Sezzle (NASDAQ:SEZL) Announces Quarterly Earnings Results

Sezzle (NASDAQ:SEZL) released its earnings results on Wednesday. The company reported $1.21 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.96 by $0.25, Zacks reports. Sezzle had a return on equity of 93.89% and a net margin of 29.57%.The business had revenue of $129.87 million during the quarter, compared to the consensus estimate of $128.29 million. The firm’s quarterly revenue was up 32.3% compared to the same quarter last year. Sezzle updated its FY 2026 guidance to 4.350-4.700 EPS.

Here are the key takeaways from Sezzle’s conference call:

• Sezzle delivered a strong 2025: total revenue +66.1%, Q4 revenue +32.2%, Q4 GAAP net income of $42.7M (full-year net income $133.1M), and raised 2026 guidance to Adjusted EPS $4.70 with 25%–30% revenue growth and $170M Adjusted Net Income.
• Operating leverage materially improved as transaction-related costs fell to 37.6% of revenue for the year (35.7% in Q4), gross margin reached 62.4%, and Q4 Adjusted EBITDA margin hit 44.9%, highlighting strong unit economics and scalability.
• Product and engagement initiatives are expanding the ecosystem: subscriptions grew 30% YoY (mods +211k), new features (Earn tab, browser extension, price tools) are monetizing, and Sezzle plans to launch Sezzle Mobile (AT&T partner via intermediary) and proprietary AI to boost retention and acquisition.
• Management is pursuing strategic capital and regulatory initiatives—exploring an ILC banking charter (application targeted H1 2026 but non‑guaranteed), expanded its credit facility to $225M, and completed a $50M buyback with a $100M authorization—actions that support growth but carry execution and regulatory uncertainty.

Sezzle Price Performance

NASDAQ SEZL traded down $2.17 on Friday, hitting $82.53. The stock had a trading volume of 157,358 shares, compared to its average volume of 819,340. The firm has a 50-day moving average of $67.96 and a 200-day moving average of $73.37. The company has a debt-to-equity ratio of 0.76, a quick ratio of 3.52 and a current ratio of 3.52. Sezzle has a 52-week low of $24.86 and a 52-week high of $186.74. The company has a market capitalization of $2.82 billion, a price-to-earnings ratio of 21.81 and a beta of 8.70.

Institutional Investors Weigh In On Sezzle

A number of institutional investors and hedge funds have recently made changes to their positions in SEZL. NewEdge Advisors LLC purchased a new position in Sezzle in the 2nd quarter worth approximately $389,000. Hsbc Holdings PLC bought a new stake in shares of Sezzle during the 2nd quarter worth $284,000. Prudential Financial Inc. bought a new stake in shares of Sezzle during the 2nd quarter worth $348,000. Brevan Howard Capital Management LP purchased a new position in Sezzle in the third quarter worth $246,000. Finally, State of Tennessee Department of Treasury bought a new position in Sezzle in the fourth quarter valued at $238,000. Hedge funds and other institutional investors own 2.02% of the company’s stock.

More Sezzle News

Here are the key news stories impacting Sezzle this week:

• Positive Sentiment: Q4 results and guidance beat — Sezzle reported $1.21 EPS and revenue of $129.9M (both above consensus) and raised FY2026 adjusted net income and revenue guidance, signaling continued margin strength and growth momentum. Sezzle Reports Fourth Quarter and Fiscal Year 2025 Results
• Positive Sentiment: Analyst model upgrades — Northland Securities raised quarterly EPS forecasts across Q1–Q4 2026 and lifted FY2026 EPS to $4.70 (from $4.35), reflecting higher expected profitability and giving the stock fundamental support.
• Positive Sentiment: GMV acceleration and product strategy — Management highlighted a 35% YoY GMV increase for 4Q25 and is accelerating its “super app” roadmap after stronger engagement, which supports revenue expansion and longer‑term monetization. Sezzle GMV Surges as Super App Plans Advance
• Neutral Sentiment: Earnings coverage and commentary — Market and sell‑side writeups (Zacks, Seeking Alpha) reiterate the EPS beat and improved margins; these items amplify visibility but are informational rather than catalytic on their own. Sezzle Inc. (SEZL) Q4 Earnings and Revenues Top Estimates Blockbuster Q4 Earnings Confirm My Conviction As A Shareholder In Sezzle
• Negative Sentiment: Price target cut and caution on comparables — B. Riley cut its price target from $111 to $76 while maintaining a Buy rating and warned that Sezzle faces tougher year‑over‑year comparisons after a strong two‑year run; this could cap near‑term upside and add volatility. B. Riley Flags Tougher Comparisons For Sezzle Inc. (SEZL)

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on the company. Weiss Ratings reissued a “hold (c+)” rating on shares of Sezzle in a report on Monday, December 29th. UBS Group set a $76.00 target price on shares of Sezzle in a research report on Tuesday, February 17th. Wall Street Zen lowered shares of Sezzle from a “buy” rating to a “hold” rating in a research report on Saturday, December 6th. Needham & Company LLC restated a “buy” rating and set a $94.00 price target (up from $85.00) on shares of Sezzle in a research note on Thursday. Finally, TD Cowen cut their price objective on shares of Sezzle from $83.00 to $82.00 and set a “hold” rating for the company in a report on Thursday, January 8th. Three investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $113.00.

Sezzle Company Profile

Sezzle Inc is a financial technology company specializing in buy now, pay later (BNPL) services that enable consumers to split purchases into interest-free installment payments. By integrating its platform with e-commerce merchants, Sezzle provides shoppers with flexible payment options at checkout while merchants benefit from increased conversion rates and average order values. The company’s technology is designed to offer a seamless user experience, with instant approval decisions and no hidden fees, positions it as a consumer-friendly alternative to traditional credit products.

Founded in 2016 and headquartered in Minneapolis, Minnesota, Sezzle completed its initial public offering on the Nasdaq under the ticker SEZL.