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Sezzle Inc. (SEZL) AI Stock Analysis
Sezzle Inc.
(NASDAQ:SEZL)
Score is driven primarily by strong financial performance (rapid revenue growth, high margins, and very strong recent cash generation with improved leverage). Offsetting this is weak technical positioning (below key moving averages with negative MACD), while valuation is moderate (P/E ~25) with no dividend support shown. The recent partnership expansion is positive, but tighter covenants add a meaningful risk consideration.
Sezzle Inc. (SEZL) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $4.56B
- Dividend Yield
- ―
- Average Volume (3M)
- 587.45K
- Price to Earnings (P/E)
- 28.3
- Beta (1Y)
- 3.25
- Revenue Growth
- 43.06%
- EPS Growth
- 53.71%
- Country
- US
- Employees
- 201
- Sector
- Financial
- Sector Strength
- 68
- Industry
- Financial - Credit Services
Sezzle Inc. Business Overview & Revenue Model
Company Description
Sezzle Inc., established in 2016 and based in Minneapolis, Minnesota, functions as a tech-powered payment enterprise with operations concentrated in the United States and Canada. It delivers a payment service available at both e-commerce sites and ph...
How the Company Makes Money
Sezzle makes money primarily by monetizing its BNPL payment product on merchant transactions and through consumer-related fees where applicable. A core revenue stream is merchant fees charged when a shopper uses Sezzle at checkout; these fees are typ...
Sezzle Inc. Earnings Call Summary
The call highlighted strong top‑line and bottom‑line performance: GMV (+37.3%) and revenue (+29.2%) growth, record profitability (GAAP net income margin 37.9%, adjusted EBITDA margin 52.5%), subscriber and engagement gains, and raised full‑year guidance. Management is investing heavily in marketing and product innovation (Pay‑in‑5, mobile plan, virtual card) with disciplined unit economics, while embedding AI to scale operations. Key cautionary points include seasonal distortion of Q1 margins, a YoY revenue‑yield decline (−80 bps), potential for slightly higher provisions as new products and users scale, ongoing antitrust litigation and the uncertain, lengthy bank charter process. Overall, the positive operational momentum, guidance raise, liquidity strength and profitability materially outweigh the manageable risks and seasonal caveats.
Q1-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Sezzle raised full‑year 2026 guidance after a strong Q1: revenue growth guidance was lifted from 25% to a new range of 30%–35%, adjusted net income guidance was increased by $10M to $180M, and adjusted EPS guidance was raised to $5.10 (from $4.70). Management also reiterated targets of 55%–65% for total revenue less transaction‑related costs and a provision for credit losses of 2.5%–3.0% of GMV, said top‑line growth should outpace non‑transaction OpEx, noted a marketing payback of under six months that supports continued investment, and emphasized the guidance excludes projections for new products.
Sezzle Inc. Financial Statement Overview
Summary
Strong turnaround and scale-up: revenue grew sharply (2023 $159.4M to 2025 $450.3M; TTM $531.9M) with a major shift to high profitability (net margin ~29–30% in 2024–TTM). Cash generation is a standout with operating cash flow $328.6M TTM and free cash flow $415.1M TTM, with solid cash conversion (~0.99x). Balance sheet risk has improved as leverage fell to ~0.52x debt/equity in TTM, but historical volatility in earnings/cash flow and the earlier high-leverage profile remain key risks.
Income Statement
86Very PositiveBalance Sheet
74PositiveCash Flow
88Very Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 531.89M | 450.28M | 271.13M | 159.36M | 125.57M | 114.82M |
| Gross Profit | 482.96M | 384.32M | 168.00M | 73.78M | 33.58M | 70.59M |
| EBITDA | 212.58M | 267.51M | 82.04M | 24.53M | -28.58M | -67.93M |
| Net Income | 161.43M | 133.13M | 78.52M | 7.10M | -38.09M | -75.17M |
Balance Sheet | ||||||
| Total Assets | 456.47M | 400.23M | 298.37M | 212.65M | 172.58M | 223.40M |
| Cash, Cash Equivalents and Short-Term Investments | 84.31M | 64.05M | 73.19M | 67.62M | 68.28M | 76.98M |
| Total Debt | 121.83M | 140.81M | 104.91M | 95.67M | 64.11M | 78.22M |
| Total Liabilities | 223.50M | 230.42M | 210.54M | 190.55M | 163.73M | 185.61M |
| Stockholders Equity | 232.97M | 169.81M | 87.84M | 22.09M | 8.84M | 37.79M |
Cash Flow | ||||||
| Free Cash Flow | 326.48M | 208.36M | 39.44M | -27.06M | 7.50M | -72.82M |
| Operating Cash Flow | 328.61M | 209.91M | 40.90M | -25.69M | 8.51M | -72.13M |
| Investing Cash Flow | -260.50M | -181.57M | -1.46M | -1.37M | -1.01M | -1.42M |
| Financing Cash Flow | -75.69M | -25.41M | -10.37M | 28.22M | -15.69M | 63.24M |
Sezzle Inc. Technical Analysis
Price Trends
Market Momentum
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 140.19 is above the 20-day moving average (MA) of 127.32, above the 50-day MA of 120.75, and above the 200-day MA of 108.62, indicating a bullish trend. The MACD of 3.73 indicates Negative momentum. The RSI at 59.47 is Neutral, neither overbought nor oversold. The STOCH value of 57.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SEZL.
Sezzle Inc. Risk Analysis
Sezzle Inc. disclosed 59 risk factors in its most recent earnings report. Sezzle Inc. reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
0 New RisksSezzle Inc. Peers Comparison
Overall Rating
BFH74.6Outperform
PYPL73Outperform- SEZL69Neutral
AFRM68Neutral
SYF68Neutral
KLAR58Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| BFH | 75Outperform | $3.93B | 8.02 | 15.94% | 0.89% | 2.42% | 29.18% |
| PYPL | 73Outperform | $47.36B | 10.80 | 23.76% | 0.98% | 4.64% | 4.77% |
| SEZL | 69Neutral | $4.56B | 28.27 | 85.55% | ― | 43.06% | 53.71% |
| AFRM | 68Neutral | $24.91B | 12.87 | 47.91% | ― | 32.43% | 3583.15% |
| SYF | 68Neutral | $23.46B | 7.78 | 19.99% | 1.65% | -1.80% | 4.62% |
| Sector * | 68Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
| KLAR | 58Neutral | $7.52B | -34.76 | -5.80% | ― | 34.10% | -28.93% |
* Financial Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| SEZL | Sezzle Inc. | 134.85 | 70.76 | 110.41% | |
| BFH | Bread Financial Holdings Inc | 103.41 | 40.52 | 64.44% | |
| SYF | Synchrony Financial | 75.35 | 2.55 | 3.51% | |
| PYPL | PayPal Holdings, Inc. | 57.01 | -10.58 | -15.65% | |
| AFRM | Affirm Holdings, Inc. | 73.47 | 1.39 | 1.93% | |
| KLAR | Klarna Group Plc | 13.30 | -24.06 | -64.40% |
Sezzle Inc. Corporate Events
Sezzle Sets 2026 Virtual Annual Stockholders Meeting Timeline
NeutralOn August 28, 2026, Sezzle Inc. announced that its 2026 Annual Meeting of Stockholders will be held online via live webcast on November 19, 2026, with further logistical details to be provided in its upcoming proxy materials. Because the meeting date...
Sezzle expands WebBank partnership, tightens financial covenants
PositiveOn August 12, 2026, Sezzle Inc. and WebBank entered into second amended and restated agreements that update their loan, receivables sale, marketing, and servicing arrangements for Sezzle’s bank partnership program. These agreements expand the p...
Sezzle unveils updated investor presentation on platform strategy
NeutralOn August 12, 2026, Sezzle Inc. began using a new investor presentation for briefings with analysts and investors, positioning the deck as supplemental to its regulatory filings and prior public disclosures. The materials highlight Sezzle’s evo...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Sep 06, 2026