Sezzle (NASDAQ:SEZL) Posts Quarterly Earnings Results, Beats Estimates By $0.10 EPS

Sezzle (NASDAQ:SEZL) posted its quarterly earnings data on Thursday. The company reported $1.13 earnings per share for the quarter, topping analysts’ consensus estimates of $1.03 by $0.10, FiscalAI reports. Sezzle had a net margin of 30.35% and a return on equity of 90.57%. The firm had revenue of $149.68 million during the quarter, compared to analysts’ expectations of $135.09 million. 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%

Shares of NASDAQ SEZL traded down $60.51 during mid-day trading on Friday, hitting $118.02. The company had a trading volume of 4,229,561 shares, compared to its average volume of 592,977. The company has a market capitalization of $3.97 billion, a PE ratio of 25.66 and a beta of 6.76. The company has a debt-to-equity ratio of 0.73, a current ratio of 3.65 and a quick ratio of 3.65. Sezzle has a 1-year low of $49.50 and a 1-year high of $195.71. The business’s 50-day simple moving average is $157.16 and its 200 day simple moving average is $104.31.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on SEZL shares. Oppenheimer cut Sezzle from an “outperform” rating to a “market perform” rating in a research note on Monday, June 29th. Weiss Ratings reissued a “hold (c+)” rating on shares of Sezzle in a research note on Tuesday. B. Riley Financial restated a “buy” rating on shares of Sezzle in a report on Friday. Freedom Capital raised Sezzle to a “hold” rating in a research report on Wednesday, June 24th. Finally, Zacks Research upgraded shares of Sezzle from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, May 27th. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and five have given a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $146.50.

Key Sezzle News

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

Insider Buying and Selling

In related news, SVP Justin Krause sold 3,178 shares of the business’s 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 of the company’s stock, valued at $8,529,638.04. The trade was a 4.20% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Amin Sabzivand sold 6,930 shares of the company’s stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $179.91, for a total value of $1,246,776.30. Following the sale, the chief operating officer owned 259,780 shares in the company, valued at approximately $46,737,019.80. This trade represents a 2.60% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 86,928 shares of company stock valued at $13,510,889. 49.49% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Sezzle

Institutional investors and hedge funds have recently made changes to their positions in the stock. State Street Corp increased its stake in shares of Sezzle by 59.1% during the fourth quarter. State Street Corp now owns 600,656 shares of the company’s stock worth $38,127,000 after buying an additional 223,052 shares during the period. Geode Capital Management LLC lifted its stake in Sezzle by 2.2% in the fourth quarter. Geode Capital Management LLC now owns 489,382 shares of the company’s stock worth $31,068,000 after acquiring an additional 10,625 shares during the last quarter. Price T Rowe Associates Inc. MD lifted its stake in Sezzle by 213.8% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 378,185 shares of the company’s stock worth $24,004,000 after acquiring an additional 257,659 shares during the last quarter. Dimensional Fund Advisors LP grew its holdings in Sezzle by 67.7% during the 4th quarter. Dimensional Fund Advisors LP now owns 323,508 shares of the company’s stock worth $20,538,000 after acquiring an additional 130,634 shares in the last quarter. Finally, Man Group plc acquired a new position in Sezzle during the 3rd quarter worth approximately $25,005,000. 2.02% of the stock is owned by institutional investors and hedge funds.

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.