Sezzle Inc. (SEZL) AI Stock Analysis

• Market Cap: $3.17B
• Dividend Yield: N/A
• Average Volume (3M): 1.17M
• Price to Earnings (P/E): 31.8
• Beta (1Y): 3.73
• Revenue Growth: 92.95%
• EPS Growth: 151.46%
• Country: US
• Employees: 402
• Sector: Financial
• Sector Strength: 73
• Industry: Financial - Credit Services
• EPS (TTM): 0.69
• Shares Outstanding: 34,023,464
• 10 Day Avg. Volume: 973,307
• 30 Day Avg. Volume: 1,168,133
• 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: 2.02
• Enterprise Value/Revenue: 17.20
• Enterprise Value/Gross Profit: 24.73
• Enterprise Value/Ebitda: 45.92
• 1Y Price Target: $143.00
• Price Target Upside: 54.26% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 63 Neutral
• Price Target: $98.00 ▲(5.72% Upside)

Sezzle Inc.'s overall stock score is driven by strong financial performance and positive earnings call highlights. However, bearish technical indicators, moderate valuation, and potential legal risks from corporate events temper the overall outlook.

Sezzle Inc. Business Overview & Revenue Model

Company Description

Sezzle 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 Money

Sezzle 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. Financial Statement Overview

Summary

Sezzle Inc. shows strong profitability and revenue growth with efficient cost management. However, the balance sheet indicates a reliance on debt, and cash flow management needs improvement due to a significant decline in free cash flow 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: Neutral
• Last Price: 92.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 Neutral. The current price of 92.7 is below the 20-day moving average (MA) of 105.36, below the 50-day MA of 133.45, and above the 200-day MA of 77.76, indicating a neutral trend. The MACD of -11.92 indicates Negative momentum. The RSI at 38.92 is Neutral, neither overbought nor oversold. The STOCH value of 71.45 is Neutral, 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
OMF	76 Outperform	$7.27B	10.88	20.47%	6.75%	9.41%	13.98%
WU	72 Outperform	$2.77B	3.19	135.32%	10.99%	-3.83%	62.05%
SOFI	72 Outperform	$30.37B	50.34	8.80%	―	22.60%	―
Sector *	68 Neutral	$17.84B	12.03	10.32%	3.73%	9.70%	0.76%
SEZL	63 Neutral	$3.17B	31.81	115.73%	―	92.95%	151.46%
LU	52 Neutral	$2.43B	―	-3.79%	4.57%	-38.81%	-425.73%
UPST	49 Neutral	$6.63B	―	-0.96%	―	60.62%	96.91%

Sezzle Inc. Corporate Events

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.

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.

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.

Sezzle Inc. Holds Annual Stockholders Meeting on June 10

On June 10, 2025, Sezzle Inc. held its Annual Meeting of Stockholders, where key proposals were voted on, including the election of directors, ratification of the company’s accounting firm, and approval of executive compensation. The meeting resulted in the election of directors, the ratification of Baker Tilly US, LLP as the independent auditor for 2025, and the approval of executive compensation, reflecting shareholder support for the company’s governance and financial strategies.

Sezzle Inc. Files Antitrust Lawsuit Against Shopify

On June 9, 2025, Sezzle Inc. filed a lawsuit against Shopify Inc. in the U.S. District Court for the District of Minnesota, alleging federal and state antitrust violations. This legal action could have significant implications for Sezzle’s operations and its positioning within the financial technology industry, potentially affecting its relationships with stakeholders.

Sezzle Inc. Re-elects Directors in Recent Meeting

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.

Sezzle Inc. Files Antitrust Lawsuit Against Shopify

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.