Flexshopper (FPAY) Q4 2024 earnings summary

Executive summary

• Achieved 19.5% year-over-year revenue growth in 2024, driven by DTC and B2B strategies and technology investments.

• Expanded LTO offerings to 7,900 locations, a ~250% increase, and launched a retail revenue strategy on flexshopper.com.

• Operating income rose 66% to $22.8M; adjusted EBITDA up 43.1% to $33.3M for the year.

• Net loss attributable to common stockholders narrowed to $(4.7)M, or $(0.22) per diluted share, from $(8.3)M, or $(0.38) per share.

• Raised $12.2M through a rights offering and plans to repurchase 91% of Series 2 convertible preferred stock at a significant discount.

Financial highlights

• Q4 2024 revenue increased 17.3% year-over-year to $35.5M; gross profit up 29.8% to $20.4M; gross margin rose to 58%.

• Q4 adjusted EBITDA grew 5.7% to $8.6M; Q4 net loss attributable to common stockholders was $(1.9)M, or $(0.09) per share.

• Full-year 2024 revenue reached $139.8M (+19.5%); gross profit $76.7M (+40.3%); gross margin 55% (+8 pts).

• Operating income for 2024 was $22.8M (+66%); adjusted EBITDA $33.3M (+43.1%).

• Lease funding approvals for 2024 rose 79.3% to $382.8M.

Outlook and guidance

• Expects 2025 gross profit of $90M–$100M (up 17–30%) and adjusted EBITDA of $40M–$45M (up 20–35%).

• Q1 2025 lease originations increased 49.7% year-over-year.

• Anticipates further profitability improvements in 2025 from higher sales, stable expenses, and credit quality.