Sezzle (NASDAQ:SEZL) Posts Quarterly Earnings Results, Beats Estimates By $0.10 EPS

Sezzle (NASDAQ:SEZL) issued its quarterly earnings results on Thursday. The company reported $1.13 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.03 by $0.10, FiscalAI reports. Sezzle had a return on equity of 90.57% and a net margin of 30.35%.The firm had revenue of $149.68 million for the quarter, compared to analyst estimates of $135.09 million. 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 Trading Down 33.9%

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

Insider Activity

In other Sezzle news, COO Amin Sabzivand sold 6,930 shares of Sezzle stock in a transaction dated 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 transaction, the chief operating officer directly owned 259,780 shares of the company’s stock, valued at $46,737,019.80. The trade was a 2.60% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Paul Paradis sold 26,400 shares of the stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $161.35, for a total transaction of $4,259,640.00. Following the completion of the sale, the director directly owned 416,195 shares of the company’s stock, valued at approximately $67,153,063.25. This trade represents a 5.96% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 86,928 shares of company stock valued at $13,510,889 in the last ninety days. 49.49% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Sezzle

Several hedge funds and other institutional investors have recently added to or reduced their stakes in SEZL. Vestcor Inc acquired a new position in shares of Sezzle in the 3rd quarter valued at $29,000. Empowered Funds LLC acquired a new stake in shares of Sezzle during the 4th quarter worth about $33,000. Sunbelt Securities Inc. purchased a new stake in Sezzle in the 3rd quarter valued at about $52,000. Larson Financial Group LLC raised its holdings in Sezzle by 35.4% in the 3rd quarter. Larson Financial Group LLC now owns 795 shares of the company’s stock valued at $63,000 after buying an additional 208 shares during the period. Finally, Strs Ohio acquired a new position in Sezzle in the first quarter valued at about $84,000. Institutional investors and hedge funds own 2.02% of the company’s stock.

Sezzle News Roundup

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

Analyst Ratings Changes

A number of research analysts have weighed in on the company. Needham & Company LLC raised their price objective on Sezzle from $166.00 to $172.00 and gave the company a “buy” rating in a report on Friday. TD Cowen increased their target price on shares of Sezzle from $108.00 to $165.00 and gave the company a “hold” rating in a research report on Tuesday, July 7th. Freedom Capital upgraded shares of Sezzle to a “hold” rating in a research report on Wednesday, June 24th. Northland Securities set a $170.00 price objective on shares of Sezzle in a research note on Thursday, June 25th. Finally, Oppenheimer downgraded shares of Sezzle from an “outperform” rating to a “market perform” rating in a report on Monday, June 29th. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $146.50.

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.