FlexShopper, Inc. (FPAY): History, Ownership, Mission, How It Works & Makes Money

How is FlexShopper, Inc. (FPAY), a leading national financial technology company, managing to post such explosive growth in a tightening credit market? This Boca Raton, Florida-based firm, founded in 2013, is laser-focused on the underserved consumer segment, and the strategy is paying off: analysts project its full-year 2025 gross profit to land between $90 million and $100 million, with adjusted EBITDA reaching $40 million to $45 million. That kind of performance is driven by real customer demand, with new customer application volume surging 130% year-over-year in January 2025 alone, so you need to understand the mechanics behind this momentum. Let's dig into the history, the insider ownership-which sits at a substantial 36.01%-its lease-to-own (LTO) mission, and exactly how its dual Direct-to-Consumer (DTC) and Business-to-Business (B2B) model makes money.

FlexShopper, Inc. (FPAY) History

You need a clear picture of FlexShopper, Inc.'s origins to understand its current position as a financial technology company. The direct takeaway is that the company started in 2003 under a different name, Anchor Funding Services, Inc., but its core business-virtual lease-to-own (LTO)-didn't truly begin until a strategic pivot in 2013, which is the foundation of its modern, profitable trajectory.

Given Company's Founding Timeline

Year established

FlexShopper, Inc. was originally established in 2003, operating initially as Anchor Funding Services, Inc..

Original location

The company has maintained its headquarters in Boca Raton, Florida, since its founding.

Founding team members

While the initial founding team of Anchor Funding Services, Inc. is not publicly detailed, the company's current leadership is anchored by CEO Harold Russell Heiser Jr., C.P.C., who has steered its growth into the financial technology space.

Initial capital/funding

Specific initial capital for the 2003 founding is not publicly disclosed. The company's first major public capital event was its Initial Public Offering (IPO) on April 4, 2010. A later, significant capital injection occurred in September 2018 through an underwritten public offering, which generated aggregate gross proceeds of $10,000,000.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The biggest change for FlexShopper, Inc. wasn't a single event, but a fundamental shift in business focus around 2013. The company moved from its original structure to concentrate entirely on virtual lease-to-own (LTO) solutions. This pivot was smart because it positioned them to serve the 'nonprime' consumer-those with FICO scores typically below 660-a huge market that traditional finance often ignores.

This strategic focus led to clear, quantifiable results by 2025. For example, the forecasted annual revenue for the 2025 fiscal year is expected to reach $159 million, a significant jump from prior years. This growth is fueled by a few key actions:

• Developing the 'LTO Engine': This proprietary technology automates the entire leasing process, from credit screening to contract, in minutes.
• Aggressive Partnership Expansion: By the end of 2024, they had signed partnerships for approximately 7,900 retail locations, a 250% increase over the end of 2023.
• Financial De-risking: A rights offering in early 2025 raised approximately $12 million, which was used to reduce debt and cut annual interest expense. That's defintely a move toward a healthier balance sheet.

The market is clearly responding to this execution, with 2025 forecasted EBITDA at $34 million and expected Earnings Per Share (EPS) at $0.39. This shows the model is scaling profitably, which is the ultimate transformative moment for any fintech. You can dive deeper into the strategic rationale here: Mission Statement, Vision, & Core Values of FlexShopper, Inc. (FPAY).

FlexShopper, Inc. (FPAY) Ownership Structure

FlexShopper, Inc. (FPAY) is a publicly traded company, though its status is currently in flux, making its ownership structure a critical factor in understanding its governance and future direction. The company's stock was suspended from trading on the Nasdaq Capital Market on October 23, 2025, after failing to file its required 2024 annual and 2025 quarterly financial reports by the October 13, 2025, deadline, which is a major compliance risk.

Given Company's Current Status

FlexShopper, Inc. operates as a public company, but it is currently navigating significant financial and regulatory challenges. Its common stock, previously listed on the Nasdaq Stock Market, was delisted in October 2025 due to a failure to file its Form 10-K for the fiscal year ended December 31, 2024, and its subsequent quarterly reports (Form 10-Qs) for the first two quarters of 2025. [cite: 1, 3 from second search]

The company did not appeal the delisting decision, so its shares are now likely trading on the over-the-counter (OTC) markets, such as the OTCPK, as of November 2025. This move to a less regulated market, coupled with the lack of current financial reports, introduces substantial risk for investors. You can dive deeper into who is holding the bag on the OTC market by Exploring FlexShopper, Inc. (FPAY) Investor Profile: Who's Buying and Why?

Given Company's Ownership Breakdown

The ownership structure is heavily concentrated in the hands of insiders, meaning a small group of executives and directors holds the majority of voting power. This high concentration, with over half the shares controlled internally, gives management a powerful say in strategic decisions, including any potential restructuring or sale. As of the 2025 fiscal year, the total shares outstanding stand at approximately 24.61 million. [cite: 3 from first search, 6 from first search]

Given Company's Leadership

The executive leadership of FlexShopper, Inc. has been in a state of significant turmoil and transition throughout 2025, signaling a focus on financial stabilization and restructuring. This kind of executive volatility defintely raises a red flag for operational continuity.

• Chief Restructuring Officer (CRO): Matthew A. Doheny. Appointed in August 2025, Mr. Doheny's role is to provide interim management and restructuring advisory services, indicating the company's critical financial position.
• Principal Executive Officer (PEO): The role is currently in flux following a series of rapid changes. John Davis, the President and Chief Operating Officer, assumed the duties of PEO in August 2025 after the termination of the former Chief Executive Officer. However, Mr. Davis himself was reported to have resigned in October 2025, leaving the principal executive leadership uncertain. [cite: 2 from second search]
• Former CEO/CFO: H. Russell Heiser Jr. was terminated from his dual role as CEO and CFO on August 6, 2025.
• Board of Directors: The board has also seen turnover, including the resignation of three directors and the appointment of Steven Varner in July 2025. [cite: 2 from second search, 4] The Chairman of the Board, Howard S. Dvorkin, is also the largest insider shareholder. [cite: 2 from first search, 8]

The appointment of a CRO and the executive turnover shows the board is prioritizing a financial turnaround, but the lack of a stable, named CEO or PEO as of November 2025 means the CRO is effectively steering the ship through a distressed period.

FlexShopper, Inc. (FPAY) Mission and Values

FlexShopper, Inc.'s core purpose centers on financial inclusion, using technology to offer flexible payment options like lease-to-own (LTO) to the underserved consumer segment. This strategy is defintely the cultural DNA, aiming to expand market access for both customers and retailers.

Given Company's Core Purpose

The company operates as a leading national financial technology (Fintech) company, providing payment options to consumers who often have limited access to traditional credit. This focus on the nonprime consumer-typically those with FICO scores below 660-is the driving force behind their dual-channel business model.

For example, in January 2025, the company's marketplace originations increased by a substantial 93% year-over-year, which shows the accelerating demand for these flexible solutions.

Official mission statement

The company's mission is to provide an alternative payment solution, primarily lease-to-own, to consumers and retailers by offering a variety of flexible funding options for underserved consumers.

• Enable traditional retailers to target the subprime consumer demographic.
• Offer flexible funding options through an online direct-to-consumer (DTC) marketplace and partner merchants.
• Help everyday Americans afford products for their homes and other essential items.

Vision statement

FlexShopper's vision is to execute a growth strategy that establishes leading direct-to-consumer and business-to-business (B2B) solutions for nonprime consumers, expanding the lease-to-own market opportunity through innovation.

• Drive continued growth in revenue and profitability throughout 2025; forecasted annual revenue is expected to be around $159 million.
• Leverage technology to provide an easy-to-use application process that does not impact a customer's credit score.
• Achieve full-year profitability, building on the positive net income achieved in 3Q24.

You can see this commitment to growth in the Q1 2025 lease originations, which increased by 49.7% compared to the same period in 2024. This kind of growth is what you look for in a company executing a clear vision. Mission Statement, Vision, & Core Values of FlexShopper, Inc. (FPAY).

Given Company slogan/tagline

The company has used the phrase 'A whole new way to shop' to describe its next-generation digital payments marketplace and financing options.

This simple phrase captures the essence of their value proposition: providing a new way for credit-challenged customers to acquire durable goods like electronics and furniture.

FlexShopper, Inc. (FPAY) How It Works

FlexShopper, Inc. operates as a financial technology company that bridges the gap between retailers and nonprime consumers by offering a cloud-based lease-to-own (LTO) payment solution. Essentially, it allows credit-challenged shoppers to acquire durable goods immediately through a flexible subscription model instead of a traditional loan.

FlexShopper, Inc.'s Product/Service Portfolio

The company's model is built on two primary offerings that leverage its proprietary Virtual Lease-to-Own (VLO) technology, providing an omni-channel approach to the market.

FlexShopper, Inc.'s Operational Framework

The operational process is designed to be asset-light for the company and seamless for the customer, creating value through technology and partnerships. This is not a classic retail operation; it's a tech-driven finance play.

• Customer Acquisition: The company drives traffic through its DTC marketplace and, increasingly, through its B2B partnerships. Total new customer applications jumped by 130% year-over-year in January 2025, showing strong demand.
• Lease Origination: The proprietary VLO platform quickly approves customers with minimal credit criteria. Lease originations were up 49.7% in the first quarter of 2025, a defintely strong start to the year.
• Merchandise and Funding: FlexShopper sources goods from national brands and distributors. Crucially, while it handles customer servicing, the actual financing for the leases is often provided by third-party capital partners.
• Revenue Generation: Revenue comes from the weekly or monthly lease fees paid by the consumer. The customer has the right to use the merchandise immediately and an option to purchase it at a predetermined price at any time.

FlexShopper, Inc.'s Strategic Advantages

The company's market success hinges on its ability to serve a large, underserved population and its disciplined financial management, which is showing real traction in 2025.

• Nonprime Market Focus: FlexShopper specifically targets nonprime consumers, those with FICO scores typically below 660, a segment that traditional Buy Now, Pay Later (BNPL) companies like Affirm Holdings Inc. often decline.
• Capital Structure and Liquidity: In April 2025, the company expanded its credit agreement, raising its funding commitment capacity from $150 million to $200 million. This provides substantial liquidity to fuel lease growth.
• Cost Efficiency and Profitability: Management is executing on a clear profitability roadmap. In January 2025, they achieved a 34% year-over-year reduction in marketplace marketing cost per new customer.
• Growth Projections: Based on the current trajectory, the company projects its full-year 2025 Adjusted EBITDA to be between $40 million and $45 million, a significant growth of 20% to 35% over 2024 figures.

FlexShopper, Inc. (FPAY) How It Makes Money

FlexShopper, Inc. primarily generates revenue by offering flexible payment solutions, specifically through its lease-to-own (LTO) agreements for durable goods. The company acts as an intermediary, earning the majority of its income from the lease fees customers pay over time to rent and eventually own products like electronics and furniture.

You need to understand that this model targets the non-prime consumer-those with FICO scores typically below 660-who lack access to traditional credit for big-ticket purchases.

FlexShopper's Revenue Breakdown

For the 2025 fiscal year, FlexShopper's total forecasted annual revenue is approximately $159 million. The revenue streams break down into three main categories, reflecting the company's hybrid approach of lease-to-own and lending products.

Business Economics

The core of FlexShopper's financial engine is the Virtual Lease-to-Own (VLO) model, which is a high-margin business because the total lease payments significantly exceed the initial merchandise cost. The average lease-to-own transaction value is around $589, with a typical lease duration of 12 to 18 months.

Here's the quick math on their leverage: The provision for doubtful accounts-money set aside for leases that may not be paid-improved dramatically to 22.2% in Q3 2024, down from 32.1% a year prior. This 1,000 basis point improvement shows better underwriting and higher customer quality, which directly boosts profitability. That's a defintely positive sign.

• Pricing Strategy: The lease-to-own structure includes a markup over the retail price, which is the cost of providing immediate access to goods for customers with limited credit.
• Acquisition Channel: Growth is fueled by the Business-to-Business (B2B) channel, where the number of signed retail stores offering the VLO solution surged by 250% to approximately 7,800 locations in Q3 2024. This partnership expansion is a low-cost way to drive lease originations.
• Capital Structure: The company's funding capacity was expanded in April 2025, with its credit agreement now allowing for funding commitments up to $200 million, up from $150 million. This provides the necessary capital to support the rapidly increasing lease funding approvals, which rose nearly 80% in 2024.

What this estimate hides is the inherent risk in serving the non-prime segment, which is why the provision for doubtful accounts, while improving, remains a key metric to watch.

FlexShopper's Financial Performance

The company is projecting a strong year, moving toward full-year profitability, a crucial milestone achieved after reporting positive net income in Q3 2024. This shift is driven by a focus on higher-quality originations and operational efficiency.

• Gross Profit: FlexShopper forecasts its full-year 2025 gross profit to be between $90 million and $100 million, representing a significant 17% to 30% increase over the prior year.
• Adjusted EBITDA: The projection for 2025 Adjusted EBITDA is a range of $40 million to $45 million, an anticipated growth of 20% to 35%. This metric shows strong operational performance before interest, taxes, depreciation, and amortization.
• Earnings Per Share (EPS): Analysts forecast FlexShopper's earnings per share to be approximately $0.39 for the full 2025 fiscal year, a sharp reversal from prior-year losses.
• Margin Expansion: Gross margin dollars saw a 105% increase in January 2025, indicating that the revenue growth is translating efficiently into profit.

The company's strategy of pairing its direct-to-consumer marketplace with a rapidly expanding B2B partner network is working, and the financials reflect a business model that is finally scaling profitably. For a deeper dive into the company's long-term vision, you can review their Mission Statement, Vision, & Core Values of FlexShopper, Inc. (FPAY).

Next step: Portfolio Managers should model the impact of a 5% increase in the provision for doubtful accounts on the forecasted EPS by Friday.

FlexShopper, Inc. (FPAY) Market Position & Future Outlook

FlexShopper, Inc. is executing a focused digital strategy that is driving significant volume growth, positioning it as a fast-growing, though small, player in the virtual lease-to-own (LTO) space. The company's future outlook hinges on scaling its dual Direct-to-Consumer (DTC) and Business-to-Business (B2B) model while maintaining the improved unit economics seen in early 2025.

The forecasted annual revenue for FlexShopper, Inc. for the 2025 fiscal year is approximately $159 million, with a projected annual EBITDA of $34 million.

Competitive Landscape

The U.S. rent-to-own market was valued at about $12.31 billion in 2023, and it's a highly fragmented space dominated by a few large players. [cite: 7 in step 2] FlexShopper, Inc. competes primarily in the virtual LTO segment, where its market share is small but growing rapidly against established giants. [cite: 12, 14 in step 3]

Here's the quick math: FlexShopper's estimated market share is based on its projected $159 million 2025 revenue compared to the overall market size, illustrating its position as a niche disruptor.

Opportunities & Challenges

The company is defintely poised to capture market share as traditional lenders tighten credit, pushing more non-prime consumers toward flexible payment solutions like LTO. [cite: 10 in step 3]

Industry Position

FlexShopper, Inc. is a leading national financial technology company that provides payment options for underserved consumers, primarily through its online marketplace and B2B partnerships. [cite: 13 in step 3] The company's strategic shift to a dual-channel model is paying off, with the number of stores offering its virtual LTO solutions increasing by a record 248% from the end of 2023 through January 2025.

• The core strategy is driving a powerful flywheel effect, where B2B growth profitably drives more consumers to the DTC FlexShopper.com marketplace. [cite: 13 in step 3]
• Lease originations for the first quarter of 2025 increased 49.7% year-over-year, demonstrating accelerated execution of the growth plan. [cite: 11 in step 3]
• The company's Revolution Loan business also saw new customer originations increase 88% year-over-year in January 2025, marking its fifth consecutive month of growth.

For a deeper dive into the capital behind this expansion, you should be Exploring FlexShopper, Inc. (FPAY) Investor Profile: Who's Buying and Why?