Sezzle Inc. (SEZL) AI Stock Analysis

• Market Cap: $5.06B
• Dividend Yield: N/A
• Average Volume (3M): 932.24K
• Price to Earnings (P/E): 48.1
• Beta (1Y): 3.95
• Revenue Growth: 91.69%
• EPS Growth: 702.31%
• Country: US
• Employees: 402
• Sector: Financial
• Sector Strength: 67
• Industry: Financial - Credit Services
• EPS (TTM): 0.69
• Shares Outstanding: 33,286,297
• 10 Day Avg. Volume: 796,810
• 30 Day Avg. Volume: 932,235
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.24
• Enterprise Value/Revenue: 3.73
• Enterprise Value/Gross Profit: 4.50
• Enterprise Value/Ebitda: 10.31
• 1Y Price Target: $174.00
• Price Target Upside: 24.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 78 Outperform
• Price Target: $162.00 ▲(16.27% Upside)

Sezzle Inc.'s strong financial performance and positive earnings call sentiment are the primary drivers of its high score. Technical indicators suggest stability, but the high P/E ratio and legal risks from the antitrust lawsuit against Shopify are concerns. Overall, the company is well-positioned in the credit services industry, with growth potential outweighing the risks.

Sezzle Inc. Business Overview & Revenue Model

Company Description

Sezzle Inc. (SEZL) is a financial technology company that operates primarily in the 'buy now, pay later' (BNPL) sector. It provides a payment platform that allows consumers to purchase goods and services from online and in-store merchants and pay for them over time through interest-free installment plans. Sezzle's platform aims to facilitate increased sales for merchants by offering consumers a flexible payment option, thus improving consumer purchasing power and convenience.

How the Company Makes Money

Sezzle Inc. generates revenue primarily through merchant fees. When a consumer uses Sezzle's payment platform to make a purchase, the merchant pays Sezzle a percentage of the transaction amount. This fee is typically a combination of a fixed fee and a variable percentage based on the transaction value. Additionally, Sezzle may earn revenue from consumers in the form of fees for certain services, such as late payment fees or rescheduling fees, although the core revenue model is heavily reliant on merchant fees. Sezzle's partnerships with a wide range of merchants across various sectors enhance its revenue potential by expanding its reach and consumer base. Strategic partnerships and integrations with e-commerce platforms and payment processors also contribute to its earnings by broadening access to potential customers and facilitating seamless transactions.

Sezzle Inc. Financial Statement Overview

Summary

Sezzle Inc. has shown remarkable growth and profitability improvements across its financial statements. Revenue and profit margins have increased significantly, and the company maintains a strong balance sheet despite high debt levels. Cash flow conversion needs improvement.

Income Statement

Sezzle Inc. has shown impressive revenue growth, increasing from $58.8 million in 2020 to $329.1 million in TTM. The gross profit margin remains strong at 82.9%, and the net profit margin improved significantly to 32.4% in TTM. EBIT and EBITDA margins also show substantial improvement, indicating healthy operational efficiency.

Balance Sheet

The debt-to-equity ratio has improved, and the company boasts a robust equity ratio of 42.2% in TTM, reflecting a solid financial position. The return on equity has surged to 84.8%, indicating effective utilization of equity. However, the total debt remains relatively high, posing a potential risk.

Cash Flow

Sezzle Inc. has demonstrated strong cash flow performance, with free cash flow growing from negative figures to $59.9 million in TTM. The operating cash flow to net income ratio is 0.57, showing efficient cash generation. However, the free cash flow to net income ratio is slightly lower at 0.56, suggesting room for improvement in cash conversion.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	271.13M	159.36M	125.57M	114.82M	58.79M
Gross Profit	219.36M	73.78M	74.35M	70.59M	35.87M
EBITDA	82.04M	24.53M	-28.58M	-69.09M	-27.63M
Net Income	78.52M	7.10M	-38.09M	-75.17M	-32.39M
Balance Sheet
Total Assets	298.37M	212.65M	172.58M	161.93M	174.11M
Cash, Cash Equivalents and Short-Term Investments	73.19M	67.62M	68.28M	76.98M	84.29M
Total Debt	104.91M	95.67M	64.11M	56.70M	41.30M
Total Liabilities	210.54M	190.55M	163.73M	134.54M	114.15M
Stockholders Equity	87.84M	22.09M	8.84M	27.39M	59.96M
Cash Flow
Free Cash Flow	39.44M	-27.06M	7.50M	―	―
Operating Cash Flow	40.90M	-25.69M	8.51M	-52.28M	-19.00M
Investing Cash Flow	-1.46M	-1.37M	-1.01M	―	―
Financing Cash Flow	-10.37M	28.22M	-15.69M	45.84M	59.46M

Sezzle Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 139.33
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SEZL, the sentiment is Neutral. The current price of 139.33 is below the 20-day moving average (MA) of 142.93, below the 50-day MA of 143.59, and above the 200-day MA of 73.58, indicating a neutral trend. The MACD of 0.88 indicates Positive momentum. The RSI at 46.46 is Neutral, neither overbought nor oversold. The STOCH value of 43.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SEZL.

Sezzle Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SEZL	78 Outperform	$5.06B	48.13	137.28%	―	91.69%	702.31%
OMF	78 Outperform	$6.68B	10.16	20.47%	7.48%	9.41%	13.98%
SOFI	68 Neutral	$25.53B	43.50	8.80%	―	22.60%	―
Sector *	67 Neutral	$17.02B	11.60	9.79%	3.95%	10.61%	2.06%
WU	65 Neutral	$2.59B	3.03	135.32%	11.75%	-3.83%	62.05%
UPST	60 Neutral	$6.46B	―	-0.96%	―	60.62%	96.91%
LU	52 Neutral	$2.41B	―	-3.79%	4.57%	-38.81%	-425.73%

Sezzle Inc. Corporate Events

Sezzle Inc. Forgoes B Corporation Recertification

On August 7, 2025, Sezzle Inc. announced its decision to forgo recertification as a certified B Corporation, a certification it initially received on March 22, 2021. This decision, part of an ongoing evaluation of corporate governance and sustainability initiatives, is not expected to materially impact the company’s business or financial condition. Additionally, Sezzle reported strong financial results for the second quarter of 2025, with a 74.2% year-over-year increase in Gross Merchandise Volume (GMV) and a 76.4% rise in total revenue, driven by enhanced product features and marketing initiatives. The company also achieved significant growth in operating income and adjusted EBITDA, reflecting its scalable cost structure and effective investment strategies.

The most recent analyst rating on (SEZL) stock is a Buy with a $19.83 price target. To see the full list of analyst forecasts on Sezzle Inc. stock, see the SEZL Stock Forecast page.

Sezzle Inc. Amends 2021 Equity Incentive Plan

On July 31, 2025, Sezzle Inc.‘s Board of Directors approved an amendment to the 2021 Equity Incentive Plan, allowing third-party sales of common stock to cover tax obligations and delaying settlement of awards during trading black-out periods. This amendment impacts the company’s operations by providing flexibility in managing tax withholdings and aligning with trading policies, affecting key executives and stakeholders involved in the incentive plan.

The most recent analyst rating on (SEZL) stock is a Buy with a $19.83 price target. To see the full list of analyst forecasts on Sezzle Inc. stock, see the SEZL Stock Forecast page.

Sezzle Inc. Holds Annual Stockholders Meeting on June 10

On June 10, 2025, Sezzle Inc. held its Annual Meeting of Stockholders, where key proposals were voted on, including the election of directors, ratification of the company’s accounting firm, and approval of executive compensation. The meeting resulted in the election of directors, the ratification of Baker Tilly US, LLP as the independent auditor for 2025, and the approval of executive compensation, reflecting shareholder support for the company’s governance and financial strategies.

The most recent analyst rating on (SEZL) stock is a Buy with a $19.83 price target. To see the full list of analyst forecasts on Sezzle Inc. stock, see the SEZL Stock Forecast page.

Sezzle Inc. Files Antitrust Lawsuit Against Shopify

On June 9, 2025, Sezzle Inc. filed a lawsuit against Shopify Inc. in the U.S. District Court for the District of Minnesota, alleging federal and state antitrust violations. This legal action could have significant implications for Sezzle’s operations and its positioning within the financial technology industry, potentially affecting its relationships with stakeholders.

The most recent analyst rating on (SEZL) stock is a Buy with a $19.83 price target. To see the full list of analyst forecasts on Sezzle Inc. stock, see the SEZL Stock Forecast page.

Sezzle Inc. Re-elects Directors in Recent Meeting

Sezzle Inc. recently held a business meeting where they re-elected Mr. Sam Sample and Ms. Jane Citizen as directors. This decision is expected to influence the company’s leadership structure and potentially impact its strategic direction.

The most recent analyst rating on (SEZL) stock is a Buy with a $19.83 price target. To see the full list of analyst forecasts on Sezzle Inc. stock, see the SEZL Stock Forecast page.

Sezzle Inc. Files Antitrust Lawsuit Against Shopify

On June 9, 2025, Sezzle Inc. filed an antitrust lawsuit against Shopify Inc. in the U.S. District Court for the District of Minnesota, alleging Shopify’s monopolistic practices in the ‘buy now, pay later’ service options on its e-commerce platform. Sezzle seeks an injunction to halt Shopify’s anticompetitive conduct and is also pursuing damages, which could be tripled under applicable laws. Despite the lawsuit, Sezzle reported that revenue from Shopify’s platform constituted less than 5% of its total revenue for the first quarter of 2025, and the company reaffirmed its fiscal 2025 guidance.

The most recent analyst rating on (SEZL) stock is a Buy with a $19.83 price target. To see the full list of analyst forecasts on Sezzle Inc. stock, see the SEZL Stock Forecast page.

Sezzle Inc. Updates Investor Presentation Strategy

Sezzle Inc. announced that starting May 9, 2025, it will begin investor and analyst presentations using a new slide presentation. This presentation is part of the company’s ongoing efforts to provide summary information in the context of its SEC filings and public announcements, potentially impacting how stakeholders perceive its financial communications.