FlexShopper (FPAY, Financial) has reported impressive revenue growth for the fourth quarter of 2024, reaching $35.5 million compared to $30.3 million in the same period last year. This growth highlights the company's successful transformation efforts, driven by strategic technology investments and the execution of both direct-to-consumer (DTC) and business-to-business (B2B) growth strategies.
Throughout 2024, FlexShopper significantly expanded its market presence by increasing its lease-to-own (LTO) offerings to 7,900 locations, marking a remarkable 250% increase. The year also introduced the company's new retail revenue strategy via its online marketplace, flexshopper.com, which contributed additional revenues and profits.
The company's growth strategies have resulted in a substantial operating income of $22.8 million, showcasing a significant 66% increase from the previous year. Furthermore, FlexShopper has leveraged its improving financial performance to enhance its balance sheet, raising $12.2 million in proceeds since November 2024 through an ongoing rights offering.
Looking ahead, FlexShopper aims to capitalize on strategic opportunities to buy back 91% of its series 2 convertible preferred stock at a significant discount, a move expected to benefit common shareholders. The company anticipates continued positive momentum in 2025, with lease originations already showing a 49.7% increase in the first quarter compared to the same period last year. Moreover, FlexShopper expects profitability to rise with increased sales on its platform, stable operating expenses, and continued payments on leases initiated in 2024.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 2 analysts, the average target price for FlexShopper Inc (FPAY, Financial) is $4.00 with a high estimate of $4.00 and a low estimate of $4.00. The average target implies an upside of 236.13% from the current price of $1.19. More detailed estimate data can be found on the FlexShopper Inc (FPAY) Forecast page.
Based on the consensus recommendation from 2 brokerage firms, FlexShopper Inc's (FPAY, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
