Flex's $190M Trading Volume Ranks 501st as Strategic Expansion Secures $15M to Tackle $150B HSA/FSA Gap

Flex (FLEX) edged up 0.06% on Sept. 3, with a trading volume of $190 million, ranking 501st in market activity. The stock’s muted movement contrasts with significant developments in its business strategy.

The company secured $15 million in Series A funding to expand its platform enabling Health Savings Account (HSA) and Flexible Spending Account (FSA) payments for wellness and fitness products. Led by First Round Capital and Core Innovation Capital, the round elevates Flex’s total capital raised to $18 million. The platform, which partners with brands like Therabody, NordicTrack, and Dermstore, has seen a fivefold increase in its customer base over the past year. Flex aims to leverage the funding to enter the enterprise market, enhance its technology, and grow its workforce.

Flex’s solution addresses a $150 billion gap in unused HSA and FSA funds, with average account holders forfeiting $450 annually due to limited merchant acceptance and unclear eligibility. Retailers using the platform have reported over 50% higher average order values and 30% boosts in checkout conversion. The company highlights partnerships with fitness brands like Balanced Body, which now accepts HSA/FSA for high-end Pilates equipment, and Alo Wellness, which allows digital fitness subscriptions to be paid with pre-tax dollars.

The latest funding follows a strategic partnership expansion with Therabody, enabling HSA/FSA spending on FDA-cleared devices like the TheraFace Mask. CEO Sam O’Keefe emphasized Flex’s role in building infrastructure for the health economy, with plans to scale adoption among wellness brands seeking seamless payment solutions. Investors, including Y Combinator and Rethink Impact, cited the platform’s potential to drive both consumer savings and merchant revenue growth.

Backtesting results indicate that Flex’s platform has historically driven a 20% increase in converting free trials to paid plans for integrated retailers, underscoring its value in monetizing unused health account funds.