Overview
FlexShopper Inc. is a leading financial technology company specializing in the lease-to-own (LTO) model for durable goods. The company primarily caters to underserved consumers, enabling them to access electronics, home furnishings, and more through a proprietary e-commerce platform. FlexShopper facilitates transactions for consumers lacking traditional financing options, thereby expanding its market reach.
Key Information
- Headquarters: Boca Raton, Florida, USA
- Founded: August 16, 2006
- Founders: George F. Rubin, Morry F. Rubin, and Brad Mitchell Bernstein
- Fiscal Year Ends: December 31
- Employees: Approximately 204
- Sales Revenue (2024): $116.98 million (+3.47% YoY growth)
- Stock Ticker: FPAY (Nasdaq)
- Stock Price as of March 4, 2025: $1.47 USD
- 52 Week Range: $0.97 - $2.37
Products and Services
The company's product catalog is extensive, including:
- Computers and tablets
- Televisions
- Video games
- Furniture
- Appliances
- Musical instruments
FlexShopper offers these via a lease-to-own model, providing consumers with flexible purchase options without traditional credit checks.
Recent Financial Performance
FlexShopper has shown notable financial growth:
- 1 Year Sales Change: +3.47%
- Gross Margin Growth: +39.77%
- Cash Flow Increase: +84.96%
- Notable Event: In January 2025, new customer applications surged by 130% year-over-year.
Management and Governance
- CEO: H. Russell Heiser Jr., appointed in March 2023
- Chairman of the Board: Howard S. Dvorkin
- COO: John Davis
- Board of Directors Notable Member: Patrick Lloyd McCrory, who joined as an independent director in January 2025.
Strategic Developments
In January 2025, FlexShopper raised $12 million through a capital markets initiative involving a rights offering and debt conversion. This is expected to drive a 15% accretion in earnings per share (EPS).
Competitor Profile
FlexShopper competes with several key players within the lease-to-own and rent-to-own markets:
1. Rent-A-Center: A leader with 2,972 company-owned locations in the U.S., Puerto Rico, and Mexico, holding a significant 35% market share in store count.
2. Fingerhut: Combines data analytics to provide flexible payment solutions, excelling in online and catalog retail channels.
3. LeaseVille: Specializes in lease-to-own services for electronics and furniture, targeting low-income consumers without credit checks.
4. Aaron's, Inc.: Operates over 1,340 stores across North America, utilizing an omnichannel approach integrating online and physical store sales.
5. Katapult: Focuses on e-commerce FinTech, using AI and machine learning to cater to nonprime consumers by offering lease-to-own options at the point of sale.
Key Market Insights
- Market Position: FlexShopper holds a strong market position through its comprehensive online marketplace, offering a broad range of products and flexible financing.
- Competitive Advantage: Major advantages include an extensive product selection and the convenience of online accessibility, catering to consumers with no traditional credit access.
- Industry Trends: Strong growth in e-commerce and FinTech is reshaping the industry, with increasing demand for alternative financing models like lease-to-own systems.
FlexShopper is positioned to leverage these industry dynamics, continually refining its strategic approach to maintain and enhance its competitive edge in the marketplace.
