Mon, May 5, 8:51 PM (17 days ago)
**Standard Premium Finance Holdings, Inc. (SPFX) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $2,896,133 (up 2.3% YoY), driven by a 3.2% increase in finance charges. - **Profit Margins:** Net income margin improved to 11.6% from 4.2% YoY. - **Cash Flow:** Positive operating cash flow of $2,296,891, despite a net decrease in cash of $905. - **Earnings Changes:** Net income increased by 83.6% YoY to $335,829. **Key Metrics:** - **Interest Earned Rate:** 18.1% (up from 17.2% YoY). - **Cost of Funds Rate (Gross):** 6.96% (down from 7.92% YoY). - **Return on Assets:** 1.84% (up from 0.55% YoY). - **Return on Equity:** 20.99% (up from 7.21% YoY). **Quarterly Performance Discussion:** - **Revenue Growth:** Driven by increased finance charges, partially offset by a decrease in origination fees. - **Expense Management:** Significant reductions in interest expense, other operating expenses, and professional fees. - **Profitability:** Substantial increase in net income due to higher revenues and lower expenses. **Trends and Uncertainties:** - **Growth Strategy:** Expansion into new states and focus on small to mid-sized loans. - **Liquidity:** Adequate liquidity with a working capital surplus of $15,521,476. - **Future Operations:** Negotiating an extension and potential increase in the line of credit. **Future Operations Impact:** - **Line of Credit:** Critical for funding growth, with negotiations ongoing for an extension and potential increase. - **Market Expansion:** Continued focus on expanding into new states and targeting specific loan segments. - **Risk Management:** Ongoing monitoring of credit risk and adjustments to the allowance for credit losses. **Conclusion:** SPFX demonstrated strong financial performance in Q1 2025, with significant improvements in revenue, profitability, and key financial metrics. The company's strategic focus on market expansion and efficient expense management positions it well for future growth, despite ongoing uncertainties related to financing and market conditions.