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Key Takeaways Sezzle's subscriber growth, repeat use and expanding services support a stronger investment case.Sezzle raised 2026 revenue growth guidance to 30%-35% and adjusted net income to $180 million.Upstart's cheaper valuation reflects greater funding, credit-cycle and profitability risks. Sezzle Inc. (SEZL - Free Report) and Upstart Holdings, Inc. (UPST - Free Report) give investors two very different ways to invest in financial technology. Sezzle is building a broader payments relationship around buy now, pay later, subscriptions and everyday spending. Upstart is trying to improve consumer lending by helping banks and institutional investors make credit decisions through artificial intelligence.
That difference matters more than a simple comparison of recent growth rates. Sezzle’s progress depends largely on getting consumers to use its platform more often while controlling credit losses and transaction costs. Upstart’s opportunity depends on improving its underwriting models, attracting borrowers and keeping enough third-party funding available for loans.
Both companies can benefit as digital finance gains wider use, but they carry different risks. Sezzle has a smaller platform and a more concentrated business, while Upstart is more exposed to lending cycles, interest rates and capital-market conditions. The better investment, therefore, comes down to business quality, earnings consistency, growth durability and valuation rather than which company posted the faster quarterly increase.
The Case for SEZLSezzle’s main strength is that its growth is increasingly coming from deeper customer relationships. Instead of relying only on shoppers who use buy now, pay later at checkout, the company is steering users toward paid subscriptions and repeat activity. Active subscribers reached 714,000 in the first quarter, up 48.4% from a year earlier, while subscribers placed about nine times as many orders as non-subscribers, on average. This gives Sezzle a more recurring and engaged customer base than a basic checkout service would provide.
That engagement can make Sezzle’s model more durable. On a year-over year basis, average quarterly purchase frequency rose from 6.1 to 7.1 transactions, suggesting that customers are finding more reasons to return to the platform. Features such as the Earn Tab, which rewards in-app activity, appear to support that behavior. Sezzle said users had a 55% higher buy now, pay later conversion rate within 30 days of their first Earn Tab activity. The company’s marketing payback period also remained below six months, indicating that growth spending is producing results relatively quickly.
Sezzle is also becoming less dependent on one payment format. Pay-in-5, longer-term installment options, a Canadian virtual card and the Sezzle Mobile plan expand the number of situations in which customers can use the brand. These additions will not all become major profit sources, but they support the broader aim of turning Sezzle from an occasional checkout button into a regular financial tool. This strategy compares favorably with Upstart’s expansion because Sezzle can fund much of its product development from existing profits rather than waiting for new lending capital.
The financial results support this bullish view, but they are evidence rather than the whole argument. Sezzle produced a 37.9% net margin and a 52.5% adjusted EBITDA margin while continuing to increase marketing spending. Management also raised its 2026 revenue-growth outlook to 30%-35% and adjusted net income guidance to $180 million. Those numbers suggest that higher engagement is translating into meaningful operating leverage. Credit performance can still vary by season and consumer conditions, but Sezzle currently combines growth, profitability and product expansion more effectively than Upstart.
The Case for UPSTUpstart offers a larger long-term market opportunity because its technology can potentially be used across several major lending categories. Its platform already covers personal loans, auto lending, home equity products and revolving credit. If its models can assess risk more accurately than traditional scoring systems, banks may approve more suitable borrowers without accepting weaker expected returns. More than 90% of Upstart loans are fully automated, which shows that the platform can process significant volume without requiring manual work for every application.
Product diversification is another positive. Personal lending remains the economic core of the company, but auto and home products give Upstart additional ways to grow. Auto originations increased more than 300% year over year in the first quarter, while home originations rose about 250%. These businesses are still developing, and management has indicated that the focus is beginning to move from pure volume growth toward better unit economics. The shift is sensible, although investors still need evidence that the newer products can produce attractive returns at scale.
Funding availability has also improved. Upstart secured more than $4 billion of committed capital early in 2026 and renewed an agreement under which Neuberger-managed funds may invest in as much as $600 million of consumer loans. Second-quarter originations reached approximately $4.23 billion, including $1.5 billion in June. These developments reduce near-term funding concerns and indicate that institutional investors continue to support loans generated through the platform. However, Upstart remains more dependent than Sezzle on outside funding and credit-market confidence.
The concern is that rapid platform growth has not yet translated into equally strong earnings growth. Upstart reported 44% revenue growth in the first quarter, but contribution margin fell to 50%, adjusted EBITDA margin was 13%, and the company remained unprofitable under GAAP. Management expects margins to improve during the year, and its full-year outlook calls for approximately $294 million in adjusted EBITDA. Still, compared with Sezzle, Upstart has less room for execution errors and greater sensitivity to borrower demand, credit performance and funding costs.
How Do Estimates Compare for SEZL & UPST?The Zacks Consensus Estimate for Sezzle’s 2026 and 2027 sales implies year-over-year growth of 31.60% and 25.06%, respectively. The consensus mark for 2026 and 2027 EPS suggests a year-over-year increase of 42.06% and 25.74%, respectively. Over the past 30 days, estimates for SEZL’s 2026 and 2027 EPS have been revised upward.
For Sezzle:
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Upstart’s 2026 and 2027 sales calls for year-over-year growth of 36.53% and 30.61%, respectively. The consensus estimates for both 2026 and 2027 EPS have been revised marginally downward over the past 30 days. However, the figures suggest a year-over-year increase of 29.31% and 44.89%, respectively.
For Upstart:
Image Source: Zacks Investment Research
Price Performance and Valuation of SEZL & UPSTOver the past three months, Sezzle shares have surged 121.4%, while Upstart shares have declined 14.5%. In comparison, the S&P 500 composite has advanced 4.5% in the same time frame.
Image Source: Zacks Investment Research
Following the share rally, SEZL is trading at a forward 12-month price-to-sales of 8.67X, which is above its one-year median of 4.62X. Meanwhile, UPST is presently trading at a forward 12-month price-to-sales of 1.64X, which is below its one-year median of 3.15X.
Upstart is clearly cheaper on this measure. However, Sezzle’s premium reflects its stronger margins and more direct conversion of revenues into earnings. The valuation gap means SEZL carries higher expectations, but UPST’s discount is partly compensation for greater funding, credit-cycle and profitability risks.
Image Source: Zacks Investment Research
ConclusionSezzle appears to be the better stock to consider buying. Subscriber growth, rising purchase frequency, expanding services and disciplined customer acquisition are strengthening the underlying business. Its established profitability also gives management more control over how quickly it invests and expands.
Upstart still has meaningful potential. Its AI lending technology, growing product range and improved funding network could support strong long-term growth. However, the company must show that rising originations can produce steadier margins and GAAP profits. Given the balance between growth and execution risk, it seems prudent for investors to retain UPST shares, while SEZL enjoys the stronger investment case.
SEZL currently carries a Zacks Rank #2 (Buy), while UPST has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Sezzle Inc. (SEZL - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.
Sezzle Inc. is one of 246 companies in the Business Services group. The Business Services group currently sits at #7 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Sezzle Inc. is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for SEZL's full-year earnings has moved 8.5% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, SEZL has gained about 182.6% so far this year. Meanwhile, the Business Services sector has returned an average of -8.9% on a year-to-date basis. As we can see, Sezzle Inc. is performing better than its sector in the calendar year.
One other Business Services stock that has outperformed the sector so far this year is Sims Metal Management Ltd. (SMSMY - Free Report) . The stock is up 44.3% year-to-date.
For Sims Metal Management Ltd., the consensus EPS estimate for the current year has increased 3.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Sezzle Inc. belongs to the Financial Transaction Services industry, a group that includes 37 individual stocks and currently sits at #90 in the Zacks Industry Rank. On average, stocks in this group have lost 9.2% this year, meaning that SEZL is performing better in terms of year-to-date returns.
In contrast, Sims Metal Management Ltd. falls under the Waste Removal Services industry. Currently, this industry has 23 stocks and is ranked #93. Since the beginning of the year, the industry has moved -3.1%.
Going forward, investors interested in Business Services stocks should continue to pay close attention to Sezzle Inc. and Sims Metal Management Ltd. as they could maintain their solid performance.
Minneapolis, MN, July 22, 2026 (GLOBE NEWSWIRE) -- Sezzle Inc. (NASDAQ:SEZL) (Sezzle or Company) has earned recognition from three of the industry's leading publications — CNBC, Newsweek, and U.S. News & World Report — for its leadership across fintech, platform quality, and workplace culture. The honors come as Sezzle raised its FY2026 financial guidance alongside its first quarter results, underscoring the Company's continued momentum in scaling its all-in-one financial platform and its mission to financially empower the next generation.
CNBC’s World’s Top Fintech Companies 2026
Sezzle has been named to CNBC’s World’s Top Fintech Companies 2026 in the 'Payments' category, presented by CNBC and Statista Inc. The list recognizes top fintech companies across categories, including Payments, Neobanking, Alternative Financing, Wealth Technology, Digital Assets, Enterprise Fintech, Insurtech, and Regtech. The data used in the analysis was derived from extensive research conducted by Statista, evaluating company performance, industry impact, and market presence.
Newsweek’s America’s Best Online Platforms 2026
Sezzle has also been awarded on Newsweek’s America’s Best Online Platforms 2026 list, presented by Newsweek and Statista Inc. The ranking awards the top 500 platforms that set the standard for quality and trust across four evaluation dimensions:
Nationwide Online Survey: Representative online survey of over 15,000 online-service users, including subjective criteria such as layout evaluation and purchase probability. Traffic Growth: Analysis of traffic growth (number of website visitors) of online platforms. Technical Performance: Analysis of various technical metrics including usage duration and bounce rate. Apps & Mobile Usability: Evaluation of the mobile experience based on app availability, user ratings, and mobile-optimized display. U.S. News & World Report Best Company to Work For
Sezzle has been named a U.S. News & World Report 2026–2027 Best Company to Work For. Sezzle earned recognition across three categories:
Best Companies To Work For (Overall) Best Companies To Work For – Information Technology Best Companies To Work For – Midwest U.S. News’s methodology evaluates employers based on an in-depth analysis of publicly available data, including employee reviews, court records, financial strength, and governance. To earn a “Best” award, a company had to score well above average nationally, in its industry, and/or in its region.
“We’re proud to be recognized across three distinct categories this year. Each of these awards reflects a different dimension of what we’re building at Sezzle, and together they reinforce our commitment to excellence across the business—from the technology we ship to the culture we cultivate and the experience we deliver to our consumers,” said Amin Sabzivand, Chief Operating Officer of Sezzle.
Second Quarter 2026 Earnings
Sezzle will host a conference call on August 6, 2026, at 5:00 pm ET to discuss its second quarter 2026 financial results. Additional details regarding the call, including dial-in information and a live webcast link, will be made available on the Investor Relations section of Sezzle’s website at https://investors.sezzle.com/.
Interested in hearing more about the power of Sezzle? Learn more here.
About Sezzle Inc.
Sezzle is a forward-thinking fintech company committed to financially empowering the next generation. Designed to support users throughout every stage of their financial journey, Sezzle’s all-in-one app enables users to shop, earn, and learn in a seamless experience. By offering point-of-sale financing and digital payment services, Sezzle enhances purchasing power while connecting millions of consumers with its global network of merchants. Centered on transparency, inclusivity, and ease of use, Sezzle empowers consumers to manage spending responsibly and build lasting financial independence.
For additional assets and news on Sezzle please visit https://sezzle.com/news/
Follow Sezzle on social media: LinkedIn | Instagram | X
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends affecting the financial condition of our business. Forward-looking statements include our expectations, whether stated or implied, regarding our financing plans and other future events.
Forward-looking statements generally can be identified by the use of words such as "anticipate," "expect," "plan," "could," "may," "will," "believe," "estimate," "forecast," "goal," "project," and other words of similar meaning. These forward-looking statements address various matters including statements regarding the timing or nature of future operating or financial performance or other events. Each forward-looking statement contained in this press release is subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statement. Applicable risks and uncertainties include, among others: a change in our plans to effectuate our stock repurchase program; impact of the “buy-now, pay-later” (“BNPL”) industry becoming subject to increased regulatory scrutiny; impact of operating in a highly competitive industry; a change in our ability to remain listed on the Nasdaq Capital Market; impact of macro-economic conditions on consumer spending; our ability to increase our merchant network, our base of consumers and underlying merchant sales (UMS); our ability to effectively manage growth, sustain our growth rate and maintain our market share; our ability to meet additional capital requirements; impact of exposure to consumer bad debts and insolvency of merchants; impact of the integration, support and prominent presentation of our platform by our merchants; impact of any data security breaches, cyberattacks, employee or other internal misconduct, malware, phishing or ransomware, physical security breaches, natural disasters, or similar disruptions; impact of key vendors or merchants failing to comply with legal or regulatory requirements or to provide various services that are important to our operations; impact of the loss of key partners and merchant relationships; impact of exchange rate fluctuations in the international markets in which we operate; our ability to protect our intellectual property rights; our ability to retain employees and recruit additional employees; impact of the costs of complying with various laws and regulations applicable to the BNPL industry in the United States and Canada; and our ability to achieve our public benefit purpose and maintain our B Corporation certification. The Company cautions investors not to place considerable reliance on the forward-looking statements contained in this press release. You are encouraged to read the Company's filings with the SEC, available at www.sec.gov, for a discussion of these and other risks and uncertainties, including but not limited to those risks described in “Item 1A. Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on February 27, 2025. The forward-looking statements in this press release speak only as of the date of this document, and the Company undertakes no obligation to update or revise any of these statements. The Company's business is subject to substantial risks and uncertainties, including those referenced above. Investors, potential investors, and others should give careful consideration to these risks and uncertainties.
Key Takeaways SEZL grew active subscribers 48.4% to 714,000 as higher-value users became a bigger focus.Sezzle reached record purchase frequency, with repeat usage accounting for 97% of total orders.SEZL is expanding with Pay-in-5, Canada virtual card and new banking products through 2027. Sezzle Inc. (SEZL - Free Report) entered 2026 with stronger customer engagement and a clear shift toward higher-value subscribers. In the first quarter of 2026, active subscribers rose 48.4% year over year to 714,000, while the combined total of monthly on-demand users and subscribers reached 887,000, up 34.8%. Management believes this focus supports better retention and lifetime value.
The subscriber push is also changing how often customers use Sezzle. In the first quarter, average quarterly purchase frequency climbed to a record 7.1 times from 6.1 a year earlier. Active consumers increased 13.6% to 3.1 million, while transactions jumped 35.8% to 9.9 million. Repeat usage reached 97% of total orders.
These gains helped lift Gross Merchandise Volume (GMV) by 37.3% to $1.1 billion, nearly matching the holiday-driven fourth quarter. In the first quarter, revenues rose 29.2% to $135.5 million, representing 12.2% of GMV.
Marketing remains central to the subscriber growth strategy. First-quarter spending rose to $11.2 million from $5.3 million a year earlier, yet Sezzle reported a payback period of less than six months. The Earn tab logged 4.8 million visits since its launch in June 2025, and users showed a 55% higher Buy Now Pay Later (BNPL) conversion rate within 30 days after their first Earn tab activity.
The next test is whether Sezzle can turn stronger engagement into lasting customer value. Pay-in-5 is showing encouraging early demand, while the mobile plan, virtual card in Canada and enhanced long-term lending add more reasons to stay active. Sezzle is also developing deposit accounts and card products, with management expecting much of its current product roadmap to be completed and scaled by the end of 2027.
How Are Affirm & Klarna Growing Their Users?Affirm (AFRM - Free Report) is showing subscriber-style growth similar to Sezzle, helped by a wider merchant reach and frequent use of its payment products. Its expanding consumer base suggests BNPL demand remains healthy across major platforms. In the quarter ended March 2026, AFRM reported 26.8 million active consumers, up 22% year over year.
Klarna Group plc (KLAR - Free Report) is also adding users, as it broadens beyond checkout into banking, cards and longer-term financing. Its scale is much larger than Sezzle’s, but the growth pattern reflects the same push toward deeper consumer relationships. In the first quarter of 2026, KLAR reached 119 million active consumers, rising 21% year over year.
SEZL’s Price Performance, Valuation & EstimatesShares of Sezzle have outperformed in the past three months compared with the broader industry and the S&P 500 Index.
Image Source: Zacks Investment Research
From a valuation standpoint, Sezzle’s shares have a Value Score of D. In terms of forward 12-month P/E, SEZL stock is trading at 30.01X, which is at a premium to the Zacks Financial Transaction Services Market industry’s 17.27X.
Image Source: Zacks Investment Research
Sizzle’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for full-year 2026 EPS has been revised upward to $5.10 in the past month. The consensus estimate for the metric indicates a year-over-year increase of 42.06%.
Image Source: Zacks Investment Research
Sezzle currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Sezzle Inc. (NASDAQ:SEZL – Get Free Report) have received an average rating of “Moderate Buy” from the nine analysts that are covering the firm, MarketBeat Ratings reports. Five investment analysts have rated the stock with a hold rating, three have issued a buy rating and one has issued a strong buy rating on the company. The average 1 year target price among analysts that have issued ratings on the stock in the last year is $151.3333.
Several equities analysts have commented on the stock. Keefe, Bruyette & Woods reissued a “market perform” rating and set a $190.00 target price (up from $115.00) on shares of Sezzle in a research report on Monday. Needham & Company LLC reaffirmed a “buy” rating and set a $166.00 price target (up from $132.00) on shares of Sezzle in a research report on Thursday, June 18th. B. Riley Financial reiterated a “buy” rating and set a $141.00 price target (up from $117.00) on shares of Sezzle in a report on Tuesday, June 2nd. Freedom Capital raised Sezzle to a “hold” rating in a research report on Wednesday, June 24th. Finally, Oppenheimer downgraded Sezzle from an “outperform” rating to a “market perform” rating in a research note on Monday, June 29th.
View Our Latest Stock Analysis on SEZL
Sezzle Stock Performance Shares of SEZL stock opened at $180.44 on Friday. The firm has a 50-day moving average of $138.95 and a 200-day moving average of $94.20. The company has a market cap of $6.07 billion, a P/E ratio of 42.86 and a beta of 6.70. The company has a debt-to-equity ratio of 0.73, a current ratio of 3.65 and a quick ratio of 3.65. Sezzle has a one year low of $49.50 and a one year high of $195.71.
Sezzle (NASDAQ:SEZL – Get Free Report) last released its quarterly earnings results on Wednesday, May 6th. The company reported $1.43 earnings per share for the quarter, beating analysts’ consensus estimates of $1.24 by $0.19. Sezzle had a net margin of 30.83% and a return on equity of 87.46%. The company had revenue of $135.54 million for the quarter, compared to analyst estimates of $127.74 million. During the same period last year, the firm earned $0.98 earnings per share. The firm’s revenue was up 29.2% on a year-over-year basis. Sezzle has set its FY 2026 guidance at 5.100-5.100 EPS. Equities research analysts forecast that Sezzle will post 5.1 EPS for the current fiscal year.
Insider Activity at Sezzle In related news, CFO Lee Dickson Brading sold 10,000 shares of the firm’s stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $178.23, for a total transaction of $1,782,300.00. Following the completion of the sale, the chief financial officer owned 296,931 shares in the company, valued at approximately $52,922,012.13. This trade represents a 3.26% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Amin Sabzivand sold 6,930 shares of Sezzle stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $179.91, for a total transaction of $1,246,776.30. Following the completion of the sale, the chief operating officer directly owned 259,780 shares in the company, valued at approximately $46,737,019.80. This represents a 2.60% 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 have sold a total of 124,382 shares of company stock worth $17,416,662 in the last ninety days. Corporate insiders own 49.49% of the company’s stock.
Hedge Funds Weigh In On Sezzle Several institutional investors have recently bought and sold shares of the company. Divisadero Street Capital Management LP increased its position in Sezzle by 64.7% in the third quarter. Divisadero Street Capital Management LP now owns 1,494,617 shares of the company’s stock worth $118,867,000 after buying an additional 587,129 shares during the last quarter. Vanguard Group Inc. grew its stake in shares of Sezzle by 16.9% during the 4th quarter. Vanguard Group Inc. now owns 1,188,883 shares of the company’s stock worth $75,464,000 after acquiring an additional 172,115 shares during the period. Accredited Investors Inc. bought a new position in shares of Sezzle during the 4th quarter worth $57,955,000. State Street Corp increased its holdings in Sezzle by 59.1% in the 4th quarter. State Street Corp now owns 600,656 shares of the company’s stock worth $38,127,000 after acquiring an additional 223,052 shares during the last quarter. Finally, Geode Capital Management LLC increased its holdings in Sezzle by 2.2% in the 4th quarter. Geode Capital Management LLC now owns 489,382 shares of the company’s stock worth $31,068,000 after acquiring an additional 10,625 shares during the last quarter. Hedge funds and other institutional investors own 2.02% of the company’s stock.
About Sezzle (Get Free Report)
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.
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A strong stock as of late has been Sezzle Inc. (SEZL - Free Report) . Shares have been marching higher, with the stock up 28.5% over the past month. The stock hit a new 52-week high of $193.27 in the previous session. Sezzle Inc. has gained 197.1% since the start of the year compared to the -8.8% move for the Zacks Business Services sector and the -9.5% return for the Zacks Financial Transaction Services industry.
What's Driving the Outperformance?The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on May 6, 2026, Sezzle Inc. reported EPS of $1.43 versus consensus estimate of $1.24.
For the current fiscal year, Sezzle Inc. is expected to post earnings of $5.1 per share on $592.59 in revenues. This represents a 42.06% change in EPS on a 31.6% change in revenues. For the next fiscal year, the company is expected to earn $6.41 per share on $741.11 in revenues. This represents a year-over-year change of 25.74% and 25.06%, respectively.
Valuation MetricsThough Sezzle Inc. has recently hit a 52-week high, what is next for Sezzle Inc.? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Sezzle Inc. has a Value Score of D. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 37X current fiscal year EPS estimates, which is a premium to the peer industry average of 11.3X. On a trailing cash flow basis, the stock currently trades at 49.4X versus its peer group's average of 7.8X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks RankWe also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Sezzle Inc. currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Sezzle Inc. fits the bill. Thus, it seems as though Sezzle Inc. shares could have potential in the weeks and months to come.
How Does SEZL Stack Up to the Competition?Shares of SEZL have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Joint Stock Company Kaspi.kz Sponsored ADR (KSPI - Free Report) . KSPI has a Zacks Rank of #1 (Strong Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of F.
Earnings were strong last quarter. Joint Stock Company Kaspi.kz Sponsored ADR beat our consensus estimate by 9.13%, and for the current fiscal year, KSPI is expected to post earnings of $12.23 per share on revenue of $10.32 billion.
Shares of Joint Stock Company Kaspi.kz Sponsored ADR have gained 7.4% over the past month, and currently trade at a forward P/E of 7.31X and a P/CF of 8.33X.
The Financial Transaction Services industry is in the top 34% of all the industries we have in our universe, so it looks like there are some nice tailwinds for SEZL and KSPI, even beyond their own solid fundamental situation.
Minneapolis, MN, July 14, 2026 (GLOBE NEWSWIRE) -- Sezzle Inc. (NASDAQ: SEZL) (Sezzle or Company) // Purpose-driven digital payment platform, Sezzle, will release its second quarter 2026 results after the market close on August 6, 2026. The Company will host a conference call and webcast at 5:00 p.m. ET that same day. The earnings presentation will be available shortly after market close, via the Company’s Investor Relations page. Investors are encouraged to submit questions in advance of the call by emailing [email protected].
Conference Call Registration
Participants can register for the conference call or webcast by navigating to:
https://dpregister.com/sreg/10210687/104810a8d77
Upon registration, attendees will receive dial-in credentials and a link to the live webcast. A replay will be available on the Investor Relations page following the call.
Upcoming Investor Conferences
Sezzle management will participate in the following investor conferences:
August 13, 2026: 8th Annual Needham Virtual FinTech & Digital Transformation Conference.September 15, 2026 (morning): Oppenheimer FinTech Leaders Conference.September 15, 2026 (afternoon): FT Partners FinTech Conference.September 17, 2026: BTIG Consumer Finance Conference. The Company’s latest investor presentation will be available on its Investor Relations page ahead of the events.
Jack Fagan
Investor Relations
(651) 240-6001 [email protected] Erin Foran
Media Inquiries
(651) 403-2184 [email protected] About Sezzle Inc.
Sezzle is a forward-thinking fintech company committed to financially empowering the next generation. Through its purpose-driven payment platform, Sezzle enhances consumers' purchasing power by offering access to point-of-sale financing options and digital payment services—connecting millions of customers with its global network of merchants. Centered on transparency, inclusivity, and ease of use, Sezzle empowers consumers to manage spending responsibly, take charge of their finances, and achieve lasting financial independence.
Key Takeaways Sezzle's rally is backed by rising GMV, revenue, profits and higher 2026 guidance.Purchase frequency hit 7.1 times, while subscribers rose by 44,000 to 714,000 in the quarter.SEZL's premium valuation raises risk, but margins, AI efficiency and new products support growth. Sezzle Inc. (SEZL - Free Report) has been one of the more exciting names in buy now, pay later, and the rally in SEZL has naturally made investors ask a simple question: Is the move already done, or is there still upside left?
The stock has earned attention because the business is not just growing; it is growing profitably. That matters in a fintech market where PayPal Holdings, Inc. (PYPL - Free Report) and Shift4 Payments, Inc. (FOUR - Free Report) still draw plenty of investor focus, but where investors are rewarding companies that can show clean execution.
SEZL’s price performance has already been sharp, and that creates a higher bar. Over the past month, the company has rallied more than 37%, well ahead of its industry’s increase of 8.4%. Meanwhile, peers like PayPal Holdings and Shift4 Payments have risen 9.9% and 24.9%, respectively, while the S&P 500 composite has inched up 1.8%.
One-Month Price Performance
Image Source: Zacks Investment Research
SEZL’s Earnings Power is Driving the ThesisSezzle’s first-quarter 2026 results provide a strong foundation for the bullish case. Gross merchandise volume (GMV) rose 37.3% year over year to roughly $1.1 billion, while total revenues increased 29.2% to $135.5 million. Net income reached $51.3 million, equal to a 37.9% profit margin, and adjusted EBITDA was $71.1 million, representing a 52.5% margin.
Sezzle is not relying only on volume growth. The company is converting growth into earnings at a high rate, which gives the stock a stronger fundamental base after its rally. For a fintech company operating in a credit-sensitive category, that combination of revenue growth and profitability is especially important.
Management also raised its full-year 2026 outlook. Sezzle now expects revenue growth of 30-35%, adjusted net income of $180 million and adjusted EPS of $5.10. This guidance gives investors a clearer earnings anchor when thinking about valuation. SEZL is not a low-multiple stock after its run, but the premium looks more defensible if earnings continue scaling at this pace.
Sezzle’s Engagement Trends Point to Quality GrowthThe strongest part of Sezzle’s operating story is user engagement. Average quarterly purchase frequency increased to 7.1 times from 6.1 times a year earlier. Active consumers reached about 3.1 million, while monthly on-demand users and subscribers stood at 887,000.
This matters because higher purchase frequency can support better unit economics over time. A customer who uses Sezzle more often is more valuable than one who appears only at checkout once or twice. The company’s subscriber base also continues to move in the right direction, with subscribers rising by 44,000 in the quarter to 714,000.
That subscriber focus is central to the investment thesis. Sezzle is prioritizing users with higher lifetime value, stronger repeat behavior and better engagement across the platform. This should help reduce dependence on one-time transactions and create a more durable revenue stream.
Product Expansion Adds Upside Optionality for SEZLSezzle is also widening its product set beyond its original Pay-in-4 offering. Pay-in-5, enhanced long-term lending, the virtual card in Canada and Sezzle Mobile all add more ways for consumers to use the platform. These products may not all become major profit drivers immediately, but they increase the number of touchpoints between Sezzle and its customers.
The company is also using AI to improve efficiency. Its AI support chatbot is resolving roughly 60-70% of chats without escalation, while internal tools are being used across chargebacks, support, business intelligence and engineering. That operating discipline is important because it supports margin expansion while the business continues to grow.
SEZL’s Estimate Revisions Depict a Bright OutlookOver the past week, earnings estimates for both 2026 and 2027 have been revised marginally upward, signaling a bullish outlook from analysts. These figures also suggest year-over-year growth of 42.06% and 25.74%, respectively.
Image Source: Zacks Investment Research
Valuation is the Main Risk for SEZLThe main concern is valuation. SEZL’s rally has already priced in a lot of optimism, so the company needs to keep delivering strong quarters. The stock trades at 8.88X forward 12-month sales per share versus 5.00X for the Zacks sub-industry. This is no longer cheap, but it looks fair for a fintech growing revenue around 30% to 35% and producing strong adjusted EBITDA.
On the other hand, PYPL trades at 1.14X forward 12-month sales per share, while FOUR trades near 1.44X forward 12-month sales per share.
Image Source: Zacks Investment Research
Competition also remains a watch item, especially as PayPal and Shift4 Payments continue shaping investor expectations for BNPL and digital payments. Still, Sezzle’s current momentum is being driven by its own execution rather than broad sector enthusiasm alone.
Conclusion: SEZL Still Looks Like a BuySEZL has already rallied hard, but the move does not look empty. Sezzle is growing GMV, expanding revenue, lifting guidance, improving engagement and producing strong profits. Valuation is no longer cheap after the rally, and that raises the need for consistent execution. PayPal and Shift4 Payments remain important BNPL and payments peers, yet Sezzle offers a cleaner, high-growth, high-margin story.
Guidance, margins and subscriber growth support the view that the business can grow into its higher expectations. With earnings momentum still strong and multiple growth levers in place, SEZL remains a Buy for investors comfortable with volatility. Estimate revisions also echo a similar sentiment, and therefore, for investors, the recent rally looks justified rather than excessive.
At present, SEZL carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. But finding a great growth stock is not easy at all.
That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.
However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.
Sezzle Inc. (SEZL - Free Report) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank.
Research shows that stocks carrying the best growth features consistently beat the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).
While there are numerous reasons why the stock of this company is a great growth pick right now, we have highlighted three of the most important factors below:
Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Sezzle Inc. is 380%, investors should actually focus on the projected growth. The company's EPS is expected to grow 42% this year, crushing the industry average, which calls for EPS growth of 14.9%.
Cash Flow GrowthCash is the lifeblood of any business, but higher-than-average cash flow growth is more beneficial and important for growth-oriented companies than for mature companies. That's because, high cash accumulation enables these companies to undertake new projects without raising expensive outside funds.
Right now, year-over-year cash flow growth for Sezzle Inc. is 92.6%, which is higher than many of its peers. In fact, the rate compares to the industry average of -2.3%.
While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 43.7% over the past 3-5 years versus the industry average of 13.7%.
Promising Earnings Estimate RevisionsBeyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
There have been upward revisions in current-year earnings estimates for Sezzle Inc.. The Zacks Consensus Estimate for the current year has surged 0.2% over the past month.
Bottom LineWhile the overall earnings estimate revisions have made Sezzle Inc. a Zacks Rank #2 stock, it has earned itself a Growth Score of A based on a number of factors, including the ones discussed above.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination indicates that Sezzle Inc. is a potential outperformer and a solid choice for growth investors.
For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Innventure, Inc. (INV - Free Report) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Business Services sector should help us answer this question.
Innventure, Inc. is one of 247 companies in the Business Services group. The Business Services group currently sits at #6 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Innventure, Inc. is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for INV's full-year earnings has moved 33.2% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, INV has returned 15.3% so far this year. Meanwhile, stocks in the Business Services group have lost about 6.9% on average. This shows that Innventure, Inc. is outperforming its peers so far this year.
Another Business Services stock, which has outperformed the sector so far this year, is Sezzle Inc. (SEZL - Free Report) . The stock has returned 188.7% year-to-date.
The consensus estimate for Sezzle Inc.'s current year EPS has increased 8.2% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Innventure, Inc. is a member of the Technology Services industry, which includes 121 individual companies and currently sits at #107 in the Zacks Industry Rank. On average, this group has lost an average of 4.6% so far this year, meaning that INV is performing better in terms of year-to-date returns.
Sezzle Inc., however, belongs to the Financial Transaction Services industry. Currently, this 37-stock industry is ranked #50. The industry has moved -8.5% so far this year.
Investors interested in the Business Services sector may want to keep a close eye on Innventure, Inc. and Sezzle Inc. as they attempt to continue their solid performance.
Sezzle (SEZL +0.48%) has almost tripled year to date as its buy now, pay later platform continues to attract new users and more engagement from existing customers. The fintech company looks like it still has more room to run thanks to solid top-line growth and expanding profit margins.
Image source: Getty Images.
Sezzle is winning over younger generations Sezzle is an alternative to credit cards that splits purchases into interest-free installment plans. It's free for consumers who pay on time, with merchant fees being Sezzle's main revenue engine.
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This setup makes it convenient for younger users looking for ways to make expenses more manageable and who are more comfortable with alternatives to credit. Sezzle told investors that 24.5% of its users are 18-29 years old, with an additional 56.8% of its active customers aged 30-48.
Most of Sezzle's customer base skews younger, which may set the foundation for continued financial outperformance. Revenue increased by 29.2% year over year in the first quarter thanks to that large user base, and those results prompted Sezzle to increase its full-year 2026 guidance across key metrics, like revenue and net income.
The guidance changes were pretty meaningful. Sezzle now anticipates 30% to 35% year-over-year revenue growth throughout 2026, up from its prior guidance of 25% to 30%. These gains are built on a 48.4% year-over-year increase in active subscribers, who get extended payment flexibility, exclusive rewards, and other perks in their monthly plans.
High net income growth supports an attractive valuation Sezzle's high revenue growth also came with even stronger net income growth, with that figure standing at 41.9% year over year in Q1. That growth has resulted in a forward P/E ratio of 19, which presents a good buying opportunity. Sezzle had a forward P/E ratio above 50 just a year ago.
That earnings momentum could continue thanks to Sezzle's new products. Sezzle recently unveiled enhanced long-term lending, a pay-in-5 option, the Sezzle Mobile Plan, and virtual cards in Canada.
The mobile plan is $29.99 per month and is only available to Sezzle Anywhere members who already pay $19.99 per month. These mobile plans help Sezzle integrate itself more into daily spending and may lead to new products in the future.
Sezzle is even in the process of becoming a shopping and engagement platform that uses agentic artificial intelligence to make product recommendations. This strategy could increase how often people use Sezzle, and more engagement often translates into more transactions.
Sezzle combines high growth rates and attractive margins with a reasonable valuation and long-term tailwinds. Even though the fintech stock has rallied considerably, it still looks like a compelling pick.
Sezzle remains a buy as robust Q1 results and raised guidance showcase accelerating growth, profitability, and cash generation. SEZL's disciplined underwriting, high user engagement, and new subscription-based offerings drive superior margins and operating leverage versus BNPL peers. Management's evolution strategy aims to diversify revenue with new financial products and a rewards-driven ecosystem, boosting engagement and long-term monetization.
Sezzle CEO and Executive Chairman Charlie Youakim appeared on CNBC’s Squawk Box on Friday, June 26, to argue that the buy-now-pay-later sector is pulling market share from legacy regional and community banks and credit unions that never built the digital-first payment rails that younger consumers now expect. “The losses are coming from these nonpublic companies… they just don’t have the technological solutions,” he said in the segment.
Sezzle (NASDAQ:SEZL) stock is up over 150% since the beginning of 2026 and up over 50% in the last month. The company’s market cap now sits near $5.36 billion.
The Bank Displacement Thesis Youakim’s central claim is that BNPL is taking wallet share from institutions that don’t have the technology stack to engage Gen Z and younger millennials. He pointed to Sezzle’s own app data as evidence the consumer remains healthy at the lower end, and said 70% of Sezzle’s customer base is 40 and under. He added that the cohort skews slightly older each year as customers stay with the product, a retention signal that supports the company’s lifetime-value pitch.
Youakim also framed BNPL as a structurally safer credit alternative to revolving credit cards because the product halts further purchases the moment a customer misses a payment. That circuit-breaker design, in his view, is one reason Sezzle’s loss curve has tightened even as GMV scales.
In Q1 2026, Sezzle posted $135.54 million in revenue, up 29.2% year over year, adjusted EPS of $1.43, and net income of $51.30 million, up 41.9%. GMV reached roughly $1.10 billion, active subscribers grew 48.4%, and average quarterly purchase frequency hit a company-record 7.1x.
Sezzle’s Pure-Play Short Duration Lending Differs from Affirm and Klarna Youakim drew a sharp line between Sezzle’s model and those of larger BNPL names. He described Sezzle as a “pure play” short-duration lender, with biweekly pay-in-five and 6- to 8-week loans that turn over multiple times a year. That structure, he argued, supports stronger return on equity and margins than longer-tenor installment books. He noted Affirm’s BNPL product is about 15% of its business, with the rest being long-duration installment lending, and grouped Klarna alongside Affirm on the long-duration side.
Sezzle’s reported financials support the margin angle. Operating margin runs at 61%, return on equity sits at 91.9%, and provision for credit losses improved to 1.2% of GMV from 1.6% a year earlier. Management has raised full-year guidance, now targeting revenue growth of 30-35%, adjusted net income of $180.0 million, and adjusted EPS of $5.10.
What To Watch Next Sezzle trades at a forward P/E of 19, with an average analyst price target of $134.33, which is well below the stock’s current price of $167.73. Investors interested in the business might consider tracking the company’s pending bank charter application, the rollout of Sezzle Mobile and Agentic Commerce in Canada, and credit performance as the loan book scales.
It’s important to keep in mind that CEO Youakim is a founder in the BNPL sector and probably carries some degree of bias. BNPL still carries real consumer credit exposure, is facing expanding regulatory scrutiny, and is facing active antitrust litigation against Shopify, all factors that could complicate the displacement story if the macro turns.
Sezzle (SEZL) has surged over 60% since mid-May, continuing its strong market performance. My bullish outlook on SEZL remains unchanged, with even more compelling reasons to be optimistic. SEZL stands out as a leading BNPL brand, capturing significant investor attention and momentum.
Sezzle (SEZL) has delivered a 146% stock surge, vastly outperforming the benchmark's 9% gain since my last update. The market is now rewarding SEZL with a higher earnings multiple, reflecting strong top and bottom-line growth expectations. I continue to view SEZL as fairly cheap, with further upside potential and developing positive catalysts supporting the bull case.
On June 18, 2026, Sezzle Inc SEZL shares rose 11.4% today, reaching a current price of $163.28. The stock has seen a remarkable price performance with a 52-week range between $49.50 and $186.74.
GF Value™ verdict: Current price of $163.28 is 125.8% above the GF Value™ estimate of $72.31, indicating significant overvaluation.GF Score™ of 61/100 suggests that Sezzle Inc is rated as "Above Average," which could imply a reasonable potential for future growth.Most notable signal: Insider activity shows that insiders sold $7.9M worth of shares in the last three months with no buying recorded. Is SEZL Overvalued or Undervalued? According to the GF Value™, Sezzle Inc is currently overvalued. The current price of $163.28 is significantly above the GF Value™ estimate of $72.31, translating to a 125.8% overvaluation. This indicates a lack of margin of safety for new investors, as buying at this level could expose them to heightened risks should the stock price correct towards its intrinsic value. The GF Valuation label classifies the stock as "Significantly Overvalued," which raises concerns about potential downside risks in the future.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. As such, the substantial gap between the current price and the GF Value™ highlights the risk of overexposure for those considering an investment at this time.
How Does SEZL's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 39.2x 22.1x Forward P/E 31.7x N/A Sezzle Inc's current P/E (TTM) of 39.2x is significantly above its 5-year median P/E of 22.1x, indicating that the stock is trading at a premium compared to its historical valuation. This P/E analysis agrees with the GF Value™ verdict, reinforcing the notion that the stock is currently overvalued based on historical trading multiples.
What Does SEZL's GF Score™ Tell Us? Metric Rating GF Score™ 61 Financial Strength 6/10 Profitability 4/10 Growth 5/10 Valuation 1/10 Momentum 7/10 The GF Score™ of 61/100 indicates that Sezzle Inc is positioned as "Above Average" in terms of its overall performance. The strongest aspect of the score is the Momentum rank at 7/10, suggesting that the stock has been performing well in the short term. However, the weakest area is the Valuation rank at 1/10, which aligns with the GF Value™ assessment. This divergence signals caution regarding the stock's long-term sustainability at its current price levels.
What Are Insiders Doing with SEZL Stock? In recent months, insider activity for Sezzle Inc has been predominantly selling, with insiders divesting $7.9 million worth of shares without any buying reported. This pattern may indicate a lack of confidence among insiders regarding the company's future performance or valuation, suggesting potential caution for external investors.
What This Means for Investors Based on the GF Value™ assessment, Sezzle Inc SEZL is currently overvalued. The significant disparity between the market price and intrinsic value, along with the concerning insider selling, suggests that caution is warranted for those considering an investment in this stock at its current valuation.
For the complete analysis, visit the Sezzle Inc SEZL stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is SEZL's GF Score™?
SEZL has a GF Score™ of 61/100, which indicates that it is rated as "Above Average" in terms of potential long-term performance.
Is SEZL overvalued or undervalued?
Sezzle Inc is currently overvalued, with a GF Value™ estimate of $72.31 compared to the market price of $163.28.
What is SEZL's P/E ratio?
The current P/E (TTM) for SEZL is 39.2x, which is 77% above its 5-year median P/E of 22.1x, indicating that the stock is trading at a premium compared to its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Investors interested in Business Services stocks should always be looking to find the best-performing companies in the group. Sezzle Inc. (SEZL - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Business Services peers, we might be able to answer that question.
Sezzle Inc. is a member of the Business Services sector. This group includes 234 individual stocks and currently holds a Zacks Sector Rank of #8. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Sezzle Inc. is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for SEZL's full-year earnings has moved 8.2% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Our latest available data shows that SEZL has returned about 103% since the start of the calendar year. Meanwhile, the Business Services sector has returned an average of -12.8% on a year-to-date basis. This means that Sezzle Inc. is performing better than its sector in terms of year-to-date returns.
One other Business Services stock that has outperformed the sector so far this year is UL Solutions Inc. (ULS - Free Report) . The stock is up 24.8% year-to-date.
The consensus estimate for UL Solutions Inc.'s current year EPS has increased 3.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Sezzle Inc. belongs to the Financial Transaction Services industry, a group that includes 35 individual companies and currently sits at #76 in the Zacks Industry Rank. This group has lost an average of 18.4% so far this year, so SEZL is performing better in this area.
In contrast, UL Solutions Inc. falls under the Business - Services industry. Currently, this industry has 20 stocks and is ranked #78. Since the beginning of the year, the industry has moved -16.6%.
Investors with an interest in Business Services stocks should continue to track Sezzle Inc. and UL Solutions Inc.. These stocks will be looking to continue their solid performance.
Shares of Klarna Group (NYSE:KLAR | KLAR Price Prediction) are up roughly 15% intraday in Thursday morning trading, changing hands near $15.80 after a prior close of $13.69. The pop comes against an otherwise quiet session for the broader buy now, pay later (BNPL) group.
By contrast, Affirm Holdings (NASDAQ:AFRM) stock is up 2% at $64.61, and Sezzle (NASDAQ:SEZL) stock is up 1% to $103.48. On a single-day basis, Klarna stock is decisively leading the BNPL pack.
Yet, the headline question deserves a more honest answer once the timeframe expands. Today’s leadership doesn’t undo what has been a difficult stretch for Klarna stock since its NYSE debut.
Reaction to Klarna’s Earnings Today’s move in Klarna stock is a reaction to the company’s Q1 2026 report. Klarna delivered a strong quarter with revenue of $1 billion (up 44% year-over-year) and adjusted operating profit of $68 million, a massive swing from $3 million in the year-ago quarter. Gross Merchandise Volume reached $33.7 billion (up 33% YoY), with US GMV up 39% and international up 31%.
Furthermore, Klarna turned the bottom line positive: operating income of $17 million versus a $90 million loss a year ago, and net income of $1 million versus a $99 million net loss. Active consumers grew to 119 million (up 21% YoY) and merchants surpassed 1 million (up 49% YoY).
The “Fair Financing” big-ticket installment product was a standout, with GMV up 138% YoY, while the Klarna Card reached 5 million active users across 16 countries. Klarna’s management reiterated full-year 2026 guidance and issued Q2 guidance of $35.5-36.5 billion GMV, $960 million to $1 billion in revenue, and adjusted operating income of $30-50 million.
Peers Tell a Very Different YTD Story Zoom out, however, and Klarna stock isn’t outperforming its peers as it’s down 46% year to date (YTD). Sezzle shares are up 59% YTD, following Sezzle’s Q1 2026 beat-and-raise that lifted its FY2026 EPS guide to $5.10.
Affirm sits in the middle. AFRM stock is down 15% YTD but up 22% over the past month following a Q3 FY2026 report that showed $1.04 billion in revenue and 35% gross merchandise volume (GMV) growth. The spread between Sezzle’s gain and Klarna’s loss YTD is quite wide — one of the widest intra-category gaps in fintech.
That divergence reflects very different business profiles. Klarna carries IPO overhang and broad European exposure, while Affirm has emerged as a focused U.S. pure-play operator.
What to Watch Next For Klarna stock, the immediate question is whether today’s bid holds into the close or fades like prior bounces. With the stock trading well below its 200-day moving average of $26.25 and a 52-week low of $12.06 still nearby, technical follow-through matters.
The bull case for KLAR stock rests on stabilizing credit costs, banking conversion progress, and a forward P/E ratio of 25x that looks reasonable if growth holds. The bear case centers on continued regulatory scrutiny and the simple fact that AFRM and SEZL are executing better right now.
Prudent investors looking at the BNPL space should weigh whether they want category exposure or operator exposure. Today’s pop in Klarna stock is real, but it doesn’t yet rewrite a YTD ranking where Sezzle remains the clear leader and Affirm the steadier middle ground. The next Klarna earnings update will be the more meaningful test.
, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Sezzle Inc. ("Sezzle" or the "Company") (NASDAQ: SEZL). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Sezzle and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On April 9, 2026, Sezzle disclosed in a filing with the U.S. Securities and Exchange Commission that it had "received a letter from Karen Webster", who served on the Company's Audit and Risk Committee, Compensation Committee, and Nominating and Corporate Governance Committee, stating that "she resigned from her position as a member of the Company's Board of Directors (the 'Board'), effective immediately." According to Sezzle, "Ms. Webster stated in her letter that her resignation resulted from a growing difference in perspective with management concerning the Company's direction, key decisions, and governance."
On this news, Sezzle's stock price fell $9.41 per share, or 13.61%, to close at $59.71 per share on April 10, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
Key Takeaways Sezzle has surged 103%, outperforming FirstCash and Mastercard as On-Demand fuels growth.MODS rose 34.8% year over yey/yar, while On-Demand lifted GMV 37.3% in the first quarter.SEZL holds a 3.65 current ratio, zero current debt, and rising 2026 sales and EPS estimates. Sezzle Inc.’s (SEZL - Free Report) stock has skyrocketed 103% over the past six months against an 8.6% dip and compared with the 13.9% jump in the Zacks S&P 500 Composite.
Meanwhile, SEZL has outperformed its industry peers; FirstCash (FCFS - Free Report) has jumped 47.5%, while Mastercard (MA - Free Report) has declined 8.4%.
6-Month Share Price PerformanceImage Source: Zacks Investment Research
The recent performance shows that SEZL outperforms FirstCash and Mastercard as well. Sezzle has gained 39.5%, beating FirstCash’s 9.9% growth and Mastercard’s 5.5% dip.
Let us delve deeper to find whether riding the rally is still worth it for investors.
SEZL Banks on On-Demand for Sustained Top-Line GrowthSezzle’s On-Demand provides users with a flexible option to Pay-in-4 wherever Visa is accepted. As of March 31, 2026, Monthly On-Demand & Subscribers (MODS) totaled 887,000, a 34.8% year-over-year increase. Seasonality risks resulted in a sequential dip in Monthly On-Demand users; however, active subscribers climbed 48.4% year over year.
On-Demand boosted the gross merchandise volume (GMV) by 37.3% year over year, backed by its popularity during the first quarter of 2026. In addition to that, average purchase frequency reached a quarterly record of 7.1X, up from 6.1X in the year-ago quarter. In the first quarter of 2026, these aforementioned vectors resulted in top-line growth of 29.2% from the year-ago quarter.
In the first quarter of 2026, marketing expenses more than doubled due to subscriber acquisition, retention and engagement. Despite this growth, the operating margin widened 3.3 percentage points, with net income expanding 3.4 percentage points. It displayed Sezzle’s ability to conduct prudent cost management, which supports On-Demand’s growth trajectory, driving the company’s top line in the long haul.
The highly recurring nature of MODS results in a robust lifetime value. Hence, it is certain that the company’s growth trajectory is dependent on its ability to win and retain On-Demand users.
SEZL’s Robust Liquidity PositionThe company maintains an outstanding liquidity position. Its current ratio stands at 3.65. While the metric showed a slight decline from the preceding quarter’s 3.92, it gained 39.3% from the year-ago quarter. The improvement is certainly due to substantial growth in SEZL’s cash chest. That being said, the company holds zero current debt, solidifying its liquidity position. A current ratio of more than 1 ensures efficient payment of short-term obligations.
Image Source: Zacks Investment Research
Sezzle’s Top & Bottom-Line Outlook Appears StrongThe Zacks Consensus Estimate for SEZL’s 2026 sales is set at $592.6 million, suggesting a 31.6% year-over-year rally, with 24.4% growth anticipated for 2027. The consensus estimate for earnings is pegged at $5.09 per share for 2026, hinting at a 41.8% year-over-year jump, and that for 2027 suggests a 23.8% rise.
Over the past 60 days, four EPS estimates for 2025 and three for 2026 have been revised upward with no downward adjustments. In the same period, the Zacks Consensus Estimate for 2025 earnings moved up 8.5%, and the 2026 estimate showed an 8.6% uptrend. These upward revisions highlight analysts' confidence.
Image Source: Zacks Investment Research
Hurry Up & Buy Sezzle NowWe recommend investors buy SEZL now because of its outstanding growth and robust financial prowess. Sezzle is witnessing a significant surge in customer wins on the back of its On-Demand payment flexibility and purchase frequency of 7.1X, resulting in an explosive top-line growth in the first quarter of 2026.
While the company recorded a significant rise in marketing expenses, cost optimization is evident from its expanding margins. A current ratio of 3.65, combined with zero current debt, demonstrates a solid liquidity profile. Sezzle’s solid top and bottom-line prospects and bullish analyst sentiment for 2026 make it a highly profitable and high-momentum investment.
SEZL currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Sezzle (SEZL) stands out as a compelling BNPL investment among recent IPOs in the sector. Modern BNPL players like AFRM and Afterpay have solved legacy financing challenges, fueling sector growth. SEZL's positioning leverages advancements in BNPL infrastructure and addresses retailer pain points.
LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz is investigating potential claims against the board of directors of Sezzle Inc. (“Sezzle” or the “Company”) (NASDAQ: SEZL) concerning whether the board breached its fiduciary duties to shareholders.
If you are a shareholder, click here to participate.
Follow us for updates on Twitter: twitter.com/FRC_LAW.
If you still hold Sezzle shares purchased before December 2024 and wish to discuss this matter with us, or have any questions concerning your rights and interests with regards to this matter, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 2121 Avenue of the Stars, Suite 800, Los Angeles, California 90067 at 310-914-5007, by email to [email protected], or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces it is investigating potential claims against the board of directors of Sezzle Inc. (“Sezzle” or the “Company”) (NASDAQ: SEZL) concerning whether the board breached its fiduciary duties to shareholders.IF YOU ARE AN SEZZLE INC. (SEZL) SHAREHOLDER, CONTACT THE LAW OFFICES OF HOWARD G. SMITH TO PARTICIPATE.Contact Us To Participate or Learn More:If you still hold Sezzle shares purchased before December 2024 and wish to discuss.
Law Offices of Howard G. Smith announces it is investigating potential claims against the board of directors of Sezzle Inc. (“Sezzle” or the “Company”) (NASDAQ: SEZL) concerning whether the board breached its fiduciary duties to shareholders.
IF YOU ARE AN SEZZLE INC. (SEZL) SHAREHOLDER, CONTACT THE LAW OFFICES OF HOWARD G. SMITH TO PARTICIPATE.
Contact Us To Participate or Learn More:
If you still hold Sezzle shares purchased before December 2024 and wish to discuss this matter with us, or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us:
Law Offices of Howard G. Smith,
3070 Bristol Pike, Suite 112,
Bensalem, Pennsylvania 19020,
Telephone: (215) 638-4847
Email: [email protected],
Visit our website at: www.howardsmithlaw.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260519665747/en/
NEW YORK, May 19, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Sezzle Inc. (“Sezzle” or the “Company”) (NASDAQ: SEZL). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Sezzle and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On April 9, 2026, Sezzle disclosed in a filing with the U.S. Securities and Exchange Commission that it had “received a letter from Karen Webster”, who served on the Company’s Audit and Risk Committee, Compensation Committee, and Nominating and Corporate Governance Committee, stating that “she resigned from her position as a member of the Company’s Board of Directors (the ‘Board’), effective immediately.” According to Sezzle, “Ms. Webster stated in her letter that her resignation resulted from a growing difference in perspective with management concerning the Company’s direction, key decisions, and governance.”
On this news, Sezzle’s stock price fell $9.41 per share, or 13.61%, to close at $59.71 per share on April 10, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
Bragar Eagel & Squire, P.C. Litigation Partner Brandon Walker Encourages Investors Who Suffered Losses In Sezzle (SEZL) To Contact Him Directly To Discuss Their Options
If you purchased or acquired stock in Sezzle and would like to discuss your legal rights, call Bragar Eagel & Squire partner Brandon Walker or Melissa Fortunato directly at (212) 355-4648.
Click here to participate in the action.
NEW YORK, May 19, 2026 (GLOBE NEWSWIRE) --
What’s Happening:
Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, is investigating potential claims against Sezzle, Inc. (“Sezzle” or the “Company”) (NASDAQ:SEZL) on behalf of Sezzle stockholders. Our investigation concerns whether Sezzle has violated the federal securities laws and/or engaged in other unlawful business practices. Investigation Details:
On April 9, 2026, Sezzle disclosed in a filing with the U.S. Securities and Exchange Commission that it had "received a letter from Karen Webster", who served on the Company's Audit and Risk Committee, Compensation Committee, and Nominating and Corporate Governance Committee, stating that "she resigned from her position as a member of the Company's Board of Directors (the ‘Board'), effective immediately." According to Sezzle, "Ms. Webster stated in her letter that her resignation resulted from a growing difference in perspective with management concerning the Company's direction, key decisions, and governance."
On this news, Sezzle's stock price fell $9.41 per share, or 13.61%, to close at $59.71 per share on April 10, 2026. Next Steps:
If you purchased or otherwise acquired Sezzle shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Melissa Fortunato by email at [email protected], by telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you. About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, South Carolina, and California. The firm represents individual and institutional investors in securities,
derivative, and commercial litigation as well as individuals in consumer protection and data privacy litigation. The firm has a nationwide practice and routinely handles cases in both federal and state courts. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Follow us for updates on LinkedIn and Facebook, and keep up with other news by following Brandon Walker, Esq. on LinkedIn.
LOS ANGELES, May 19, 2026 (GLOBE NEWSWIRE) -- The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of Sezzle Inc. (“Sezzle” or “the Company”) (NASDAQ: SEZL) for violations of the securities laws.
The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Sezzle revealed in an SEC filing on April 9, 2026, that it had received correspondence from Karen Webster, a member of its Board of Directors who served on its Audit and Risk Committee, Compensation Committee, and Nominating and Corporate Governance Committee. According to the Company, Weber stated that "she resigned from her position as a member of the Company's Board of Directors (the ‘Board'), effective immediately." The Company added, "Ms. Webster stated in her letter that her resignation resulted from a growing difference in perspective with management concerning the Company's direction, key decisions, and governance." Based on this news, shares of Sezzle fell by more than 13.6% on the next day.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
CONTACT:
The Schall Law Firm
Brian Schall, Esq.
310-301-3335 [email protected]
www.schallfirm.com
On May 19, 2026, Sezzle Inc SEZL shares rose 4.2% to a current price of $106.76. The stock has exhibited significant price performance over recent time frames, including a 68.2% increase year-to-date and a remarkable 263.4% surge over the last three years. The stock also has a 52-week range, with a high of $186.74 and a low of $49.50.
GF Value™ verdict: Shares are currently priced at $106.76, which is 51.7% above the GF Value™ of $70.36.GF Score™ of 67/100 suggests the stock is above average in quality compared to its peers.Notable signal: Insiders have sold $7.6M worth of stock in the last three months, indicating a lack of buying interest. Is SEZL Overvalued or Undervalued? According to the GF Value™, Sezzle Inc is significantly overvalued. The current price of $106.76 indicates a 51.7% premium over the estimated fair value of $70.36. This substantial margin suggests that investors might be paying too much for the stock relative to its intrinsic value. The GF Valuation label indicates that the stock is significantly overvalued, posing potential risks for new investors if the market adjusts toward the fair value in the future.
The GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Given this assessment, the high current price raises concerns about the sustainability of Sezzle Inc's valuation, especially in the context of insider selling activity.
How Does SEZL's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 25.6x 21.8x Forward P/E 21.3x N/A The current P/E (TTM) of 25.6x is 17% above its 5-year median P/E of 21.8x, indicating that Sezzle’s stock is trading at a higher valuation compared to its historical averages. This analysis aligns with the GF Value™ verdict, supporting the notion that the stock may be overvalued at its current price.
What Does SEZL's GF Score™ Tell Us? Metric Rating GF Score™ 67 Financial Strength 6/10 Profitability 4/10 Growth 5/10 Valuation 3/10 Momentum 7/10 The GF Score™ of 67/100 indicates that Sezzle Inc is above average compared to its peers. The strongest area is its momentum rank of 7/10, reflecting a positive trend in share price performance. However, the weakest area is its valuation rank of 3/10, which confirms the concerns raised by the GF Value™ assessment regarding the stock's current overvaluation.
What Are Insiders Doing with SEZL Stock? Insider activity in Sezzle Inc has shown a trend of selling, with insiders having sold $7.6 million worth of stock over the past three months without any purchases reported. This pattern often raises caution among potential investors, as it may suggest a lack of confidence in the stock's future performance or a belief that the stock is currently overvalued. The absence of insider buying further reinforces the concerns raised by the GF Value™ assessment.
What This Means for Investors Based on the analysis of GF Value™, Sezzle Inc SEZL shares are assessed to be overvalued at the current price of $106.76. With a significant margin above the estimated fair value of $70.36, potential investors should consider the associated risks. The current valuation, combined with insider selling activity, suggests a cautious approach to entering or holding this stock.
For the complete analysis, visit the Sezzle Inc SEZL stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is SEZL's GF Score™?
SEZL has a GF Score™ of 67/100, indicating that the stock is above average in quality compared to its peers.
Is SEZL overvalued or undervalued?
SEZL is currently assessed as overvalued, with a significant premium of 51.7% over its estimated GF Value™ of $70.36.
What is SEZL's P/E ratio?
SEZL's P/E (TTM) is 25.6x, which is 17% above its 5-year median of 21.8x, indicating that the stock is trading at a higher valuation compared to its historical averages.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay Wolke & Rotter LLP, a leading national shareholder rights law firm, today announced that it is investigating potential claims against the board of directors of Sezzle Inc. (“Sezzle” or the “Company”) (NASDAQ: SEZL) whether the board breached its fiduciary duties to shareholders.
IF YOU ARE AN SEZZLE INC. (SEZL) SHAREHOLDER, CLICK HERE TO PARTICIPATE.
Contact Us To Participate or Learn More:
If you still hold Sezzle shares purchased before December 2024 and wish to discuss this matter with us, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us.
Charles Linehan, Esq.,
Glancy Prongay Wolke & Rotter LLP,
1925 Century Park East, Suite 2100,
Los Angeles, California 90067
Email: [email protected]
Telephone: 310-201-9150 (Toll-Free: 888-773-9224)
Visit our website at www.glancylaw.com.
Follow us for updates on LinkedIn, Twitter, or Facebook.
Whistleblower Notice
Persons with non-public information regarding Sezzle should consider their options to aid the investigation or take advantage of the SEC Whistleblower Program. Under the program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Charles H. Linehan at 310-201-9150 or 888-773-9224 or email [email protected].
About Glancy Prongay Wolke & Rotter LLP
GPWR is a premier law firm with decades of experience representing investors and consumers in securities litigation and other complex class action litigation. Recognizing the firm’s recent successes, GPWR was named one of Law360’s Securities Groups of the Year and ranked second-highest in total investor recoveries by Institutional Shareholder Services Securities Class Action Services in 2025. GPWR’s lawyers have handled cases covering a wide spectrum of corporate misconduct and relating to nearly all industries and sectors. GPWR’s past successes have been widely covered by leading news and industry publications such as The Wall Street Journal, The Financial Times, Bloomberg Businessweek, Reuters, the Associated Press, Barron’s, Investor’s Business Daily, Forbes, and Money. Prior results do not guarantee a similar outcome.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Sezzle Inc. ("Sezzle" or the "Company") (NASDAQ: SEZL). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Sezzle and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On April 9, 2026, Sezzle disclosed in a filing with the U.S. Securities and Exchange Commission that it had "received a letter from Karen Webster", who served on the Company's Audit and Risk Committee, Compensation Committee, and Nominating and Corporate Governance Committee, stating that "she resigned from her position as a member of the Company's Board of Directors (the 'Board'), effective immediately." According to Sezzle, "Ms. Webster stated in her letter that her resignation resulted from a growing difference in perspective with management concerning the Company's direction, key decisions, and governance."
On this news, Sezzle's stock price fell $9.41 per share, or 13.61%, to close at $59.71 per share on April 10, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
NEW YORK, May 22, 2026 (GLOBE NEWSWIRE) -- Lowey Dannenberg P.C., a top complex litigation law firm, is investigating Sezzle Inc. (NASDAQ: SEZL) (“Sezzle” or the “Company”) for potential violations of the federal securities laws.
On April 9, 2026, Sezzle disclosed in a filing with the U.S. Securities and Exchange Commission that it had “received a letter from Karen Webster,” who served on the Company’s Audit and Risk Committee, Compensation Committee, and Nominating and Corporate Governance Committee, stating that “she resigned from her position as a member of the Company’s Board of Directors (the ‘Board’), effective immediately.” According to Sezzle, “Ms. Webster stated in her letter that her resignation resulted from a growing difference in perspective with management concerning the Company's direction, key decisions, and governance.”
“Our investigation concerns whether the company and its executives provided investors with accurate and complete information about the company,” said attorney Andrea Farah, Lowey Dannenberg, P.C. partner and head of the firm’s securities practice.
If you suffered a loss of more than $50,000 in SEZL securities, and wish to participate, or learn more about your eligibility, contact our attorneys Andrea Farah ([email protected]) at (914)733-7256 or Vincent R. Cappucci Jr. ([email protected]) at (914)733-7278.
About Lowey Dannenberg
Lowey Dannenberg is a national firm representing institutional and individual investors, who suffered financial losses resulting from corporate fraud and malfeasance in violation of federal securities and antitrust laws. The firm has significant experience in prosecuting multi-million-dollar lawsuits and has previously recovered billions of dollars on behalf of investors.
Attorney advertising. Prior results do not guarantee similar outcomes.
Contact
Lowey Dannenberg P.C.
44 South Broadway, Suite 1100
White Plains, NY 10601
Tel: (914) 733-7256
Email: [email protected]
Sezzle delivered a robust Q1 FY26, with 29% revenue growth, record profitability, and a 48% YoY subscriber surge, underscoring operating leverage and strategic execution. Management raised FY26 guidance (revenue growth to 30%-35%, adjusted EPS to $5.10), reflecting accelerating momentum and mid-year visibility for continued beat-and-raise performance. We rate SEZL a buy with a $147 price target, citing durable growth, platform expansion, and attractive risk/reward.
Key Takeaways DAVE's Q1 2026 new members rise 22% to 695K. Revenues rise 47% and adjusted EBITDA soars 57%.SEZL's Q1 GMV rises 37.3%. Revenues increase 29.2% (12.2% of GMV) with MODS up 34.8%.DAVE ExtraCash originations gained 7% y/y, while CashAI v5.5 helped push 28-day DPD to 1.69%. Dave (DAVE - Free Report) and Sezzle (SEZL - Free Report) are fintech companies that target consumer-oriented payments and provide banking alternatives. While DAVE focuses on cash advances, SEZL offers interest-free installment plans at online stores.
Let us delve deeper to find out which of these two stocks investors should add to their portfolios.
The Case for DAVEDave’s growth is grounded in its customer-first strategy, whereby membership expansion contributes to the company’s solid financial performance. During the first quarter of 2026, the company witnessed 22% year-over-year growth in its new members to 695,000, with monthly transacting members gaining 18% year over year. Despite this sharp growth in customer base, the company managed to keep the customer acquisition cost flat year over year at $18 flat.
The company’s customer base expansion drove its first-quarter top line by 47% year over year. This impressive growth drove the company’s adjusted EBITDA by 57% year over year. Furthermore, the bottom line gained 64% year over year. Overall, the company displayed substantial operational efficiency and profitability.
With an upsurge in customer activity, ExtraCash originations surged 37% year over year. While this solid growth increased the inherent risk of credit default, the company’s proprietary AI and machine-learning-based CashAI v5.5 catered to the heightened risk. During the first quarter of 2026, Dave’s 28-day past-due (DPD) rate dipped to a record low of 1.69% from 1.7% reported in the year-ago quarter. Subsequently, the company’s net monetization rate was at 5.1%, marking the highest level achieved over the past four years.
On the liquidity front, Dave appears to hold a solid position. The company ended the first quarter of 2026 with $176 million in cash against current debt of $75 million. Furthermore, its current ratio of 3.86 surpassed the industry average of 1.57. A current ratio of more than bodes well with investors as it signals efficiency in paying short-term obligations.
The Case for SEZLDuring the first quarter of 2026, Sezzle recorded remarkable growth of 37.3% year over year in its gross merchandise volume (GMV). This lofty growth led to a solid 29.2% year-over-year upsurge in the top line, which represented 12.2% of GMV. The top-line growth can also be attributed to a 34.8% year-over-year gain in Monthly On-Demand & Subscribers (MODS).
Sezzle’s noteworthy performance is fueled by the company’s customer-centric strategy that successfully boosted customer engagement. An improvement in average purchase frequency to 7.1X from the year-ago quarter’s 6.1X reflects the company’s solid customer engagement strategy. It demonstrates that customers do not use SEZL for one-off transactions, but rather utilize it for daily spending habits.
SEZL’s marketing expense more than doubled from the year-ago quarter. While this could have affected profitability, it improved operating income by 38.4% year over year. It highlights that the company’s ability to draw in customers is tied to its vigorous marketing spend without compromising scalability and efficiency. It led to a 48.4% year-over-year upsurge in active subscribers.
The company’s liquidity profile is a standout. As of the end of March 31, 2026, SEZL held cash amounting to $125 million with no current debt. Strength in its liquidity position is further evidenced by its current ratio of 3.65, an improvement from the preceding quarter’s 2.62. Furthermore, the metric exceeds the industry average of 1.1. That said, Sezzle’s current ratio is greater than 1, which is a green flag for investors as it signals efficiency in fulfilling short-term obligations.
How Do Estimates Compare for DAVE & SEZL?The Zacks Consensus Estimate for Dave’s 2026 revenues is $713.7 million, indicating an upside of 28.8% year over year. For 2026, the consensus mark for earnings is pegged at $15.46 per share, suggesting a 17.3% upsurge from the year-ago quarter’s actual. Over the past 60 days, three estimates for 2026 have shifted upward, with no downward revisions.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Sezzle’s 2026 sales is pinned at $592.6 million, implying a 31.6% year-over-year increase. The consensus estimate for earnings is pegged at $5.09 per share, suggesting a 41.8% jump from the year-ago quarter’s actual. Four estimates for 2026 have moved north in the past 60 days versus no southward revisions.
Image Source: Zacks Investment Research
DAVE Trades Cheaper Than SEZLSezzle is currently trading at a forward 12-month price/earnings (P/E) ratio of 18.46, which is higher than the 12-month median of 17.24. Dave trades at a 12-month P/E ratio of 13.41, which is below the 12-month median of 21.29. This comparison highlights the fact that Dave is undervalued compared to Sezzle.
Image Source: Zacks Investment Research
Verdict: DAVE is a Better BuyBoth Dave and Sezzle are outstanding stocks to add to your portfolio. However, Dave appears to be a better buy due to its superior financial growth and undervaluation. During the first quarter of 2026, DAVE outperformed SEZL with solid 47% year-over-year growth in its top line, fueled by a 22% year-over-year rise in members.
While the company experienced swift scaling, it maintained a customer acquisition cost of $18 and leveraged CashAI v5.5 to manage credit risk, resulting in a dip in its 28 DPD rate to a record low. Furthermore, Dave’s current ratio stands at 3.86, hinting at a stellar liquidity position. Notably, Dave trades at a cheaper price than SEZL, making it an undervalued gem and providing investors with a high-growth opportunity as the market realizes the stock’s true potential.
SEZL and DAVE sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a growth stock that can live up to its true potential can be a tough task.
By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.
However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects, makes it pretty easy to find cutting-edge growth stocks.
Our proprietary system currently recommends Sezzle Inc. (SEZL - Free Report) as one such stock. This company not only has a favorable Growth Score, but also carries a top Zacks Rank.
Studies have shown that stocks with the best growth features consistently outperform the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).
Here are three of the most important factors that make the stock of this company a great growth pick right now.
Earnings GrowthEarnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Sezzle Inc. is 380%, investors should actually focus on the projected growth. The company's EPS is expected to grow 41.7% this year, crushing the industry average, which calls for EPS growth of 13.9%.
Cash Flow GrowthWhile cash is the lifeblood of any business, higher-than-average cash flow growth is more important and beneficial for growth-oriented companies than for mature companies. That's because, growth in cash flow enables these companies to expand their businesses without depending on expensive outside funds.
Right now, year-over-year cash flow growth for Sezzle Inc. is 92.6%, which is higher than many of its peers. In fact, the rate compares to the industry average of -2.2%.
While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 43.7% over the past 3-5 years versus the industry average of 12.5%.
Promising Earnings Estimate RevisionsBeyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
There have been upward revisions in current-year earnings estimates for Sezzle Inc.. The Zacks Consensus Estimate for the current year has surged 8.2% over the past month.
Bottom LineSezzle Inc. has not only earned a Growth Score of A based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #1 because of the positive earnings estimate revisions.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination positions Sezzle Inc. well for outperformance, so growth investors may want to bet on it.
On May 27, 2026, Sezzle Inc SEZL shares rose 5.5% to a current price of $116.05. This recent uptick comes amidst a 52-week range that has seen the stock fluctuate between $49.50 and $186.74.
GF Value™ verdict: Current price of $116.05 is 63.9% above the GF Value™ estimate of $70.81.GF Score™: 67/100, indicating above-average performance based on GuruFocus metrics.Notable signal: Insiders sold $5.4M in shares over the last three months, with no reported purchases. Is SEZL Overvalued or Undervalued? The current price of Sezzle Inc SEZL at $116.05 is significantly above its GF Value™ estimate of $70.81, reflecting a 63.9% overvaluation. This discrepancy indicates a lack of margin of safety for potential investors, as the market price does not align with the intrinsic value calculated by GuruFocus. The GF Valuation label categorizes SEZL as "Significantly Overvalued," which raises concerns for those considering a position in the stock.
If the stock remains overvalued, there is an inherent risk of a price correction, which could negatively impact returns for those entering at current levels. Conversely, if the stock trades down towards its GF Value™, it could create a more compelling investment opportunity in the future. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
How Does SEZL's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 27.8x 21.8x Forward P/E 22.6x N/A Sezzle's current P/E ratio of 27.8x is notably higher than its 5-year median P/E of 21.8x, representing a 27% premium. This analysis suggests that SEZL is trading above its historical valuation levels, which aligns with the GF Value™ verdict of being overvalued. The elevated P/E ratio indicates that investors may be paying a premium for earnings compared to historical standards.
What Does SEZL's GF Score™ Tell Us? Metric Rating GF Score™ 67 Financial Strength 6/10 Profitability 4/10 Growth 5/10 Valuation 3/10 Momentum 7/10 The GF Score™ of 67/100 indicates a relatively strong overall performance, particularly in momentum, where the stock ranks 7/10. However, the valuation aspect scores the lowest at 3/10, reinforcing the notion that the stock is overvalued. Financial strength is rated 6/10, suggesting a moderate level of stability, while profitability and growth rank lower at 4/10 and 5/10 respectively, indicating areas for improvement.
What Are Insiders Doing with SEZL Stock? In the past three months, insider activity has seen a significant amount of selling, totaling $5.4 million, with no recorded purchases. This trend might suggest a lack of confidence from insiders regarding the stock's future performance, further indicating potential concerns about its current valuation.
What This Means for Investors Based on the current GF Value™ estimate, Sezzle Inc SEZL is classified as overvalued. The significant premium over the GF Value™ suggests caution for prospective investors, as the stock may face downward pressure in alignment with its intrinsic value.
For the complete analysis, visit the Sezzle Inc SEZL stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is SEZL's GF Score™?
SEZL has a GF Score™ of 67, indicating above-average performance based on key financial metrics.
Is SEZL overvalued or undervalued?
SEZL is currently overvalued, with a significant premium over its GF Value™ estimate of $70.81.
What is SEZL's P/E ratio?
SEZL's P/E (TTM) is 27.8x, which is 27% above its 5-year median P/E of 21.8x, indicating a higher valuation compared to its historical levels.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Minneapolis, MN, June 03, 2026 (GLOBE NEWSWIRE) -- Sezzle Inc. (NASDAQ: SEZL) (Sezzle or Company) is expanding well beyond buy now, pay later. With nearly 5 million Earn tab visits in under a year, the company is seeing proof consumers want to use Sezzle for more than just paying over time. Today, the company outlined the next phase of that evolution.
In 1Q26, Sezzle surpassed $1 billion in quarterly GMV for the second consecutive quarter, supported by a new peak purchase frequency of 7.1 times per active consumer. Active subscribers grew 48.4% year over year during the same period. On the strength of those results, the company raised its FY2026 guidance across all metrics. The results reflect a platform that consumers are engaging with more often and in more ways.
The Earn Tab
At the center of that transition is the Earn tab, within the Sezzle mobile app. Launched in June 2025, the feature lets consumers discover and claim rewards and cashback offers on everyday purchases like gas, groceries, and dining. The goal was simple: give users a reason to open Sezzle between purchases and turn that attention into a daily habit. Since launch, the Earn tab has become a daily utility for consumers and one of the most-visited features in the app.
That engagement is translating into results. Consumers who use the Earn tab generate over 20% more revenue per active user, a signal that the feature is driving incremental value on top of core BNPL volume. Today, consumers can earn through mobile games in the Sezzle Arcade, MoneyIQ financial literacy courses, and surveys, with more ways to earn on the roadmap.
“Consumers are opening our app to earn cashback on gas and groceries, not just to split a payment. This is an early sign the “super app” strategy was working. Everything we're rolling out now, points, trivia, card-linked cashback, Pay-in-5*, grew out of that signal,” said Sarah Hill, SVP of Product.
Pay-in-5: Driving Higher-Value Orders Across Merchants
As consumer spending on the platform grew, so did demand for more ways to pay. The company introduced Pay-in-5, a five-installment option at no additional cost that gives consumers more flexibility and longer repayment window. The early signal is clear: in April, average order values on Pay-in-5 ran 44% higher than Pay-in-4. That shift is drawing new merchants to the platform as well. RockAuto, one of the largest online auto parts retailers in the U.S., and Follett, the premier college campus retailer serving students at over 1,000 universities across North America, both launched with Sezzle this year.
Points and Card-Linked Cashback: Expanding the Rewards Ecosystem
With daily engagement growing, Sezzle is layering a unified rewards currency on top of the platform. The company recently launched Sezzle Points, a system that lets users accumulate points through cashback, surveys, receipts, and other everyday actions, and redeem them for gift cards from popular retailers. Points give every interaction inside the app a tangible payoff, whether a consumer is claiming an offer, completing a financial literacy lesson, or scanning a receipt.
Sezzle is also expanding its cashback network through card-linked offers, which automatically reward users when they shop with their Sezzle virtual card. These rewards stack with the in-app cashback offers already available in the Earn tab, meaning a user who claims a gas or dining offer, and also pays with their virtual card, would earn cashback from both at the same time. The end result is a boosted, layered rewards model where the more a consumer interacts with Sezzle, the more they get back.
Embedding AI Across the Platform
Sezzle is putting AI to work across the entire platform. The company's AI-powered support chatbot, complete with powerful context-connected tools, is now live for all users of Sezzle’s mobile app, already resolving 70% of inbound inquiries without a human agent with plans to expand into additional support channels. On the shopping side, Sezzle is building alongside existing user behavioral recommendation systems toward a fully agentic experience, with an AI Shopping Assistant to automatically search and surface the best prices and personalized recommendations, replacing manual search with something closer to a personal concierge. Internally, engineering has fully shifted to an AI-first model, with more than 70% of new code written with AI assistance, accelerating the speed at which new features reach consumers.
Additional Platform Launches
Sezzle Mobile: An unlimited 5G phone plan on AT&T's network, powered by Gigs, available directly in the Sezzle app. Now live for all eligible users starting at best-in-market pricing of $29.99/month for Anywhere subscribers and $39.99/month for Premium subscribers.Enhanced Long-Term Lending†: Eligible users can now split purchases into 3- to 48-month payment plans directly at checkout, extending Sezzle into longer-duration consumer lending. The product is live and rolling out in stages.Expanded Payment Processing: Sezzle has strengthened its payments backbone by adding Adyen, a global payments platform, giving merchants faster, more reliable checkout experiences and broader payment acceptance. Adyen is now live for Canadian transactions as well. Interested in hearing more about the power of Sezzle? Learn more here.
About Sezzle Inc.
Sezzle is a forward-thinking fintech company committed to financially empowering the next generation. Designed to support users throughout every stage of their financial journey, Sezzle’s all-in-one app enables users to shop, earn, and learn in a seamless experience. By offering point-of-sale financing and digital payment services, Sezzle enhances purchasing power while connecting millions of consumers with its global network of merchants. Centered on transparency, inclusivity, and ease of use, Sezzle empowers consumers to manage spending responsibly and build lasting financial independence.
For additional assets and news on Sezzle please visit https://sezzle.com/news/
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* Pay-in-5, Pay-in-4, Sezzle Virtual Card, are issued by WebBank or Sezzle. See loan agreement for details.
† Pay Monthly loans are originated by third party lenders, including WebBank. Refer to your loan agreement for details. APR ranges from 0.00%-35.99% based on creditworthiness and term length, subject to credit approval. For example, a $1,000 loan over 6 months would result in 6 monthly payments of $166.67 at 0.00% APR, $178.90 ay 24.99% APR, or $184.29 at 35.99% APR. Minimum purchase amount and down payment may be required.
‡ Unlimited data includes network management; speeds may be reduced during congestion or after high usage. 5G requires a compatible device and coverage and is not available in all areas. Actual speeds vary. Price excludes taxes/fees. Wireless service provided through Sezzle Mobile’s connectivity partners. AT&T is a trademark of AT&T Inc. and is not affiliated with or endorsing Sezzle Mobile.
