FlexShopper, Inc. reported significant financial growth in its latest 10-Q filing for the quarter ending September 30, 2024. Total revenues for the three months reached $38.6 million, a 22.9% increase from $31.4 million in the same period of 2023. For the nine months, total revenues rose to $104.3 million, up 20.3% from $86.7 million year-over-year. The company's lease revenues and fees also saw substantial growth, with net lease revenues for the quarter at $28.4 million, a 34.5% increase compared to $21.1 million in Q3 2023.
Operating income for the third quarter was $9.6 million, reflecting a 60.6% increase from $6.0 million in the prior year. Net income for the quarter was $2.4 million, a remarkable 151.7% increase from $940,101 in Q3 2023. For the nine-month period, FlexShopper reported a net income of $549,147, a significant turnaround from a net loss of $4.6 million in the same period last year.
The company’s total current assets increased to $149.3 million as of September 30, 2024, up from $117.4 million at the end of 2023. Total assets also rose to $187.3 million, compared to $156.5 million previously. However, total liabilities increased to $157.5 million from $127.3 million, with current liabilities rising to $18.7 million from $12.1 million.
FlexShopper's strategic initiatives included the acquisition of Revolution Financial, Inc. in late 2022, which enabled direct loan origination in 11 states. The company also launched a new retail sales initiative in Q1 2024 to expand its customer base. However, the bank partner that previously underwrote unsecured loans exited the high APR business in 2023, prompting FlexShopper to seek a new partner.
The company’s cash position improved, with $7.3 million on hand as of September 30, 2024, compared to $5.7 million a year earlier. FlexShopper's net cash used in operating activities for the nine months was $23.8 million, a shift from net cash provided of $2.6 million in the same period of 2023. The company borrowed $34.9 million under its new credit agreement during the nine months, compared to $7.8 million in the prior year.
FlexShopper also reported a material weakness in internal control over financial reporting, specifically regarding the monitoring of assets pledged as collateral against certain loan receivables. Despite this, management believes the financial statements fairly represent the company's condition in accordance with GAAP.
About FlexShopper, Inc.
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