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

Shares of Sezzle Inc. (NASDAQ:SEZL) gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $136.69, but opened at $172.76. Sezzle shares last traded at $163.3670, with a volume of 497,903 shares changing hands.

The company reported $1.37 earnings per share for the quarter, topping analysts’ consensus estimates of $1.28 by $0.09. The business 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%. Sezzle’s quarterly revenue was up 42.6% on a year-over-year basis. During the same quarter last year, the firm earned $0.71 earnings per share.

More Sezzle News

Here are the key news stories impacting Sezzle this week:

• Positive Sentiment: Sezzle reported Q3 earnings of $1.37 per share, above the $1.28 consensus and up from $0.71 a year earlier. Revenue rose 42.6% year over year to $166.5 million, also beating estimates. Zacks Q3 earnings report
• Positive Sentiment: Profit growth was supported by lower credit losses as a share of transaction volume, while subscribers continued to shop more frequently—indications of improving profitability and customer engagement. The Motley Fool earnings reaction
• Positive Sentiment: Management delivered positive 2026 and 2027 guidance, adding to investor optimism about continued growth. Sezzle guidance report
• Positive Sentiment: Needham raised its price target to $220 from $172 and reiterated a Buy rating, reinforcing the bullish response to the results. Ticker Report on the price-target increase

Wall Street Analyst Weigh In

Several equities research analysts recently commented on SEZL shares. B. Riley Financial restated a “buy” rating on shares of Sezzle in a research report on Friday, August 7th. TD Cowen lowered their target price on Sezzle from $165.00 to $160.00 and set a “buy” rating for the company in a report on Tuesday, October 6th. Weiss Ratings reissued a “hold (c+)” rating on shares of Sezzle in a research note on Monday. Keefe, Bruyette & Woods cut their price target on Sezzle from $190.00 to $155.00 and set a “market perform” rating on the stock in a report on Friday, August 7th. Finally, Wall Street Zen downgraded shares of Sezzle from a “buy” rating to a “hold” rating in a research report on Sunday. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, Sezzle has a consensus rating of “Moderate Buy” and an average target price of $153.67.

Insider Activity

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

Institutional Trading of Sezzle

Several hedge funds have recently bought and sold shares of SEZL. BlackRock Inc. acquired a new position in shares of Sezzle during the second quarter valued at about $436,497,000. Bank of America Corp DE purchased a new position in Sezzle in the second quarter worth $46,543,000. Dimensional Fund Advisors LP boosted its holdings in shares of Sezzle by 41.6% in the 1st quarter. Dimensional Fund Advisors LP now owns 458,222 shares of the company’s stock worth $28,996,000 after buying an additional 134,714 shares during the last quarter. Jupiter Topco LLC bought a new position in shares of Sezzle during the 2nd quarter valued at approximately $19,433,000. Finally, Bank of New York Mellon Corp purchased a new stake in Sezzle in the second quarter worth $16,909,000. Institutional investors and hedge funds own 2.02% of the company’s stock.

Sezzle Trading Up 19.2%

The firm has a fifty day moving average of $121.28 and a two-hundred day moving average of $109.35. The company has a current ratio of 4.02, a quick ratio of 4.02 and a debt-to-equity ratio of 0.52. The company has a market cap of $5.50 billion, a PE ratio of 35.61 and a beta of 6.59.

Sezzle Company Profile

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.