FlexShopper (FPAY) AI Stock Analysis

• Market Cap: $55.80K
• Dividend Yield: N/A
• Average Volume (3M): 993.30K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.46
• Revenue Growth: 19.51%
• EPS Growth: 29.43%
• Country: US
• Employees: 204
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): N/A
• Shares Outstanding: 21,461,489
• 10 Day Avg. Volume: 1,040,120
• 30 Day Avg. Volume: 993,303
• PEG Ratio: 5.53
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 0.26
• P/FCF Ratio: -0.85
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 38 Underperform
• Price Target: <$0.01 ▼(-10.00% Downside)

FlexShopper's overall stock score is driven by significant financial and operational challenges. The company's high leverage, negative cash flow, and recent negative corporate events, including leadership instability and regulatory issues, weigh heavily on its prospects. The lack of technical data and unattractive valuation further contribute to a low score.

Positive Factors

Revenue Growth

The company's ability to increase revenue suggests strong demand for its lease-to-own solutions, which can support long-term business expansion.

Gross Profit Margin

A high gross profit margin indicates effective cost control, which can provide a buffer against economic fluctuations and support profitability.

Retail Partnerships

Strategic partnerships with retailers expand market reach and customer base, enhancing revenue streams and competitive positioning.

Negative Factors

Leadership Instability

Frequent leadership changes can disrupt strategic direction and operational stability, impacting long-term company performance.

High Leverage

High leverage increases financial risk and limits flexibility, potentially affecting the company's ability to invest in growth opportunities.

Negative Cash Flow

Negative cash flow indicates challenges in sustaining operations without external financing, risking long-term financial health.

FlexShopper Business Overview & Revenue Model

Company Description

FlexShopper, Inc., a financial technology company, operates an e-commerce marketplace to shop electronics, home furnishings, and other durable goods on a lease-to-own (LTO) basis. It offers durable products, including consumer electronics; home appliances; computers, including tablets and wearables; smartphones; tires; and jewelry and furniture, such as accessories. The company was formerly known as Anchor Funding Services, Inc. and changed its name to FlexShopper, Inc. in October 2013. FlexShopper, Inc. was founded in 2003 and is headquartered in Boca Raton, Florida.

How the Company Makes Money

FlexShopper generates revenue primarily through fees associated with its lease-to-own agreements. The company charges consumers a lease payment that includes a markup over the cost of the product, which may consist of an initial payment, monthly payments, and potential fees for late payments or missed payments. Additionally, FlexShopper earns revenue from partnerships with retailers who pay a commission for each lease agreement originated through their platform. These partnerships expand FlexShopper's market reach and allow participating retailers to attract customers who may not qualify for traditional credit options. Furthermore, the company may also generate income through ancillary services or products related to its core leasing business.

FlexShopper Financial Statement Overview

Summary

FlexShopper shows positive revenue growth, but persistent net losses and high leverage present significant challenges. The company needs to enhance its operational efficiency and manage its debt levels to improve financial stability. Cash flow management is critical, as current operations are not generating positive cash flow, raising concerns about long-term sustainability without external financing.

Income Statement

FlexShopper's revenue growth is positive, with a notable increase from $116.98M in 2023 to $139.80M in 2024. However, the company is struggling with profitability, as indicated by negative net profit margins and consistent net losses, with a net income of -$179K in 2024. The gross profit margin remains high, showcasing efficient cost management, but the EBIT and EBITDA margins reflect operational challenges.

Balance Sheet

The company has a high debt-to-equity ratio, reflecting significant leverage which could pose financial risks. Stockholders' equity has been increasing, which is a positive sign, yet the equity ratio remains low. The company's assets have grown, supporting future operational capabilities, but the high level of liabilities relative to equity needs careful management.

Cash Flow

FlexShopper is experiencing negative free cash flow, which has worsened from 2023 to 2024. Operating cash flow is negative, indicating challenges in generating cash from operations. The financing cash flow is positive, suggesting reliance on external funding to support operations, which is a potential risk if not managed properly.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	139.80M	116.98M	113.06M	125.43M	102.08M
Gross Profit	136.42M	104.48M	109.67M	46.25M	35.35M
EBITDA	32.39M	16.61M	383.40K	12.71M	72.05M
Net Income	-179.27K	-4.23M	13.63M	3.27M	-339.90K
Balance Sheet
Total Assets	209.51M	156.49M	148.29M	84.81M	68.25M
Cash, Cash Equivalents and Short-Term Investments	10.40M	4.41M	6.05M	4.99M	8.54M
Total Debt	163.34M	115.57M	97.74M	56.81M	45.98M
Total Liabilities	176.36M	127.26M	117.25M	68.67M	57.10M
Stockholders Equity	33.15M	29.23M	31.03M	16.14M	11.15M
Cash Flow
Free Cash Flow	-43.45M	-13.00M	-37.74M	-16.21M	-8.31M
Operating Cash Flow	-34.95M	-6.66M	-31.24M	-11.26M	-5.21M
Investing Cash Flow	-9.15M	-7.56M	-5.20M	-4.95M	-3.10M
Financing Cash Flow	50.09M	12.47M	37.52M	12.76M	9.98M

FlexShopper Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRG	71 Outperform	$1.20B	7.72	24.56%	1.71%	3.71%	9.14%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
VSTS	58 Neutral	$909.88M	-22.80	-4.55%	2.01%	-2.53%	-291.35%
MPU	55 Neutral	$76.63M	-3.31	-62.46%	―	19.87%	-111.99%
CTOS	50 Neutral	$1.41B	-54.20	-3.00%	―	7.39%	34.57%
ALTG	49 Neutral	$170.20M	-2.00	-160.65%	4.53%	-3.95%	-47.70%
FPAY	38 Underperform	$55.80K	-0.05	―	―	19.51%	29.43%

FlexShopper Corporate Events

FlexShopper Subsidiary Amends Credit Agreement for Operations

On September 30, 2025, Flex Revolution, LLC, a subsidiary of FlexShopper, entered into a Forbearance and Sixth Amendment to its Credit Agreement with BP Fundco, LLC. This amendment allows Flex Revolution to continue operations until October 27, 2025, by extending the draw period and permitting over-advances up to $750,000. The amendment facilitates the sale of Basepoint’s collateral in an Article 9 UCC Sale scheduled for October 24, 2025, after which Flex Revolution will cease operations.

FlexShopper Faces Leadership Changes Amid Financial Turmoil

FlexShopper, through its subsidiary FlexShopper 2, LLC, is involved in a significant financial development concerning its credit agreement with Waterfall Asset Management. On August 12, 2025, the company received a notice of default under the Waterfall Credit Agreement, leading to a series of financial obligations becoming immediately due. Additionally, several key resignations occurred in late September 2025, including board members and the President and COO, indicating potential instability within the company’s leadership.

FlexShopper Faces Nasdaq Delisting Risk in September

On September 18, 2025, FlexShopper received a deficiency letter from Nasdaq indicating that its common stock had closed below the $1.00 per share minimum for 30 consecutive business days, risking delisting from the Nasdaq Global Market. The company has until March 17, 2026, to regain compliance by meeting the minimum bid price requirement. If unsuccessful, FlexShopper may qualify for an additional compliance period by transferring to the Nasdaq Capital Market and meeting specific criteria. Previously, on April 17, 2025, the company was notified of non-compliance due to not filing its Annual Report on time and must submit required documents by October 13, 2025, to regain compliance.

FlexShopper Negotiates Restructuring Amid SEC Investigation

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.