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Sezzle Inc. (SEZL)
NASDAQ:SEZL
US Market

Sezzle Inc. (SEZL) AI Stock Analysis

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Sezzle Inc.

(NASDAQ:SEZL)

Rating:78Outperform
Price Target:
$140.00
▲(13.98%Upside)
Sezzle Inc.'s strong financial performance and positive earnings guidance are major strengths, supported by bullish technical indicators. However, high valuation, potential legal risks, and overbought technical conditions temper the outlook.

Sezzle Inc. (SEZL) vs. SPDR S&P 500 ETF (SPY)

Sezzle Inc. Business Overview & Revenue Model

Company DescriptionSezzle 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 MoneySezzle 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. Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q1-2025)
|
% Change Since: 132.85%|
Next Earnings Date:Aug 19, 2025
Earnings Call Sentiment Positive
Sezzle's earnings call highlighted robust revenue growth, improved profitability, and an increase in net income guidance, significantly outweighing the seasonal decline in MODS and the projected increase in credit losses. The sentiment is generally positive due to the strong financial performance and optimistic future outlook.
Q1-2025 Updates
Positive Updates
Robust Revenue Growth
Sezzle reported a 123% year-over-year increase in revenue, driven by a 77% increase in monthly on-demand users and subscribers (MODS).
Strong GMV Performance
Gross Merchandise Volume (GMV) rose 64% year-over-year, significantly outperforming the overall Buy Now Pay Later (BNPL) industry.
Improved Profitability
Net income for the quarter reached $36.2 million, with a net income margin of 34.5% and an adjusted EBITDA margin of 49%.
Increased Guidance for 2025
Sezzle increased its 2025 net income guidance by almost 50% to $120 million from $80.4 million, and EPS guidance from $2.21 per share to $3.25 per share.
Successful Product Launches
New product enhancements, including Pay-in-5 and Auto-Couponing, are in beta and show promising results.
Negative Updates
Seasonal Decline in MODS
MODS were down sequentially from Q4, consistent with the seasonal drop in GMV activity from Q4 to Q1.
Provision for Credit Losses Projection
While credit performance was better than expected, Sezzle anticipates the provision for credit losses to trend higher over the remaining quarters of 2025 within the guided range of 2.5% to 3%.
Company Guidance
During the Sezzle Inc. First Quarter 2025 Earnings Conference Call, the company announced a significant increase in its guidance for 2025, raising its net income forecast by nearly 50% to $120 million from $80.4 million and increasing its EPS guidance from $2.21 to $3.25 per share. This decision was driven by strong financial performance, with GMV rising 64% year-over-year and revenue increasing by 123% year-over-year. The company also highlighted a 77% growth in its monthly on-demand users and subscribers, achieving a net income of $36.2 million for the quarter. Sezzle reported a gross margin of 70% and a net income margin of 34.5%, leading to an impressive Rule of 100 score of over 200. The company emphasized its focus on enhancing consumer experience and product offerings, such as Pay-in-5 and Auto-Couponing, while also completing a $50 million share repurchase program and a six-for-one stock split to bolster shareholder value. The continued growth in consumer engagement and merchant partnerships was highlighted, alongside a commitment to responsible repayment and strategic expansion in new retail categories.

Sezzle Inc. Financial Statement Overview

Summary
Sezzle Inc. demonstrates strong financial performance with impressive revenue growth, robust profit margins, and effective equity utilization. However, high debt levels and the need for improved cash flow conversion remain concerns.
Income Statement
85
Very Positive
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
78
Positive
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
80
Positive
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
329.06M271.13M159.36M125.57M114.82M58.79M
Gross Profit
273.00M219.36M73.78M74.35M70.59M35.87M
EBIT
118.31M82.25M22.20M-30.31M-68.68M-27.92M
EBITDA
119.23M82.04M24.53M-28.58M-69.09M-27.63M
Net Income Common Stockholders
106.68M78.52M7.10M-38.09M-75.17M-32.39M
Balance SheetCash, Cash Equivalents and Short-Term Investments
6.47M73.19M67.62M68.28M76.98M84.29M
Total Assets
19.17M298.37M212.65M172.58M161.93M174.11M
Total Debt
11.01M104.91M95.67M64.11M56.70M41.30M
Net Debt
4.55M31.73M28.05M-4.17M899.02K-42.99M
Total Liabilities
18.51M210.54M190.55M163.73M134.54M114.15M
Stockholders Equity
654.70K87.84M22.09M8.84M27.39M59.96M
Cash FlowFree Cash Flow
59.97M39.44M-27.06M7.50M
Operating Cash Flow
61.12M40.90M-25.69M8.51M-52.28M-19.00M
Investing Cash Flow
-1.43M-1.46M-1.37M-1.01M
Financing Cash Flow
-19.72M-10.37M28.22M-15.69M45.84M59.46M

Sezzle Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price122.83
Price Trends
50DMA
71.38
Positive
100DMA
56.96
Positive
200DMA
48.78
Positive
Market Momentum
MACD
15.84
Negative
RSI
73.27
Negative
STOCH
83.77
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 122.83 is above the 20-day moving average (MA) of 108.21, above the 50-day MA of 71.38, and above the 200-day MA of 48.78, indicating a bullish trend. The MACD of 15.84 indicates Negative momentum. The RSI at 73.27 is Negative, neither overbought nor oversold. The STOCH value of 83.77 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 62 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

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$4.40B44.67137.28%91.69%702.31%
WUWU
72
Outperform
$3.07B3.44136.84%10.13%-5.16%59.60%
71
Outperform
$15.74B33.517.51%21.24%
OMOMF
68
Neutral
$6.29B11.1917.46%7.87%9.07%
64
Neutral
$12.83B9.787.78%16985.64%12.26%-7.81%
63
Neutral
$5.17B-10.30%34.69%63.65%
LULU
52
Neutral
$2.41B-3.79%4.30%-38.81%-425.73%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SEZL
Sezzle Inc.
122.83
111.02
940.05%
WU
Western Union
9.28
-2.38
-20.41%
OMF
OneMain Holdings
52.86
8.43
18.97%
LU
Lufax Holding
2.90
0.80
38.10%
UPST
Upstart Holdings
57.68
32.70
130.90%
SOFI
SoFi Technologies
14.39
7.32
103.54%

Sezzle Inc. Corporate Events

Executive/Board ChangesShareholder Meetings
Sezzle Inc. Re-elects Directors in Recent Meeting
Neutral
Jun 11, 2025

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.

Legal Proceedings
Sezzle Inc. Files Antitrust Lawsuit Against Shopify
Negative
Jun 9, 2025

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.

Business Operations and StrategyRegulatory Filings and Compliance
Sezzle Inc. Updates Investor Presentation Strategy
Neutral
May 9, 2025

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.

Shareholder MeetingsFinancial Disclosures
Sezzle Inc. Announces 2025 Annual Meeting
Neutral
Apr 30, 2025

On April 30, 2025, Sezzle Inc. announced its 2025 Annual Meeting of Stockholders, scheduled for June 10, 2025, to be held online via webcast. The company will release its first quarter 2025 earnings on May 7, 2025, followed by a conference call and webcast. Sezzle will also participate in several investor conferences between May 12 and June 25, 2025, to present its latest investor information, reflecting its ongoing engagement with stakeholders and efforts to strengthen its market presence.

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.