Flexshopper, Inc. (FPAY) Provides Business Update for January 2025

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 5th 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.”

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