FlexShopper Faces Nasdaq Compliance Challenge and Struggles with Profitability.

FlexShopper (FPAY) received a Nasdaq compliance notice for not filing its quarterly report on time, breaching Listing Rule 5250. The company operates a lease-to-own business model, generating revenue through leasing durable goods like electronics and furniture. Its revenue growth is 20.5% over the last year, but the company has a negative EPS and high debt-to-equity ratio. FlexShopper's valuation is mixed, with a low P/S ratio but moderate P/B ratio. Analysts recommend a neutral stance with a target price of $2.5.

FlexShopper Inc. (FPAY), a financial technology company specializing in lease-to-own (LTO) and lending solutions for underserved consumers, has received a deficiency notification from the Nasdaq Stock Market LLC [1]. The notification, issued on August 21, 2025, indicates that the company failed to comply with Nasdaq Listing Rule 5250(c)(1) by not timely filing its Quarterly Report on Form 10-Q for the quarter ended June 30, 2025 [2].

The company had previously been granted an extension until October 13, 2025, to file its delinquent Form 10-K for the year ended December 31, 2024, and its Form 10-Q for the quarter ended March 31, 2025. However, the latest delay in filing its Q2 2025 Form 10-Q has led to an additional compliance issue. FlexShopper must now submit an updated plan to regain compliance with Nasdaq's listing requirements within 180 calendar days from the due date of the Initial Delinquent Filing [3].

FlexShopper operates a lease-to-own business model, generating revenue through leasing durable goods like electronics and furniture. Over the last year, the company has seen revenue growth of 20.5% [3]. However, it has a negative EPS and a high debt-to-equity ratio, which may indicate ongoing financial challenges. The company's valuation is mixed, with a low P/S ratio but a moderate P/B ratio [3]. Analysts have recommended a neutral stance with a target price of $2.5 [3].

FlexShopper has emphasized its commitment to completing and filing the required reports as soon as practicable, but it has not provided specific timelines. The company's failure to comply with Nasdaq's listing rules may create uncertainty regarding its listing status and potentially impact investor confidence.

References:
[1] https://finance.yahoo.com/news/flexshopper-receives-notification-deficiency-nasdaq-201500774.html
[2] https://seekingalpha.com/news/4489754-flexshopper-receives-nasdaq-deficiency-notice-over-delayed-10-q-filing
[3] https://www.quiverquant.com/news/FlexShopper%2C+Inc.+Receives+Nasdaq+Deficiency+Notification+for+Late+Quarterly+Report+Filing