Sezzle (NASDAQ:SEZL) Releases Earnings Results, Beats Expectations By $0.10 EPS

Sezzle (NASDAQ:SEZL) announced its quarterly earnings results on Thursday. The company reported $1.13 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.03 by $0.10, FiscalAI reports. The firm had revenue of $149.68 million during the quarter, compared to analyst estimates of $135.09 million. Sezzle had a return on equity of 90.57% and a net margin of 30.35%. Sezzle updated its FY 2026 guidance to 5.250-5.250 EPS.

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

• Strong Q2 momentum: GMV increased 37.9% year over year to a record $1.3 billion, while revenue rose 51.7% to $149.7 million. Net income was $40.8 million and adjusted EBITDA reached $58 million, with a 63.5% net transaction margin.
• Sezzle raised full-year guidance, targeting 35% revenue growth, adjusted net income of $185 million and adjusted EPS of $5.25. Active subscribers grew 76.4% to 854,000, while purchase frequency rose to a record 7.2 times per quarter.
• New products are expanding Sezzle beyond point-of-sale financing. SezzleCash reached eligible subscribers in Q2, with roughly 10% of new subscribers using it as their first Anywhere transaction, while Sezzle Send is expected to launch in August with more than 100,000 users already on the waitlist.
• Management expects marketing spending to decline from Q2 levels in Q3 because it wants to validate customer payback cohorts and maintain a wider cushion below its six-month target. New-product awareness spending could partly offset that reduction.
• Provision for credit losses is expected to rise seasonally in the second half and remain within 2.5%-3% of GMV for 2026. Management said its guidance assumes little contribution from SezzleCash and no contribution from Sezzle Send, while the national bank charter process could take 12-18 months.

Sezzle Stock Down 33.9%

Sezzle stock traded down $60.51 during trading hours on Friday, reaching $118.02. The stock had a trading volume of 4,229,561 shares, compared to its average volume of 592,977. The company has a market cap of $3.97 billion, a price-to-earnings ratio of 25.66 and a beta of 6.76. The business’s 50 day moving average price is $157.16 and its 200-day moving average price is $104.31. Sezzle has a 52 week low of $49.50 and a 52 week high of $195.71. The company has a debt-to-equity ratio of 0.73, a current ratio of 3.65 and a quick ratio of 3.65.

Insider Activity

In other news, COO Amin Sabzivand sold 6,930 shares of Sezzle stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $179.91, for a total value of $1,246,776.30. Following the transaction, the chief operating officer owned 259,780 shares of the company’s stock, valued at $46,737,019.80. The trade was a 2.60% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Justin Krause sold 3,178 shares of Sezzle stock in a transaction on Wednesday, May 27th. The stock was sold at an average price of $117.72, for a total transaction of $374,114.16. Following the completion of the transaction, the senior vice president directly owned 72,457 shares in the company, valued at $8,529,638.04. This represents a 4.20% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 86,928 shares of company stock valued at $13,510,889 over the last 90 days. 49.49% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Sezzle

Several institutional investors have recently added to or reduced their stakes in SEZL. Invesco Ltd. increased its holdings in shares of Sezzle by 2,161.5% during the fourth quarter. Invesco Ltd. now owns 214,642 shares of the company’s stock valued at $13,624,000 after acquiring an additional 205,151 shares in the last quarter. Mercer Global Advisors Inc. ADV lifted its stake in shares of Sezzle by 10.5% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 12,140 shares of the company’s stock worth $771,000 after buying an additional 1,151 shares during the period. Vident Advisory LLC grew its holdings in shares of Sezzle by 12.7% during the fourth quarter. Vident Advisory LLC now owns 54,661 shares of the company’s stock valued at $3,470,000 after buying an additional 6,179 shares during the last quarter. State of Tennessee Department of Treasury purchased a new stake in shares of Sezzle during the fourth quarter valued at $238,000. Finally, Regal Partners Ltd acquired a new position in shares of Sezzle in the 4th quarter valued at $3,748,000. Institutional investors and hedge funds own 2.02% of the company’s stock.

Sezzle News Summary

Here are the key news stories impacting Sezzle this week:

• Positive Sentiment: Sezzle reported second-quarter earnings of $1.13 per share, exceeding estimates of $1.03 (and the prior-year result of $0.69), while revenue of $149.68 million surpassed the $135.09 million consensus. The company also posted a 30.83% net margin and 87.46% return on equity. Sezzle Q2 earnings report
• Positive Sentiment: Management raised its 2026 outlook to $5.25 EPS and approximately $607.9 million in revenue, above consensus expectations of $5.11 EPS and $596.0 million revenue. Sezzle Q2 earnings call highlights
• Positive Sentiment: The earnings call highlighted accelerating subscriber growth, stronger engagement, and increasing adoption of new products, suggesting Sezzle’s platform is expanding beyond its core buy-now-pay-later offering. Sezzle Q2 earnings call transcript
• Positive Sentiment: Needham raised its price target from $166 to $172 and maintained a Buy rating, indicating continued confidence in Sezzle’s earnings growth. Benzinga analyst action
• Neutral Sentiment: Analyst opinion became more mixed: Keefe, Bruyette & Woods lowered its target from $190 to $155 and changed its view to Market Perform, although the revised target remains above the current trading level. Benzinga analyst action
• Negative Sentiment: The stock slumped following the results even though earnings and guidance exceeded expectations. The reaction suggests investors may have been positioned for an even stronger outlook, or may be taking profits after Sezzle’s substantial prior rally and elevated volatility. Sezzle stock reaction after Q2 earnings

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on the company. TD Cowen upped their target price on Sezzle from $108.00 to $165.00 and gave the stock a “hold” rating in a report on Tuesday, July 7th. Northland Securities set a $170.00 price target on Sezzle in a research note on Thursday, June 25th. Keefe, Bruyette & Woods decreased their price objective on Sezzle from $190.00 to $155.00 and set a “market perform” rating for the company in a report on Friday. Oppenheimer lowered shares of Sezzle from an “outperform” rating to a “market perform” rating in a research note on Monday, June 29th. Finally, Weiss Ratings reiterated a “hold (c+)” rating on shares of Sezzle in a report on Tuesday. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $146.50.

About Sezzle

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.