FlexShopper reports significant growth in January 2025, with new applications up 130% and originations increasing 44% year-over-year.
Quiver AI Summary
FlexShopper, Inc. announced significant growth in January 2025, with new customer application volume surging 130% year-over-year, resulting in the highest level of January originations in four years, which were up 44%. The monthly growth trajectory improved compared to December 2024, and indicators of profitability showed a 105% increase in gross margin dollars alongside a 34% drop in marketing costs per new customer. The company's direct-to-consumer and business-to-business strategies are credited for this positive momentum, which included a notable 93% increase in marketplace originations. CEO Russ Heiser expressed optimism about ongoing demand for FlexShopper’s payment solutions and the expectation of continued revenue and profitability growth throughout 2025.
Potential Positives
- Total new customer application volume increased by 130% year-over-year, indicating robust demand and successful outreach strategies.
- Total originations saw a significant increase of 44% year-over-year, marking the highest level of January originations in four years.
- Encouraging profitability indicators included a 105% increase in gross margin dollars and a 34% reduction in customer acquisition costs compared to the previous year.
- A record 248% increase in the number of stores offering virtual lease-to-own solutions demonstrates effective partnership growth and market expansion.
Potential Negatives
- Forward-looking statements in the release emphasize inherent risks and uncertainties that could lead to actual results differing materially from reported expectations, indicating potential vulnerabilities in future performance.
- The company stresses the importance of maintaining relationships with third-party retail partners, raising concerns about dependency on external entities for continued growth.
- Potential challenges in compliance with various federal, state, and local laws and regulations, as noted in the forward-looking statements, highlight risks associated with legal exposure and regulatory scrutiny.
FAQ
What are the key growth metrics for FlexShopper in January 2025?
In January 2025, FlexShopper reported a 130% increase in new customer applications and a 44% rise in overall originations year-over-year.
How did FlexShopper’s profitability indicators change in January 2025?
FlexShopper experienced a 105% increase in gross margin dollars and a 34% reduction in marketing costs per new customer in January 2025.
What was the performance of FlexShopper's B2B partnerships in January 2025?
The B2B partnership application volume surged by 279% year-over-year, indicating strong customer demand and increased partnerships.
How did new customer originations in the Revolution Loan business perform?
New customer originations for FlexShopper's Revolution Loan business increased by 88% year-over-year in January 2025, marking the fifth consecutive month of growth.
What is FlexShopper’s outlook for 2025 based on January's results?
FlexShopper expects continued growth in revenue and profitability throughout 2025, supported by strong applications and originations data.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$FPAY Insider Trading Activity
$FPAY insiders have traded $FPAY stock on the open market 11 times in the past 6 months. Of those trades, 11 have been purchases and 0 have been sales.
Here’s a breakdown of recent trading of $FPAY stock by insiders over the last 6 months:
- HOWARD DVORKIN has made 10 purchases buying 111,412 shares for an estimated $132,266 and 0 sales.
- HAROLD RUSSELL JR. HEISER (CEO) purchased 30,000 shares for an estimated $43,500
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$FPAY Hedge Fund Activity
We have seen 8 institutional investors add shares of $FPAY stock to their portfolio, and 12 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- WATERFALL ASSET MANAGEMENT, LLC added 1,629,547 shares (+inf%) to their portfolio in Q3 2024, for an estimated $1,678,433
- M HOLDINGS SECURITIES, INC. removed 287,000 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $295,610
- PERKINS CAPITAL MANAGEMENT INC removed 255,014 shares (-40.9%) from their portfolio in Q3 2024, for an estimated $262,664
- BENCHMARK FINANCIAL WEALTH ADVISORS, LLC removed 189,977 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $324,860
- PERIGON WEALTH MANAGEMENT, LLC added 100,000 shares (+inf%) to their portfolio in Q4 2024, for an estimated $171,000
- UBS GROUP AG removed 45,923 shares (-30.5%) from their portfolio in Q3 2024, for an estimated $47,300
- RENAISSANCE TECHNOLOGIES LLC removed 29,878 shares (-13.5%) from their portfolio in Q3 2024, for an estimated $30,774
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
Total new customer application volume in January 2025 increased 130% year-over-year, driving the highest level of January originations, with total originations up 44% year-over-year
Monthly growth trends accelerated in January 2025, compared to December 2024
Indicators of profitability for January 2025 are encouraging with 105% increase in FlexShopper.com gross margin dollars, a 34% year-over-year reduction in marketplace marketing cost per new customer, and stable asset quality
BOCA RATON, Fla., Feb. 10, 2025 (GLOBE NEWSWIRE) --
FlexShopper, Inc. (Nasdaq: FPAY)
, a prominent national online lease-to-own retailer and payment solutions provider, today announced another strong operating month for January 2025. Positive momentum reflects the successful transformation underway as a result of FlexShopper’s direct-to-consumer (DTC) and business-to-business (B2B) growth strategies.
“FlexShopper produced strong initial results for the month of January 2025 including higher total applications and originations, as well as improved conversion rates on FlexShopper.com. In addition, key indicators of profitability strengthened in January through the contribution of higher gross margin dollars, reduced customer acquisition costs, and improved asset quality,” said Russ Heiser, CEO at FlexShopper. “We believe positive trends are accelerating across our business, reflecting improving customer demand for our payment solutions, expanded partnerships with payment waterfall providers, and a 248% increase in the number of stores signed to offer our virtual LTO solutions from the end of 2023 through January 2025. Growth in our B2B business is profitably driving more consumers to our DTC FlexShopper.com marketplace and creating a powerful flywheel effect with January 2025 originations on FlexShopper.com increasing 93% year-over-year.”
“I am excited to report that monthly growth trends accelerated in January from December levels, with overall originations increasing 44% in January year-over-year compared to 35% year-over-year growth in December. In addition, record monthly new customer applications were up 130% in January year-over-year, compared to a 45% year-over-year increase in December. We believe we are well positioned for positive demand trends to continue for the foreseeable future as we execute against our growth plan,” continued Mr. Heiser.
FlexShopper provided the following operating results for the month of January 2025:
FlexShopper experienced the highest level of January lease originations in 4 years, with overall originations up 44% year-over-year and marketplace originations up 93% year-over-year, while maintaining disciplined underwriting standards.
Record new customer application volume in January 2025, with a 130% year-over-year increase in applications submitted.
Marketplace application volume was up 58% year-over-year, and B2B partnership application volume was up 279% year-over-year, reflecting strong customer demand and increased partner door counts over the past year.
105% higher year-over-year retail product margin dollars on the FlexShopper.com marketplace, reflecting the Company’s strategies to drive gross margin dollars and a more profitable mix of sales
34% year-over-year reduction in marketplace marketing cost per new customer, as a result of lower year-over-year marketing cost per application and a higher year-over-year net conversion rate of application to funded lease
New customer originations in FlexShopper’s Revolution Loan business increased 88% year-over-year in January 2025, which was the 5
th
consecutive month of year-over-year new customer origination growth
Asset quality continued to improve, with 13 consecutive months of seasoned originations demonstrating year-over-year increases in cumulative payment rate.
Mr. Heiser continued, “Our recent performance demonstrates the continued value of FlexShopper’s flexible payment solutions and easy to use, technology enabled application process. Applications and originations are important indicators for future performance. As a result, we expect growth in revenue and profitability to continue throughout 2025.”
About FlexShopper, Inc.:
FlexShopper, Inc. (Nasdaq: FPAY) is a leading national financial technology company that provides payment options to consumers. FlexShopper provides a variety of flexible funding options for underserved consumers through its online direct to consumer marketplace at flexshopper.com and in partnership with partner merchants both online as well as at brick and mortar locations. FlexShopper’s solutions are designed to meet the needs of a wide range of consumer segments via lease-to-own and lending products.
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.
Company Contact:
FlexShopper, Inc.
Investor Relations
ir@flexshopper.com
Investor and Media Contact
Andrew Berger
Managing Director
SM Berger & Company, Inc.
Tel (216) 464-6400
andrew@smberger.com
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
