FlexShopper (FPAYQ) AI Stock Analysis

• Market Cap: $4.29K
• Dividend Yield: N/A
• Average Volume (3M): 993.30K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.25
• 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: 44.21K
• Enterprise Value/Revenue: 1.36
• Enterprise Value/Gross Profit: 1.39
• Enterprise Value/Ebitda: 4.73
• 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

No summary available

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
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

FlexShopper Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRG	71 Outperform	$1.21B	7.73	24.56%	1.72%	3.71%	9.14%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
VSTS	58 Neutral	$863.73M	-21.46	-4.55%	2.09%	-2.53%	-291.35%
MPU	55 Neutral	$71.21M	-2.83	-62.46%	―	19.87%	-111.99%
CTOS	50 Neutral	$1.35B	-53.93	-3.00%	―	7.39%	34.57%
ALTG	49 Neutral	$152.15M	-1.88	-160.65%	4.88%	-3.95%	-47.70%

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.