Sezzle (NASDAQ:SEZL) Issues Quarterly Earnings Results, Beats Expectations By $0.10 EPS

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

Shares of SEZL traded down $60.51 on Friday, reaching $118.02. The stock had a trading volume of 4,229,561 shares, compared to its average volume of 592,977. Sezzle has a twelve month low of $49.50 and a twelve month high of $195.71. The firm has a market capitalization of $3.97 billion, a PE ratio of 25.66 and a beta of 6.76. The firm has a 50-day moving average of $157.16 and a 200 day moving average of $104.31. The company has a quick ratio of 3.65, a current ratio of 3.65 and a debt-to-equity ratio of 0.73.

Key Stories Impacting Sezzle

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

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on SEZL. Zacks Research raised Sezzle from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, May 27th. Keefe, Bruyette & Woods dropped their target price on shares of Sezzle from $190.00 to $155.00 and set a “market perform” rating on the stock in a research report on Friday. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Sezzle in a research report on Tuesday. Oppenheimer downgraded shares of Sezzle from an “outperform” rating to a “market perform” rating in a research note on Monday, June 29th. Finally, Freedom Capital raised Sezzle to a “hold” rating in a report on Wednesday, June 24th. One equities research 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 presently has a consensus rating of “Moderate Buy” and an average price target of $146.50.

Insider Transactions at Sezzle

In other news, COO Amin Sabzivand sold 6,930 shares of the firm’s stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $179.91, for a total transaction of $1,246,776.30. Following the completion of the transaction, the chief operating officer directly owned 259,780 shares of the company’s stock, valued at $46,737,019.80. This trade represents a 2.60% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Lee Dickson Brading sold 10,000 shares of the firm’s stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $178.23, for a total value of $1,782,300.00. Following the transaction, the chief financial officer directly owned 296,931 shares of the company’s stock, valued at $52,922,012.13. The trade was a 3.26% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 86,928 shares of company stock worth $13,510,889 over the last ninety days. 49.49% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Sezzle

Several institutional investors and hedge funds have recently modified their holdings of the company. Royal Bank of Canada lifted its stake in shares of Sezzle by 429.0% during the 1st quarter. Royal Bank of Canada now owns 132,361 shares of the company’s stock worth $4,618,000 after purchasing an additional 107,340 shares during the period. AQR Capital Management LLC lifted its position in Sezzle by 3,973.6% during the first quarter. AQR Capital Management LLC now owns 34,626 shares of the company’s stock valued at $1,208,000 after buying an additional 33,776 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in shares of Sezzle by 2,241.4% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 30,906 shares of the company’s stock worth $1,078,000 after acquiring an additional 29,586 shares in the last quarter. Millennium Management LLC increased its holdings in Sezzle by 321.7% in the 1st quarter. Millennium Management LLC now owns 115,525 shares of the company’s stock valued at $4,031,000 after purchasing an additional 88,127 shares in the last quarter. Finally, Goldman Sachs Group Inc. boosted its holdings in Sezzle by 1,068.2% in the 1st quarter. Goldman Sachs Group Inc. now owns 169,487 shares of the company’s stock worth $5,913,000 after acquiring an additional 154,978 shares during the period. Hedge funds and other institutional investors own 2.02% of the company’s stock.

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.