Sezzle Inc. (SEZL) AI Stock Analysis

• Market Cap: $2.62B
• Dividend Yield: N/A
• Average Volume (3M): 779.32K
• Price to Earnings (P/E): 26.2
• Beta (1Y): 3.78
• Revenue Growth: 92.95%
• EPS Growth: 151.46%
• Country: US
• Employees: 402
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.69
• Shares Outstanding: 34,023,464
• 10 Day Avg. Volume: 740,795
• 30 Day Avg. Volume: 779,317
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.44
• Enterprise Value/Revenue: 17.20
• Enterprise Value/Gross Profit: 24.73
• Enterprise Value/Ebitda: 45.92
• 1Y Price Target: $114.33
• Price Target Upside: 58.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 69 Neutral
• Price Target: $82.00 ▲(13.73% Upside)

Sezzle Inc. demonstrates strong financial performance and growth potential, particularly highlighted in its recent earnings call. However, technical indicators show bearish momentum, and valuation metrics suggest moderate attractiveness. Addressing cash flow issues and macroeconomic risks will be crucial for future stability.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market presence and successful business strategies, enhancing long-term financial stability.

Customer Engagement

Increased customer engagement suggests effective user retention strategies and potential for sustained revenue growth.

Product Expansion

Product enhancements and high NPS reflect strong market positioning and customer satisfaction, supporting future growth.

Negative Factors

Cash Flow Stability

Declining free cash flow growth may hinder the company's ability to fund operations and investments, affecting long-term sustainability.

Debt Reliance

Moderate debt reliance could pose risks if not managed carefully, potentially impacting financial flexibility and stability.

Antitrust Lawsuit

The lawsuit could strain resources and stakeholder relationships, impacting Sezzle's operations and market positioning.

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

Sezzle Inc. shows strong profitability and revenue growth, with efficient cost management. However, the company faces challenges with cash flow stability, which needs improvement to support sustainable growth.

Income Statement

Sezzle Inc. demonstrates strong revenue growth with a 12.99% increase in TTM, supported by robust gross and net profit margins of 69.57% and 28.13% respectively. The EBIT and EBITDA margins are also healthy at 37.17% and 37.46%, indicating efficient cost management and profitability. However, the company should monitor any potential fluctuations in revenue growth to sustain its upward trajectory.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 1.01, reflecting balanced leverage. The return on equity is impressive at 103.26%, indicating effective use of equity to generate profits. However, the equity ratio is relatively low, suggesting a higher reliance on debt financing, which could pose risks if not managed carefully.

Cash Flow

The cash flow statement reveals a significant decline in free cash flow growth at -53.09%, which is concerning. The operating cash flow to net income ratio is 0.33, indicating moderate cash generation from operations. The free cash flow to net income ratio is strong at 0.96, suggesting efficient conversion of profits into cash. The company should focus on improving cash flow stability to support future growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	371.79M	271.13M	159.36M	125.57M	83.22M	45.08M
Gross Profit	258.67M	168.00M	73.78M	33.58M	83.22M	27.84M
EBITDA	139.29M	82.04M	24.53M	-28.58M	-50.62M	-21.52M
Net Income	104.58M	78.52M	7.10M	-38.09M	-54.48M	-24.84M
Balance Sheet
Total Assets	350.55M	298.37M	212.65M	172.58M	223.40M	174.11M
Cash, Cash Equivalents and Short-Term Investments	88.94M	73.19M	67.62M	68.28M	76.98M	84.29M
Total Debt	131.26M	104.91M	95.67M	64.11M	78.22M	41.30M
Total Liabilities	220.15M	210.54M	190.55M	163.73M	185.61M	114.15M
Stockholders Equity	130.40M	87.84M	22.09M	8.84M	37.79M	59.96M
Cash Flow
Free Cash Flow	28.17M	39.44M	-27.06M	7.50M	-53.31M	-19.56M
Operating Cash Flow	29.20M	40.90M	-25.69M	8.51M	-52.28M	-24.81M
Investing Cash Flow	-2.02M	-1.46M	-1.37M	-1.01M	-1.42M	-732.91K
Financing Cash Flow	28.86M	-10.37M	28.22M	-15.69M	63.24M	77.57M

Sezzle Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 72.10
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 72.1 is below the 20-day moving average (MA) of 78.37, below the 50-day MA of 84.72, and below the 200-day MA of 83.41, indicating a bearish trend. The MACD of -3.71 indicates Negative momentum. The RSI at 34.29 is Neutral, neither overbought nor oversold. The STOCH value of 44.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SEZL.

Sezzle Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENVA	―	$2.96B	10.96	23.81%	―	21.10%	76.12%
FINV	―	$1.50B	4.01	18.75%	4.68%	8.41%	34.76%
SOFI	―	$37.53B	57.22	8.59%	―	22.60%	―
SEZL	―	$2.62B	26.17	115.73%	―	92.95%	151.46%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
LC	―	$2.07B	20.38	7.40%	―	9.68%	94.85%
UPST	―	$4.88B	―	-0.96%	―	60.62%	96.91%

Sezzle Inc. Corporate Events

Sezzle Inc. Reports Strong Growth Amid Challenges

Sezzle Inc.’s recent earnings call conveyed a generally positive sentiment, underscored by robust revenue growth and strong customer engagement. The company emphasized its strategic marketing investments and high customer satisfaction levels. However, challenges such as a decline in GAAP net income, increased credit losses, and lower profitability from new On-Demand users were also acknowledged. The ongoing lawsuit with Shopify remains a point of concern.

Sezzle Inc. Unveils New Investor Presentation

Sezzle Inc. announced that starting August 11, 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 other public announcements, reflecting its commitment to transparency and communication with stakeholders.

The most recent analyst rating on (SEZL) stock is a Buy with a $24.99 price target. To see the full list of analyst forecasts on Sezzle Inc. stock, see the SEZL Stock Forecast page.

Sezzle Inc. Reports Strong Q2 2025 Financial Growth

Sezzle Inc. is a fintech company that provides a digital payment platform aimed at enhancing consumers’ purchasing power through point-of-sale financing options and digital payment services. The company is recognized for its focus on transparency, inclusivity, and ease of use.

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.