Sezzle (NASDAQ:SEZL) Announces Earnings Results, Beats Expectations By $0.19 EPS

Sezzle (NASDAQ:SEZL) posted its earnings results on Wednesday. The company reported $1.43 EPS for the quarter, beating analysts’ consensus estimates of $1.24 by $0.19, FiscalAI reports. Sezzle had a net margin of 29.57% and a return on equity of 88.61%. The company had revenue of $135.54 million during the quarter, compared to analysts’ expectations of $127.74 million. During the same quarter in the prior year, the company posted $0.98 earnings per share. Sezzle’s revenue for the quarter was up 29.2% compared to the same quarter last year. Sezzle updated its FY 2026 guidance to 5.100-5.100 EPS.

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

• Sezzle reported a strong Q1 with GMV of $1.1B (+37.3% YoY), GAAP net income of $51.3M and adjusted EBITDA of $71.1M, and raised full‑year guidance to 30%–35% revenue growth, $180M adjusted net income, and $5.10 adjusted EPS.
• Engagement and subscriber momentum accelerated — total subscribers increased by 44,000 to 714,000, average quarterly purchase frequency rose to 7.1 from 6.1, and the Earn tab has driven a 55% uplift in BNPL conversion within 30 days of first use.
• Product and tech expansion is underway — launches such as Pay in 5, virtual card in Canada, Sezzle Mobile, and enhanced long‑term lending, combined with deep AI integration (chatbot resolving ~60–70% of chats and AI-assisted product/engineering), aim to broaden use cases and improve operating leverage.
• Regulatory and legal risks remain — Sezzle is pursuing a banking charter (application expected mid‑2026) and has an ongoing antitrust suit, both of which add potential costs, timing uncertainty, and execution risk.

Sezzle Stock Performance

Shares of NASDAQ:SEZL traded up $13.80 during midday trading on Thursday, reaching $99.82. The company’s stock had a trading volume of 3,307,300 shares, compared to its average volume of 791,493. The firm has a market capitalization of $3.37 billion, a PE ratio of 26.69 and a beta of 6.91. Sezzle has a twelve month low of $49.50 and a twelve month high of $186.74. The stock has a fifty day moving average of $71.55 and a 200 day moving average of $68.02. The company has a quick ratio of 3.92, a current ratio of 3.92 and a debt-to-equity ratio of 0.82.

Sezzle News Roundup

Here are the key news stories impacting Sezzle this week:

• Positive Sentiment: Q1 results beat expectations — Sezzle reported $1.43 EPS vs. $1.24 consensus and revenue of $135.5M (up 29.2% YoY). Management raised FY‑2026 guidance to $5.10 EPS and revenue roughly $585.4M–$607.9M, and reported strong margins and GMV growth, which explain much of the upward price reaction. Sezzle Reports First Quarter 2026 Results
• Positive Sentiment: Analyst upgrades and higher price targets are reinforcing the move: Needham raised its target to $122 (buy) and Keefe, Bruyette & Woods raised its target to $115 (outperform), signaling institutional confidence in the beat + guidance lift. Benzinga
• Neutral Sentiment: Sezzle filed supplemental investor materials and the earnings slide deck / call transcript are available for detailed review — useful for modeling the new FY‑26 assumptions but not a market mover by itself. Q1 Results – Earnings Call Presentation
• Neutral Sentiment: Strategic partnership update: Pagaya announced a new point‑of‑sale partnership to expand Sezzle acceptance — incremental merchant distribution that supports long‑term GMV growth but is unlikely to drive immediate large share moves. Pagaya Announces New Point-of-Sale Partnership With Sezzle
• Negative Sentiment: Pomerantz LLP announced an investor investigation into Sezzle — this introduces legal and reputational risk that could create volatility or pressure shares if it develops into litigation or regulatory scrutiny. Pomerantz Investigation Notice

Insider Transactions at Sezzle

In other news, CFO Lee Dickson Brading sold 1,240 shares of the stock in a transaction on Tuesday, March 3rd. The shares were sold at an average price of $71.38, for a total value of $88,511.20. Following the sale, the chief financial officer owned 292,002 shares in the company, valued at $20,843,102.76. This represents a 0.42% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, COO Amin Sabzivand sold 5,118 shares of the stock in a transaction on Tuesday, March 3rd. The stock was sold at an average price of $71.38, for a total transaction of $365,322.84. Following the completion of the sale, the chief operating officer owned 223,465 shares in the company, valued at $15,950,931.70. The trade was a 2.24% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 46,837 shares of company stock valued at $3,615,409. 49.49% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Invesco Ltd. increased its holdings in Sezzle by 2,161.5% in the fourth quarter. Invesco Ltd. now owns 214,642 shares of the company’s stock valued at $13,624,000 after buying an additional 205,151 shares in the last quarter. Mercer Global Advisors Inc. ADV boosted its stake in shares of Sezzle by 10.5% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 12,140 shares of the company’s stock worth $771,000 after acquiring an additional 1,151 shares in the last quarter. Vident Advisory LLC boosted its stake in shares of Sezzle by 12.7% during the 4th quarter. Vident Advisory LLC now owns 54,661 shares of the company’s stock worth $3,470,000 after acquiring an additional 6,179 shares in the last quarter. State of Tennessee Department of Treasury purchased a new stake in shares of Sezzle during the 4th quarter worth about $238,000. Finally, Regal Partners Ltd purchased a new stake in shares of Sezzle during the 4th quarter worth about $3,748,000. Hedge funds and other institutional investors own 2.02% of the company’s stock.

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on SEZL shares. Keefe, Bruyette & Woods increased their target price on shares of Sezzle from $85.00 to $115.00 and gave the company an “outperform” rating in a research report on Thursday. UBS Group set a $76.00 price target on shares of Sezzle in a research note on Tuesday, February 17th. Needham & Company LLC upped their price target on shares of Sezzle from $94.00 to $122.00 and gave the company a “buy” rating in a research note on Thursday. TD Cowen restated a “hold” rating on shares of Sezzle in a research note on Thursday. Finally, Zacks Research lowered shares of Sezzle from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, April 28th. Four equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $118.00.

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.