Sezzle (NASDAQ:SEZL) Releases Quarterly Earnings Results, Beats Estimates By $0.25 EPS

Sezzle (NASDAQ:SEZL) announced its quarterly earnings results on Wednesday. The company reported $1.21 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.96 by $0.25, Zacks reports. Sezzle had a net margin of 27.66% and a return on equity of 90.06%. The business’s revenue was up 32.3% on a year-over-year basis. Sezzle updated its FY 2026 guidance to 4.350-4.700 EPS.

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

• Sezzle delivered a strong 2025: total revenue +66.1%, Q4 revenue +32.2%, Q4 GAAP net income of $42.7M (full-year net income $133.1M), and raised 2026 guidance to Adjusted EPS $4.70 with 25%–30% revenue growth and $170M Adjusted Net Income.
• Operating leverage materially improved as transaction-related costs fell to 37.6% of revenue for the year (35.7% in Q4), gross margin reached 62.4%, and Q4 Adjusted EBITDA margin hit 44.9%, highlighting strong unit economics and scalability.
• Product and engagement initiatives are expanding the ecosystem: subscriptions grew 30% YoY (mods +211k), new features (Earn tab, browser extension, price tools) are monetizing, and Sezzle plans to launch Sezzle Mobile (AT&T partner via intermediary) and proprietary AI to boost retention and acquisition.
• Management is pursuing strategic capital and regulatory initiatives—exploring an ILC banking charter (application targeted H1 2026 but non‑guaranteed), expanded its credit facility to $225M, and completed a $50M buyback with a $100M authorization—actions that support growth but carry execution and regulatory uncertainty.

Sezzle Stock Performance

Shares of SEZL traded up $1.97 during mid-day trading on Wednesday, reaching $62.62. 965,020 shares of the company’s stock traded hands, compared to its average volume of 740,752. The company has a debt-to-equity ratio of 0.76, a quick ratio of 3.52 and a current ratio of 3.52. Sezzle has a 12 month low of $24.86 and a 12 month high of $186.74. The business’s 50-day moving average price is $67.70 and its 200-day moving average price is $73.29. The stock has a market capitalization of $2.14 billion, a P/E ratio of 19.38 and a beta of 8.70.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Larson Financial Group LLC lifted its holdings in Sezzle by 35.4% during the 3rd quarter. Larson Financial Group LLC now owns 795 shares of the company’s stock worth $63,000 after buying an additional 208 shares in the last quarter. Commonwealth Equity Services LLC increased its stake in Sezzle by 1.1% in the fourth quarter. Commonwealth Equity Services LLC now owns 24,172 shares of the company’s stock valued at $1,534,000 after purchasing an additional 256 shares in the last quarter. AQR Capital Management LLC grew its holdings in shares of Sezzle by 1.4% in the 4th quarter. AQR Capital Management LLC now owns 24,530 shares of the company’s stock valued at $1,557,000 after buying an additional 347 shares during the period. Vestcor Inc acquired a new stake in Sezzle during the 3rd quarter worth $29,000. Finally, Empowered Funds LLC acquired a new position in shares of Sezzle in the 4th quarter valued at approximately $33,000. Institutional investors own 2.02% of the company’s stock.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on the company. UBS Group set a $76.00 price target on Sezzle in a research note on Tuesday, February 17th. Wall Street Zen cut shares of Sezzle from a “buy” rating to a “hold” rating in a research note on Saturday, December 6th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Sezzle in a report on Monday, December 29th. TD Cowen cut their target price on Sezzle from $83.00 to $82.00 and set a “hold” rating on the stock in a research note on Thursday, January 8th. Finally, Needham & Company LLC started coverage on Sezzle in a research note on Thursday, February 12th. They issued a “buy” rating and a $85.00 price target for the company. Three research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $111.20.

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.