Executive Summary

Q1 2025 lacked a formal 10-Q; management disclosed operating momentum (lease originations +49.7% YoY) and issued FY 2025 guidance (gross profit $90–$100M; adjusted EBITDA $40–$45M), while addressing filing delays and Nasdaq compliance .
Versus prior quarters, Q4 2024 revenue was $35.5M with gross margin 58% and diluted EPS of $(0.09); Q3 2024 posted record $38.6M revenue, 58% gross margin, and $0.05 diluted EPS .
Wall Street consensus EPS and revenue for Q1 2025 were unavailable via S&P Global; investors must rely on qualitative KPIs and FY guide until audited filings resume [GetEstimates]*.
Near-term catalysts: resolution of delayed 10-K/10-Q and reinstatement of compliance; execution against DTC/B2B expansions (7,900 locations), retail marketplace growth, and potential Series 2 preferred repurchase at a >50% discount .

What Went Well and What Went Wrong

What Went Well

“For the first quarter of 2025, lease originations increased 49.7%, relative to the same period in 2024,” signaling demand momentum and underwriting efficacy .
DTC and B2B strategies expanded FlexShopper’s LTO offerings to 7,900 locations (~250% increase), and retail marketplace revenues added incremental profits, supporting operating leverage .
FY 2024 execution improved asset quality and margins: gross profit +40.3% YoY to $76.7M and gross margin up to 55%; operating income +66% to $22.8M; adjusted EBITDA +43.1% to $33.3M .

What Went Wrong

Delayed audit and filings: NASDAQ non-compliance notices in April/May; a 180-day extension granted in June 2025 with potential delisting risk if filings aren’t completed by October 13, 2025 .
Interest burden remained elevated: FY 2024 interest expense was $22.1M, constraining GAAP profitability despite operational gains .
Q4 2024 EPS of $(0.09) despite revenue growth and gross margin expansion, reflecting financing costs and preferred dividends ($4.5M FY 2024) .

Financial Results

Core Financials vs Prior Periods and Estimates

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($USD Millions)	$38.6	$35.5	N/A – not reported due to delayed filings
Diluted EPS ($USD)	$0.05	$(0.09)	N/A – not reported due to delayed filings
Gross Profit ($USD Millions)	$22.5	$20.4	N/A – not reported due to delayed filings
Gross Margin %	58%	58%	N/A – not reported due to delayed filings
Operating Income ($USD Millions)	$9.6	$5.8	N/A – not reported due to delayed filings
Adjusted EBITDA ($USD Millions, non-GAAP)	$12.2	$8.6	N/A – not reported due to delayed filings

Note: Non-GAAP Adjusted EBITDA definitions and reconciliations provided by the company .

Revenue Components / Segment Breakdown

Component	Q3 2024	Q4 2024	Q1 2025
Lease revenues and fees, net ($USD Millions)	$28.36	Net lease billings and fees $25.69	N/A – not reported due to delayed filings
Loan revenues (including fair value changes) ($USD Millions)	$9.05	Net loan revenues $8.85	N/A – not reported due to delayed filings
Retail revenue ($USD Millions)	$1.18	$0.97	N/A – not reported due to delayed filings

Definitions differ by quarter presentation (lease/loan items shown as net billing/fees vs revenue and fair value changes) per company disclosures .

KPIs (Operational Indicators)

KPI	Period	Value	vs Prior Year
Lease originations growth YoY	Q1 2025	+49.7%	+49.7% YoY
Overall originations growth YoY	Jan 2025	+44%	+44% YoY
Marketplace originations growth YoY	Jan 2025	+93%	+93% YoY
New customer application volume	Jan 2025	+130%	+130% YoY
Marketplace application volume	Jan 2025	+58%	+58% YoY
B2B partnership application volume	Jan 2025	+279%	+279% YoY
Retail product margin dollars	Jan 2025	+105%	+105% YoY
Marketplace marketing cost per new customer	Jan 2025	−34%	−34% YoY

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Gross Profit ($USD Millions)	FY 2025	N/A	$90–$100	Initiated
Adjusted EBITDA ($USD Millions)	FY 2025	N/A	$40–$45	Initiated

Company notes operating leverage and asset quality improvements underpinning FY 2025 expectations .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024)	Previous Mentions (Q4 2024)	Current Period (Q1 2025)	Trend
DTC/B2B expansion	Signed store count to >7,800; retail marketplace growth	Expanded to 7,900 locations; marketplace added incremental revenues/profits	Lease originations +49.7% YoY; continued momentum expected	Improving scale and demand
Asset quality	Provision as % gross lease billings improved to 22% (−1,000 bps YoY)	Credit quality stable; margin improvements	Stable asset quality cited; profitability expected to improve	Sustained improvement
Operating leverage	Opex discipline, EBITDA +44.9% YoY in Q3	FY EBITDA +43.1%; operating income +66%	Marketing and general expense leverage expected to continue	Positive leverage
Retail marketplace	Growing gross margin via flexshopper.com	Retail revenue launched; contributed to profits	Higher sales on flexshopper.com expected in 2025	Strengthening contribution
Regulatory/Nasdaq	Not applicable	Nasdaq non-compliance notice re: delayed audit	180-day extension granted to regain compliance	Resolution pending
Technology/underwriting	Emphasis on underwriting/risk analytics	Tech investments over past two years driving results	Advanced underwriting/process continues to support approvals	Ongoing enablement
Corporate actions	Rights offering; patent litigation; potential preferred redemption	Raised ~$12.2M rights offering; pursuing repurchase of 91% Series 2 pref at >50% discount	Focus on balance sheet and accretive actions; compliance plan	Ongoing

Management Commentary

“We expect our growth strategies to continue to drive positive momentum in 2025, and for the first quarter of 2025, lease originations increased 49.7%, relative to the same period in 2024.” – CEO Russ Heiser .
“During 2024, we grew our market share and expanded FlexShopper’s LTO offerings to 7,900 locations, a ~250% increase… retail revenue strategy on our flexshopper.com marketplace… added incremental revenues and profits.” .
“This included raising $12.2 million in proceeds since the beginning of November 2024 through the beginning of 2025 through our… rights offering… [and] repurchase 91% of our series 2 convertible preferred stock at a 50+% discount…” .

Q&A Highlights

No Q1 2025 earnings call transcript available in the document catalog; company communications focused on press releases and compliance updates amid delayed filings .

Estimates Context

Q1 2025 Wall Street consensus EPS and revenue estimates via S&P Global were unavailable; thus no beats/misses assessment can be made at this time [GetEstimates]*.

Key Takeaways for Investors

Operational momentum is strong into Q1 2025 (lease originations +49.7% YoY), supported by DTC/B2B scale and marketplace growth—constructive for near-term revenue trajectory once filings resume .
FY 2025 guidance implies continued margin and EBITDA expansion (gross profit $90–$100M; adjusted EBITDA $40–$45M), suggesting operating leverage despite financing headwinds .
Filing delays and Nasdaq compliance risk are the primary overhangs; the 180-day extension to October 13, 2025 is a time-bound catalyst—timely 10-K/10-Q filings likely to reduce risk premia .
Elevated interest expense and preferred dividends have weighed on GAAP EPS (Q4 2024 $(0.09)); watch for capital structure actions (rights proceeds, potential preferred repurchase) to improve cost of capital and equity value accretion .
Segment contributions are diversifying: lease revenues remain core, while loan revenue and retail marketplace add incremental profits; monitor mix and asset quality to sustain 55–58% gross margin trends .
Partnerships continue to broaden distribution and demand (e.g., ICON Vehicle Dynamics), reinforcing growth in automotive/off-road categories and omnichannel reach .
Trading setup: near-term price sensitivity to filing/compliance headlines; medium-term thesis centers on scaling origination volume with disciplined underwriting and operating leverage translating to EBITDA growth .

* Consensus estimates unavailable via S&P Global for Q1 2025 (values retrieved from S&P Global).

FlexShopper, Inc. (FPAY)·Q1 2025 Earnings Summary