Sezzle Inc. (SEZL) AI Stock Analysis

• Market Cap: $2.31B
• Dividend Yield: N/A
• Average Volume (3M): 921.38K
• Price to Earnings (P/E): 21.5
• Beta (1Y): 3.76
• Revenue Growth: 88.74%
• EPS Growth: 106.14%
• Country: US
• Employees: 402
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.71
• Shares Outstanding: 34,153,103
• 10 Day Avg. Volume: 618,480
• 30 Day Avg. Volume: 921,377
• PEG Ratio: 0.02
• Price to Book (P/B): 17.42
• Price to Sales (P/S): 5.64
• P/FCF Ratio: 38.79
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 6.78
• Enterprise Value/Gross Profit: 9.04
• Enterprise Value/Ebitda: 18.44
• 1Y Price Target: $108.50
• Price Target Upside: 56.54% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 3.38
• Revenue Forecast (FY): $440.65M

• Rating: 76 Outperform
• Price Target: $77.00 ▲(11.10% Upside)

Sezzle Inc. receives a strong overall score driven by robust financial performance and positive earnings call highlights. While technical analysis presents mixed signals, the company's strategic initiatives and raised guidance support a favorable outlook. Valuation is reasonable, though the lack of a dividend yield is a minor drawback.

Positive Factors

Revenue Growth

Strong revenue growth indicates Sezzle's expanding market presence and successful business model, supporting long-term financial health.

Cash Flow Management

Robust cash flow growth enhances Sezzle's ability to reinvest in business operations and manage financial obligations effectively.

Product Innovation

Innovative product features like the Earn tab drive consumer engagement and differentiate Sezzle in the competitive BNPL market.

Negative Factors

Regulatory Scrutiny

Increased regulatory scrutiny could lead to compliance costs and operational changes, impacting Sezzle's business model and profitability.

Financial Stability

A low equity ratio suggests vulnerability to financial instability, which could affect Sezzle's ability to withstand economic downturns.

Increased Transaction Costs

Rising transaction-related costs may pressure margins, reducing profitability and affecting Sezzle's long-term financial performance.

Sezzle Inc. Business Overview & Revenue Model

Company Description

Sezzle Inc. (SEZL) is a financial technology company that specializes in providing buy now, pay later (BNPL) solutions for consumers and merchants. Founded in 2016, Sezzle aims to empower shoppers by allowing them to make purchases and pay for them over time, interest-free. The company operates primarily in the e-commerce sector, partnering with various online retailers to offer flexible payment options. Its core products and services include consumer payment plans, merchant integrations, and mobile applications that enhance the shopping experience.

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. demonstrates strong financial performance with robust revenue growth, profitability, and cash flow management. However, the balance sheet indicates potential risks due to a relatively low equity ratio.

Income Statement

Sezzle Inc. has demonstrated strong revenue growth with a 12.6% increase in the TTM period. The company maintains healthy margins, with a gross profit margin of 69.6% and a net profit margin of 28.1%. EBIT and EBITDA margins are also robust at 37.2% and 37.5%, respectively, indicating efficient operations and profitability.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 1.01, reflecting balanced leverage. Return on equity is impressive at 103.3%, suggesting effective use of equity to generate profits. However, the equity ratio is relatively low, indicating potential risks in financial stability.

Cash Flow

Sezzle Inc. has achieved significant free cash flow growth of 97.6% in the TTM period, indicating improved cash generation. The operating cash flow to net income ratio is 0.33, and the free cash flow to net income ratio is 0.96, reflecting strong cash flow management relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	418.63M	271.13M	159.36M	125.57M	0.00	58.79M
Gross Profit	314.26M	168.00M	73.78M	33.58M	-5.27M	36.30M
EBITDA	154.04M	82.04M	24.53M	-28.58M	-69.09M	-28.06M
Net Income	115.81M	78.52M	7.10M	-38.09M	-75.17M	-32.39M
Balance Sheet
Total Assets	366.96M	298.37M	212.65M	172.58M	223.40M	174.11M
Cash, Cash Equivalents and Short-Term Investments	104.15M	73.19M	67.62M	68.28M	76.98M	84.29M
Total Debt	118.17M	104.91M	95.67M	64.11M	78.22M	1.61M
Total Liabilities	211.69M	210.54M	190.55M	163.73M	185.61M	114.15M
Stockholders Equity	155.27M	87.84M	22.09M	8.84M	37.79M	59.96M
Cash Flow
Free Cash Flow	55.07M	39.44M	-27.06M	7.50M	-72.82M	-25.22M
Operating Cash Flow	56.59M	40.90M	-25.69M	8.51M	-72.13M	-24.81M
Investing Cash Flow	-2.51M	-1.46M	-1.37M	-1.01M	-1.42M	-732.91K
Financing Cash Flow	-7.13M	-10.37M	28.22M	-15.69M	63.24M	77.57M

Sezzle Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 69.31
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 69.31 is above the 20-day moving average (MA) of 58.39, above the 50-day MA of 67.65, and below the 200-day MA of 85.76, indicating a neutral trend. The MACD of 0.37 indicates Negative momentum. The RSI at 62.27 is Neutral, neither overbought nor oversold. The STOCH value of 86.54 is Negative, 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
ENVA	79 Outperform	$3.37B	12.60	23.81%	―	21.10%	76.12%
SEZL	76 Outperform	$2.31B	21.48	107.03%	―	88.74%	106.14%
FINV	71 Outperform	$1.25B	3.36	17.76%	5.37%	9.32%	29.40%
LC	70 Outperform	$2.24B	21.53	7.40%	―	9.68%	94.85%
SOFI	68 Neutral	$33.50B	50.06	8.59%	―	22.40%	215.81%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
UPST	55 Neutral	$4.55B	205.93	4.81%	―	73.29%	―

Sezzle Inc. Corporate Events

Sezzle Inc. Unveils New Investor Presentation

Sezzle Inc. announced that starting November 14, 2025, it may begin investor and analyst presentations using a new slide presentation. This presentation is intended to provide summary information in the context of the company’s SEC filings and other public announcements. The company clarified that the information provided is not subject to certain liabilities under the Securities Exchange Act of 1934 and will not be updated publicly.

Sezzle Inc. Expands Borrowing Capacity to $225 Million

On October 30, 2025, Sezzle Inc. increased its borrowing capacity from $150 million to $225 million to support its business needs. Additionally, the company announced the transition of CFO Karen Hartje, who will continue in her role under a consulting agreement until her departure. Sezzle reported significant financial growth in the third quarter of 2025, with a 58.7% increase in Gross Merchandise Volume and a 67% rise in total revenue. The company also raised its financial guidance for 2025 and introduced guidance for 2026, reflecting its strong market position and continued expansion.