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Sezzle Inc.
(NASDAQ:SEZL)
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Rating:69Neutral
Price Target:
$132.00
▲(6.38% Upside)
Action:Downgraded
Date:09/06/26
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.
Positive Factors
Revenue and Profitability Expansion
Rapid revenue growth alongside a major margin expansion indicates that Sezzle has improved both scale and operating economics. If this profitability is sustained, the larger earnings base can support continued investment, strengthen competitive positioning, and increase resilience over the next several quarters.
Negative Factors
Historical Cash-Flow Volatility
The sharp improvement in cash generation has not yet demonstrated stability across a full business cycle. Previous negative operating and free cash flow periods suggest that earnings conversion can fluctuate materially, creating uncertainty around how consistently Sezzle can self-fund growth during weaker operating conditions.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Profitability Expansion
Rapid revenue growth alongside a major margin expansion indicates that Sezzle has improved both scale and operating economics. If this profitability is sustained, the larger earnings base can support continued investment, strengthen competitive positioning, and increase resilience over the next several quarters.
Read all positive factors
Sezzle Inc. (SEZL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.06B
Dividend YieldN/A
Average Volume (3M)703.48K
Price to Earnings (P/E)24.8
Beta (1Y)3.31
Revenue Growth43.06%
EPS Growth53.71%
CountryUS
Employees201
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)4.77
Shares Outstanding33,675,014
10 Day Avg. Volume398,800
30 Day Avg. Volume703,478
Financial Highlights & Ratios
PEG Ratio0.24
Price to Book (P/B)12.68
Price to Sales (P/S)4.78
P/FCF Ratio10.33
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$168.00Price Target Upside35.40% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)5.25
Revenue Forecast (FY)$596.99M
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...
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 ...
Sezzle Inc. Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
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.Positive Updates
Strong Top-Line and GMV Growth
Gross merchandise volume (GMV) grew 37.3% year‑over‑year to ~$1.1B in Q1; total revenue grew 29.2% year‑over‑year. Q1 GMV nearly matched the Q4 holiday GMV of $1.2B, indicating strong demand and momentum.
Negative Updates
Seasonality and Non‑Annualizable Margins
Q1 margins (74% gross margin) are seasonally elevated due to payment timing and tax refund effects; management cautioned that Q1 margin is not representative of a full‑year run rate and should not be annualized.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line and GMV Growth
Gross merchandise volume (GMV) grew 37.3% year‑over‑year to ~$1.1B in Q1; total revenue grew 29.2% year‑over‑year. Q1 GMV nearly matched the Q4 holiday GMV of $1.2B, indicating strong demand and momentum.
Read all positive 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
Income Statement
86
Very Positive
Balance Sheet
74
Positive
Cash Flow
88
Very 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 | 266.41M | 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
Negative
124.08
Price Trends
149.05
Negative
129.84
Negative
98.53
Positive
Market Momentum
-7.19
Negative
40.63
Neutral
42.18
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SEZL, the sentiment is Negative. The current price of 124.08 is above the 20-day moving average (MA) of 122.07, below the 50-day MA of 149.05, and above the 200-day MA of 98.53, indicating a neutral trend. The MACD of -7.19 indicates Negative momentum. The RSI at 40.63 is Neutral, neither overbought nor oversold. The STOCH value of 42.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sezzle Inc. Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $4.06B | 24.81 | 85.55% | ― | 43.06% | 53.71% | |
68 Neutral | $2.73B | 43.42 | 7.85% | ― | 46.30% | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $824.75M | 2.94 | 4.56% | 9.00% | -1.89% | -26.81% | |
66 Neutral | $5.74B | 15.80 | 25.76% | ― | 17.65% | 43.92% | |
65 Neutral | $23.53B | 35.31 | 6.18% | ― | 34.08% | -0.29% |
* Financial Sector Average
SEZL
Sezzle Inc.
118.35
29.25
32.83%
ENVA
Enova International
225.79
110.52
95.88%
FINV
FinVolution Group
3.40
-3.81
-52.87%
UPST
Upstart Holdings
26.98
-35.44
-56.78%
SOFI
SoFi
18.01
-7.51
-29.43%
Sezzle Inc. Corporate Events
Regulatory Filings and ComplianceShareholder Meetings
Sezzle Sets 2026 Virtual Annual Stockholders Meeting Timeline
Neutral
Aug 28, 2026
On 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 d...
Business Operations and StrategyProduct-Related AnnouncementsRegulatory Filings and Compliance
Sezzle expands WebBank partnership, tightens financial covenants
Positive
Aug 18, 2026
On 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 th...
Business Operations and StrategyRegulatory Filings and Compliance
Sezzle unveils updated investor presentation on platform strategy
Neutral
Aug 12, 2026
On 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 ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.