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FlexShopper Provides Business Update for January 2025

1. FlexShopper's January new customer applications rose 130% year-over-year. 2. Total originations in January increased 44% year-over-year, highest in four years. 3. Gross margin dollars grew by 105% year-over-year, improving profitability indicators. 4. Market expansion led to a 248% increase in partnered stores for offerings. 5. January 2025 saw a 93% increase in online marketplace originations.

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Why Bullish?

Positive growth trends and increased originations typically lead to higher stock prices, as seen with similar companies experiencing growth spikes.

How important is it?

Improving performance metrics significantly affect FPAY's viability and attractiveness to investors.

Why Short Term?

Initial strong results are likely to influence investor sentiment and trading activity in the near term, resembling patterns from past quarterly earnings announcements.

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February 10, 2025 08:00 ET  | Source: FlexShopper, Inc. Total new customer application volume in January 2025 increased 130% year-over-year, driving the highest level of January originations, with total originations up 44% year-over-year Monthly growth trends accelerated in January 2025, compared to December 2024 Indicators of profitability for January 2025 are encouraging with 105% increase in FlexShopper.com gross margin dollars, a 34% year-over-year reduction in marketplace marketing cost per new customer, and stable asset quality BOCA RATON, Fla., Feb. 10, 2025 (GLOBE NEWSWIRE) -- FlexShopper, Inc. (Nasdaq: FPAY), a prominent national online lease-to-own retailer and payment solutions provider, today announced another strong operating month for January 2025. Positive momentum reflects the successful transformation underway as a result of FlexShopper’s direct-to-consumer (DTC) and business-to-business (B2B) growth strategies. “FlexShopper produced strong initial results for the month of January 2025 including higher total applications and originations, as well as improved conversion rates on FlexShopper.com. In addition, key indicators of profitability strengthened in January through the contribution of higher gross margin dollars, reduced customer acquisition costs, and improved asset quality,” said Russ Heiser, CEO at FlexShopper. “We believe positive trends are accelerating across our business, reflecting improving customer demand for our payment solutions, expanded partnerships with payment waterfall providers, and a 248% increase in the number of stores signed to offer our virtual LTO solutions from the end of 2023 through January 2025. Growth in our B2B business is profitably driving more consumers to our DTC FlexShopper.com marketplace and creating a powerful flywheel effect with January 2025 originations on FlexShopper.com increasing 93% year-over-year.”   “I am excited to report that monthly growth trends accelerated in January from December levels, with overall originations increasing 44% in January year-over-year compared to 35% year-over-year growth in December. In addition, record monthly new customer applications were up 130% in January year-over-year, compared to a 45% year-over-year increase in December. We believe we are well positioned for positive demand trends to continue for the foreseeable future as we execute against our growth plan,” continued Mr. Heiser. FlexShopper provided the following operating results for the month of January 2025: FlexShopper experienced the highest level of January lease originations in 4 years, with overall originations up 44% year-over-year and marketplace originations up 93% year-over-year, while maintaining disciplined underwriting standards.Record new customer application volume in January 2025, with a 130% year-over-year increase in applications submitted.Marketplace application volume was up 58% year-over-year, and B2B partnership application volume was up 279% year-over-year, reflecting strong customer demand and increased partner door counts over the past year.  105% higher year-over-year retail product margin dollars on the FlexShopper.com marketplace, reflecting the Company’s strategies to drive gross margin dollars and a more profitable mix of sales34% year-over-year reduction in marketplace marketing cost per new customer, as a result of lower year-over-year marketing cost per application and a higher year-over-year net conversion rate of application to funded leaseNew customer originations in FlexShopper’s Revolution Loan business increased 88% year-over-year in January 2025, which was the 5th consecutive month of year-over-year new customer origination growthAsset quality continued to improve, with 13 consecutive months of seasoned originations demonstrating year-over-year increases in cumulative payment rate. Mr. Heiser continued, “Our recent performance demonstrates the continued value of FlexShopper’s flexible payment solutions and easy to use, technology enabled application process. Applications and originations are important indicators for future performance. As a result, we expect growth in revenue and profitability to continue throughout 2025.” About FlexShopper, Inc.: FlexShopper, Inc. (Nasdaq: FPAY) is a leading national financial technology company that provides payment options to consumers. FlexShopper provides a variety of flexible funding options for underserved consumers through its online direct to consumer marketplace at flexshopper.com and in partnership with partner merchants both online as well as at brick and mortar locations. FlexShopper’s solutions are designed to meet the needs of a wide range of consumer segments via lease-to-own and lending products. Forward-Looking StatementsAll statements in this release that are not based on historical fact are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as “believe,” “expect,” “may,” “will,” “should,” “could,” “seek,” “intend,” “plan,” “goal,” “estimate,” “anticipate,” or other comparable terms. Examples of forward-looking statements include, among others, statements we make regarding expectations of lease originations, the expansion of our lease-to-own program; expectations concerning our partnerships with retail partners; investments in, and the success of, our underwriting technology and risk analytics platform; our ability to collect payments due from customers; expected future operating results and expectations concerning our business strategy. Forward-looking statements involve inherent risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, as a result of various factors including, among others, the following: our ability to obtain adequate financing to fund our business operations in the future; the failure to successfully manage and grow our FlexShopper.com e-commerce platform; our ability to maintain compliance with financial covenants under our credit agreement; our dependence on the success of our third-party retail partners and our continued relationships with them; our compliance with various federal, state and local laws and regulations, including those related to consumer protection; the failure to protect the integrity and security of customer and employee information; and the other risks and uncertainties described in the Risk Factors and in Management’s Discussion and Analysis of Financial Condition and Results of Operations sections of our Annual Report on Form 10-K and subsequently filed Quarterly Reports on Form 10-Q. The forward-looking statements made in this release speak only as of the date of this release, and FlexShopper assumes no obligation to update any such forward-looking statements to reflect actual results or changes in expectations, except as otherwise required by law. Company Contact:FlexShopper, Inc.Investor Relationsir@flexshopper.com Investor and Media ContactAndrew BergerManaging DirectorSM Berger & Company, Inc.Tel (216) 464-6400andrew@smberger.com

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