Welcome to our dedicated page for FlexShopper news (Ticker: FPAY), a resource for investors and traders seeking the latest updates and insights on FlexShopper stock.
FlexShopper, Inc. (NASDAQ: FPAY) is a leading financial technology company specializing in lease-to-own (LTO) solutions for consumers and retailers. As a wholly owned subsidiary, FlexShopper, LLC, operates an extensive e-commerce marketplace (www.flexshopper.com) that offers over 80,000 brand-name durable goods ranging from electronics and furniture to musical instruments and appliances.
FlexShopper provides consumers with three convenient ways to lease brand-name items: through its own e-commerce platform, via third-party e-commerce sites that feature FlexShopper's LTO payment methods, and directly in retail stores. The company's innovative technology not only facilitates these transactions but also ensures seamless integration for retailers and e-tailers looking to offer LTO options to customers who may lack sufficient cash or credit.
FlexShopper's business model involves funding these LTO transactions by paying merchants upfront for the goods, then collecting payments from consumers under LTO contracts. This approach enables a broader range of consumers to access high-quality products while offering retailers a secure and guaranteed payment solution.
In recent years, FlexShopper has achieved significant milestones, including expanding its product range and enhancing its proprietary LTO technology platforms, which are now utilized by an increasing number of retail partners. Financially, the company has shown strong performance metrics and continues to focus on growth and customer satisfaction.
FlexShopper regularly updates its investor relations with conference calls and webcasts, providing key performance metrics and financial results. For example, the next scheduled conference call is set for Tuesday, April 2, 2024, at 8:30 a.m. ET to discuss Q4 and year-end results.
For more information on FlexShopper, visit the official website or contact their investor relations at ir@flexshopper.com.
FlexShopper Inc. (Nasdaq: FPAY) announced the appointment of Patrick McCrory as an independent board member and the retirement of T. Scott King from the Board of Directors effective January 20. McCrory, who served as the 74th governor of North Carolina (2013-2017) and as Charlotte's longest-serving mayor (1995-2009), brings extensive leadership and public policy experience.
McCrory's background includes serving on the U.S. Homeland Security Advisory Council (2002-2006), chairing various U.S. Conference of Mayors committees, and holding senior executive positions at Duke Energy (1978-2008). He previously served on the boards of Kewaunee Scientific and LendingTree, and was Senior Director of Strategic Initiatives at Moore & Van Allen PLLC (2009-2012).
FlexShopper (Nasdaq: FPAY), a leading national online lease-to-own retailer and payment solutions provider, has announced its participation in the upcoming Sidoti Micro-Cap Virtual Conference. CEO Russ Heiser and COO John Davis will be presenting and conducting one-on-one meetings during the conference on January 22-23, 2025.
The company's presentation is scheduled for Thursday, January 23, 2025, at 9:15 AM ET. The event will include a live presentation and Q&A session, accessible through a webcast link. Registration for the conference is complimentary and open to all interested participants, regardless of Sidoti client status.
FlexShopper (NASDAQ: FPAY) has announced preliminary results of its unit rights offering, which expired on January 10, 2025. The company raised approximately $9.4 million in gross proceeds through the initial subscription rights exercise, with units sold at $1.70 (15% discount to 3-day VWAP). About 5,547,993 subscription rights were exercised, representing approximately 21% of the company's common stock.
Additionally, NRNS Capital Holdings has elected to convert $2.5 million of its $10.75 million subordinated debt into equity through the Rights Offering, reducing the proforma outstanding balance to $8.25 million and saving approximately $0.5 million in annual interest expense.
The company has an additional 21 million rights that can be exercised over the next 90 days at 30-day intervals. Similar participation levels in the Series A, B, and C rights could raise approximately $48 million, potentially saving $8.5 million in annual dividend and interest expense. Proceeds will be used to repurchase over 90% of Series 2 Convertible Preferred Stock and repay portions of credit facilities.
FlexShopper (FPAY) reported strong operating results for Q4 2024 and the holiday season, marking significant growth across key metrics. December 2024 saw record lease originations, up 35% year-over-year, with marketplace originations increasing 42%. The company achieved record new customer application volume, up 45% year-over-year, while reducing marketplace marketing costs per new customer by 40%.
Notable Q4 2024 achievements include a 58% increase in total lease originations compared to Q3 2024, and a 152% rise in flexshopper.com marketplace originations. The retail product margin reached a record $1.4 million in December, representing a 34% year-over-year increase. The Revolution Loan business showed strong performance with a 95% year-over-year increase in new customer originations.
Asset quality improved with 12 consecutive months of enhanced cumulative payment rates. The company expects these strong origination trends to support continued growth in revenue and profitability throughout 2025.
FlexShopper (FPAY) has successfully expanded its lease-to-own (LTO) payment solutions to over 100 Jiffy Lube and Meineke Car Care Center locations, with plans to add 75-100 additional stores within the next 60 days. The expansion comes through a strategic partnership with PayTomorrow, scaling from just 8 stores initially. The company aims to tap into approximately 2,100 franchise locations between both brands.
The implementation supports the owner/operator model of franchisees, helping optimize sales and profitability. This expansion adds to FlexShopper's existing network of over 2,000 tire and automotive locations with other national retailers, with a near-term pipeline of over 2,000 additional tire and auto retail locations.
FlexShopper (FPAY) reported record initial holiday season results for October and November 2024, with lease gross revenue up 15% and lease net revenue increasing over 25% compared to the same period in 2023. The company experienced a 51% increase in lease gross profit while reducing lease marketing expenses by over 40%. Bad debt expense declined by 600 basis points, and new loan originations grew by 34%.
The company's success is attributed to its direct-to-consumer and business-to-business growth strategies. From January to November 2024, FlexShopper expanded to over 5,600 retail locations and added 12+ new eCommerce websites. In Q3 2024, total revenue increased 23% to $38.6 million, with Adjusted EBITDA growing 45% to $12.2 million, and net income reaching $1.2 million ($0.05 per diluted share).
FlexShopper (FPAY) has extended its rights offering expiration date to January 10, 2025, citing market disruption, budget deadlines, and Canadian postal strike delays. The offering allows stockholders of record as of December 2, 2024, to purchase up to 35 million units at $1.70 per unit. Each unit includes one common stock share plus Series A, B, and C rights for additional stock purchases at discounted market prices.
The offering provides two non-transferable subscription rights per share owned, with an over-subscription privilege for those who exercise all basic rights. Series A, B, and C rights expire 30, 60, and 90 days after the subscription offering closes. Moody Capital Solutions serves as dealer-manager, offering broker-dealers a $0.051 per unit fee and 3% on Series A, B, and C rights exercises.
FlexShopper (NASDAQ: FPAY) reminds right holders about upcoming deadlines for their rights offering subscription process. While the offering expires on December 20, 2024, many broker-dealers require submissions by December 18, 2024. The company aims to raise capital by offering up to 35,000,000 units at $1.70 per unit to stockholders of record as of December 2, 2024.
Each unit includes one common stock share and Series A, B, and C rights for additional shares at discounted market-based prices. The offering includes an over-subscription privilege for those who exercise all basic subscription rights. Officers and directors have indicated intentions to purchase at least $5.0 million in units. The capital raised will be used to repurchase over 90% of Series 2 Convertible Preferred Stock, repay credit facilities, and fund general corporate purposes including potential acquisitions.
FlexShopper (FPAY) has received coverage initiation from Argus Research, highlighting the company's position as a leader in LTO financing for nonprime consumers. The company achieved positive net income in Q3 2024 under new leadership and has shown significant improvements in loan quality, with bad debt declining by nearly 1000 basis points year over year.
Key developments include expansion of retail partnerships to approximately 7,800 locations (250% increase from 2023), an option to purchase 91% of Series 2 preferred stock at over 50% discount, and a rights offering of up to 70 million shares at $1.70 per share. The company has also filed patent infringement lawsuits against competitors. Argus Research sets a fair value of $5.50 per share based on EV/EBITDA analysis.
FlexShopper (NASDAQ: FPAY) has announced a strategic partnership with Tire Agent, a company that originates over $100 million in lease-to-own transactions annually. The collaboration integrates FlexShopper's payment solutions on Tire Agent's website and establishes Tire Agent as the preferred online tire retailer on the FlexShopper marketplace.
The partnership launches flexshopper.tireagent.com, combining Tire Agent's tire inventory with FlexShopper's flexible payment options. The initiative targets near-prime credit consumers who may not qualify for traditional financing. Customers can access FlexShopper's payment option through PayPair at checkout, enabling them to spread payments over time without traditional credit approvals.
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