FlexShopper gets Nasdaq extension to file delayed financial reports

BOCA RATON, Fla. - FlexShopper, Inc. (NASDAQ:FPAY), a $28 million market cap company whose stock has declined over 31% year-to-date, has received a 180-day extension from Nasdaq to regain compliance with listing requirements by filing its overdue financial reports, the lease-to-own payment solutions provider announced Thursday. According to InvestingPro data, the company has been facing profitability challenges in recent quarters.

The extension, approved on June 18, gives FlexShopper until October 13 to file its 2024 annual report and first-quarter 2025 financial statements. During this compliance period, the company’s shares will continue trading on Nasdaq. Despite recent challenges, InvestingPro analysis shows the company maintains strong liquidity with a current ratio of 7.1, indicating sufficient assets to cover short-term obligations.

FlexShopper stated it is working with its independent auditor and external advisors to complete its annual audit for the fiscal year ended December 31, 2024, and expects to provide an update on the status of its delayed filings "in the near term."

The company had submitted materials to Nasdaq on June 16 requesting the extension to comply with Listing Rule 5250(c)(1), which requires timely filing of all periodic financial reports with the Securities and Exchange Commission.

If FlexShopper fails to file the required reports by the October deadline, it may face delisting from Nasdaq, though it would have the option to request a review of any delisting determination by a Nasdaq Hearings Panel.

FlexShopper describes itself as a financial technology company offering payment options to consumers through its online marketplace and in partnership with merchants. The company has demonstrated strong revenue growth of 19.5% in the last twelve months, and analysts tracked by InvestingPro expect profitability improvement in the coming year. Get the complete financial health analysis and 7 additional key insights about FPAY with an InvestingPro subscription.

This article is based on information from a company press release.

In other recent news, FlexShopper announced a strategic partnership with ICON Vehicle Dynamics, allowing ICON’s performance suspension systems and off-road components to be available through FlexShopper’s lease-to-own (LTO) payment solutions. This collaboration enables ICON customers to purchase high-quality vehicle parts with flexible weekly payments, enhancing their purchasing power without the need for credit. Additionally, FlexShopper is addressing compliance issues with Nasdaq after receiving a notice for delayed filings of its Form 10-Q and Form 10-K, with plans to submit a compliance plan by June 16, 2025. Meanwhile, H.C. Wainwright reiterated a Buy rating for FlexShopper, maintaining a price target of $2.50, following the release of the company’s fourth-quarter 2024 results. Despite revenues falling short, FlexShopper reported higher gross margins and reduced operating expenses, leading to better-than-expected profitability. The company also provided a positive outlook for 2025, projecting gross profit and adjusted EBITDA figures that exceed prior estimates. Analyst Scott Buck from H.C. Wainwright noted enhancements in asset quality and operating leverage as key factors contributing to improved profitability. FlexShopper’s ongoing rights offering and patent litigation are seen as potential catalysts for the stock in 2025.

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