Sezzle Inc. (SEZL) AI Stock Analysis

• Market Cap: $4.40B
• Dividend Yield: N/A
• Average Volume (3M): 1.19M
• Price to Earnings (P/E): 44.7
• Beta (1Y): 3.97
• Revenue Growth: 91.69%
• EPS Growth: 702.31%
• Country: US
• Employees: 402
• Sector: Financial
• Sector Strength: 79
• Industry: Financial - Credit Services
• EPS (TTM): 1.00
• Shares Outstanding: 33,286,297
• 10 Day Avg. Volume: 870,662
• 30 Day Avg. Volume: 1,188,958
• PEG Ratio: 0.02
• Price to Book (P/B): 16.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 36.83
• Enterprise Value/Market Cap: 0.03
• Enterprise Value/Revenue: 0.14
• Enterprise Value/Gross Profit: 0.53
• Enterprise Value/Ebitda: 0.44
• 1Y Price Target: $90.50
• Price Target Upside: -26.32% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 78 Outperform
• 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. 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. 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

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

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

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
329.06M	271.13M	159.36M	125.57M	114.82M	58.79M
	Gross Profit
273.00M	219.36M	73.78M	74.35M	70.59M	35.87M
	EBIT
118.31M	82.25M	22.20M	-30.31M	-68.68M	-27.92M
	EBITDA
119.23M	82.04M	24.53M	-28.58M	-69.09M	-27.63M
	Net Income Common Stockholders
106.68M	78.52M	7.10M	-38.09M	-75.17M	-32.39M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.47M	73.19M	67.62M	68.28M	76.98M	84.29M
	Total Assets
19.17M	298.37M	212.65M	172.58M	161.93M	174.11M
	Total Debt
11.01M	104.91M	95.67M	64.11M	56.70M	41.30M
	Net Debt
4.55M	31.73M	28.05M	-4.17M	899.02K	-42.99M
	Total Liabilities
18.51M	210.54M	190.55M	163.73M	134.54M	114.15M
	Stockholders Equity
654.70K	87.84M	22.09M	8.84M	27.39M	59.96M
Cash Flow		Free Cash Flow
59.97M	39.44M	-27.06M	7.50M	―	―
	Operating Cash Flow
61.12M	40.90M	-25.69M	8.51M	-52.28M	-19.00M
	Investing Cash Flow
-1.43M	-1.46M	-1.37M	-1.01M	―	―
	Financing Cash Flow
-19.72M	-10.37M	28.22M	-15.69M	45.84M	59.46M

Sezzle Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 122.83
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SEZL	78 Outperform	$4.40B	44.67	137.28%	―	91.69%	702.31%
WU	72 Outperform	$3.07B	3.44	136.84%	10.13%	-5.16%	59.60%
SOFI	71 Outperform	$15.74B	33.51	7.51%	―	21.24%	―
OMF	68 Neutral	$6.29B	11.19	17.46%	7.87%	9.07%	―
Sector *	64 Neutral	$12.83B	9.78	7.78%	16985.64%	12.26%	-7.81%
UPST	63 Neutral	$5.17B	―	-10.30%	―	34.69%	63.65%
LU	52 Neutral	$2.41B	―	-3.79%	4.30%	-38.81%	-425.73%

Sezzle Inc. Corporate Events

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.

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. 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.

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. Updates Investor Presentation Strategy

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.

Sezzle Inc. Announces 2025 Annual Meeting

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.