- FlexShopper (FPAY, Financial) reported a 19.5% increase in 2024 annual revenue to $139.8 million.
- Operating income rose 66% to $22.8 million, while adjusted EBITDA grew 43.1% to $33.3 million.
- For 2025, FlexShopper projects gross profit growth between 17-30% and adjusted EBITDA growth between 20-35%.
FlexShopper, Inc. (FPAY), a leading national online lease-to-own (LTO) retailer, announced a robust set of financial results for the fourth quarter and full year ending December 31, 2024. The company achieved an annual revenue increase of 19.5% compared to the previous year, totaling $139.8 million. This revenue growth is attributed to the company's expanding LTO offerings and strategic initiatives.
Operating income showed a substantial year-over-year growth of 66%, reaching $22.8 million, which highlights the effectiveness of FlexShopper's strategic investments in technology and market expansion. Additionally, adjusted EBITDA surged by 43.1% to $33.3 million, emphasizing improved operational efficiency and cost management.
Key achievements during the fourth quarter included a 17.3% rise in total revenues to $35.5 million. The company also improved its gross profit margin from 47% to 55% annually. Notably, FlexShopper expanded its LTO offerings by 250% to 7,900 locations, underpinning their strategic growth in diversifying sales channels beyond direct-to-consumer platforms.
Looking forward to 2025, FlexShopper anticipates continued growth momentum, projecting gross profit to increase between 17-30% to a range of $90-100 million, alongside an adjusted EBITDA forecast of $40-45 million, translating to a 20-35% increase. Moreover, the company is addressing regulatory matters following a Nasdaq compliance notification due to delayed 10-K filing, with expectations of resolving it without affecting their listing status.
Despite reporting a net loss of $4.7 million in 2024, down from $8.3 million in 2023, FlexShopper's continuous operational improvements and strategic repurchases of its preferred stock at significant discounts reflect a positive outlook, positioning the company for potential net income profitability in the near future.
