FlexShopper's Growth Journey
Ongoing DTC and B2B growth strategies drove a 19.5% year-over-year increase in annual revenue
Operating income for 2024 increased 66% to $22.8 million, and adjusted EBITDA increased 43.1% to $33.3 million, attributed to higher revenue, controlled expenses, and favorable asset quality
FlexShopper, Inc. (Nasdaq: FPAY), a leading national online lease-to-own retailer and payment solution provider for underserved consumers, recently revealed its unaudited financial results for the year concluded on December 31, 2024. The results highlight a significant year in which FlexShopper has embarked on a transformative journey.
Russ Heiser, Jr., Chief Executive Officer of FlexShopper, expressed enthusiasm about 2024 being a pivotal year, thanks to a series of strategic technology investments made over the previous two years. These advancements in technology have played a vital role in enhancing FlexShopper's direct-to-consumer (DTC) and business-to-business (B2B) growth strategies. The market share has expanded notably, with FlexShopper's lease-to-own products now available at 7,900 locations—a remarkable increase of approximately 250%.
Moreover, the year marked the initiation of the company’s retail revenue strategy on its flexshopper.com marketplace, contributing to additional revenue streams and boosting profitability. The robust growth strategies culminated in an operating income of $22.8 million— a striking 66% increase from the prior year.
Financial Highlights
Fourth Quarter Results
Results for the Fourth Quarter Ended December 31, 2024 vs. 2023 (unaudited):
- Total lease funding approvals soared by 65.6%, reaching $142.4 million compared to $86 million.
- Revenues increased significantly by 17.3%, culminating in $35.5 million, an increase from $30.3 million.
- Gross profit rose substantially by 29.8%, now at $20.4 million compared to $15.7 million from the previous year.
- Gross profit margin improved from 52% to 58%.
- Operating income at $5.8 million is slightly up from $5.6 million last year.
- Adjusted EBITDA increased by 5.7% to $8.6 million from $8.2 million.
- Net loss attributable to common stockholders was ($1.9) million, or ($0.09) per diluted share, compared to ($715) thousand, or ($0.03) per diluted share.
Annual Performance Overview
Results for the Twelve Months Ended December 31, 2024 vs. 2023 (unaudited):
- Total lease funding approvals skyrocketed by 79.3%, amounting to $382.8 million from $213.5 million.
- Annual revenues have risen by 19.5%, reaching $139.8 million, a significant jump from $117 million.
- The gross profit expanded by 40.3% to $76.7 million, compared to $54.7 million the previous year.
- Gross profit margin shifted positively from 47% to 55%.
- Operating income increased to $22.8 million, compared with $13.7 million.
- Adjusted EBITDA has grown by 43.1% to $33.3 million, up from $23.2 million.
- Net loss attributable to common stockholders narrowed to ($4.7) million, or ($0.22) per diluted share, compared to ($8.3) million, or ($0.38) per diluted share from the prior year.
Future Expectations
FlexShopper’s management believes that sustained growth will continue into 2025, as demonstrated by a 49.7% increase in lease originations in the first quarter relative to the same period the previous year. The company anticipates further improvements in profitability as sales on the flexshopper.com platform rise, with stable operating expenses allowing for better overall financial health.
Guidance for 2025
FlexShopper aims for gross profit ranging between $90 million and $100 million, reflecting a rise of 17% to 30% from the previous year alongside expected adjusted EBITDA of $40 million to $45 million, which indicates an increase of 20% to 35% from 2024 levels.
Regulatory Compliance and Governance
FlexShopper is actively addressing compliance issues following a notification from Nasdaq related to delays in its Form 10-K filing. The company plans to submit the required documents as soon as possible and is preparing remedial actions to regain compliance. Importantly, the common stock listing on Nasdaq remains unaffected at this time.
About FlexShopper
FlexShopper, Inc. is recognized as a leader in the financial tech industry, providing innovative payment solutions tailored for underserved consumers. The company facilitates flexible funding options through its direct-to-consumer online marketplace and array of partnerships with both online and brick-and-mortar merchants.
Frequently Asked Questions
What are the main financial highlights for FlexShopper in 2024?
In 2024, FlexShopper achieved a 19.5% growth in revenue, a 66% increase in operating income, and a 43.1% rise in adjusted EBITDA compared to the previous year.
How has FlexShopper expanded its market presence in 2024?
FlexShopper expanded its lease-to-own offerings to 7,900 locations, marking a substantial growth of approximately 250% in market share.
What is the company's guidance for 2025?
FlexShopper expects gross profit between $90 million and $100 million for 2025, indicating a growth of 17% to 30% from 2024.
Has FlexShopper faced any regulatory challenges recently?
Yes, the company received a notification from Nasdaq regarding a compliance issue tied to the delayed filing of its Form 10-K. They are working to address this promptly.
What innovative solutions does FlexShopper provide to consumers?
FlexShopper offers flexible payment options through its lease-to-own programs, catering especially to underserved consumer segments across its marketplace and partner merchants.
