Revenue growth remains highly inconsistent, oscillating between a 32.9% contraction in 2023Q2 and a 41.4% expansion in 2023Q4, while gross margins collapsed to 2.4% in 2024Q4.
| Metric | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 |
|---|
| Sales/Revenue | 139.8M | 116.98M | 113.06M | 125.43M | 102.08M | 88.79M | 84.73M | 67.05M | 47.58M | 20.68M | 5.01M | 1.98M | 2.06M | 1.89M | 1.69M | 1.59M | 1.28M | 595.7K | 558.82K |
| Revenue Growth % | 19.51% | 3.47% | -9.86% | 22.87% | 14.97% | 4.79% | 26.37% | 40.91% | 130.07% | 312.4% | 153.49% | -3.84% | 9% | 11.81% | 6.3% | 23.78% | 115.36% | 6.6% | - |
| Cost of Goods Sold | 3.38M | 12.5M | 3.38M | 79.18M | 66.73M | 60.22M | 42.06M | 32.45M | 23.42M | 11.07M | 3.33M | 124 | 41.8K | 0 | 0 | 0 | 0 | 0 | 558.82K |
| COGS % of Revenue | 2.42% | 10.69% | 2.99% | 63.13% | 65.37% | 67.83% | 49.64% | 48.4% | 49.23% | 53.52% | 66.42% | 0.01% | 2.03% | - | - | - | - | - | 100% |
| Gross Profit | 136.42M | 104.48M | 109.67M | 46.25M | 35.35M | 28.57M | 42.67M | 34.59M | 24.16M | 9.61M | 1.68M | 1.98M | 2.02M | 1.89M | 1.69M | 1.59M | 1.28M | 595.7K | 0 |
| Gross Margin % | 97.58% | 89.31% | 97.01% | 36.87% | 34.63% | 32.17% | 50.36% | 51.6% | 50.77% | 46.48% | 33.58% | 99.99% | 97.97% | 100% | 100% | 100% | 100% | 100% | - |
| Gross Profit Growth % | 30.57% | -4.74% | 137.13% | 30.83% | 23.75% | -33.04% | 23.33% | 43.21% | 151.31% | 470.87% | -14.88% | -1.85% | 6.78% | 11.81% | 6.3% | 23.78% | 115.36% | - | - |
| Operating Expenses | 113.64M | 90.79M | 115.98M | 38.88M | 30.73M | 23.46M | 46.53M | 40.76M | 34.49M | 18.1M | 6.56M | -2.61M | -1.64M | -1.6M | -1.65M | -3.22M | 2.49M | 1.61M | 0 |
| OpEx % of Revenue | 81.29% | 77.61% | 102.58% | 31% | 30.1% | 26.43% | 54.91% | 60.79% | 72.48% | 87.54% | 130.8% | -131.9% | -79.55% | -84.57% | -97.81% | -203% | 193.83% | 270.55% | - |
| Selling, General & Admin | 36.96M | 20.12M | 22.02M | 20.62M | 16.32M | 12.12M | 18.19M | 13.96M | 16.14M | 19.72M | 6.55M | 655.47K | 1.64M | 0 | 0 | 0 | 0 | 0 | 0 |
| SG&A % of Revenue | 26.44% | 17.2% | 19.48% | 16.44% | 15.99% | 13.65% | 21.46% | 20.82% | 33.92% | 95.37% | 130.66% | 33.13% | 79.55% | - | - | - | - | - | - |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 105.58K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | 0.12% | 0% | 0% | 0% | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 76.68M | 70.67M | 93.95M | 18.27M | 14.4M | 11.24M | 28.34M | 23.54M | 18.35M | -1.62M | 0 | -2.61M | -1.64M | 0 | 0 | 0 | 2.49M | 1.61M | 0 |
| Operating Income | 22.78M | 13.69M | -6.3M | 7.36M | 4.63M | 5.1M | -5.18M | -6.16M | -10.33M | -8.49M | -4.88M | -693.68K | 378.86K | 279.23K | 11.26K | -1.89M | -1.27M | -1.05M | 141.88K |
| Operating Margin % | 16.29% | 11.7% | -5.58% | 5.87% | 4.53% | 5.75% | -6.11% | -9.19% | -21.71% | -41.06% | -97.22% | -35.07% | 18.42% | 14.79% | 0.67% | -118.88% | -98.81% | -175.7% | 25.39% |
| Operating Income Growth % | 66.38% | 317.2% | -185.59% | 59.21% | -9.38% | 198.57% | 15.97% | 40.34% | -21.64% | -74.16% | -602.84% | -283.1% | 35.68% | 2378.92% | 100.6% | -48.93% | -21.11% | -837.7% | - |
| EBITDA | 32.39M | 16.61M | -1.53M | 10.24M | 70.21M | 93.1M | 65.65M | 69.21M | 49.5M | 1.83M | -2.55M | -655.36K | 398.66K | 299.79K | 41.53K | -1.58M | -1.22M | -1.02M | 147.36K |
| EBITDA Margin % | 23.17% | 14.2% | -1.36% | 8.16% | 68.77% | 104.85% | 77.48% | 103.23% | 104.05% | 8.87% | -50.82% | -33.13% | 19.38% | 15.88% | 2.46% | -99.62% | -95.22% | -171.34% | 26.37% |
| EBITDA Growth % | 94.98% | 1183.07% | -114.98% | -85.41% | -24.59% | 41.82% | -5.16% | 39.81% | 2597.96% | 172% | -288.87% | -264.39% | 32.98% | 621.86% | 102.63% | -29.5% | -19.69% | -792.62% | - |
| D&A (Non-Cash Add-back) | 9.61M | 2.92M | 4.77M | 2.88M | 65.58M | 88M | 70.82M | 75.38M | 59.83M | 10.33M | 2.33M | 38.33K | 19.8K | 20.56K | 30.27K | 305.85K | 46.01K | 26.03K | 5.48K |
| EBIT | 22.78M | 13.69M | -4.39M | 9.84M | 6.48M | 5.1M | -5.18M | -6.16M | -10.33M | -8M | -4.87M | -655.13K | 378.86K | 796.35K | 839.06K | -1.79M | -1.26M | -1.05M | 141.88K |
| Net Interest Income | -25.2M | -18.91M | -11.16M | -5.75M | -6.18M | -6.15M | 0 | 0 | 0 | -994.12K | -7.08K | 1.98M | 2.06M | 1.89M | 1.69M | 1.55M | 1.28M | 172.68K | 0 |
| Interest Income | 0 | 0 | 0 | 5.75M | 4.3M | 4.31M | 0 | 0 | 0 | 0 | 0 | 2.36M | 2.53M | 2.4M | 2.52M | 1.7M | 1.29M | 199.97K | 0 |
| Interest Expense | -22.14M | 18.91M | 11.16M | 8.57M | 4.3M | 4.31M | 0 | 0 | 0 | 994.12K | 7.08K | 385.92K | 469.36K | 517.13K | 827.8K | 111.19K | 9.66K | 27.29K | 0 |
| Other Income/Expense | -22.14M | -18.91M | 3.3M | -3.31M | -4.3M | -4.31M | -4.28M | -2.17M | -1.93M | -994.12K | -7.08K | -38.21K | 0 | 0 | 0 | 0 | -9.66K | 0 | 0 |
| Pretax Income | 642.08K | -5.22M | -3M | 4.06M | 323.15K | 793.82K | -9.46M | -8.33M | -12.25M | -9M | -4.88M | -693.68K | 378.86K | 279.23K | 11.26K | -1.89M | -1.27M | -1.05M | 141.88K |
| Pretax Margin % | 0.46% | -4.47% | -2.66% | 3.24% | 0.32% | 0.89% | -11.17% | -12.43% | -25.75% | -43.51% | -97.22% | -35.07% | 18.42% | 14.79% | 0.67% | -118.88% | -98.81% | -175.7% | 25.39% |
| Income Tax | 821.35K | -989.81K | -16.64M | 785.31K | 663.05K | 216.4K | 0 | 0 | 0 | -78.39K | -458.05K | 385.92K | 0 | 0 | 0 | 112.35K | 9.66K | 0 | 0 |
| Effective Tax Rate % | 127.92% | 18.95% | 553.89% | 19.35% | 205.18% | 27.26% | 0% | 0% | 0% | 0.87% | 9.39% | -55.63% | 0% | 0% | 0% | -5.95% | -0.76% | 0% | 0% |
| Net Income | -179.27K | -4.23M | 13.63M | 3.27M | -339.9K | 577.41K | -9.46M | -8.33M | -12.25M | -8.79M | -3.73M | -693.68K | 378.86K | 275.23K | -377.91K | -1.89M | -1.27M | -1.05M | 141.88K |
| Net Margin % | -0.13% | -3.62% | 12.06% | 2.61% | -0.33% | 0.65% | -11.17% | -12.43% | -25.75% | -42.51% | -74.39% | -35.07% | 18.42% | 14.58% | -22.39% | -118.95% | -98.81% | -175.7% | 25.39% |
| Net Income Growth % | 95.77% | -131.06% | 316.52% | 1062.88% | -158.87% | 106.1% | -13.57% | 32.01% | -39.39% | -135.67% | -437.76% | -283.1% | 37.65% | 172.83% | 79.99% | -49.02% | -21.11% | -837.7% | - |
| Net Income (Continuing) | -179.27K | -4.23M | 13.63M | 3.27M | -339.9K | 577.41K | -9.46M | -8.33M | -12.25M | -8.92M | -4.42M | -655.47K | 378.86K | 279.23K | 11.26K | -1.89M | -1.27M | -1.05M | 141.88K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 127.79K | 687.07K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 91.57M | 51.72M | 0 | 28.92M | 23.95M | 13.82M | 4.74M | 0 | 0 | 0 | 0 | 0 | 0 | 301.15K | 0 | 0 | 0 |
| EPS (Diluted) | -0.22 | -0.35 | 0.44 | 0.04 | -0.17 | -0.11 | -0.54 | -1.57 | -2.32 | -1.69 | -1.07 | -0.33 | 0.20 | 0.10 | -0.18 | -1.43 | -1.00 | -0.94 | 0.13 |
| EPS Growth % | 37.14% | -179.55% | 1125.63% | 121.12% | -54.55% | 79.63% | 65.61% | 32.33% | -37.28% | -57.94% | -224.24% | -265% | 100% | 155.56% | 87.41% | -43% | -6.38% | -823.08% | - |
| EPS (Basic) | -0.22 | -0.35 | 0.45 | 0.04 | -0.17 | -0.11 | -0.54 | -1.57 | -2.33 | -1.69 | -1.07 | -0.33 | 0.20 | 0.10 | -0.21 | -1.43 | -1.00 | -0.94 | 0.13 |
| Diluted Shares Outstanding | 21.53M | 23.96M | 22.43M | 23.23M | 21M | 17.67M | 17.65M | 5.29M | 5.29M | 5.21M | 3.5M | 2.11M | 2.08M | 2.05M | 2.06M | 1.32M | 1.27M | 1.11M | 1.11M |
| Basic Shares Outstanding | 21.53M | 23.96M | 21.65M | 21.39M | 21M | 17.67M | 17.62M | 5.29M | 5.25M | 5.21M | 3.5M | 2.11M | 1.86M | 1.86M | 1.78M | 1.32M | 1.27M | 1.11M | 1.11M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Subprime credit default volatility
As indicated by the quarterly income statement data, FlexShopper's revenue growth has exhibited significant volatility, ranging from a 32.9% contraction in 2023Q2 to a 41.4% expansion in 2023Q4, suggesting that top-line performance remains highly sensitive to seasonal consumer spending cycles and shifting merchant partner acquisition volumes.
The erratic nature of revenue growth suggests that the company's digital-first model lacks the predictable recurring revenue base typically seen in more mature leasing firms. Investors should monitor whether the recent 17.3% growth in 2024Q4 represents a sustainable trend or merely a seasonal anomaly driven by holiday-related durable goods demand.
Based on the reported financial figures, gross margins have fluctuated wildly from a low of 2.4% in 2024Q4 to a high of 58.3% in 2024Q3, highlighting the inherent difficulty in managing lease-related costs and asset depreciation within a subprime-focused, digital-only business model.
This extreme variance in gross margin suggests that the company's accounting for lease assets and credit provisions is subject to significant period-to-period adjustments. The lack of margin stability implies that the company's pricing power may be insufficient to offset the underlying volatility of its target demographic's credit performance.
According to the provided income statement data, operating margins have frequently dipped into negative territory, such as the -25.6% reported in 2022Q4, indicating that the company has yet to achieve the necessary scale to effectively leverage its fixed operating costs against its variable revenue streams.
The inability to consistently scale operating income alongside revenue growth suggests that customer acquisition costs and administrative overhead are consuming the majority of the gross profit generated. This operational inefficiency warrants further investigation into whether the current cost structure is fundamentally misaligned with the company's long-term growth objectives.
As reported in the financial statements, net income has remained inconsistent, with the company swinging from a $7.9M profit in 2022Q4 to a $1.9M loss in 2024Q4, which suggests that reported earnings are heavily influenced by non-operating items and volatile credit loss provisions.
The frequent shifts between profitability and loss indicate that the company's bottom line is not yet supported by a stable, recurring operational foundation. Investors should be cautious of the reliance on non-operating adjustments, as these may mask the underlying challenges in maintaining consistent cash-on-cash returns from the lease portfolio.
Based on the provided figures, the company's struggle to maintain positive net margins despite significant revenue growth suggests that the current business model may be fundamentally unsustainable without a major shift in underwriting efficiency or a reduction in the cost of customer acquisition.
Short-sellers would likely focus on the persistent negative net income and the extreme volatility in gross margins as evidence that the company's proprietary underwriting algorithms are not effectively pricing risk. The lack of consistent profitability suggests that the company may be over-extending itself to capture market share at the expense of long-term financial health.
Quick answers to the most common questions about buying FPAY stock.
For fiscal year 2024, FlexShopper, Inc. (FPAY) reported total revenue of $139.8M. This represents a 24917.3% increase compared to $0.6M in 2006.
FlexShopper, Inc. (FPAY) reported a net loss of $0.2M for the fiscal year ending 2024.
FlexShopper, Inc. (FPAY) reported an operating income of $22.8M, resulting in an operating profit margin of 16.3%. This margin reflects the operational efficiency of the business before interest and taxes.
FlexShopper, Inc. (FPAY) generated $136.4M in gross profit for the year, representing a gross profit margin of 97.6%. This demonstrates the company's core pricing power and production efficiency.