Sezzle Inc. (SEZL)
NASDAQ:SEZL
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Sezzle Inc.
(NASDAQ:SEZL)
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Rating:81Outperform
Price Target:
$189.00
▲(134.17% Upside)
Action:Reiterated
Date:06/16/26
SEZL scores well primarily on strong financial performance (profitability and free cash flow strength with improved leverage) and a positive earnings outlook driven by raised 2026 guidance and strong operating momentum. Technicals also support the score with a pronounced uptrend, though overbought readings elevate near-term volatility risk. Valuation is the main drag given the higher P/E and lack of dividend yield data.
Positive Factors
High profitability and margins
Sustained high margins indicate strong unit economics and pricing power in Sezzle's BNPL platform. Persistent profitability supports reinvestment in marketing and product development, funds buybacks and debt reduction, and creates a durable cash buffer to absorb credit cycles and competitive pressure.
Negative Factors
Regulatory and execution uncertainty
Ongoing litigation and an uncertain, multi‑year bank charter process create structural execution risk. Regulatory outcomes could alter funding, product scope, or capital requirements, potentially forcing strategic shifts or increased compliance costs that affect growth and margins over months to years.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability and margins
Sustained high margins indicate strong unit economics and pricing power in Sezzle's BNPL platform. Persistent profitability supports reinvestment in marketing and product development, funds buybacks and debt reduction, and creates a durable cash buffer to absorb credit cycles and competitive pressure.
Read all positive factors
Sezzle Inc. (SEZL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.49B
Dividend YieldN/A
Average Volume (3M)716.53K
Price to Earnings (P/E)37.2
Beta (1Y)3.46
Revenue Growth46.14%
EPS Growth38.52%
CountryUS
Employees402
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)4.32
Shares Outstanding33,627,018
10 Day Avg. Volume730,655
30 Day Avg. Volume716,531
Financial Highlights & Ratios
PEG Ratio0.24
Price to Book (P/B)12.68
Price to Sales (P/S)4.78
P/FCF Ratio10.33
Enterprise Value/Market Cap0.90
Enterprise Value/Revenue10.31
Enterprise Value/Gross Profit11.62
Enterprise Value/Ebitda25.61
Forecast
1Y Price Target
$134.33Price Target Upside66.44% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)5.1
Revenue Forecast (FY)$591.79M
Sezzle Inc. Business Overview & Revenue Model
Company Description
Sezzle Inc., established in 2016 and based in Minneapolis, Minnesota, functions as a tech-powered payment enterprise with operations concentrated in the United States and Canada. It delivers a payment service available at both e-commerce sites and...
How the Company Makes Money
Sezzle primarily makes money through merchant-related fees and other platform revenues tied to BNPL transactions. When a shopper chooses Sezzle at checkout, Sezzle typically pays the merchant (generally net of fees) and then collects the installme...
Sezzle Inc. Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call highlighted strong top‑line and bottom‑line performance: GMV (+37.3%) and revenue (+29.2%) growth, record profitability (GAAP net income margin 37.9%, adjusted EBITDA margin 52.5%), subscriber and engagement gains, and raised full‑year guidance. Management is investing heavily in marketing and product innovation (Pay‑in‑5, mobile plan, virtual card) with disciplined unit economics, while embedding AI to scale operations. Key cautionary points include seasonal distortion of Q1 margins, a YoY revenue‑yield decline (−80 bps), potential for slightly higher provisions as new products and users scale, ongoing antitrust litigation and the uncertain, lengthy bank charter process. Overall, the positive operational momentum, guidance raise, liquidity strength and profitability materially outweigh the manageable risks and seasonal caveats.Positive Updates
Strong Top-Line and GMV Growth
Gross merchandise volume (GMV) grew 37.3% year‑over‑year to ~$1.1B in Q1; total revenue grew 29.2% year‑over‑year. Q1 GMV nearly matched the Q4 holiday GMV of $1.2B, indicating strong demand and momentum.
Negative Updates
Seasonality and Non‑Annualizable Margins
Q1 margins (74% gross margin) are seasonally elevated due to payment timing and tax refund effects; management cautioned that Q1 margin is not representative of a full‑year run rate and should not be annualized.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line and GMV Growth
Gross merchandise volume (GMV) grew 37.3% year‑over‑year to ~$1.1B in Q1; total revenue grew 29.2% year‑over‑year. Q1 GMV nearly matched the Q4 holiday GMV of $1.2B, indicating strong demand and momentum.
Read all positive updates
Company Guidance
Sezzle raised full‑year 2026 guidance after a strong Q1: revenue growth guidance was lifted from 25% to a new range of 30%–35%, adjusted net income guidance was increased by $10M to $180M, and adjusted EPS guidance was raised to $5.10 (from $4.70). Management also reiterated targets of 55%–65% for total revenue less transaction‑related costs and a provision for credit losses of 2.5%–3.0% of GMV, said top‑line growth should outpace non‑transaction OpEx, noted a marketing payback of under six months that supports continued investment, and emphasized the guidance excludes projections for new products.Sezzle Inc. Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
74
Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 480.91M | 450.28M | 271.13M | 159.36M | 125.57M | 114.82M |
| Gross Profit | 426.79M | 384.32M | 168.00M | 73.78M | 33.58M | 70.59M |
| EBITDA | 193.61M | 178.15M | 82.04M | 24.53M | -28.58M | -67.93M |
| Net Income | 148.27M | 133.13M | 78.52M | 7.10M | -38.09M | -75.17M |
Balance Sheet | ||||||
| Total Assets | 454.31M | 400.23M | 298.37M | 212.65M | 172.58M | 223.40M |
| Cash, Cash Equivalents and Short-Term Investments | 120.45M | 64.05M | 73.19M | 67.62M | 68.28M | 76.98M |
| Total Debt | 145.16M | 140.81M | 104.91M | 95.67M | 64.11M | 78.22M |
| Total Liabilities | 257.58M | 230.42M | 210.54M | 190.55M | 163.73M | 185.61M |
| Stockholders Equity | 196.72M | 169.81M | 87.84M | 22.09M | 8.84M | 37.79M |
Cash Flow | ||||||
| Free Cash Flow | 238.46M | 208.36M | 39.44M | -27.06M | 7.50M | -72.82M |
| Operating Cash Flow | 240.05M | 209.91M | 40.90M | -25.69M | 8.51M | -72.13M |
| Investing Cash Flow | -203.75M | -181.57M | -1.46M | -1.37M | -1.01M | -1.42M |
| Financing Cash Flow | -10.79M | -25.41M | -10.37M | 28.22M | -15.69M | 63.24M |
Sezzle Inc. Technical Analysis
Positive
80.71
Price Trends
101.17
Positive
84.12
Positive
78.28
Positive
Market Momentum
13.72
Negative
81.68
Negative
84.57
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SEZL, the sentiment is Positive. The current price of 80.71 is below the 20-day moving average (MA) of 124.40, below the 50-day MA of 101.17, and above the 200-day MA of 78.28, indicating a bullish trend. The MACD of 13.72 indicates Negative momentum. The RSI at 81.68 is Negative, neither overbought nor oversold. The STOCH value of 84.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SEZL.
Sezzle Inc. Risk Analysis
Sezzle Inc. disclosed 59 risk factors in its most recent earnings report. Sezzle Inc. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sezzle Inc. Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $5.49B | 37.18 | 90.93% | ― | 46.14% | 38.52% | |
81 Outperform | $1.14B | 3.43 | 5.33% | 5.20% | 0.84% | -12.02% | |
74 Outperform | $5.04B | 15.43 | 24.88% | ― | 17.46% | 46.61% | |
69 Neutral | $2.22B | 12.62 | 11.92% | ― | 17.38% | 237.98% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $22.97B | 39.62 | 6.25% | ― | 32.00% | 10.31% | |
56 Neutral | $3.10B | 63.61 | 6.59% | ― | 57.69% | ― |
* Financial Sector Average
SEZL
Sezzle Inc.
156.47
11.49
7.93%
LC
LendingClub
18.62
7.44
66.55%
ENVA
Enova International
204.74
104.96
105.19%
FINV
FinVolution Group
4.73
-4.15
-46.70%
UPST
Upstart Holdings
31.32
-27.75
-46.98%
SOFI
SoFi
17.10
1.74
11.33%
Sezzle Inc. Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Sezzle Launches Updated Investor Presentation to Enhance Engagement
Positive
May 13, 2026
On May 13, 2026, Sezzle Inc. began using a new investor presentation for meetings with investors and analysts, framing its latest strategy, performance metrics and market positioning. The materials, furnished rather than filed with regulators, for...
Business Operations and StrategyPrivate Placements and Financing
Sezzle Secures Larger, Lower-Cost Revolving Credit Facility
Positive
May 12, 2026
On May 7, 2026, Sezzle’s indirect subsidiary Sezzle Funding SPE II, LLC entered into an amended and restated senior secured revolving credit facility of up to $300 million, with the option to increase by an additional $75 million, maturing M...
Business Operations and StrategyExecutive/Board Changes
Sezzle Appoints Bryan Hunt to Strengthen Board Governance
Negative
Apr 9, 2026
On April 3, 2026, Sezzle Inc. director Karen Webster resigned from the board and its Audit and Risk, Compensation, and Nominating and Corporate Governance committees, citing growing differences with management over the company’s direction, k...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.