FlexShopper (FPAY) AI Stock Analysis

• Market Cap: $14.80M
• Dividend Yield: N/A
• Average Volume (3M): 234.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.49
• Revenue Growth: 19.51%
• EPS Growth: 29.43%
• Country: US
• Employees: 204
• Sector: Industrials
• Sector Strength: 78
• Industry: Rental & Leasing Services
• EPS (TTM): N/A
• Shares Outstanding: 21,461,489
• 10 Day Avg. Volume: 281,418
• 30 Day Avg. Volume: 234,876
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 12.21
• Enterprise Value/Revenue: 1.29
• Enterprise Value/Gross Profit: 1.32
• Enterprise Value/Ebitda: 4.51
• 1Y Price Target: $0.50
• Price Target Upside: -27.54% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 42 Neutral
• Price Target: $0.50 ▼(-27.54% Downside)

FlexShopper's overall stock score is primarily impacted by its financial performance and technical analysis, both indicating significant challenges. The company's high leverage, negative cash flow, and bearish technical indicators are major concerns. Corporate events show attempts to stabilize, but executive changes and financial misrepresentations add to the risk profile.

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 (FPAY) is a financial technology company that operates primarily in the retail and consumer finance sectors. The company specializes in providing flexible payment solutions, including lease-to-own and installment plans, enabling consumers to acquire products without the immediate financial burden of full payment. FlexShopper's core offerings are aimed at enhancing accessibility to a wide range of consumer goods, including electronics, furniture, and appliances, thereby catering to consumers with varying credit profiles who may not qualify for traditional financing options.

How the Company Makes Money

FlexShopper generates revenue through several key streams. Primarily, the company earns money by charging retailers a fee for each transaction processed through its leasing platform. This fee is often a percentage of the sale price, incentivizing retailers to partner with FlexShopper to offer flexible payment options to their customers. Additionally, FlexShopper collects interest and fees from consumers who utilize its lease-to-own services, which can include late fees and other ancillary charges. The company also benefits from partnerships with a variety of retailers, expanding its market reach and increasing transaction volume. By providing financing solutions to consumers with limited credit options, FlexShopper taps into a significant market, enhancing its earnings potential.

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: Neutral
• Last Price: 0.69
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FPAY, the sentiment is Neutral. The current price of 0.69 is above the 20-day moving average (MA) of 0.66, below the 50-day MA of 0.97, and below the 200-day MA of 1.35, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 43.16 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FPAY.

FlexShopper Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRG	80 Outperform	$1.39B	6.90	34.34%	1.45%	5.18%	109.28%
CTOS	67 Neutral	$1.39B	―	-4.37%	―	6.21%	-177.57%
Sector *	64 Neutral	$10.85B	16.20	8.89%	1.97%	2.67%	-15.04%
MPU	55 Neutral	$138.80M	―		―	―	―
ALTG	50 Neutral	$267.28M	―	-77.23%	2.73%	-3.46%	-222.37%
VSTS	47 Neutral	$609.10M	122.82	-3.36%	2.99%	-4.59%	-125.50%
FPAY	42 Neutral	$14.80M	―	-4.33%	―	19.51%	29.43%

FlexShopper Corporate Events

FlexShopper Enters Limited Forbearance Agreement Extension

On August 18, 2025, FlexShopper 2, LLC and FlexShopper, LLC, subsidiaries of the company, along with Powerscourt Investments 50, LP, entered into a Limited Forbearance and Reaffirmation agreement. The Administrative Agent extended the Forbearance Period to September 3, 2025, or until any additional default events occur, maintaining the agreement’s terms otherwise unchanged.

FlexShopper Secures Interim Financing with Credit Amendment

FlexShopper, through its subsidiary FlexShopper 2, LLC, entered into a Credit Agreement with Powerscourt Investments 50, LP and other parties, which has been amended multiple times since its inception on March 27, 2024. The most recent amendment on August 18, 2025, allows for interim financing to address the company’s immediate working capital needs, indicating a strategic move to stabilize its financial operations.

FlexShopper Enters Forbearance Agreement Amid Financial Challenges

FlexShopper 2, LLC, a subsidiary of FlexShopper, faced financial challenges as it received a Notice of Events of Default on August 12, 2025, due to misrepresentations in financial statements and false information provided to its lenders. In response, FlexShopper entered into a Forbearance Agreement on August 18, 2025, with its administrative agent and lenders, agreeing to refrain from exercising rights and remedies under the Credit Agreement until August 22, 2025, while exploring long-term financing solutions.

FlexShopper Appoints New Chief Restructuring Officer

On August 6, 2025, FlexShopper‘s Board of Directors terminated the employment of their CEO and CFO, H. Russell Heiser Jr., with John Davis assuming the role of principal executive officer. Subsequently, on August 11, 2025, FlexShopper engaged North Country Capital LLC for interim management and restructuring advisory services, appointing Matthew A. Doheny as Chief Restructuring Officer. Doheny brings extensive financial and restructuring expertise, with a history of leading significant restructurings and serving in various high-level financial positions.

FlexShopper CEO Suspended, New Executive Officer Appointed

On July 31, 2025, FlexShopper, through its subsidiary Flex Revolution LLC, entered into a Forbearance and Fourth Amendment to its Credit Agreement with BP Fundco, LLC. This amendment allows the company to delay the delivery of required financial statements and extends the draw period under the credit facility until August 30, 2025. Additionally, on the same date, the company’s Board of Directors suspended H. Russell Heiser Jr. as CEO and CFO, with John Davis assuming the role of principal executive officer.

FlexShopper Appoints Steven Varner to Board Amid Changes

On July 27, 2025, Denis Echtchenko resigned from the Board of Directors of FlexShopper, Inc., with the company disagreeing with his reasons for stepping down. Echtchenko’s resignation was followed by the appointment of Steven Varner, a seasoned executive with extensive experience in financial and operational roles, as his successor. Varner’s appointment aligns with the Investor Rights Agreement with B2 FIE, which allows them to nominate a director as long as they maintain a certain ownership percentage. This change in the board is expected to help FlexShopper navigate its current challenges.

FlexShopper Appoints John Davis as President

On July 8, 2025, FlexShopper‘s Board of Directors appointed John Davis, the current Chief Operating Officer, to the additional role of President. Mr. Davis has been with the company since November 2020 and has an extensive background in the consumer credit and finance industry, having held leadership roles at various companies. This appointment is part of an ongoing employment agreement, and no related party transactions or familial ties exist between Mr. Davis and other executives.

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.