Sezzle: Strategic Shift to Higher-Value Subscriptions Underpins Sustainable Growth and Supports Buy Rating

Northland Securities analyst Michael Grondahl has maintained their bullish stance on SEZL stock, giving a Buy rating on December 19.

Michael Grondahl has given his Buy rating due to a combination of factors related to Sezzle’s evolving product mix and profitability profile. After discussions with management, he views the strategic pivot back toward subscription offerings such as Anywhere and Premium as a positive development, given their stronger unit economics, superior yields, and higher customer lifetime value compared with the On Demand product. Although subscription conversion rates are slightly lower than those for On Demand, he appears to favor the improved quality of customers, who tend to be more engaged and loyal, ultimately enhancing the long-term revenue base. He also notes that On Demand is now being deployed more selectively, mainly for price-sensitive merchants or lower-credit users, which helps sharpen Sezzle’s overall risk profiling and underwriting discipline.

At the same time, Grondahl acknowledges that this product mix transition introduces year-over-year volatility as older cohorts roll off and new subscription-heavy cohorts mature, but he interprets this as a temporary headwind rather than a structural problem. He takes comfort in Sezzle’s more measured and data-driven approach, where decisions are increasingly guided by weighted lifetime value across products and customer segments. Additionally, he views the current holiday season backdrop as operationally healthier and more predictable than the prior year, with no major new product launches during this peak period, allowing management to focus on execution instead of experimentation. Together, these elements support his conviction that Sezzle is positioning itself for stronger, more sustainable growth and improving profitability, justifying his Buy recommendation.

In another report released on December 19, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $83.00 price target.

Based on the recent corporate insider activity of 94 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of SEZL in relation to earlier this year.