Sezzle (NASDAQ:SEZL) Releases Earnings Results, Beats Estimates By $0.09 EPS

Sezzle (NASDAQ:SEZL) announced its quarterly earnings data on Wednesday. The company reported $1.37 EPS for the quarter, beating analysts’ consensus estimates of $1.28 by $0.09, FiscalAI reports. The company had revenue of $166.50 million during the quarter, compared to the consensus estimate of $155.01 million. Sezzle had a net margin of 30.35% and a return on equity of 83.48%.

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

• Q3 revenue grew 42.6% year over year to $166.5 million, while net income increased 79.3% to $47.8 million. Sezzle raised its 2026 revenue-growth outlook to approximately 42.5% and adjusted diluted EPS guidance to $5.45–$5.50, and introduced preliminary 2027 adjusted EPS guidance of $7.20.
• Active subscribers increased 68.1% year over year to 955,000, and average quarterly transaction frequency rose to 7.8 from 6.5 a year earlier. Average quarterly revenue per monetized user grew 28.1% to $41, alongside 34.9% growth in total transaction volume.
• Net transaction margin reached 64.7% of revenue, near the top of Sezzle’s 55%–65% target range; the company said it would have been about 62.5% without a $3.7 million benefit from its Visa arrangement. Marketing expense fell to $15.9 million from $19.4 million in Q2 while subscriber numbers continued to grow.
• SezzleCash showed early signs of cross-selling to BNPL, but remains new and relatively small, while Sezzle Send is still being refined. Executives cautioned that newer products may carry lower margins and higher credit losses as they scale, and said Send is being managed partly as a customer-acquisition channel.

Sezzle Stock Performance

Shares of NASDAQ SEZL traded up $14.26 during mid-day trading on Wednesday, reaching $136.69. 1,120,729 shares of the company were exchanged, compared to its average volume of 684,474. The company’s 50-day simple moving average is $121.03 and its 200-day simple moving average is $109.02. The company has a quick ratio of 4.02, a current ratio of 4.02 and a debt-to-equity ratio of 0.52. The stock has a market capitalization of $4.62 billion, a P/E ratio of 29.72 and a beta of 6.59. Sezzle has a twelve month low of $49.50 and a twelve month high of $195.71.

Key Stories Impacting Sezzle

Here are the key news stories impacting Sezzle this week:

• Positive Sentiment: Q3 results beat estimates: Sezzle reported EPS of $1.37, versus the $1.28 consensus, and revenue of $166.5 million, above estimates of about $155 million. Sezzle Reports Third Quarter 2026 Results
• Positive Sentiment: Profitability improved: A report said quarterly profit rose 79%, with credit losses declining as a share of platform volume and subscribers continuing to shop more frequently—supporting the earnings beat. Sezzle Profit Jumps 79% as Credit Costs Ease
• Positive Sentiment: Outlook added to optimism: Sezzle delivered positive 2026 and 2027 guidance, giving investors reason to expect continued growth beyond the quarter. Sezzle stock jumps after Q3 earnings and guidance
• Positive Sentiment: Sector tailwind: Sezzle also benefited from a wider rally across the BNPL sector, though the earnings and outlook were the more company-specific catalysts. Sezzle Surges Amid Sector-Wide Rally

Analyst Upgrades and Downgrades

SEZL has been the subject of several recent analyst reports. B. Riley Financial reiterated a “buy” rating on shares of Sezzle in a research note on Friday, August 7th. Wall Street Zen downgraded Sezzle from a “buy” rating to a “hold” rating in a research report on Sunday. Needham & Company LLC restated a “buy” rating and issued a $172.00 price objective on shares of Sezzle in a research note on Thursday, August 20th. TD Cowen cut their price objective on Sezzle from $165.00 to $160.00 and set a “buy” rating for the company in a research report on Tuesday, October 6th. Finally, Keefe, Bruyette & Woods cut their price objective on Sezzle from $190.00 to $155.00 and set a “market perform” rating for the company in a research report on Friday, August 7th. One investment analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $145.67.

Insider Transactions at Sezzle

In other Sezzle news, Director Kyle Brehm sold 1,000 shares of the stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of $125.92, for a total value of $125,920.00. Following the transaction, the director directly owned 23,853 shares of the company’s stock, valued at $3,003,569.76. This represents a 4.02% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Bryan Hunt purchased 250 shares of the stock in a transaction on Friday, September 18th. The stock was bought at an average cost of $115.86 per share, for a total transaction of $28,965.00. Following the completion of the acquisition, the director owned 3,985 shares in the company, valued at approximately $461,702.10. This trade represents a 6.69% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 43.90% of the stock is currently owned by corporate insiders.

About Sezzle

Sezzle Inc (NASDAQ: SEZL) is a financial technology company that provides buy now, pay later solutions. Its platform enables consumers to split eligible purchases into installments, generally at the time of checkout, while giving merchants payment and customer-engagement tools designed to support e-commerce sales.

The company offers installment payment services through its consumer app and merchant integrations, as well as products such as Sezzle Virtual Card and Sezzle Up. Sezzle Up is designed to provide eligible users with credit-building opportunities, while the company’s merchant platform supports checkout integration, transaction management and consumer financing.

Sezzle was founded in 2016 and is headquartered in Minneapolis, Minnesota.