Sezzle (NASDAQ:SEZL) Shares Gap Up Following Better-Than-Expected Earnings

Sezzle Inc. (NASDAQ:SEZL)’s stock price gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $62.62, but opened at $78.30. Sezzle shares last traded at $80.5780, with a volume of 1,153,485 shares changing hands.

The company reported $1.21 earnings per share for the quarter, topping analysts’ consensus estimates of $0.96 by $0.25. Sezzle had a net margin of 27.66% and a return on equity of 90.06%. The firm had revenue of $83.55 million for the quarter, compared to analyst estimates of $128.29 million. The business’s revenue was up 32.3% compared to the same quarter last year. Sezzle has set its FY 2026 guidance at 4.350-4.700 EPS.

Analysts Set New Price Targets

SEZL has been the subject of several analyst reports. Weiss Ratings reissued a “hold (c+)” rating on shares of Sezzle in a report on Monday, December 29th. TD Cowen reduced their price target on Sezzle from $83.00 to $82.00 and set a “hold” rating for the company in a research report on Thursday, January 8th. Wall Street Zen lowered Sezzle from a “buy” rating to a “hold” rating in a research report on Saturday, December 6th. UBS Group set a $76.00 price objective on shares of Sezzle in a research note on Tuesday, February 17th. Finally, Needham & Company LLC reiterated a “buy” rating and issued a $94.00 target price (up from $85.00) on shares of Sezzle in a research note on Thursday. Three analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, Sezzle currently has an average rating of “Moderate Buy” and a consensus target price of $113.00.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in SEZL. Yorktown Management & Research Co Inc acquired a new stake in Sezzle during the 2nd quarter worth $708,000. Hussman Strategic Advisors Inc. acquired a new stake in shares of Sezzle in the third quarter valued at about $3,006,000. IMC Chicago LLC purchased a new position in shares of Sezzle in the third quarter worth about $1,575,000. Lisanti Capital Growth LLC purchased a new position in shares of Sezzle in the second quarter worth about $2,082,000. Finally, XTX Topco Ltd acquired a new position in Sezzle during the second quarter worth about $2,786,000. Hedge funds and other institutional investors own 2.02% of the company’s stock.

Sezzle Stock Performance

The company has a market cap of $2.77 billion, a PE ratio of 25.18 and a beta of 8.70. The company has a debt-to-equity ratio of 0.76, a quick ratio of 3.52 and a current ratio of 3.52. The firm’s 50 day moving average is $67.70 and its 200-day moving average is $73.29.

Sezzle Company Profile

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.