure to more consumers, while we also pursue a differentiated growth opportunity by serving more customers directly on our flexshopper.com digital marketplace. I look forward to continuing to update investors on the progress we are making, as we pursue multi-year growth strategies to create lasting value for our shareholders.”

Today’s announcement continues the positive momentum underway as FlexShopper pursues a profit focused, dual-channel growth strategy. From January 1, 2024, to November 30, 2024, FlexShopper has expanded its access to over 5,600 retail locations, and over 12 new eCommerce websites. FlexShopper’s partnership growth strategy has also expanded the payment solutions and product offerings on flexshopper.com – FlexShopper’s digital marketplace. These trends have positioned FlexShopper for higher revenue growth and profitability. For the third quarter of 2024, FlexShopper’s total revenue increased 23% year-over-year to $38.6 million, expanded Adjusted EBITDA by 45% to $12.2 million, and generated net income attributable to common stockholders of $1.2 million, or $0.05 per diluted share.

FlexShopper’s financial closing procedures for the full fourth quarter ending December 31, 2024, are not yet complete. It is possible that the final results may differ from the preliminary results, and that the Company's outlook may change when results are finalized.

About FlexShopper, Inc.: FlexShopper, Inc. (Nasdaq: FPAY) is a leading national financial technology company that provides payment options to consumers. FlexShopper provides a variety of flexible funding options for underserved consumers through its online direct to consumer marketplace at flexshopper.com and in partnership with partner merchants both online as well as at brick and mortar locations. FlexShopper’s solutions are designed to meet the needs of a wide range of consumer segments via lease-to-own and lending products.

Forward-Looking StatementsAll statements in this release that are not based on historical fact are “forward-looking statements” 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 “believe,” “expect,” “may,” “will,” “should,” “could,” “seek,” “intend,” “plan,” “goal,” “estimate,” “anticipate,” 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 FlexShopper.com 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’s 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 FlexShopper assumes no obligation to update any such forward-looking statements to reflect actual results or changes in expectations, except as otherwise required by law.

Company Contact:FlexShopper, Inc.Investor Relationsir@flexshopper.com 

Investor and Media ContactAndrew BergerManaging DirectorSM Berger & Company, Inc.Tel (216) 464-6400andrew@smberger.com