Sezzle Inc. (SEZL)
NASDAQ:SEZL
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Sezzle Inc.
(NASDAQ:SEZL)
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Rating:74Outperform
Price Target:
$71.00
▲(11.36% Upside)
Action:ReiteratedDate:03/02/26
The score is driven primarily by strong profitability and exceptional cash flow, reinforced by upbeat guidance and operating leverage discussed on the earnings call. Offsetting these strengths are mixed technicals (still below the 200-day average), elevated volatility (high beta), and ongoing credit/regulatory risks typical of credit-services businesses.
Positive Factors
Strong cash generation
Sustained operating and free cash flow near $209M provides durable funding for reinvestment, buybacks, and debt reduction. High cash conversion versus net income indicates earnings quality and flexibility to fund growth or weather credit-cycle shocks without relying on external capital.
Negative Factors
Regulatory and ILC uncertainty
Ongoing state-level scrutiny and an uncertain, lengthy ILC charter pathway create persistent regulatory risk that can alter permissible product features, compliance costs, or capital structure. This uncertainty can constrain long-term strategy and require material legal or licensing investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Sustained operating and free cash flow near $209M provides durable funding for reinvestment, buybacks, and debt reduction. High cash conversion versus net income indicates earnings quality and flexibility to fund growth or weather credit-cycle shocks without relying on external capital.
Read all positive factors
Sezzle Inc. (SEZL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.16B
Dividend YieldN/A
Average Volume (3M)800.37K
Price to Earnings (P/E)16.2
Beta (1Y)3.52
Revenue Growth88.74%
EPS Growth106.14%
CountryUS
Employees402
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)1.21
Shares Outstanding33,801,674
10 Day Avg. Volume583,656
30 Day Avg. Volume800,374
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 Cap1.05
Enterprise Value/Revenue5.01
Enterprise Value/Gross Profit5.87
Enterprise Value/Ebitda12.93
Forecast
1Y Price Target
$94.80Price Target Upside48.68% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)4.69
Revenue Forecast (FY)$571.58M
Sezzle Inc. Business Overview & Revenue Model
Company Description
Sezzle Inc. operates as a technology-enabled payments company primarily in the United States and Canada. The company provides payment solution at online stores and various brick-and-mortar retail locations that connects consumers with merchants. I...
How the Company Makes Money
Sezzle primarily makes money through merchant-related fees earned when shoppers use Sezzle at checkout. Merchants pay Sezzle for facilitating the BNPL transaction (commonly structured as a percentage of the purchase amount and/or a per-transaction...
Sezzle Inc. Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call communicated strong operational and financial momentum: robust top-line growth (66.1% FY), meaningful margin expansion, record profitability, substantial GMV gains, improving unit economics, and strong cash generation. Product innovation and AI-driven efficiency were highlighted as durable competitive advantages, and management raised 2026 guidance. Offsetting risks include regulatory uncertainty (state-level actions and the long, uncertain ILC path), a modest planned increase in provision guidance for 2026, a small decline in merchant count, and meaningful absolute OpEx increases tied to growth initiatives and marketing. On balance, the positive results, upgraded guidance, and compelling margin/efficiency improvements outweigh the headwinds discussed.Positive Updates
Strong Top-Line Growth
Total revenue grew 32.2% in the fourth quarter and 66.1% for fiscal 2025, with full-year revenue of $450.3 million.
Negative Updates
Regulatory and Political Uncertainty
Emerging state-level regulatory initiatives (notably New York actions) and broader scrutiny of Banking-as-a-Service models are a concern; company is exploring an industrial loan company (ILC) charter but the process is long and non‑guaranteed.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Top-Line Growth
Total revenue grew 32.2% in the fourth quarter and 66.1% for fiscal 2025, with full-year revenue of $450.3 million.
Read all positive updates
Company Guidance
Sezzle guided 2026 to 25%–30% total revenue growth, raised adjusted EPS from $4.35 to $4.70 (a 30.9% increase vs. 2025) and pegged adjusted net income at $170 million; management also expects provision for credit losses of roughly 2.5%–3.0% of GMV, a targeted gross margin range of ~55%–65% (management models around 60%–65%), will continue to leverage non‑transaction OpEx (which was 26.3% of revenue in 2025), and noted the guidance excludes contributions from new products like Sezzle Mobile while highlighting supportive liquidity (a $225M credit facility expansion and $102.6M total cash, including $38.5M restricted).Sezzle Inc. Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
72
Positive
Cash Flow
90
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 450.28M | 271.13M | 159.36M | 125.57M | 114.82M |
| Gross Profit | 384.32M | 168.00M | 73.78M | 33.58M | 70.59M |
| EBITDA | 178.15M | 82.04M | 24.53M | -28.58M | -67.93M |
| Net Income | 133.13M | 78.52M | 7.10M | -38.09M | -75.17M |
Balance Sheet | |||||
| Total Assets | 400.23M | 298.37M | 212.65M | 172.58M | 223.40M |
| Cash, Cash Equivalents and Short-Term Investments | 64.05M | 73.19M | 67.62M | 68.28M | 76.98M |
| Total Debt | 140.65M | 104.91M | 95.67M | 64.11M | 78.22M |
| Total Liabilities | 230.42M | 210.54M | 190.55M | 163.73M | 185.61M |
| Stockholders Equity | 169.81M | 87.84M | 22.09M | 8.84M | 37.79M |
Cash Flow | |||||
| Free Cash Flow | 208.36M | 39.44M | -27.06M | 7.50M | -72.82M |
| Operating Cash Flow | 209.91M | 40.90M | -25.69M | 8.51M | -72.13M |
| Investing Cash Flow | -181.57M | -1.46M | -1.37M | -1.01M | -1.42M |
| Financing Cash Flow | -25.41M | -10.37M | 28.22M | -15.69M | 63.24M |
Sezzle Inc. Technical Analysis
Negative
63.76
Price Trends
67.03
Negative
66.28
Negative
86.98
Negative
Market Momentum
-1.32
Positive
45.19
Neutral
25.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SEZL, the sentiment is Negative. The current price of 63.76 is below the 20-day moving average (MA) of 67.23, below the 50-day MA of 67.03, and below the 200-day MA of 86.98, indicating a bearish trend. The MACD of -1.32 indicates Positive momentum. The RSI at 45.19 is Neutral, neither overbought nor oversold. The STOCH value of 25.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $2.16B | 16.17 | 91.62% | ― | 88.74% | 106.14% | |
72 Outperform | $1.25B | 3.73 | 15.80% | 5.20% | 9.32% | 29.40% | |
71 Outperform | $3.42B | 12.62 | 24.45% | ― | 21.10% | 76.12% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $20.21B | 62.56 | 5.87% | ― | 22.40% | 215.81% | |
61 Neutral | $1.65B | 16.10 | 9.47% | ― | 9.68% | 94.85% | |
49 Neutral | $2.51B | 78.35 | 7.29% | ― | 73.29% | ― |
* Financial Sector Average
SEZL
Sezzle Inc.
63.76
33.20
108.64%
LC
LendingClub
14.32
5.49
62.17%
ENVA
Enova International
136.88
49.72
57.04%
FINV
FinVolution Group
4.94
-3.10
-38.55%
UPST
Upstart Holdings
25.58
-12.20
-32.29%
SOFI
SoFi
15.85
5.99
60.75%
Sezzle Inc. Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Sezzle Updates Investors With New Business Overview Presentation
Neutral
Mar 6, 2026
On March 6, 2026, Sezzle Inc. began using a new investor slide presentation in meetings with investors and analysts, providing a high-level update on its business within the context of its existing U.S. Securities and Exchange Commission disclosur...
Business Operations and StrategyExecutive/Board Changes
Sezzle Appoints New Chief Financial Officer for Growth
Positive
Jan 29, 2026
On January 23, 2026, Sezzle’s board approved the appointment of long-time executive and early company advisor Lee Brading as Chief Financial Officer, effective February 1, 2026, succeeding retiring CFO and principal financial officer Karen H...
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.