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FlexShopper Negotiates Restructuring Amid SEC Investigation

Story Highlights
  • FlexShopper entered a forbearance agreement due to overstated borrowing base calculations.
  • The SEC is investigating alleged misrepresentations, and restructuring talks are ongoing.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
FlexShopper Negotiates Restructuring Amid SEC Investigation

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FlexShopper ( (FPAY) ) just unveiled an announcement.

FlexShopper, through its subsidiaries FlexShopper 2, LLC and FlexShopper, LLC, entered into a Limited Forbearance and Reaffirmation with Powerscourt Investments 50, LP, an affiliate of Waterfall Asset Management, LLC, on August 16, 2025. This agreement was part of an ongoing investigation into alleged misrepresentations related to borrowing base calculations, which were found to be materially overstated. The forbearance period was extended until September 3, 2025, but the agreement expired on that date. The company is actively negotiating a restructuring to address the borrowing base deficiency, as failure to do so could severely impact its operations. Additionally, the SEC has launched an investigation into potential fraudulent actions by former officers and employees, with which the company is cooperating.

The most recent analyst rating on (FPAY) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on FlexShopper stock, see the FPAY Stock Forecast page.

Spark’s Take on FPAY Stock

According to Spark, TipRanks’ AI Analyst, FPAY is a Neutral.

The overall stock score for FlexShopper is primarily impacted by its financial performance, which shows positive revenue growth but significant challenges with profitability and cash flow management. Technical analysis indicates a bearish trend, while valuation metrics highlight ongoing losses and a lack of profitability. These factors collectively suggest a cautious outlook for the stock.

To see Spark’s full report on FPAY stock, click here.

More about FlexShopper

Average Trading Volume: 173,281

Technical Sentiment Signal: Sell

Current Market Cap: $16.75M

For an in-depth examination of FPAY stock, go to TipRanks’ Overview page.

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