Sezzle Inc. (SEZL) AI Stock Analysis

• Market Cap: $2.56B
• Dividend Yield: N/A
• Average Volume (3M): 877.96K
• Price to Earnings (P/E): 16.2
• Beta (1Y): 3.66
• Revenue Growth: 88.74%
• EPS Growth: 106.14%
• Country: US
• Employees: 402
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 1.21
• Shares Outstanding: 33,801,674
• 10 Day Avg. Volume: 1,262,048
• 30 Day Avg. Volume: 877,958
• PEG Ratio: 0.24
• Price to Book (P/B): 12.68
• Price to Sales (P/S): 4.78
• P/FCF Ratio: 10.33
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 5.92
• Enterprise Value/Gross Profit: 6.93
• Enterprise Value/Ebitda: 15.28
• 1Y Price Target: $97.00
• Price Target Upside: 28.02% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 4.34
• Revenue Forecast (FY): $559.80M

• Rating: 74 Outperform
• Price Target: $82.00 ▲(8.22% Upside)
• Action: Reiterated Date: 03/02/26
• Date: Action: Reiterated 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 Operating & Free Cash Flow

Sustained, large operating and free cash flow provides durable financial flexibility: funds organic investment, product development, buybacks, and debt reduction without reliance on external capital. This strengthens resilience through credit cycles, though cash can still vary with credit performance.

High Profitability and Margins

Consistently elevated net and operating margins reflect a scalable merchant-fee business and disciplined cost structure, improving earnings quality and reinvestment capacity. High ROE and EBITDA margins support long-term cash generation though margins must be monitored for mix or unit-economics shifts.

Growing Product Ecosystem & Engagement

Strong feature adoption and broader product set increase daily utility and stickiness, boosting LTV and cross-sell opportunities. A diversified consumer ecosystem and AI initiatives make revenue less dependent on pure transaction volume and support durable competitive positioning versus single-product BNPL rivals.

Negative Factors

Regulatory Risk — NY BNPL Rules

Proposed New York licensing and fee limits create structural compliance and cost requirements that may reduce fee income, constrain late-fee revenue and underwriting flexibility, and require system changes. Over time this can depress unit economics in an important U.S. market and raise ongoing compliance expenses.

Rising Credit Losses / Credit Sensitivity

Higher provisions signal sensitivity to borrower credit quality and macro cycles; rising loss rates directly reduce net revenue and free cash flow. Persistent or worsening credit costs would force tighter underwriting or higher reserve build, limiting growth and increasing earnings volatility over the medium term.

Ongoing Antitrust Litigation

Active antitrust proceedings create legal and operational uncertainty, with potential for injunctions, fines, or mandated changes to commercial practices. Even without an adverse judgement, litigation diverts management attention, increases legal costs, and can hinder partnerships or product strategies over many months.

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. Its platform enables customers to make online purchases and split the payment for the purchase in four equal interest free payments over six weeks. Sezzle Inc. was incorporated in 2016 and is headquartered in Minneapolis, Minnesota.

How the Company Makes Money

Sezzle generates revenue primarily through merchant fees, which are charged to retailers for utilizing its BNPL services. When a consumer makes a purchase using Sezzle, the company pays the merchant upfront, while the consumer repays Sezzle in installments. Merchants pay a percentage of the transaction value as a fee to Sezzle for the service, which typically ranges from 2% to 6%. Additionally, Sezzle earns revenue from late fees charged to consumers who miss their payment deadlines. The company has also established partnerships with various e-commerce platforms and retailers, enhancing its market reach and contributing to its earnings through increased transaction volumes.

Sezzle Inc. Financial Statement Overview

Summary

Fundamentals are strong today: profitable with ~29.6% net margin and robust cash generation (TTM operating cash flow ~$209.9M and free cash flow ~$208.4M). Balance sheet risk is improved (debt-to-equity ~0.83) but still carries meaningful debt and prior leverage history, which matters for a credit-cycle-sensitive business.

Income Statement

Results have improved dramatically versus earlier years, with strong profitability now evident in TTM (Trailing-Twelve-Months): net income of ~$133.1M on ~$450.3M revenue (about a 29.6% net margin). Profitability is also supported by solid operating performance (EBIT margin ~26.1% and EBITDA margin ~38.6%). Revenue growth remains positive, but the pace is uneven—very high growth in 2024 versus 2023, then more modest growth in TTM—suggesting momentum is strong but not perfectly steady. Gross margin is healthy, though it is lower in TTM than 2024, indicating some pressure on unit economics or mix.

Balance Sheet

Leverage and equity strength have improved meaningfully over time. Debt relative to equity has come down substantially from very elevated levels in 2022–2023 to ~0.83 in TTM (Trailing-Twelve-Months), which is a healthier position for a credit-services business. Equity has grown to ~$169.8M in TTM, supporting a larger asset base (~$400.2M). The main watch-out is that the company still carries meaningful debt (~$140.7M) and historically ran with high leverage, so balance-sheet risk is improved but not eliminated.

Cash Flow

Cash generation is a major strength. TTM (Trailing-Twelve-Months) operating cash flow is very strong (~$209.9M) and free cash flow is similarly strong (~$208.4M), showing high cash conversion. Free cash flow is roughly in line with net income (close to 1x), which supports earnings quality. The step-change improvement versus 2023 (when operating and free cash flow were negative) is notable, though the historical volatility indicates execution and credit-cycle sensitivity remain key risks to monitor.

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

• Technical Analysis Sentiment: Positive
• Last Price: 75.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 75.77 is above the 20-day moving average (MA) of 67.26, above the 50-day MA of 68.56, and below the 200-day MA of 92.00, indicating a neutral trend. The MACD of 2.21 indicates Negative momentum. The RSI at 57.28 is Neutral, neither overbought nor oversold. The STOCH value of 62.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SEZL.

Sezzle Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SEZL	74 Outperform	$2.56B	16.17	103.34%	―	88.74%	106.14%
ENVA	71 Outperform	$3.55B	12.62	24.34%	―	21.10%	76.12%
FINV	71 Outperform	$1.33B	0.74	17.73%	5.20%	9.32%	29.40%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SOFI	63 Neutral	$24.55B	62.56	5.66%	―	22.40%	215.81%
LC	61 Neutral	$1.74B	16.10	9.55%	―	9.68%	94.85%
UPST	50 Neutral	$2.81B	78.35	7.49%	―	73.29%	―

Sezzle Inc. Corporate Events

Sezzle Appoints New Chief Financial Officer for Growth

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 Hartje, who will step down on January 31, 2026 and remain as a consultant to support a smooth leadership transition. Brading, who joined Sezzle in April 2020 and has been instrumental in the fintech’s move to profitability in 2021 and its 2023 uplisting to Nasdaq, will receive a $450,000 annual base salary, equity grants valued at $2 million in RSUs vesting over four years, and participation in the firm’s bonus and equity incentive plans, underscoring Sezzle’s effort to leverage his capital markets and strategic experience to drive its next phase of growth and deepen ties with the U.S. investment community; the company publicly announced these changes in a press release dated January 29, 2026.

The most recent analyst rating on (SEZL) stock is a Hold with a $82.00 price target. To see the full list of analyst forecasts on Sezzle Inc. stock, see the SEZL Stock Forecast page.

Sezzle Inc. Announces $100 Million Stock Buyback

On December 15, 2025, Sezzle Inc. announced that its Board of Directors authorized a new $100 million stock repurchase program following the completion of a $50 million program earlier in the year. This move highlights Sezzle’s strong financial position and commitment to enhancing shareholder value, with the flexibility to adjust the program based on market conditions.

The most recent analyst rating on (SEZL) stock is a Buy with a $77.00 price target. To see the full list of analyst forecasts on Sezzle Inc. stock, see the SEZL Stock Forecast page.