FlexShopper, Inc. Reports 2024 Second-Quarter Financial Results
FlexShopper, Inc. (Nasdaq: FPAY) reported strong financial results for Q2 2024. Total revenue increased 29.8% to $31.8 million, while gross profit surged 89.3% to $15.9 million. The company saw a significant improvement in Adjusted EBITDA, which rose to $4.9 million from $0.3 million in the same period last year. Total lease funding approvals increased by 102.2% to $74.8 million. Despite these positive metrics, FlexShopper reported a net loss of $2.7 million, or ($0.13) per diluted share. The company added 150 new retail partner locations and expects to add 500 more in H2 2024. FlexShopper's CEO, Russ Heiser, Jr, expressed confidence in the company's long-term growth strategies and its ability to capitalize on market share opportunities.
FlexShopper, Inc. (Nasdaq: FPAY) ha riportato risultati finanziari solidi per il secondo trimestre del 2024. I ricavi totali sono aumentati del 29,8% raggiungendo i 31,8 milioni di dollari, mentre il profitto lordo è aumentato dell'89,3% toccando i 15,9 milioni di dollari. L'azienda ha registrato un notevole miglioramento nell'EBITDA rettificato, che è salito a 4,9 milioni di dollari rispetto ai 0,3 milioni dello stesso periodo dell'anno scorso. Le approvazioni totali per il finanziamento dei leasing sono aumentate del 102,2% arrivando a 74,8 milioni di dollari. Nonostante questi dati positivi, FlexShopper ha registrato una perdita netta di 2,7 milioni di dollari, pari a ($0,13) per azione diluita. L'azienda ha aggiunto 150 nuovi punti vendita partner e prevede di aggiungere altri 500 nella seconda metà del 2024. Il CEO di FlexShopper, Russ Heiser, Jr, ha espresso fiducia nelle strategie di crescita a lungo termine dell'azienda e nella sua capacità di sfruttare le opportunità di mercato.
FlexShopper, Inc. (Nasdaq: FPAY) reportó resultados financieros sólidos para el segundo trimestre de 2024. Los ingresos totales aumentaron un 29.8% alcanzando los 31.8 millones de dólares, mientras que el beneficio bruto se disparó un 89.3% llegando a 15.9 millones de dólares. La empresa vio una mejora significativa en el EBITDA ajustado, que aumentó a 4.9 millones de dólares desde 0.3 millones en el mismo periodo del año pasado. Las aprobaciones totales de financiamiento de arrendamientos crecieron un 102.2% alcanzando los 74.8 millones de dólares. A pesar de estos indicadores positivos, FlexShopper reportó una pérdida neta de 2.7 millones de dólares, o ($0.13) por acción diluida. La empresa agregó 150 nuevas ubicaciones de socios minoristas y espera agregar 500 más en la segunda mitad de 2024. El CEO de FlexShopper, Russ Heiser, Jr, expresó confianza en las estrategias de crecimiento a largo plazo de la empresa y su capacidad para capitalizar oportunidades de participación de mercado.
FlexShopper, Inc. (Nasdaq: FPAY)는 2024년 2분기 강력한 재무 실적을 보고했습니다. 총 수익이 29.8% 증가하여 3,180만 달러에 달했고, 총 이익은 89.3% 증가하여 1,590만 달러에 도달했습니다. 회사는 조정 EBITDA가 작년 같은 기간 30만 달러에서 490만 달러로 증가하는 등 기복이 상당히 개선되었습니다. 전체 임대 자금 승인 는 102.2% 증가하여 7,480만 달러에 이릅니다. 이러한 긍정적인 지표에도 불구하고 FlexShopper는 270만 달러의 순손실, 즉 희석 주당 ($0.13)의 거래를 기록했습니다. 회사는 150개의 새로운 소매 파트너 위치를 추가했으며 2024년 하반기에 500개를 더 추가할 것으로 예상합니다. FlexShopper의 CEO인 Russ Heiser, Jr.는 회사의 장기 성장 전략에 대한 신뢰와 시장 점유율 기회를 활용할 수 있는 능력을 표현했습니다.
FlexShopper, Inc. (Nasdaq: FPAY) a communiqué des résultats financiers solides pour le deuxième trimestre 2024. Le chiffre d'affaires total a augmenté de 29,8% pour atteindre 31,8 millions de dollars, tandis que le bénéfice brut a bondi de 89,3% pour atteindre 15,9 millions de dollars. L'entreprise a connu une amélioration significative de l'EBITDA ajusté, qui est passé à 4,9 millions de dollars contre 0,3 million au cours de la même période l'année dernière. Les approbations totales de financement des baux ont augmenté de 102,2% pour atteindre 74,8 millions de dollars. Malgré ces indicateurs positifs, FlexShopper a signalé une perte nette de 2,7 millions de dollars, soit ($0,13) par action diluée. L'entreprise a ajouté 150 nouveaux points de vente partenaires et prévoit d'en ajouter 500 de plus au second semestre 2024. Le PDG de FlexShopper, Russ Heiser, Jr, a exprimé sa confiance dans les stratégies de croissance à long terme de l'entreprise et sa capacité à tirer parti des opportunités de part de marché.
FlexShopper, Inc. (Nasdaq: FPAY) meldete starke finanzielle Ergebnisse für das 2. Quartal 2024. Der Gesamtumsatz stieg um 29,8% auf 31,8 Millionen Dollar, während der Bruttogewinn um 89,3% auf 15,9 Millionen Dollar anstieg. Das Unternehmen verzeichnete eine deutliche Verbesserung des bereinigten EBITDA, das auf 4,9 Millionen Dollar von 0,3 Millionen im gleichen Zeitraum des Vorjahres anstieg. Die Gesamtergebnisse für Leasingfinanzierungen wuchsen um 102,2% auf 74,8 Millionen Dollar. Trotz dieser positiven Kennzahlen berichtete FlexShopper von einem netto Verlust von 2,7 Millionen Dollar, oder ($0,13) pro verwässerter Aktie. Das Unternehmen eröffnete 150 neue Einzelhandelspartnerstandorte und erwartet, in der zweiten Jahreshälfte 2024 weitere 500 hinzuzufügen. Der CEO von FlexShopper, Russ Heiser, Jr., äußerte Vertrauen in die langfristigen Wachstumsstrategien des Unternehmens und dessen Fähigkeit, Marktchancen zu nutzen.
- Total revenue increased 29.8% to $31.8 million in Q2 2024
- Gross profit surged 89.3% to $15.9 million
- Adjusted EBITDA rose significantly to $4.9 million from $0.3 million year-over-year
- Total lease funding approvals increased 102.2% to $74.8 million
- Added 150 new retail partner locations with plans for 500 more in H2 2024
- Provision for doubtful accounts as a percentage of gross lease billings and fees decreased by 32.4%
- Net loss of $2.7 million, or ($0.13) per diluted share in Q2 2024
- Net loss of $4.0 million, or ($0.18) per diluted share for the first six months of 2024
Insights
FlexShopper's Q2 2024 results show significant improvement, with total revenue up
The improved gross profit margin and reduced provision for doubtful accounts suggest better operational efficiency. With
FlexShopper's performance indicates a growing demand for alternative payment solutions in the underserved consumer segment. The
However, the company's net loss, despite revenue growth, raises questions about scalability and long-term profitability. The mention of other payment providers adjusting credit standards or exiting the market presents both an opportunity and a potential risk, as it may indicate sector-wide challenges. Investors should monitor FlexShopper's ability to capitalize on these market shifts while managing credit risk effectively.
FlexShopper's risk management efforts show promise, with the provision for doubtful accounts as a percentage of gross lease billings and fees decreasing by
However, the ongoing net losses and the volatile economic environment present continued risks. The company's expansion strategy, while promising, could expose it to new credit risks if not carefully managed. Investors should closely monitor FlexShopper's ability to maintain asset quality as it pursues aggressive growth, particularly in light of changing market conditions and potential shifts in consumer credit profiles.
BOCA RATON, Fla., Aug. 06, 2024 (GLOBE NEWSWIRE) -- FlexShopper, Inc. (Nasdaq: FPAY) (“FlexShopper”), a leading national online lease-to-own (“LTO”) retailer and payment solution provider for underserved consumers, today announced its financial results for the quarter ended June 30, 2024.
Russ Heiser, Jr, Chief Executive Officer, stated, “Our second-quarter and year-to-date results are encouraging as the long-term growth strategies we are pursuing begin to take hold. Over the past two quarters we have focused on providing greater payment solutions to more customers, expanding retail revenue, and leveraging our established platform to provide expanded payment options to more retail partners. I am pleased with the progress we are making and during the second quarter we experienced strong growth with total revenue up
“While the economic environment remains fluid, we believe our expanded platform, strengthened financial model, strong asset quality, and access to capital will drive profitable growth in 2024 and beyond. As other payment providers adjust their credit standards or exit the market, FlexShopper continues to invest in expanding payment offerings, marketing capabilities, and distribution channels to take advantage of market share opportunities that may become available,” concluded Mr. Heiser.
Results for Quarter Ended June 30, 2024, vs. Quarter Ended June 30, 2023:
- Total lease funding approvals increased
102.2% to$74.8 million from$37.0 million - Total revenues increased
29.8% to$31.8 million from$24.5 million - Gross profit increased
89.3% to$15.9 million from$8.4 million - Adjusted EBITDA(1) increased by
$4.6 million to$4.9 million from$0.3 million - Operating income of
$2.4 million compared with operating loss of ($2.0) million - Net loss attributable to common stockholders of (
$2.7) million , or ($0.13) per diluted share, compared to net loss attributable to common stockholders of ($6.3) million , or ($0.29) per diluted share
Results for the Six Months Ended June 30, 2024, vs. the Six Months Ended June 30, 2023:
- Total lease funding approvals increased
69.7% to$118.1 million from$69.6 million - Total revenues increased
18.8% to$65.7 million from$55.3 million - Gross profit increased
53.6% to$33.8 million from$22.0 million - Adjusted EBITDA(1)increased by
$5.8 million to$12.5 million compared to$6.7 million - Operating income of
$7.4 million compared with operating income of$2.1 million - Net loss attributable to common stockholders of (
$4.0) million , or ($0.18) per diluted share, compared to net income attributable to common stockholders of ($7.5) million , or ($0.34) per diluted share
(1) Adjusted EBITDA is a non-GAAP financial measure. Refer to the definition and reconciliation of this measure under “Non-GAAP Measures”.
Liquidity
FlexShopper ended the first quarter of 2024 with cash of
Conference Call and Webcast Details
Conference Call Information:
Date: August 7, 2024
Time: 8:30 a.m. Eastern Time
Toll Free Dial In: (800) 715-9871
International Dial In: +1 (646) 307-1963
Conference ID: 7545308
Webcast Link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=vEyujKz8
The call will also be simultaneously webcast over the Internet via the “Investor” section of the Company’s website at https://investors.flexshopper.com/.
An audio replay of the call will be archived on the Company’s website at https://investors.flexshopper.com/.
About FlexShopper
FlexShopper, Inc. (Nasdaq: FPAY) is a financial technology company that provides electronics, home furnishings and other durable goods to underserved consumers on a lease-to-own (LTO) basis through its patented e-commerce marketplace (www.FlexShopper.com). FlexShopper also provides LTO and loan technology platforms to a growing number of retailers and e-retailers to facilitate transactions with consumers without access to traditional financing.
Forward-Looking Statements
All statements in this release that are not based on historical fact are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as “believe,” “expect,” “may,” “will,” “should,” “could,” “seek,” “intend,” “plan,” “goal,” “estimate,” “anticipate,” or other comparable terms. Examples of forward-looking statements include, among others, statements we make regarding expectations of lease originations, the expansion of our lease-to-own program; expectations concerning our partnerships with retail partners; investments in, and the success of, our underwriting technology and risk analytics platform; our ability to collect payments due from customers; expected future operating results and expectations concerning our business strategy. Forward-looking statements involve inherent risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, as a result of various factors including, among others, the following: our ability to obtain adequate financing to fund our business operations in the future; the failure to successfully manage and grow our FlexShopper.com e-commerce platform; our ability to maintain compliance with financial covenants under our credit agreement; our dependence on the success of our third-party retail partners and our continued relationships with them; our compliance with various federal, state and local laws and regulations, including those related to consumer protection; the failure to protect the integrity and security of customer and employee information; and the other risks and uncertainties described in the Risk Factors and in Management’s Discussion and Analysis of Financial Condition and Results of Operations sections of our Annual Report on Form 10-K and subsequently filed Quarterly Reports on Form 10-Q. The forward-looking statements made in this release speak only as of the date of this release, and FlexShopper assumes no obligation to update any such forward-looking statements to reflect actual results or changes in expectations, except as otherwise required by law.
| FLEXSHOPPER, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) | ||||||||||||||||
| For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenues: | ||||||||||||||||
| Lease revenues and fees, net | $ | 27,074,048 | $ | 22,906,843 | $ | 52,907,784 | $ | 47,621,001 | ||||||||
| Loan revenues and fees, net of changes in fair value | 3,314,375 | 1,625,193 | 10,645,652 | 7,696,810 | ||||||||||||
| Retail revenues | 1,370,462 | - | 2,150,322 | - | ||||||||||||
| Total revenues | 31,758,885 | 24,532,036 | 65,703,758 | 55,317,811 | ||||||||||||
| Costs and expenses: | ||||||||||||||||
| Depreciation and impairment of lease merchandise | 13,848,925 | 14,485,417 | 28,534,788 | 29,831,205 | ||||||||||||
| Loan origination costs and fees | 896,040 | 1,655,424 | 1,717,867 | 3,489,051 | ||||||||||||
| Cost of retail revenues | 1,059,098 | - | 1,670,302 | - | ||||||||||||
| Marketing | 2,545,814 | 1,488,578 | 4,311,386 | 2,587,767 | ||||||||||||
| Salaries and benefits | 4,224,614 | 2,976,008 | 8,308,533 | 5,702,898 | ||||||||||||
| Operating expenses | 6,807,328 | 5,957,932 | 13,739,834 | 11,585,640 | ||||||||||||
| Total costs and expenses | 29,381,819 | 26,563,359 | 58,282,710 | 53,196,561 | ||||||||||||
| Operating income/ (loss) | 2,377,066 | (2,031,323 | ) | 7,421,048 | 2,121,250 | |||||||||||
| Interest expense including amortization of debt issuance costs | (5,226,155 | ) | (4,568,557 | ) | (10,541,249 | ) | (9,099,884 | ) | ||||||||
| Loss before income taxes | (2,849,089 | ) | (6,599,880 | ) | (3,120,201 | ) | (6,978,634 | ) | ||||||||
| Benefit from income taxes | 1,246,030 | 1,302,225 | 1,302,963 | 1,450,764 | ||||||||||||
| Net loss | (1,603,059 | ) | (5,297,655 | ) | (1,817,238 | ) | (5,527,870 | ) | ||||||||
| Dividends on Series 2 Convertible Preferred Shares | (1,091,742 | ) | (992,493 | ) | (2,161,198 | ) | (1,964,726 | ) | ||||||||
| Net loss attributable to common and Series 1 Convertible Preferred shareholders | $ | (2,694,801 | ) | $ | (6,290,148 | ) | $ | (3,978,436 | ) | $ | (7,492,596 | ) | ||||
| Basic and diluted loss per common share: | ||||||||||||||||
| Basic | $ | (0.13 | ) | $ | (0.29 | ) | $ | (0.18 | ) | $ | (0.34 | ) | ||||
| Diluted | $ | (0.13 | ) | $ | (0.29 | ) | $ | (0.18 | ) | $ | (0.34 | ) | ||||
| WEIGHTED AVERAGE COMMON SHARES: | ||||||||||||||||
| Basic | 21,469,720 | 21,752,304 | 21,527,869 | 21,751,807 | ||||||||||||
| Diluted | 21,469,720 | 21,752,304 | 21,527,869 | 21,751,807 | ||||||||||||
| FLEXSHOPPER, INC. CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| June 30, | December 31, | |||||||
| 2024 | 2023 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash | $ | 4,892,912 | $ | 4,413,130 | ||||
| Lease receivables, net | 57,151,127 | 44,795,090 | ||||||
| Loan receivables at fair value | 40,085,656 | 35,794,290 | ||||||
| Prepaid expenses and other assets | 4,452,164 | 3,300,677 | ||||||
| Lease merchandise, net | 25,856,542 | 29,131,440 | ||||||
| Total current assets | 132,438,401 | 117,434,627 | ||||||
| Property and equipment, net | 9,419,105 | 9,308,859 | ||||||
| Right of use asset, net | 1,142,104 | 1,237,010 | ||||||
| Intangible assets, net | 12,506,545 | 13,391,305 | ||||||
| Other assets, net | 2,459,908 | 2,175,215 | ||||||
| Deferred tax asset, net | 14,246,325 | 12,943,361 | ||||||
| Total assets | $ | 172,212,388 | $ | 156,490,377 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable | $ | 3,811,310 | $ | 7,139,848 | ||||
| Accrued payroll and related taxes | 381,929 | 578,197 | ||||||
| Promissory notes to related parties, including accrued interest | 174,096 | 198,624 | ||||||
| Accrued expenses | 3,763,725 | 3,972,397 | ||||||
| Lease liability - current portion | 263,111 | 245,052 | ||||||
| Total current liabilities | 8,394,171 | 12,134,118 | ||||||
| Loan payable under credit agreement to beneficial shareholder, net of unamortized issuance costs of | 117,483,978 | 96,384,220 | ||||||
| Promissory notes to related parties, net of unamortized issuance costs of | 10,329,442 | 10,100,047 | ||||||
| Loan payable under Basepoint credit agreement, net of unamortized issuance costs of | 7,338,875 | 7,319,641 | ||||||
| Lease liabilities, net of current portion | 1,184,683 | 1,321,578 | ||||||
| Total liabilities | 144,731,149 | 127,259,604 | ||||||
| STOCKHOLDERS’ EQUITY | ||||||||
| Series 1 Convertible Preferred Stock, | 851,660 | 851,660 | ||||||
| Series 2 Convertible Preferred Stock, | 21,952,000 | 21,952,000 | ||||||
| Common stock, | 2,200 | 2,176 | ||||||
| Treasury shares, at cost- 346,258 shares at June 30, 2024 and 164,029 shares at December 31, 2023 | (367,563 | ) | (166,757 | ) | ||||
| Additional paid in capital | 42,684,380 | 42,415,894 | ||||||
| Accumulated deficit | (37,641,438 | ) | (35,824,200 | ) | ||||
| Total stockholders’ equity | 27,481,239 | 29,230,773 | ||||||
| $ | 172,212,388 | $ | 156,490,377 | |||||
| FLEXSHOPPER, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the six months ended June 30, 2024 and 2023 (unaudited) | ||||||||
| 2024 | 2023 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net loss | $ | (1,817,238 | ) | $ | (5,527,870 | ) | ||
| Adjustments to reconcile net loss to net cash (used in)/ provided by operating activities: | ||||||||
| Depreciation and impairment of lease merchandise | 28,534,788 | 29,831,205 | ||||||
| Other depreciation and amortization | 4,698,213 | 3,710,703 | ||||||
| Amortization of debt issuance costs | 509,797 | 182,174 | ||||||
| Amortization of discount on the promissory note related to acquisition | - | 118,476 | ||||||
| Compensation expense related to stock-based compensation | 371,998 | 864,548 | ||||||
| Provision for doubtful accounts | 17,290,476 | 22,085,828 | ||||||
| Deferred income tax | (1,302,963 | ) | (1,457,740 | ) | ||||
| Net changes in the fair value of loans receivables at fair value | (4,898,876 | ) | 837,048 | |||||
| Changes in operating assets and liabilities: | ||||||||
| Lease receivables | (29,646,513 | ) | (25,773,184 | ) | ||||
| Loans receivables at fair value | 607,510 | 6,990,410 | ||||||
| Prepaid expenses and other assets | (1,208,258 | ) | 412,391 | |||||
| Lease merchandise | (25,259,890 | ) | (22,878,600 | ) | ||||
| Purchase consideration payable related to acquisition | - | 208,921 | ||||||
| Lease liabilities | (19,329 | ) | (12,243 | ) | ||||
| Accounts payable | (3,328,538 | ) | (2,506,724 | ) | ||||
| Accrued payroll and related taxes | (196,268 | ) | (11,079 | ) | ||||
| Accrued expenses | (233,202 | ) | (1,603,202 | ) | ||||
| Net cash (used in)/ provided by operating activities | (15,898,293 | ) | 5,471,062 | |||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Purchases of property and equipment, including capitalized software costs | (3,207,307 | ) | (3,114,534 | ) | ||||
| Purchases of data costs | (944,313 | ) | (343,428 | ) | ||||
| Net cash used in investing activities | (4,151,620 | ) | (3,457,962 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Proceeds from loan payable under credit agreement | 22,361,690 | 2,750,000 | ||||||
| Repayment of loan payable under credit agreement | - | (2,795,000 | ) | |||||
| Repayment of loan payable under Basepoint credit agreement | - | (1,500,000 | ) | |||||
| Debt issuance related costs | (1,523,100 | ) | (115,403 | ) | ||||
| Proceeds from exercise of stock options | - | 1,185 | ||||||
| Principal payment under finance lease obligation | (4,601 | ) | (4,917 | ) | ||||
| Repayment of purchase consideration payable related to acquisition | (143,330 | ) | ||||||
| Tax payments associated with equity-based compensation transactions | (103,488 | ) | - | |||||
| Purchase of treasury stock | (200,806 | ) | - | |||||
| Net cash provided by/ (used in) financing activities | 20,529,695 | (1,807,465 | ) | |||||
| INCREASE IN CASH | 479,782 | 205,635 | ||||||
| CASH, beginning of period | 4,413,130 | 6,173,349 | ||||||
| CASH, end of period | $ | 4,892,912 | $ | 6,378,984 | ||||
| Supplemental cash flow information: | ||||||||
| Interest paid | $ | 9,414,926 | $ | 8,453,511 | ||||
| Noncash investing and financing activities | ||||||||
| Due date extension of warrants | $ | - | $ | 917,581 | ||||
Non-GAAP Financial Measures
We regularly review a number of metrics, including the following key metrics, to evaluate our business, measure our performance, identify trends affecting our business, formulate financial projections and make strategic decisions.
Adjusted EBITDA represents net income before interest, stock-based compensation, taxes, depreciation (other than depreciation of leased merchandise), amortization, and one-time or non-recurring items. We believe that Adjusted EBITDA provides us with an understanding of one aspect of earnings before the impact of investing and financing charges and income taxes.
Key performance metrics for the periods ended June 30, 2024 and June 30, 2023 were as follows:
| Three months ended June 30, | ||||||||||||||||
| 2024 | 2023 | $ Change | % Change | |||||||||||||
| Gross Profit: | ||||||||||||||||
| Gross lease billings and fees | $ | 34,686,893 | $ | 32,501,656 | $ | 2,185,237 | 6.7 | |||||||||
| Provision for doubtful accounts | (7,806,427 | ) | (10,847,413 | ) | 3,040,986 | (28.0 | ) | |||||||||
| Gain on sale of lease receivables | 28,525 | 1,252,600 | (1,224,075 | ) | (97.7 | ) | ||||||||||
| Lease placement collections | 165,057 | - | 165,057 | - | ||||||||||||
| Net lease billing and fees | $ | 27,074,048 | $ | 22,906,843 | $ | 4,167,205 | 18.2 | |||||||||
| Loan revenues and fees | 2,626,896 | 3,446,893 | (819,997 | ) | (23.8 | ) | ||||||||||
| Net changes in the fair value of loans receivable | 687,479 | (1,821,700 | ) | 2,509,179 | (137.7 | ) | ||||||||||
| Net loan revenue | 3,314,375 | 1,625,193 | 1,689,182 | 103.9 | ||||||||||||
| Retail revenue | 1,370,462 | - | 1,370,462 | - | ||||||||||||
| Total revenues | $ | 31,758,885 | $ | 24,532,036 | $ | 7,226,849 | 29.5 | |||||||||
| Depreciation and impairment of lease merchandise | (13,848,925 | ) | (14,485,417 | ) | 636,492 | (4.4 | ) | |||||||||
| Cost of retail revenues | (1,059,098 | ) | - | (1,059,098 | ) | - | ||||||||||
| Loans origination costs and fees | (896,040 | ) | (1,655,424 | ) | 759,384 | (45.9 | ) | |||||||||
| Gross profit | $ | 15,954,822 | $ | 8,391,195 | $ | 7,563,627 | 90.1 | |||||||||
| Gross profit margin | 50 | % | 34 | % | ||||||||||||
| Three months ended June 30, | ||||||||||||||||
| 2024 | 2023 | $ Change | % Change | |||||||||||||
| Adjusted EBITDA: | ||||||||||||||||
| Net loss | $ | (1,603,059 | ) | $ | (5,297,655 | ) | $ | 3,694,596 | (69.7 | ) | ||||||
| Income taxes | (1,246,030 | ) | (1,302,225 | ) | 56,195 | (4.3 | ) | |||||||||
| Amortization of debt issuance costs | 314,702 | 111,807 | 202,895 | 181.5 | ||||||||||||
| Amortization of discount on the promissory note related to acquisition | - | 59,238 | (59,238 | ) | (100.0 | ) | ||||||||||
| Other amortization and depreciation | 2,382,726 | 1,884,544 | 498,182 | 26.4 | ||||||||||||
| Interest expense | 4,911,453 | 4,397,513 | 513,940 | 11.7 | ||||||||||||
| Stock-based compensation | 154,873 | 443,800 | (288,927 | ) | (65.1 | ) | ||||||||||
| Adjusted EBITDA | $ | 4,914,665 | $ | 297,022 | $ | 4,617,643 | 1,554.6 | |||||||||
The Company refers to Adjusted EBITDA in the above table as the Company uses this measure to evaluate operating performance and to make strategic decisions about the Company. Management believes that Adjusted EBITDA provides relevant and useful information which is widely used by analysts, investors and competitors in its industry in assessing performance.
FAQ
What was FlexShopper's (FPAY) revenue growth in Q2 2024?
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