FlexShopper (FPAY) AI Stock Analysis

• Market Cap: $24.90M
• Dividend Yield: N/A
• Average Volume (3M): 53.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.68
• Revenue Growth: 19.51%
• EPS Growth: 29.43%
• Country: US
• Employees: 204
• Sector: Industrials
• Sector Strength: 87
• Industry: Rental & Leasing Services
• EPS (TTM): N/A
• Shares Outstanding: 21,461,489
• 10 Day Avg. Volume: 74,295
• 30 Day Avg. Volume: 53,325
• PEG Ratio: 1.01
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.62
• Enterprise Value/Market Cap: 0.70
• Enterprise Value/Revenue: 0.03
• Enterprise Value/Gross Profit: 0.24
• Enterprise Value/Ebitda: 0.14
• 1Y Price Target: $2.50
• Price Target Upside: 115.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 41 Neutral
• Price Target: $1.00 ▼(-13.79%Downside)

The overall stock score for FlexShopper reflects significant financial challenges, including persistent net losses and high leverage. The bearish technical indicators and negative P/E ratio further weigh on the stock's attractiveness. While the credit agreement amendment could provide growth opportunities, the company's financial and operational weaknesses dominate the assessment.

Positive Factors

Financial Outlook

The company provided a favorable outlook for 2025 including gross profit of between $90.0M and $100.0M and adj. EBITDA of between $40.0M and $45.0M.

Profitability

Improving profitability reflects both an improvement in asset quality and a realization of operating leverage as the business scales.

Revenue Growth

The company has seen a 15.0% increase in gross leasing revenue and a 25.0% increase in net lease revenue, with a reduction in bad debt expense as a percentage of revenue.

Negative Factors

Stock Performance

FPAY shares have declined 31.0% year to date, versus a 14.0% decline in the Russell 2000.

Stock Valuation

FPAY shares are currently trading at a meaningful discount to peers, with expected revenue and EBITDA growth to outpace peers in 2024 and 2025.

FlexShopper Business Overview & Revenue Model

Company Description

FlexShopper, Inc. (FPAY) is a financial technology company that operates in the lease-to-own sector, providing consumers with a flexible payment option for purchasing durable goods. The company primarily targets customers with limited access to traditional credit, offering them an online marketplace to shop for various products including electronics, appliances, and furniture. Through its proprietary technology platform, FlexShopper enables consumers to lease products and pay over time, making ownership more accessible to a broader audience.

How the Company Makes Money

FlexShopper generates revenue primarily through its lease-to-own transactions. The company earns money by purchasing products from retailers and leasing them to consumers under lease agreements that allow customers to pay over time. Revenue is derived from the lease payments made by customers, which include both the cost of the product and a lease fee. Additionally, FlexShopper may charge fees for late payments or early purchase options. The company's technology platform facilitates these transactions, and partnerships with retailers expand its product offerings, contributing to its revenue growth.

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	13.69M	71.02M	90.84M	4.63M
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	5.09M	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 Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.16
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FPAY, the sentiment is Negative. The current price of 1.16 is below the 20-day moving average (MA) of 1.30, below the 50-day MA of 1.29, and below the 200-day MA of 1.41, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 37.30 is Neutral, neither overbought nor oversold. The STOCH value of 15.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FPAY.

FlexShopper Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SPCB	65 Neutral	$46.13M	29.65	9.92%	―	―	―
FTEK	63 Neutral	$81.56M	―	-6.95%	―	7.30%	-247.48%
TOPS	59 Neutral	$24.70M	4.91	3.07%	―	3.83%	―
Sector *	58 Neutral	$1.33B	4.26	-2.93%	8.38%	3.41%	-51.76%
SVT	55 Neutral	$120.13M	191.79	-4.18%	―	2.57%	83.28%
MESA	51 Neutral	$39.70M	―	-472.57%	―	-11.55%	-76.38%
FPAY	41 Neutral	$24.90M	―	-4.33%	―	19.51%	29.43%

FlexShopper Corporate Events

FlexShopper Extends Draw Period for Credit Facility

On June 7, 2023, Flex Revolution LLC, a subsidiary of FlexShopper, along with Revolution Financial, Inc., entered into a Joinder Agreement to a Credit Agreement known as the Basepoint Credit Agreement. This agreement provides a $20 million credit facility for consumer loan origination, backed by eligible consumer receivables. The annual interest rate is set at 13.42%, with the principal balance due by June 7, 2026. Additionally, on June 7, 2025, the Draw Period for accessing funds was extended to the earliest of July 31, 2025, or the Draw Period Termination Date, with an option to extend for another year. This development could impact FlexShopper’s financial operations by enhancing its consumer lending capabilities.

The most recent analyst rating on (FPAY) stock is a Buy with a $2.00 price target. To see the full list of analyst forecasts on FlexShopper stock, see the FPAY Stock Forecast page.

FlexShopper Amends Credit Agreement to Boost Capacity

FlexShopper, through its subsidiary FlexShopper 2, LLC, has amended its credit agreement with Powerscourt Investments 50, LP, an affiliate of Waterfall Asset Management, LLC. The amendments, executed on April 9, 2025, and May 1, 2025, increased the commitment amount to $200 million and extended the termination date to April 29, 2028, reflecting an enhanced financial capacity and potential growth in operations.