FlexShopper, Inc. (FPAY): Business Model Canvas [Dec-2025 Updated]

You're digging into FlexShopper, Inc. (FPAY) right now, trying to map out the real value after all the recent capital restructuring and strategic pivots this year. Honestly, it's a complex engine: they are driving growth by blending their proprietary Virtual Lease-to-Own tech with a booming loan business-which saw 88% growth in January 2025-all while servicing over 7,900 retail locations. To understand how they plan to hit that projected FY 2025 Gross Profit of $90 million to $100 million while managing the credit risk, you need to see the whole picture. Let's break down the nine essential blocks of their current Business Model Canvas below.

FlexShopper, Inc. (FPAY) - Canvas Business Model: Key Partnerships

You're looking at the core relationships FlexShopper, Inc. (FPAY) needs to keep the engine running, especially given the recent leadership shifts. These aren't just names on a slide; they represent the actual transaction flow and operational stability you need to track.

The B2B retail merchant network is a big part of the story. FlexShopper, Inc. (FPAY) expanded its Lease-to-Own (LTO) offerings to over 7,900 locations during 2024, which is a significant footprint. That growth in physical presence is supported by a 248% increase in the number of stores signed to offer their virtual LTO solutions from the end of 2023 through January 2025. That kind of scaling requires solid agreements.

Here's a look at the merchant reach and growth:

Metric	Value	Date/Period Reference
Total LTO Offering Locations	7,900	End of 2024
Increase in Signed Stores (vs. End of 2023)	248%	Through January 2025
B2B Partnership Application Volume Growth (YoY)	279%	January 2025

FlexShopper, Inc. (FPAY) relies on a mix of internal funding and external help to serve customers who might not qualify for traditional credit. They use third-party financing providers to widen that net. We know PayPal is one of these key providers, helping serve a wider customer base. Also, in August 2024, FlexShopper, Inc. (FPAY) announced a strategic partnership with PayTomorrow, integrating its LTO services into that platform.

The inventory sourcing relies on partnerships with product suppliers and national brands, which is standard for an LTO marketplace model, though specific supplier counts aren't readily available right now. Still, the model is designed to bring in goods for consumers to lease.

A very recent and specific expansion came in the automotive sector. FlexShopper, Inc. (FPAY) partnered with ICON Vehicle Dynamics on May 29, 2025. This deal specifically brings LTO financing to customers looking for premium off-road upgrades and suspension systems from ICON Vehicle Dynamics. This move lets drivers equip their vehicles without compromising on budget.

The operational side saw a major change in the late summer of 2025, signaling a need for specialized guidance. FlexShopper, Inc. (FPAY) engaged North Country Capital LLC for interim management and restructuring advisory services. This engagement followed the termination of the CEO and CFO on August 6, 2025. Matthew A. Doheny, President of North Country Capital LLC, was appointed as the Chief Restructuring Officer, effective around August 11, 2025.

You should keep an eye on these restructuring efforts, as they are critical to the near-term outlook. Here are the key dates related to that advisory engagement:

• Engaged North Country Capital LLC: August 11, 2025
• CEO/CFO H. Russell Heiser Jr. terminated: August 6, 2025
• Matthew A. Doheny appointed CRO: Around August 11, 2025

Finance: draft 13-week cash view by Friday.

FlexShopper, Inc. (FPAY) - Canvas Business Model: Key Activities

You're looking at the core engine of FlexShopper, Inc. (FPAY) operations as of late 2025, focusing on what they must do every day to keep the business running and compliant. Honestly, the near-term focus is heavily weighted toward risk management and regulatory adherence, which is a major activity right now.

Advanced underwriting and risk analytics to improve asset quality

This activity is about making smarter lending decisions to protect the portfolio. You see the results of this work in the credit quality metrics reported from the third quarter of 2024. For instance, the provision for doubtful accounts improved significantly, dropping to 22.2% of gross lease billings, which represented a 990 basis point improvement year-over-year as of Q3 2024. Some reports even cite this improvement at 1,000 basis points to 22%. That's a concrete measure of better risk analytics in action.

Managing and servicing the lease-to-own (LTO) and loan portfolios

Managing the flow of capital and the existing contracts is central. In Q3 2024, the volume of new business showed strong uptake, with total lease funding approvals climbing 33% year-over-year to $77 million. This growth in funding approvals came from a base of $57.9 million in the prior year period. The servicing side involves managing the payment streams from the subprime consumer demographic FlexShopper targets.

Expanding the B2B merchant network and the DTC marketplace

Growth here is about scaling the reach of the payment solution. FlexShopper, Inc. expanded its retail presence dramatically by the end of Q3 2024, with the number of signed store locations increasing by 250% to reach over 7,800 locations. The direct-to-consumer (DTC) side, the ecommerce marketplace, also saw activity, with retail revenue in that segment growing from $780,000 in Q1 2024 to $1.2 million in Q3 2024.

Here's a quick look at the operational scale based on the latest reported quarter:

Metric	Value (Q3 2024)	Change/Context
Total Revenue	$38.6 million	Up 22.9% Year-over-Year
Total Lease Funding Approvals	$77.0 million	Up 33.0% Year-over-Year
Signed Retail Locations	Over 7,800	250% Expansion since early 2024
Gross Profit Margin	58%	Expanded 400 basis points

Executing capital structure actions like the preferred stock repurchase

This activity involves managing the balance sheet, especially given the capital structure. Analysis following Q3 2024 results highlighted a planned rights offering and the potential redemption of Series 2 Preferred Stock at a significant discount as key actions intended to strengthen the capital structure. You'd want Finance to track the execution status of any such preferred stock actions closely.

Maintaining NASDAQ compliance and resolving delayed financial filings

This is a critical, ongoing activity as of late 2025. FlexShopper, Inc. received a deficiency notification from Nasdaq on August 21, 2025, for failing to timely file its Q2 2025 Form 10-Q. This followed an earlier extension granted on June 18, 2025, setting a deadline of October 13, 2025, to file the delinquent 2024 Form 10-K and Q1 2025 Form 10-Q. Furthermore, a separate notice was received on September 18, 2025, regarding a minimum bid price deficiency, giving the company until March 17, 2026, to get the closing bid price back to at least $1.00 per share for ten consecutive business days. The latest filing mentioned in the system is a 25-NSE form on November 14, 2025.

The compliance challenges involve several key deadlines and filings:

• Received deficiency notice for late Q2 2025 Form 10-Q on August 21, 2025.
• Deadline to file 2024 Form 10-K and Q1 2025 Form 10-Q was October 13, 2025.
• Deadline to regain minimum bid price compliance is March 17, 2026.
• The company must submit an updated plan to regain compliance by October 13, 2025.

If onboarding takes 14+ days, churn risk rises.

Finance: draft 13-week cash view by Friday.

FlexShopper, Inc. (FPAY) - Canvas Business Model: Key Resources

You're analyzing the core assets that make FlexShopper, Inc.'s business tick as of late 2025. These aren't just line items; they are the engine for serving the nonprime consumer segment.

Proprietary Virtual Lease-to-Own (VLO) technology platform

The VLO technology platform is the central nervous system for FlexShopper, Inc.'s operations, enabling instant underwriting across channels. This cloud-based system supports the company's omni-channel strategy, serving both Direct-to-Consumer (DTC) via FlexShopper.com and Business-to-Business (B2B) partners. The effectiveness of this technology is visible in recent operational metrics. For instance, in January 2025, total new customer application volume surged by 130% year-over-year, and marketplace originations-leases funded through their own platform-jumped by 93% year-over-year. This platform's scalability is what allows FlexShopper, Inc. to onboard new retail partners quickly.

The platform's efficiency directly impacts cost structure. In January 2025, the company reported a 34% reduction in marketplace marketing cost per new customer compared to the prior year. This operational leverage is a direct result of the technology stack supporting better decision-making and a smoother application flow.

Expanded credit facility of up to $200 million as of April 2025

Access to capital is a critical resource for any finance company, and FlexShopper, Inc. secured a significant boost here. The credit agreement was expanded to allow for funding commitments of up to $200 million as of April 2025, an increase from the previous $150 million limit. This facility is managed through an agreement with lenders, including an affiliate of Waterfall Asset Management, LLC, acting as the administrative agent.

While the facility limit is $200 million, it's important to note the capital structure at the end of the prior fiscal year. As of December 31, 2024, the outstanding balance under this credit agreement was $143.9 million. The company also raised approximately $12 million in proceeds from a rights offering between November 2024 and early 2025, which was used, in part, to pay down borrowings under this credit agreement.

Customer data and risk models for nonprime consumer underwriting

The proprietary customer data and the risk models built upon it are essential for safely serving the nonprime consumer segment (typically FICO scores below 660). This data asset allows FlexShopper, Inc. to fund leases that traditional Buy Now, Pay Later (BNPL) providers might decline. The focus on asset quality is paramount in this space, and the data models are designed to support disciplined risk management.

The efficacy of these models is reflected in performance indicators. The company noted that its 2024 execution improved asset quality, with gross profit rising 40.3% year-over-year to $76.7 million on a trailing twelve-month basis, and the gross margin improving to 55%. Furthermore, management has seen 13 consecutive months of seasoned originations demonstrating year-over-year increases in cumulative payment rate, which directly mitigates bad debt exposure.

A large, established network of over 7,900 partner retail locations

The physical and digital footprint created through B2B partnerships represents a significant distribution and origination resource. FlexShopper, Inc. expanded its Lease-to-Own (LTO) offerings across a network that reached over 7,900 partner retail locations by the end of 2024. This represented a ~250% increase in locations from the end of 2023.

This network expansion is crucial for driving B2B lease originations, which are supported by the VLO technology integration. The growth in the B2B channel is strong; for example, the number of stores signed to offer their virtual LTO solutions increased by 248% from the end of 2023 through January 2025. The company expects this channel to continue contributing to profitability, with full-year 2025 gross profit projected between $90 million and $100 million.

Here's a snapshot of the quantitative backing for these key resources as of late 2024/early 2025:

Key Resource Metric	Value/Amount	Date/Period Reference
Maximum Credit Facility Commitment	$200 million	As of April 2025
Credit Facility Outstanding Balance	$143.9 million	As of December 31, 2024
Partner Retail Locations	Over 7,900	As of end of 2024
Retail Location Network Growth (YoY)	~250% increase	End of 2024 vs. end of 2023
Projected Full-Year 2025 Adjusted EBITDA	$40 million to $45 million	2025 Guidance
January 2025 New Customer Applications (YoY)	Up 130%	January 2025
January 2025 Marketplace Marketing Cost per New Customer (YoY)	Down 34%	January 2025

The company's ability to scale its underwriting and funding capacity is directly tied to these tangible and intangible assets. FlexShopper, Inc. relies on:

• The VLO platform for instant, multi-channel transaction processing.
• The $200 million credit facility for funding lease originations.
• Refined risk models supporting disciplined underwriting decisions.
• The 7,900+ partner locations for B2B channel reach.

FlexShopper, Inc. (FPAY) - Canvas Business Model: Value Propositions

You're looking at a financial technology platform designed specifically for consumers who find the traditional credit box too restrictive. FlexShopper, Inc. offers immediate access to durable goods, which is a critical value proposition for budget-conscious shoppers.

Flexible payment options for consumers with limited access to traditional credit

FlexShopper, Inc. serves consumers who are typically considered nonprime, meaning they might have FICO scores below 660, which often locks them out of standard financing. The core value here is providing an alternative path to ownership for necessary or desired items like electronics and furniture. This is supported by a demonstrable improvement in the quality of the customer base FlexShopper is serving.

• Provision for doubtful accounts improved by nearly 800 basis points in 2024 compared to 2023, showing better asset quality.
• The company is focused on disciplined underwriting, which is key to sustaining these flexible options.

Immediate use of durable goods like electronics and furniture

The value proposition is getting the product now, not after saving up or after a lengthy credit check. FlexShopper, Inc. facilitates the immediate acquisition of merchandise. For instance, the average lease-to-own transaction value sits around $589, often covering items in primary categories like electronics, furniture, and appliances. The typical lease duration is structured between 12-18 months.

Increased sales and broader customer reach for B2B merchant partners

For merchant partners, FlexShopper, Inc. acts as a sales multiplier by enabling purchases that would otherwise be lost due to financing denial by traditional Buy Now, Pay Later (BNPL) providers. This is evidenced by the rapid expansion of the B2B footprint.

The growth in B2B engagement shows this value is being realized:

• B2B partnership application volume surged by 279% year-over-year in January 2025.
• The number of signed stores grew to approximately 7,800 locations by the end of Q3 2024, representing a 250% increase since the end of 2023.
• Total lease funding approvals for the full year 2024 reached $382.8 million, up 79% from the prior year.

Lease-to-own and lending products (Revolution Loan) on one platform

FlexShopper, Inc. offers a dual-product approach, combining its core lease-to-own (LTO) marketplace with the Revolution Loan product. This diversification helps capture a wider range of consumer needs and drives significant origination volume.

Here's a quick look at the performance indicators for these two primary offerings as of early 2025:

Metric	Lease-to-Own (Marketplace)	Lending Product (Revolution Loan)
January 2025 Y/Y Origination Growth	93% increase	88% increase in new customer originations
January 2025 Y/Y Application Growth	58% increase in marketplace application volume	130% increase in total new customer application volume (combined)
Gross Margin Impact (Jan 2025 Y/Y)	105% increase in FlexShopper.com retail product margin dollars	Contributed to overall growth supporting projected 2025 gross profit of $90 million to $100 million

Fast application and approval process for nonprime customers

The technology underpinning the platform is designed for speed, which is essential for capturing impulse or immediate purchase intent from nonprime customers. This efficiency is also translating into lower costs for FlexShopper, Inc. itself, which is a value passed on to the consumer through sustainable pricing.

You can see the efficiency gains reflected in customer acquisition metrics:

• Marketplace marketing cost per new customer saw a 34% year-over-year reduction in January 2025.
• The company is projecting full-year 2025 Adjusted EBITDA between $40 million and $45 million, showing that efficient customer acquisition supports profitability.

The platform is built to move fast.

FlexShopper, Inc. (FPAY) - Canvas Business Model: Customer Relationships

You're looking at how FlexShopper, Inc. manages its relationship with its customers across its direct-to-consumer (DTC) marketplace and its growing B2B network. It's a mix of digital automation and necessary high-touch servicing, especially on the back end of the lease.

Automated self-service via the FlexShopper.com e-commerce marketplace

The FlexShopper.com marketplace is designed for self-service, though its growth is increasingly fueled by the B2B channel. The demand here is clearly accelerating. For example, in January 2025, marketplace application volume was up 58% year-over-year, showing consumers are finding and starting the process on their own. This translated to marketplace originations increasing 93% year-over-year in that same month. Also, the retail product margin dollars generated directly on the FlexShopper.com marketplace saw a 105% increase year-over-year in January 2025. To be fair, 2024 was the first full year this retail revenue strategy was active, adding incremental profits to the model.

Partner-assisted service at B2B brick-and-mortar and online merchant checkouts

The B2B channel is a massive driver of new customer acquisition, essentially acting as a physical and digital storefront for FlexShopper, Inc.'s financing options. The growth here has been explosive. B2B partnership application volume surged by 279% year-over-year in January 2025. This growth is supported by a significant physical footprint expansion; by the end of 2024, FlexShopper, Inc. had expanded its LTO offerings to approximately 7,900 retail locations, which is a ~250% increase since the end of 2023. The success of these partner doors is evident in the overall funding metrics, with total lease funding approvals reaching $77.0 million in Q3 2024, a 33% increase over the prior year period.

Here's a quick look at the B2B channel scale as of late 2024/early 2025:

Metric	Value	Period Reference
Signed Retail Locations	7,900	End of 2024
Retail Location Expansion (YoY)	~250%	End of 2024 vs. End of 2023
B2B Partnership Application Volume Growth (YoY)	279%	January 2025
Total Lease Funding Approvals	$77.0 million	Q3 2024

High-touch collections and account servicing to manage lease performance

Managing lease performance requires a focus on asset quality, which FlexShopper, Inc. has demonstrably improved through underwriting and servicing. This is where the high-touch element comes in, ensuring payments are made. Asset quality indicators are strong; as of January 2025, the company reported 13 consecutive months of seasoned originations showing year-over-year increases in cumulative payment rates. Looking back, Q4 2024 marked 12 consecutive months of improved payment rates. The impact on credit loss provisioning is clear: the provision for doubtful accounts as a percentage of gross lease billings and fees was 24% in 2024, an improvement of nearly 800 basis points compared to 2023. Even better, in Q3 2024, the provision for doubtful accounts improved by 1,000 basis points to 22% of gross lease billings.

Digital communications for payment reminders and lease management

While collections involve high-touch interaction, the initial and ongoing reminders rely heavily on digital channels. The company has been investing heavily in the technology supporting this. Specifically, John Davis, Chief Operating Officer, noted in late 2024 that investments in risk and analytics have been significant, with plans to introduce AI-driven automation in collector servicing capabilities in 2025 to further enhance performance. This digital push supports the overall goal of maintaining strong payment rates.

Key operational improvements supporting customer account management include:

• 13 consecutive months of improved cumulative payment rates (as of Jan 2025).
• Provision for doubtful accounts at 24% of gross lease billings in 2024.
• Plans for AI-driven automation in collector servicing in 2025.

Finance: draft 13-week cash view by Friday.

FlexShopper, Inc. (FPAY) - Canvas Business Model: Channels

You're looking at how FlexShopper, Inc. gets its flexible payment solutions in front of consumers and merchants as of late 2025. The strategy clearly hinges on a dual approach, driving traffic between their own digital storefront and their growing network of retail partners. Honestly, the numbers coming out of early 2025 show real traction in both areas.

Direct-to-Consumer (DTC) e-commerce platform, FlexShopper.com

The DTC channel, FlexShopper.com, acts as the company's primary online marketplace. This platform is designed to serve nonprime consumers, often those with FICO scores below 660, offering them an Amazon-like experience for purchasing goods using lease-to-own options. The focus here is on driving profitable transactions, which is reflected in the cost-efficiency metrics.

For January 2025, originations specifically on FlexShopper.com increased by 93% year-over-year, showing this channel is a key driver of growth. Furthermore, the company managed to achieve a 34% year-over-year reduction in marketplace marketing cost per new customer in January 2025. Retail product margin dollars on the FlexShopper.com marketplace hit $2.1 million in the fourth quarter of 2024, representing a 143% increase compared to the prior year period.

• Marketplace originations (January 2025): 93% increase YoY.
• Marketplace application volume (January 2025): Up 58% YoY.
• Marketing cost per new DTC customer reduction (Q4 2024): 60% quarter-over-quarter.

Business-to-Business (B2B) integration at partner merchant websites and POS systems

The B2B channel is where FlexShopper, Inc. integrates its Virtual Lease-to-Own (VLO) technology directly into partner merchant websites or in-store terminals. This strategy is explicitly credited with driving consumers to the DTC marketplace, creating what management calls a powerful flywheel effect. The expansion here has been aggressive.

The number of stores signed to offer their virtual LTO solutions saw a massive 248% increase from the end of 2023 through January 2025. This resulted in FlexShopper's LTO offerings expanding to 7,900 locations by the first quarter of 2025, which is roughly a 250% increase over 2024. The application volume coming through B2B partnerships was up 279% year-over-year in January 2025.

B2B Channel Metric	Value/Rate	Period/Context
B2B Partnership Application Volume Growth	279%	Year-over-Year (January 2025)
Total Locations Offering LTO Solutions	7,900	As of Q1 2025
Store Signings Growth	248%	From end of 2023 through January 2025
Total Lease Funding Approvals (2024)	$382.8 million	Full Year 2024

Mobile application for customer access and account management

FlexShopper, Inc. utilizes mobile applications as part of its omni-channel payment solutions, supporting both the e-commerce marketplace and in-store point of sale experiences. While specific user metrics like active users or downloads for late 2025 aren't detailed in the recent reports, the technology is noted as being part of the easy-to-use, technology-enabled application process. The platform is designed to offer flexible funding options to consumers across various touchpoints.

Third-party payment waterfall providers for application referrals

The company relies on expanded partnerships with payment waterfall providers to broaden its reach and funding capacity. These third parties, which include providers like PayPal, help FlexShopper, Inc. serve a wider base of customers who might not qualify for traditional Buy Now Pay Later (BNPL) options. This channel strategy is clearly working to drive volume, as evidenced by the overall surge in applications.

The company also has a credit agreement that was recently expanded in April 2025 to allow for funding commitments up to $200 million, up from a previous $150 million. Furthermore, FlexShopper, Inc. raised $12.2 million in proceeds from its rights offering between the beginning of November 2024 and early 2025. One specific partnership with PayTomorrow was noted with a potential to expand from 1,400 retail locations to over 4,000 over time.

Finance: draft 13-week cash view by Friday.

FlexShopper, Inc. (FPAY) - Canvas Business Model: Customer Segments

You're looking at the core of FlexShopper, Inc.'s strategy: serving consumers who need durable goods now but can't access traditional credit lines. This is the segment that traditional 'buy now pay later' (BNPL) providers often decline.

The primary target is clear: nonprime consumers, typically defined as those with FICO scores below 660. FlexShopper, Inc. focuses on this group through both its direct-to-consumer (DTC) marketplace and its business-to-business (B2B) retail partnerships. Honestly, the company's proprietary application process is designed to look beyond just the score, considering factors like income and job history to approve applicants, which helps serve the broader underbanked and credit-challenged individuals needing essential items. As of early 2025, the demand from this segment was accelerating; for instance, new customer application volume in January 2025 surged by 130% year-over-year.

These shoppers are specifically looking for immediate access to high-value items without a large upfront cash outlay. They seek the flexibility of weekly or monthly lease payment schedules to manage their cash flow effectively. Once approved, customers are typically granted a spending limit of up to $5,000 across the available network.

The types of goods these customers seek are generally essential or high-desire durable products. Here's a breakdown of the categories that drive their lease originations:

Product Category	Specific Examples/Context	Relevant Metric/Data Point
Electronics	Computers, Tablets, Cell Phones, Smart TVs, Gaming Consoles	Spending limit up to $5,000 available for use across over 100,000 items.
Home Furnishings	Sofas, Bedroom Suites, Mattresses	FlexShopper, Inc. expanded its LTO offerings to 7,900 retail locations by the end of 2024.
Appliances	Refrigerators, Washers, Dryers, Vacuums	The company provides financing for customers traditional BNPL providers would typically not fund.
Other Durable Goods	Audio equipment, Sports & Outdoor Recreation, Tools	Lease originations increased 49.7% year-over-year in the first quarter of 2025.

To give you a better sense of the typical applicant profile based on data from late 2024, which informs the current segment:

• Median Monthly Income: $3,300.
• Average Age: 40 years old.
• Customer Base Composition: Approximately 62% female customers.
• Housing Status: Roughly 68% are renters.

The success in attracting these customers is evident in the operational metrics; for example, FlexShopper, Inc. achieved a 105% year-over-year increase in retail product margin dollars on its marketplace in January 2025, showing the segment is both large and becoming more profitable.

FlexShopper, Inc. (FPAY) - Canvas Business Model: Cost Structure

You're looking at the key expenses driving the FlexShopper, Inc. business model as of late 2025. The cost structure is heavily influenced by financing costs and managing credit risk, which is typical for a lease-to-own and lending platform.

The most significant, non-operational cost centers revolve around the capital structure and asset quality management. You see this clearly when you look at the debt load and the necessary provisioning for potential losses.

Here's a breakdown of the primary cost components that you need to track:

• Technology development and maintenance for the VLO platform.
• High interest expense on debt.
• Provision for doubtful accounts.
• Cost of goods sold (COGS) for leased inventory.
• Marketing costs associated with customer acquisition.

The financing cost is a major lever here. The interest expense on debt for the full fiscal year 2024 hit $22.1 million. This is a direct reflection of the capital required to fund the lease and loan originations that drive revenue.

Managing credit risk is another substantial, variable cost. The company sets aside an allowance for expected losses, and the metric for this was quite telling in the third quarter of 2024. The provision for doubtful accounts was recorded at 22% of gross lease billings for Q3 2024. That's a key percentage to watch for asset quality trends.

The cost tied directly to the leased merchandise, even with an asset-light model, is substantial. The trailing twelve months (TTM) annual Cost of Goods Sold (COGS) for leased inventory was reported at $31.158 million.

Customer acquisition costs are being actively managed for efficiency. Marketing spend is being optimized, showing real results early in 2025. Specifically, there was a 34% year-over-year reduction in marketplace marketing cost per new customer recorded in January 2025.

To put these major financial components side-by-side, look at this summary of the key expense drivers:

Cost Category	Financial Metric/Amount	Period/Context
Interest Expense on Debt	$22.1 million	FY 2024
Provision for Doubtful Accounts	22%	Q3 2024 of Gross Lease Billings
COGS for Leased Inventory	$31.158 million	TTM Annual
Marketing Cost Efficiency	34% reduction	Per New Customer in Jan 2025
Technology Investment	Unspecified Amount	Ongoing for VLO Platform

Beyond the direct financing and credit costs, you have the ongoing investment in the platform itself. FlexShopper, Inc. must maintain and enhance its proprietary VLO platform, which is central to its B2B and DTC operations. This includes costs for technology development and maintenance, which are essential to supporting the growth in merchant locations and the increasing application volume.

Here are the key areas where capital is being deployed to support the platform and growth:

• Technology development and maintenance for the VLO platform.
• Marketing expenditures to drive new customer originations.
• Personnel costs supporting underwriting and collections teams.
• General and administrative expenses supporting the corporate structure.

Finance: draft 13-week cash view by Friday.

FlexShopper, Inc. (FPAY) - Canvas Business Model: Revenue Streams

You're looking at how FlexShopper, Inc. (FPAY) brings in money, which is key to understanding its financial health as we move through late 2025. The revenue streams are built on a foundation of flexible consumer financing and direct sales.

The core business still relies heavily on the lease-to-own (LTO) portfolio. Lease revenues and fees from this segment are supported by strong origination momentum seen earlier in the year. For instance, lease originations increased by 49.7% year-over-year for the first quarter of 2025. Also, profitability in 2025 is expected to benefit from the contribution of payments on leases that were originated throughout 2024.

A significant growth driver is the Revolution Loan business. Revenue from this segment is clearly accelerating, as new customer originations in the Revolution Loan business increased by 88% year-over-year in January 2025. This marked the fifth consecutive month of year-over-year new customer origination growth for that specific product line.

Retail sales revenue from the FlexShopper.com marketplace is an increasingly important component. This DTC channel added incremental revenues and profits in 2024, which is the first full year of that retail revenue strategy. To show the strength in this area, retail product margin dollars on the FlexShopper.com marketplace were 105% higher year-over-year in January 2025.

Here is a look at the key financial projections for the full fiscal year 2025, based on guidance provided earlier in the year:

Financial Metric	FY 2025 Projection Range
Gross Profit	Between $90 million and $100 million
Adjusted EBITDA	Between $40 million and $45 million

The revenue streams can be broken down by their source and recent performance indicators:

• Lease revenues and fees from the core lease-to-own portfolio, supported by Q1 2025 lease originations up 49.7% year-over-year.
• Revenue from the Revolution Loan business, which saw new customer originations grow 88% in January 2025.
• Retail sales revenue from the FlexShopper.com marketplace, evidenced by a 105% year-over-year increase in retail product margin dollars in January 2025.

The company expects continued operating leverage in 2025, driven by these revenue streams and disciplined cost management.