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BOCA RATON, Fla. - FlexShopper, Inc. (NASDAQ:FPAY), a micro-cap company valued at $30.69 million in the online lease-to-own retail and payment solutions sector, has reported a significant rise in customer applications and originations for January 2025. According to InvestingPro data, the company has maintained impressive revenue growth of 24.46% over the last twelve months, despite challenging market conditions. The company experienced a 130% year-over-year increase in new customer applications, which contributed to the highest January originations in four years, marking a 44% increase from the previous year.
The company’s CEO, Russ Heiser, attributed this growth to the successful implementation of direct-to-consumer and business-to-business strategies, which have led to improved conversion rates on their platform, FlexShopper.com. A notable 105% increase in gross margin dollars and a 34% reduction in marketing costs per new customer were also highlighted as key profitability indicators for January. InvestingPro analysis reveals the company maintains an impressive gross profit margin of 86.24%, though investors should note that analysts don’t expect profitability this year.
FlexShopper’s B2B partnerships have seen a significant expansion, with a 248% increase in the number of stores offering their virtual lease-to-own solutions since the end of 2023. This expansion has been a major factor in driving consumers to their direct-to-consumer marketplace, resulting in a 93% year-over-year increase in January originations on FlexShopper.com.
The company also reported a substantial rise in B2B partnership application volume, up 279% year-over-year, and a consistent improvement in asset quality, with 13 consecutive months of seasoned originations showing year-over-year increases in cumulative payment rate. New customer originations in FlexShopper’s Revolution Loan business saw an 88% increase compared to the same period last year.
Heiser expressed confidence in the company’s position for continued demand and execution against their growth plan, expecting growth in revenue and profitability throughout 2025. While the stock has shown strong momentum with a 41.58% return over the past six months, InvestingPro subscribers have access to 12 additional key insights and a comprehensive Pro Research Report that provides deeper analysis of the company’s financial health and growth prospects.
FlexShopper, Inc. provides flexible payment options to consumers, particularly those underserved by traditional financing methods. The company offers a variety of funding options through its online marketplace and partnerships with merchants both online and in physical stores.
This report is based on a press release statement from FlexShopper, Inc. and contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially due to various factors, including but not limited to, the company’s ability to maintain adequate financing, manage growth, and comply with laws and regulations.
In other recent news, FlexShopper, Inc. has announced a series of significant developments. The company has set terms for its upcoming Series A, B, and C rights offerings, aiming to strengthen its balance sheet and financial performance. Alongside this, FlexShopper has seen changes in its Board of Directors, with the appointment of former North Carolina Governor Patrick McCrory and the resignation of Sean Hinze. Denis Echtchenko was also welcomed to the board, following the terms of the Investor Rights Agreement with B2 FIE.
In addition, FlexShopper’s CEO, H. Russell Heiser Jr., has received amendments to his employment agreement, including a salary increase and an adjustment to his target bonus. These developments are part of FlexShopper’s commitment to strong governance and executive compensation aligned with corporate performance.
H.C. Wainwright maintained a positive stance on FlexShopper, keeping a Buy rating based on the company’s financial performance and attractive valuation levels. The firm recognized FlexShopper’s third-quarter performance, which saw revenues of $38.6 million, surpassing their estimate. The company is expected to continue its growth trajectory, with new store locations anticipated to contribute to lease originations in 2025. These are recent developments and are based on information from press releases and analyst notes.
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