Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +23.8% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Sezzle Inc. (SEZL - Free Report) Sezzle is a technology-enabled payments company offering a digital shopping and payments platform as an alternative to traditional credit at checkout. Formed in 2016 and launching its platform in 2017, Sezzle is headquartered in Minneapolis, MN, and primarily operates in the United States and Canada, having exited India and some European markets in recent years.
SEZL is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. SEZL has a Growth Style Score of A, forecasting year-over-year earnings growth of 46% for the current fiscal year.
Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.14 to $5.24 per share. SEZL boasts an average earnings surprise of +17.4%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, SEZL should be on investors' short list.
Sezzle Inc. (SEZL - Free Report) closed the last trading session at $120.58, gaining 2.2% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $163.86 indicates a 35.9% upside potential.
The mean estimate comprises seven short-term price targets with a standard deviation of $18.38. While the lowest estimate of $139.00 indicates a 15.3% increase from the current price level, the most optimistic analyst expects the stock to surge 62.6% to reach $196.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.
However, an impressive consensus price target is not the only factor that indicates a potential upside in SEZL. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Why SEZL Could Witness a Solid UpsideThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current year, four estimates have moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 2.8%.
Moreover, SEZL currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much SEZL could gain, the direction of price movement it implies does appear to be a good guide.
Key Takeaways Sezzle adds Gymshark, Debenhams Group and Follett to expand its merchant network.Follett gives Sezzle access to 7.5 million students across more than 1,000 college retail stores.Active subscribers rose 76.4% year over year, while purchase frequency increased to 7.2 times. Sezzle, Inc. (SEZL - Free Report) expands its merchant network with three additions: Gymshark, Debenhams Group and Follett Higher Education. Gymshark now offers Sezzle at U.S. checkout, while Debenhams Group has enabled Sezzle across five brands, including Debenhams, boohoo, MAN, PrettyLittleThing and Karen Millen. Follett has rolled out Sezzle across its campus retail network, with online availability coming soon.
The Follett deal gives Sezzle exposure to more than 7.5 million students across over 1,000 college retail stores, an important channel for back-to-school spending. Debenhams broadens Sezzle's reach among fashion, home and beauty shoppers, while Gymshark adds exposure to a large fitness-focused audience.
For investors, the question is whether recognizable brands can turn checkout visibility into wider consumer use. These additions adress a range of spending needs, from activewear and fashion to textbooks and technology. That mix creates more entry points for shoppers who may not have encountered Sezzle at checkout.
The expansion follows an active second-quarter 2026. Sezzle had already added Poshmark, Gymshark, Debenhams, Brookshire's Food & Pharmacy and RockAuto.com as enterprise merchants. Active subscribers reached 854,000, up 76.4% year over year, while average purchase frequency rose to 7.2 times from 6.1 times in second-quarter 2025.
Management said On-Demand is helping Sezzle offer more competitive pricing to cost-sensitive merchants, contributing to a stronger enterprise sales funnel. Separately, the company reported strong company-wide growth in the second quarter, with gross merchandise volume rising 37.9% to $1.3 billion and revenues increasing 51.7% to $149.7 million. Management also said case studies indicate that adding a second or third BNPL provider can generate incremental sales for merchants.
How Are Its Competitors Faring?Block (XYZ - Free Report) expanded its Cash App merchant network in June 2026 as Afterpay and Cash App Pay were added at new retailers, including Instacart, Sweetgreen, Shoe Carnival, Monday Swimwear and GlassesUSA. The rollout broadened Block’s checkout presence across grocery, fashion, dining, mobility and services.
Affirm (AFRM - Free Report) expanded its Shopify partnership to Australia merchant in August 2026, launching Shop Pay Installments for eligible Australian Shopify merchants. Powered exclusively by Affirm, the service marks the company’s return to Australia and expands its international distribution. As of June 30, 2026, Affirm reported approximately 571,000 active merchants globally.
SEZL’s Price Performance, Valuation & EstimatesShares of Sezzle have outperformed in the past six 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 18.48X, which is at a discount to the Zacks Financial Transaction Services Market industry’s 18.89X.
Image Source: Zacks Investment Research
Sezzle’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for full-year 2026 EPS has been revised upward to $5.24 in the past month. The consensus estimate for the metric indicates a year-over-year increase of 45.96%.
Image Source: Zacks Investment Research
Sezzle currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Bank of America dropped a fresh price target on Affirm just as yields began to ease, and the combination sent buy-now-pay-later stocks racing ahead of a sleepy broad market. Whether the rally holds depends on a credit question Levchin himself…
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Installment-lending stocks are running well ahead of the broad market at midday Wednesday as Treasury yields retreat and a fresh price-target raise on the group’s largest name pulls peers along with it. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is up 0.5% to $765.19, a modest gain that makes the buy-now-pay-later sector’s move stand out.
Affirm Holdings (NASDAQ:AFRM | AFRM Price Prediction) stock is up 6% to $73.82, leading the group after a Bank of America (NYSE:BAC) price target raise landed late Tuesday afternoon while shares were still slipping on rates. Also higher, Sezzle (NASDAQ:SEZL) stock is up 4% to $119, bouncing off a low base after a bruising month.
PayPal Holdings (NASDAQ:PYPL) stock is up 3% to $54.14, riding the same rate backdrop. Meanwhile, Klarna (NYSE:KLAR) stock is up 2% to $14.47, rounding out the sympathy bid across the group.
Bank of America Lifts Affirm Target to $104 The catalyst came from Bank of America analyst Matthew O’Neill, who raised his 12-month price target on Affirm to $104 from $93 and kept a Buy rating. O’Neill treats Affirm’s own fiscal 2027 outlook as a conservative floor, pointing to guidance for more than $64 billion in gross merchandise volume, at least 27% growth from $50.2 billion in fiscal 2026.
O’Neill also flagged drivers sitting entirely outside guidance, including a possible bank charter, a business-to-business payments push, long-duration lending in the United Kingdom, and brand-sponsored promotions. His $104 target applies a 10x multiple to forward revenue less transaction costs, which gives the setup a specific analytical hook.
The price target raise slots into a rising cluster of Street estimates. BMO Capital moved to $101 from $86, J.P. Morgan to $105 from $90, Needham to $100, RBC Capital to $96, and Citigroup sits at $115. That range makes the current print at $74 look inexpensive relative to consensus if Affirm executes on its fiscal 2027 plan, and it explains why one analyst call could carry a 6% move on a rates-friendly day.
Why Affirm Is Outrunning Its Peers Sezzle, PayPal, and Klarna are trading up on the rate backdrop alone, since each funds receivables and benefits when yields fall or duration risk quiets down. Affirm carries that same tailwind plus a fresh target raise from a firm arguing management’s own guidance understates the underlying business. That’s the reason today’s leader is outrunning its own group by a wide margin.
Affirm’s fiscal fourth-quarter earnings report on August 27 gave the setup its foundation. The company posted gross merchandise volume of $14.1 billion, up 36%, and its revenue of $1.17 billion beat the $1.11 billion expected. Adjusted earnings came in at $4.62 per share versus $3.77 expected, and revenue less transaction costs rose 39% to $589 million, capping the company’s most profitable quarter on record.
Sezzle stock had fallen 26% over the past month through Tuesday’s close, so part of today’s move reflects a bounce from a lower base rather than the same repricing that lifts Affirm. Affirm stock itself was down 2% over the past month heading into Wednesday, meaning today’s rally recovers a portion of that drag.
What to Watch Next Affirm CEO Max Levchin told CNBC’s Squawk Box the day after earnings that “the U.S. consumer undoubtedly sees the higher gas prices, so can’t, can’t ignore that,” and that “in times of inflation, we see more demand because folks are budgeting.” The national average for regular gasoline was $4.09 a gallon on August 28.
Rising installment demand can reflect disciplined household budgeting or genuine strain, and Affirm’s credit quality over the next few quarters is what separates the two readings. Investors can watch for whether Affirm’s approval rates and 30-plus day delinquency ticks stay in check as Pay-in-X mix keeps growing. The bank credit-card delinquency rate sat at 2.85% as of April, inside the normalizing range rather than stress territory.
Traders may want to check for whether the broader group holds its bid through the close and into upcoming macro prints. Your position sizing here should reflect both the single-name analyst catalyst on Affirm and the group’s shared rate exposure across Sezzle, PayPal, and Klarna.
Contact [email protected] for any questions or corrections.
The Undercovered Dozen series spotlights 12 lesser-covered stocks featured on Seeking Alpha. This curated selection aims to provide fresh investment ideas and foster community discussion around under-the-radar equities. Readers are encouraged to engage, share perspectives, and highlight additional overlooked investment opportunities.
Minneapolis, MN, Sept. 01, 2026 (GLOBE NEWSWIRE) -- Sezzle Inc. (NASDAQ: SEZL) ("Sezzle" or "Company") — Sezzle, the digital financial platform unlocking more access to brighter financial futures, today announced three additions to its merchant network: fitness apparel leader Gymshark; leading online retail platform Debenhams Group, including Group brands Debenhams, boohoo, MAN, PrettyLittleThing, and Karen Millen; and Follett Higher Education, the largest operator of collegiate retail stores in North America. Eligible shoppers at these retailers can now choose Sezzle at checkout for more flexible payment options*.
The additions land in the middle of the busiest back-to-school season on record, across the three categories—activewear, fashion, and campus retail—where students and families are stretching budgets hardest right now.
A record season, on a tighter budget
Back-to-college spending is set to hit a record $103.5 billion this season, crossing $100 billion for the first time, according to a July National Retail Federation survey. The record totals say less about how much people are buying than about how carefully they are paying: 23% of shoppers with a list still to finish said they were deliberately spreading out their budgets. Course materials are the sharpest example — 63% of college students have skipped buying a textbook because it cost too much, according to the Education Data Initiative.
That's where Sezzle's flexible solution comes into play. Wardrobes turn over every season, and students need assigned course materials to succeed. Payments are shown in full before the order is confirmed and without a revolving credit card balance behind them, giving shoppers the flexibility to check out today and pay over time, whether that means leaving a campus store with the required text before classes begin or grabbing new gear without waiting for a paycheck to clear.
And younger shoppers already expect it: more than half of Gen Z consumers say they use buy now, pay later more often than credit cards, per Motley Fool Money's November 2025 BNPL Trends Study. Adding Sezzle at checkout meets them where they already are and gives merchants a payment option built to convert users in the season that matters most.
"Shoppers shouldn't have to choose between what they need now and what fits their budget this month," said Paul Paradis, President and cofounder at Sezzle. "Gymshark, Debenhams Group, and Follett reach millions of people across fitness, fashion, and campus life, and all three now offer a way to pay that puts shoppers in control of their cash flow. Brands of this caliber choosing Sezzle tells us the model is working; for merchants and for their customers."
Dan Finley, CEO of Debenhams Group, said: “Giving customers more choice is central to how we’re building Debenhams Group – from the breadth of products and brands they can discover, to the way they choose to shop and pay. With millions of customers across our brands, we know there’s no one-size-fits-all approach. Adding Sezzle gives our customers greater flexibility at checkout, making it even easier to shop the brands they love in the way that suits them.”
New Merchants at a Glance
Gymshark: Fitness apparel and accessories brand founded in 2012, serving a global fitness community. Sezzle is now available at checkout on Gymshark.com in the U.S. Debenhams Group: A leading online retail platform serving millions of customers across fashion, home and beauty. Sezzle is now available at checkout across the Group’s five brands: Debenhams, boohoo, MAN, PrettyLittleThing, and Karen Millen. Follett Higher Education: Sezzle is live in Follett-operated campus stores across the country, with online availability rolling out soon, giving over 7.5 million students across 1,000+ college retail stores a flexible way to pay for course materials, tech, and collegiate gear. Start shopping
Shoppers can choose Sezzle at checkout now at Gymshark, across Debenhams Group's brands, and in Follett campus stores, or browse thousands of participating brands in the Sezzle store directory at sezzle.com/shop. Download the Sezzle app on iOS or Android to shop, track payments, and earn rewards.
Are you a retailer? The busiest shopping season is coming up fast. Give shoppers a way to pay that fits their budget, before the rush hits. Learn more at sezzle.com/merchants.
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
*Loans issued by Sezzle and third party lenders, including WebBank. Refer to your loan agreement for lender information. All loans are subject to credit approval.
SoFi (SOFI -5.84%) and Sezzle (SEZL -1.33%) are two of the better-known emerging fintech players. SoFi has been around longer, but Sezzle's explosive returns during the past five years have put it on the map.
SoFi aims to offer traditional banking services at a discount due to its online model, while Sezzle is a buy now, pay later (BNPL) platform that is looking to diversify. Here's what investors should know if they only want to invest in these stocks.
Image source: Getty Images.
Sezzle is growing faster Most growth investors like to start by looking at year-over-year trends for revenue and net income. If these numbers increase at an accelerated rate, it can pave the way for higher stock returns.
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Although both companies are growing nicely, Sezzle is the clear winner. Its Q2 results revealed 52% year-over-year revenue growth, compared to SoFi's 43% growth rate.
It isn't just a one-quarter fluke, either. Sezzle has a five-year revenue compound annual growth rate (CAGR) of 50%, while SoFi has a 39% CAGR during that stretch. The numbers are similar when looking at the past three years as well.
Growth seems to be picking up for Sezzle; it reached 854,000 active subscribers in the second quarter, a 76% year-over-year increase. SoFi is also gaining subscribers at a nice rate, but its 35% year-over-year member growth rate isn't as impressive.
SoFi is more diversified SoFi offers a wide range of financial services. You can open a bank account, take out a loan, get credit cards, invest in stocks, and access other financial resources. Sezzle has been diversifying, but almost all of its revenue still comes from its BNPL model.
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Sezzle makes money from merchant fees and subscription plans that give members more perks. The subscription plans let Sezzle offer more flexibility to navigate consumer markets, but any meaningful slowdown in the BNPL industry will hurt Sezzle. The company doesn't have backup businesses like SoFi, which managed to perform well and diversify nicely when student loan payments were paused by the federal government during the pandemic.
Being a one-trick pony isn't necessarily a bad thing. Meta Platforms has become one of the world's most valuable publicly traded companies almost exclusively because of ads on its social media sites. Meta is trying to diversify, but ads are still the defining category.
It's the same setup for Sezzle, but the company has been working toward becoming an all-in-one financial platform.
Sezzle is currently seeking a federal bank charter so it won't be caught off guard if states tighten rules around BNPL. States aren't trying to ban BNPL, but new regulations can limit future growth. For instance, New York passed the BNPL Act, which caps interest rates at 16%.
Sezzle has the better valuation Sezzle is less diversified than SoFi, but it's attracting many consumers to its BNPL platform. Just as SoFi figured out how to turn a student loan business into a fintech platform, Sezzle can use its initial BNPL successes as a launchpad for future businesses.
SoFi is ahead of Sezzle in that regard, but if you look at current valuations, Sezzle is more attractive. It trades at a price-to-earnings (P/E) ratio of 26 compared to SoFi's P/E ratio of almost 39. Sezzle's lower valuation goes nicely with higher financial growth rates.
It primarily comes down to whether you prioritize diversification or high revenue growth. Sezzle is growing faster, but SoFi's diversification will be extremely valuable if the BNPL industry slows down.
Also, Sezzle only projected 35% year-over-year revenue growth in full-year 2026, implying a meaningful slowdown in the second half. While Sezzle has a history of beating and raising expectations, it's worth monitoring growth rates to see if they taper off quickly. This explains why Sezzle, which shed more than 20% of its value in August, is still up by more than 80% year to date.
SoFi may be safer, but investors willing to take on more risk in exchange for faster growth may want to consider Sezzle. If the company beats and raises its forecast after reporting Q3 earnings, that might reignite the stock's momentum.
Key Takeaways SezzleCash lets eligible subscribers access advances and repay through Pay-in-4 or Pay-in-5.Nearly 10% of eligible new subscribers made an advance their first Sezzle Anywhere transaction.Sezzle is fine-tuning underwriting and marketing as it tests repeat, profitable usage without higher losses. Sezzle Inc. (SEZL - Free Report) is expanding beyond traditional BNPL with SezzleCash, a new cash-advance product designed to meet consumers’ short-term liquidity needs. Available to eligible Sezzle Anywhere subscribers, the cash-advance product allows consumers to access funds and repay over time through Pay-in-4 or Pay-in-5, plus a service fee. Unlike traditional Sezzle transactions, SezzleCash addresses an everyday liquidity need independent of checkout, potentially giving Sezzle a new way to participate in more of consumers’ financial lives.
Early adoption is encouraging. The average advance was approximately $165, while nearly 10% of eligible new subscribers requested an advance as their first Sezzle Anywhere transaction. This suggests SezzleCash could attract consumers who may not have entered the ecosystem through shopping-related products. Sezzle’s subscriber base reached 854,000 in the second quarter of 2026, up 76.4% year over year, creating a large audience for cross-selling.
The strategic opportunity extends beyond transaction volume. Sezzle believes products such as SezzleCash and Sezzle Send can increase wallet share, subscriber acquisition and retention, app engagement and the overall value of Sezzle Anywhere. With purchase frequency and repeat usage already rising, adding financial use cases could give consumers more reasons to remain active within the ecosystem even when they are not shopping.
Still, SezzleCash remains an early-stage opportunity rather than a proven earnings driver. Management is cautiously fine-tuning underwriting and marketing, and financial year 2026 guidance assumes no material upside from SezzleCash. The ultimate test will be whether early adoption translates into repeat, profitable usage without significantly increasing credit losses.
How Are SEZL’s Competitors Faring?Block’s (XYZ - Free Report) Cash App Borrow is a strong SezzleCash competitor, offering short-term liquidity within a broader payments ecosystem. In June 2026, Cash App had 59 million monthly transacting actives. Cash App consumer lending originations rose 59% year over year to $18.9 billion, driven largely by Cash App Borrow.
Dave’s (DAVE - Free Report) ExtraCash directly competes in short-term cash access. In the second quarter of 2026, ExtraCash originations rose 27% year over year to $2.3 billion, while the ExtraCash Monetization Rate Net of Losses expanded nearly 9 basis points to 4.8%. The 28-day past-due rate improved 6% to 2.12%.
SEZL’s Price Performance, Valuation & EstimatesShares of Sezzle have outperformed the S&P 500 Index over the past three months, but underperformed the broader industry.
Image Source: Zacks Investment Research
From a valuation standpoint, Sezzle shares have a Value Score of D. In terms of forward 12-month P/E, SEZL stock is trading at 19.13X, which is at a premium to the Zacks Financial Transaction Services Market industry’s 19.09X.
Image Source: Zacks Investment Research
Sezzle’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for full-year 2026 EPS has been revised upward to $5.24 in the past month. The consensus estimate for the metric indicates a significant year-over-year increase.
Image Source: Zacks Investment Research
Sezzle currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
BlackRock Inc. acquired a new position in Sezzle Inc. (NASDAQ:SEZL – Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm acquired 2,543,246 shares of the company’s stock, valued at approximately $436,497,000. BlackRock Inc. owned 7.56% of Sezzle at the end of the most recent reporting period.
Several other large investors have also bought and sold shares of the company. Vestcor Inc purchased a new stake in shares of Sezzle in the 3rd quarter worth approximately $29,000. Covestor Ltd grew its stake in shares of Sezzle by 109.4% in the fourth quarter. Covestor Ltd now owns 490 shares of the company’s stock worth $31,000 after acquiring an additional 256 shares during the last quarter. Empowered Funds LLC bought a new position in shares of Sezzle during the fourth quarter valued at $33,000. Versant Capital Management Inc increased its holdings in shares of Sezzle by 245.9% during the second quarter. Versant Capital Management Inc now owns 256 shares of the company’s stock valued at $44,000 after acquiring an additional 182 shares in the last quarter. Finally, Strengthening Families & Communities LLC purchased a new position in shares of Sezzle in the 4th quarter worth about $49,000. 2.02% of the stock is owned by institutional investors.
Insider Activity In other news, COO Amin Sabzivand sold 6,930 shares of the stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $179.91, for a total value of $1,246,776.30. Following the transaction, the chief operating officer owned 259,780 shares in the company, valued at $46,737,019.80. This represents a 2.60% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Lee Dickson Brading sold 10,000 shares of the firm’s stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $178.23, for a total transaction of $1,782,300.00. Following the completion of the transaction, the chief financial officer directly owned 296,931 shares in the company, valued at approximately $52,922,012.13. The trade was a 3.26% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 83,750 shares of company stock valued at $13,136,775 in the last quarter. 49.49% of the stock is currently owned by insiders.
Wall Street Analysts Forecast Growth A number of brokerages recently issued reports on SEZL. Zacks Research upgraded shares of Sezzle from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, May 27th. Keefe, Bruyette & Woods dropped their target price on shares of Sezzle from $190.00 to $155.00 and set a “market perform” rating on the stock in a research note on Friday, August 7th. Freedom Capital upgraded shares of Sezzle to a “hold” rating in a report on Wednesday, June 24th. Needham & Company LLC reissued a “buy” rating and set a $172.00 price target on shares of Sezzle in a research report on Thursday, August 20th. Finally, TD Cowen upgraded Sezzle from a “hold” rating to a “buy” rating and set a $165.00 price target for the company in a research note on Monday, August 10th. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat, Sezzle currently has an average rating of “Moderate Buy” and an average price target of $146.50. Check Out Our Latest Research Report on SEZL
Sezzle Price Performance NASDAQ SEZL opened at $124.08 on Wednesday. The stock has a market capitalization of $4.18 billion, a price-to-earnings ratio of 26.97 and a beta of 6.76. Sezzle Inc. has a 1-year low of $49.50 and a 1-year high of $195.71. The company has a debt-to-equity ratio of 0.52, a current ratio of 4.02 and a quick ratio of 4.02. The business’s fifty day moving average price is $156.38 and its 200-day moving average price is $109.30.
Sezzle (NASDAQ:SEZL – Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The company reported $1.13 EPS for the quarter, topping the consensus estimate of $1.03 by $0.10. The company had revenue of $149.68 million during the quarter, compared to analyst estimates of $135.09 million. Sezzle had a return on equity of 83.48% and a net margin of 30.35%.Sezzle has set its FY 2026 guidance at 5.250-5.250 EPS. On average, equities analysts predict that Sezzle Inc. will post 5.24 earnings per share for the current year.
About Sezzle (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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Sezzle is rated a strong buy after a 34% post-earnings drop, despite maintaining robust 30% H2 2026 revenue growth guidance. SEZL's subscription-driven BNPL model delivers operational leverage, predictable recurring revenue, and improved credit risk management versus peers. Recent credit agreement lowers financing costs to SOFR + 3.86%, supporting future net income and margin expansion.
Key Takeaways SEZL to launch Sezzle Send in August, letting users transfer money by phone number with 2 payment options.Over 100,000 users in waitlist, while recipients can receive funds without being existing Sezzle users. Management's 2026 guidance assumes zero contribution from Sezzle Send, leaving upside dependent on adoption. Sezzle Inc. (SEZL - Free Report) is pushing beyond checkout financing with Sezzle Send, a peer-to-peer money transfer product scheduled for an August launch. Users can send money by phone number and choose Pay-in-Full or Pay-in-5, while recipients receive the full amount upfront. Management sees each transfer as a potential introduction to Sezzle, broadening its role in everyday financial activity.
The growth angle is clear. Sezzle said more than 100,000 users had already joined the Send waitlist. This is because recipients do not need to be existing Sezzle users, the product could create a low-cost acquisition channel driven by customers themselves. Anywhere subscribers also avoid the Pay-in-5 service fee, which could support subscriber conversion.
That matters because Sezzle already has strong customer momentum. Active subscribers reached 854,000 in the second quarter, up 76.4% year over year, while average quarterly purchase frequency rose to a record 7.2 times from 6.1 times. MODS increased 31.3% to 982,000, giving Send a broader potential customer reach.
Sezzle also has room to test the economics. Second-quarter revenues rose 51.7% to $149.7 million, GMV increased 37.9% to $1.3 billion and net income reached $40.8 million. Marketing spend climbed to $19.4 million, yet management said customer acquisition payback remained under six months.
Still, Send is not yet reflected into the financial outlook. Management said 2026 guidance assumes zero contribution from Sezzle Send and little impact from SezzleCash. Sezzle expects 35% revenue growth for the year, adjusted net income of $185 million and adjusted earnings per share (EPS) of $5.25, leaving upside dependent on adoption.
How Are Others Faring in the Payments Space?Klarna Group plc (KLAR - Free Report) launched instant peer-to-peer payments across 13 European countries in January 2026, allowing users to send money to friends and family using phone numbers, emails, QR codes or saved contacts. The feature expands Klarna beyond BNPL toward everyday digital banking and initially supports transfers between Klarna users.
Block’s (XYZ - Free Report) Cash App expanded pay-over-time financing beyond merchant checkout in April 2026, allowing eligible customers to convert recent peer-to-peer transfers to friends and family into short-term installment plans. The feature extends pay-over-time flexibility to everyday money movement, with P2P transfers of $25 or more made within the previous 30 days qualifying for the plan.
SEZL’s Price Performance, Valuation & EstimatesShares of Sezzle have outperformed in the past six 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 20.12X, which is at a premium to the Zacks Financial Transaction Services Market industry’s 19.62X.
Image Source: Zacks Investment Research
Sezzle’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for full-year 2026 EPS has been revised upward to $5.24 in the past month. The consensus estimate for the metric indicates a year-over-year increase of 45.96%.
Image Source: Zacks Investment Research
Sezzle currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Takeaways Sezzle pairs subscription-led engagement and product expansion with strong revenue and profit growth.SoFi brings scale, deposits and a broad financial ecosystem, but some business trends remain uneven.Sezzle rallied 63% in six months, while its rival gained 2.7%, with a lower forward P/E multiple. Sezzle Inc. (SEZL - Free Report) and SoFi Technologies, Inc. (SOFI - Free Report) are both trying to turn a single financial relationship into a broader digital-finance habit. Each uses technology, data, recurring engagement and cross-selling to deepen customer ties, and both are expanding beyond the products that first made them known. That common playbook is why investors often place them in the same high-growth fintech conversation.
The difference is where each company starts and how complex the growth engine has become. Sezzle remains centered on payments and short-duration consumer financing, but it is layering subscriptions, cash advances, money transfers, rewards and merchant partnerships onto that base. SoFi already operates a much wider ecosystem spanning deposits, lending, investing, payments, technology services, crypto and business banking.
Sezzle offers a more focused execution story, while SoFi offers greater scale and diversification. The key question is whether focus and faster operating momentum outweigh the benefits of SoFi’s broader financial platform.
The Case for SEZLSezzle’s growth engine is becoming more repeatable, not simply larger. The company is using subscriptions to turn occasional checkout users into higher-frequency customers. Active subscribers reached 854,000 in the second quarter, up 76.4% year over year, while average quarterly purchase frequency climbed to a record 7.2 times.
This engagement matters because Sezzle is widening the reasons customers return. SezzleCash gives eligible Anywhere subscribers access to short-term liquidity, while Sezzle Send extends the brand into peer-to-peer transfers. Unlike SoFi’s already broad financial app, Sezzle is adding adjacent products to a simpler core, which may make execution easier to track.
The merchant side is also improving. New enterprise wins included Poshmark, Gymshark, Debenhams, Brookshire’s and RockAuto. Management says On-Demand pricing helps it compete for merchants with tighter economics. More merchants can increase consumer utility, while more subscribers can improve the economics Sezzle brings to those merchant relationships.
Growth has not required sacrificing profitability. Second-quarter revenues rose 51.7%, while net income increased 47.7% year over year. Management also kept marketing payback below six months even after sharply increasing spending. This combination suggests Sezzle can invest aggressively when returns justify it, then moderate spending when efficiency begins to weaken.
Sezzle still faces credit, regulatory and execution risks, especially as it moves beyond checkout financing. Yet compared with SoFi, its smaller platform gives new products more room to move the needle. If subscription growth, engagement and disciplined customer acquisition remain intact, Sezzle has a credible path to compound from a much smaller base.
The Case for SOFISoFi’s case starts with scale and breadth. It ended the second quarter with 15.8 million members and 24.4 million products, while 51% of new products were opened by existing members. The cross-product rate supports the idea that one financial relationship can lead to several others across the same app.
The platform is also becoming more diverse. Financial Services and Technology Platform revenues together represented 46% of adjusted net revenues, and SoFi keeps adding investing, crypto, business banking and subscription features. Its August expansion into private-market funds gives members another reason to keep assets inside the ecosystem, something Sezzle cannot yet match.
SoFi’s banking structure is another advantage. Deposits reached $45.5 billion, providing relatively low-cost funding and supporting recurring net interest income. The loan platform business also lets SoFi originate for third parties, giving management flexibility between balance sheet growth and more capital-light fee revenues.
Still, the broader model brings more moving parts. Lending remains a major earnings driver, exposing SoFi to credit cycles and funding conditions. Technology Platform revenues fell 23% year over year, even as enabled accounts improved sequentially. As such, strong consolidated growth does not mean every engine is accelerating together.
Compared with Sezzle, SoFi offers greater diversification, a larger customer base and established financial infrastructure. It also has operational complexity and a larger base from which to grow. Cross-selling momentum is encouraging, but investors need evidence that newer businesses can offset variability in lending and technology services. This keeps the long-term story attractive, yet less clear-cut than Sezzle’s current trajectory.
How Do Estimates Compare for SEZL & SOFI?The Zacks Consensus Estimate for Sezzle’s 2026 and 2027 sales calls for year-over-year growth of 35.30% and 24.53%, respectively. The consensus estimates for both 2026 and 2027 EPS have been revised notably upward over the past 30 days, and the figures suggest a year-over-year increase of 45.96% and 27.10%, respectively.
For Sezzle:
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SoFi’s 2026 and 2027 sales implies year-over-year growth of 35.52% and 20.16%, respectively. Over the past month, estimates for SOFI’s 2026 and 2027 EPS have been revised marginally upward. The consensus mark for 2026 and 2027 EPS suggests a year-over-year increase of 53.85% and 34.86%, respectively.
For SoFi Technologies:
Image Source: Zacks Investment Research
Price Performance and Valuation of SEZL & SOFIOver the past six months, Sezzle shares have rallied 63%, while SoFi shares have just risen 2.7%. In comparison, the S&P 500 composite has advanced 11.5% in the same time frame.
Image Source: Zacks Investment Research
SEZL is trading at a forward 12-month price-to-earnings of 20.02X, which is ahead of its one-year median of 17.24X. Meanwhile, SOFI is presently trading at a forward 12-month price-to-earnings of 25.41X, which is below its one-year median of 29.81X.
On a 12-month price-to-earnings basis, Sezzle currently has the more favorable comparison. The single multiple does not capture differences in the business mix, balance sheet structure or growth duration, but it does show investors are paying more for each dollar of SoFi’s profit.
Sezzle’s faster recent revenue growth and higher net margin make its lower multiple notable, although its smaller scale and narrower business justify some caution. SoFi’s premium can be defended by its banking platform and diversification, but the gap raises the bar for future execution.
Image Source: Zacks Investment Research
ConclusionBoth companies have fintech growth stories, but they offer different types of exposure. SoFi brings scale, deposits, lending depth and a wide product set, yet its broader model also creates more dependencies and uneven segment trends. Sezzle is smaller and riskier, but its subscription-led engagement, expanding product set, customer-acquisition economics and faster profit growth make the current setup more compelling. The valuation comparison strengthens that view rather than creating it.
For investors choosing between the two now, Sezzle looks like the stronger name to consider for fresh capital, while SoFi looks better suited for investors already comfortable keeping their position.
While SEZL carries a Zacks Rank #2 (Buy), SOFI has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways Block pairs Square and Cash App scale with improving momentum, but customer growth remains steadier.Sezzle posted Q2 revenue growth of 51.7%, GMV growth of 37.9% and a 76.4% jump in active subscribers.Block trades at 17.57X forward earnings versus Sezzle at 20.02X, highlighting a valuation gap. Block, Inc. (XYZ - Free Report) and Sezzle Inc. (SEZL - Free Report) are both trying to make everyday financial activity easier, but they approach that goal from very different starting points. Each stock combines payments with consumer finance, depends on repeat engagement and is using new products to deepen customer relationships. Both are also leaning on technology and data to improve underwriting, distribution and operating efficiency.
The difference is scale and focus. Block operates two large ecosystems, Square and Cash App, with Afterpay adding a buy-now-pay-later layer. Meanwhile, Sezzle remains much smaller and more concentrated around installment payments and a growing subscription model.
Block offers broader exposure to merchants, consumers, banking products and bitcoin, but that breadth can make growth harder to accelerate. Sezzle has fewer moving parts, yet its smaller base gives new products and user gains more room to move the needle. For investors, the choice comes down to durability versus faster execution rather than simply comparing two payment companies.
The Case for XYZBlock’s strongest argument is the breadth of its network. Square serves sellers, Cash App serves consumers, and Neighborhoods is beginning to connect both sides more directly. In August, Block said Neighborhoods had added 30,000 sellers, while participating sellers represented $1 billion of annualized GPV by June. That cross-ecosystem link is something Sezzle cannot yet match at a similar scale.
Square is also showing better operating momentum. Second-quarter 2026 GPV and gross profit each rose 13% year over year, while U.S. GPV growth reached its strongest pace since 2023. Partnerships with OpenTable and Google can make Square more useful in restaurants, where software, payments, ordering and customer data increasingly need to work together. These integrations may strengthen retention without depending only on payment volume.
Cash App remains a meaningful growth engine, with second-quarter gross profit up 31%. Lending, commerce, Cash App Card, Afterpay and new hardware such as Tags give Block several ways to deepen engagement. Management also says AI is speeding product development, which could help the company ship features faster across a much larger customer base.
Still, Block’s scale creates a tougher comparison. Cash App monthly transacting actives grew only 3% in June, and management expects low-single-digit growth for 2026. Sezzle, by contrast, is expanding users and engagement much faster from a smaller base. Block looks financially stronger and strategically broader, but its next leg depends on proving that ecosystem integration can translate into consistently faster customer growth and better engagement across both sides of its network overall.
The Case for SEZLSezzle’s case starts with a simpler growth engine. The company is turning installment payments into a broader consumer-finance platform, while subscriptions give it a recurring relationship that Block’s Afterpay business does not emphasize in the same way. Active subscribers reached 854,000 in the second quarter, up 76.4% year over year, and quarterly purchase frequency rose to a record 7.2 times.
That engagement is feeding both volume and revenues. Second-quarter Gross Merchandise Volume (“GMV”) increased 37.9% to $1.3 billion, while revenues rose 51.7% to $149.7 million. Repeat usage represented 97.2% of orders, suggesting growth is not coming only from customer acquisition. Sezzle is also keeping marketing discipline, with management saying customer acquisition spending still produced payback within six months.
New products widen the opportunity. SezzleCash gives subscribers short-term liquidity outside a normal checkout, and Sezzle Send extends the platform into peer-to-peer transfers. Management said nearly 10% of eligible new subscribers used SezzleCash for their first Sezzle Anywhere transaction, while Sezzle Send had about 100,000 users on its waitlist before launch. However, neither product contributes much to current guidance.
This matters because Sezzle is already growing faster than Block without relying on those initiatives. However, the risks are clear as credit products can raise losses, and a smaller company has less room for execution mistakes. Yet Sezzle’s rising subscriber base, higher purchase frequency, enterprise merchant wins and expanding product set create multiple paths for continued growth. Compared with Block’s broader but slower user expansion, Sezzle currently offers the cleaner operating momentum.
How Do Estimates Compare for XYZ & SEZL?The Zacks Consensus Estimate for Block’s 2026 and 2027 sales implies year-over-year growth of 7.71% and 10.66%, respectively. Over the past month, estimates for XYZ’s 2026 and 2027 EPS have been revised upward. The consensus mark for 2026 and 2027 EPS suggests a year-over-year increase of 70.04% and 26.57%, respectively.
For Block:
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Sezzle’s 2026 and 2027 sales calls for year-over-year growth of 35.30% and 24.53%, respectively. The consensus estimates for both 2026 and 2027 EPS have been revised notably upward over the past 30 days, and the figures imply a year-over-year increase of 45.96% and 27.10%, respectively.
For Sezzle:
Image Source: Zacks Investment Research
Price Performance and Valuation of XYZ & SEZLOver the past six months, Block shares have gained 28.9%, while Sezzle shares have surged 63%. In comparison, the S&P 500 composite has advanced 11.5% in the same time frame.
Image Source: Zacks Investment Research
SEZL is trading at a forward 12-month price-to-earnings of 20.02X, which is ahead of its one-year median of 17.24X. Meanwhile, XYZ is presently trading at a forward 12-month price-to-earnings of 17.57X, which is below its one-year median of 29.45X.
On forward earnings, Sezzle carries a premium, and that premium reflects faster revenue, subscriber and GMV growth but raises the execution bar. Block’s lower multiple offers more room if Square and Cash App growth improves, while Sezzle needs to sustain strong operating momentum. On forward P/E alone, Block is cheaper, but Sezzle’s growth profile helps justify part of the difference.
Image Source: Zacks Investment Research
ConclusionBlock remains a high-quality fintech platform with valuable consumer and merchant ecosystems, improving profitability, and several promising links between Square and Cash App. While its user growth is steadier, the company still needs to show that its broader product set can drive stronger expansion at scale.
Sezzle carries more execution and credit risk, but its subscriber growth, engagement, product launches and merchant momentum are moving faster. That makes Sezzle more compelling for investors seeking fintech exposure now. Block still merits patience from existing shareholders, while Sezzle offers the stronger combination of current growth and visible operating catalysts.
While SEZL carries a Zacks Rank #2 (Buy), XYZ has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
I initiate coverage of Sezzle with a strong buy and a price target of $169 per share. My main growth drivers are subscriber growth, higher purchase frequency, SezzleCash, Sezzle Send, enterprise merchant expansion and AI-driven monetization. Together, I have estimated that these drivers can add $2.08 of incremental EPS and take adjusted EPS from management's 2026 guidance of $5.25 to about $7.33 in 2027.
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.
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 task of finding cutting-edge growth stocks is made easy 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.
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.
Research shows that stocks carrying the best growth features consistently beat the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.
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. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Sezzle Inc. is 331.1%, investors should actually focus on the projected growth. The company's EPS is expected to grow 46% this year, crushing the industry average, which calls for EPS growth of 15.2%.
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 -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 12.6%.
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 2.8% over the past month.
Bottom LineWhile the overall earnings estimate revisions have made Sezzle Inc. a Zacks Rank #1 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 positions Sezzle Inc. well for outperformance, so growth investors may want to bet on it.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Key Takeaways Sezzle's AI chatbot deflected 68% of consumer inbounds and achieved higher satisfaction than human agents.AI shopping assistant drove a 3.6 times higher product click rate and reached 80% of Sezzle Anywhere users.AI developed 88% of new code as developer productivity rose 20% quarter over quarter. Sezzle Inc. (SEZL - Free Report) is pushing AI deeper into its business, and the early numbers suggest the effort is affecting customer service and internal productivity. In the second quarter of 2026, the company reported that its AI support chatbot deflected 68% of consumer inbounds and achieved higher customer satisfaction than human agents.
The consumer side is showing gains. Sezzle’s AI shopping assistant generated a 3.6 times higher product click rate than the control group and was live for 80% of Sezzle Anywhere users. Management plans to expand the tool to all consumers, tying AI more closely to engagement and shopping activity.
Inside the company, AI is increasingly integrated into daily operations. Sezzle reported that 88% of new code was AI-developed, while 30% of merged code received an added AI review layer. Developer productivity rose 20% quarter over quarter, and 98% of support tickets were automatically graded through its AutoQA process.
These efficiency gains come as Sezzle is growing. In the second quarter of 2026, revenues rose 51.7% year over year to $149.7 million, while adjusted EBITDA reached $58 million with a 38.8% margin. Active subscribers increased 76.4% to 854,000, and average quarterly purchase frequency climbed to a record 7.2 times.
Management is also using AI to speed product development. Sezzle said the upcoming Sezzle Send product was built largely with AI by a small team in weeks rather than months. Sezzle Send already had approximately 100,000 prospective users on its wait list, giving investors another data point to watch, as AI moves from support tools into product creation.
How Are Its Competitors Faring?Klarna Group plc (KLAR - Free Report) is pushing AI beyond customer support and into the core of its payments and shopping operations. The company is using AI to automate service, personalize recommendations, improve marketing and raise employee productivity. Its AI assistant quickly became a major service channel, handling about two-thirds of customer-service chats within its first month.
Affirm (AFRM - Free Report) is embedding artificial intelligence across underwriting, servicing, engineering, pricing and merchant promotions, making AI a broader operating tool rather than a standalone feature. Its AdaptAI platform uses real-time data to tailor financing incentives and improve conversion, with early deployments producing nearly a 10% incremental improvement in merchant conversion rates.
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 19.1X, which is at a premium to the Zacks Financial Transaction Services Market industry’s 18.85X.
Image Source: Zacks Investment Research
Sezzle’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for full-year 2026 EPS has been revised upward to $5.24 in the past month. The consensus estimate for the metric indicates a year-over-year increase of 45.96%.
Image Source: Zacks Investment Research
Sezzle currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Takeaways SEZL's active subscribers reached 854,000 in Q2 2026, up 76.4% year over year.Subscriber purchase frequency hit a 7.2 times and subscribers averaged eight more orders than non-subscribers.New products gained traction as ~10% of eligible new subscribers used SezzleCash for their first transaction. Sezzle Inc.’s (SEZL - Free Report) subscriber engine delivered its strongest quarter yet in the second quarter of 2026. Active subscribers reached 854,000, up 76.4% year over year, while the company added 140,000 net new subscribers. Management said this was its largest quarterly subscriber gain since launching the subscription program, showing that subscription model is scaling.
Subscriber growth is translating into heavier usage. Average quarterly purchase frequency rose to a record 7.2 times from 6.1 times in prior-year quarter. Sezzle reported that subscribers place about eight more orders per quarter, on average, than non-subscribers. Management views subscribers as its highest lifetime-value users, linking subscriber growth to stronger engagement.
The company is adding more reasons for customers to stay subscribed. SezzleCash gives eligible Anywhere subscribers access to short-term cash advances, while Sezzle Mobile offers an unlimited wireless plan starting at $29.99. Card-linked offers, rewards, beta-product access and fee-free Sezzle Send for Anywhere users are also designed to make subscriptions harder to leave.
Marketing played a role. Sezzle spent $19.4 million on marketing in second quarter, more than double the $8.8 million spent a year earlier. Management said customer acquisition remained within its target of a payback period of under six months. That gives Sezzle room to keep investing, although executives expect lower marketing spending in the third quarter of 2026.
New products could support the next leg of growth. Nearly 10% of eligible new Anywhere subscribers used SezzleCash for their first transaction. Sezzle Send also had more than 100,000 users on its waitlist, creating another potential channel for attracting customers beyond the company’s traditional buy-now-pay-later offering.
How Are Affirm & Klarna Growing Their Users?Affirm’s (AFRM - Free Report) user base is expanding as more consumers adopt its flexible payment services for everyday purchases. A larger active-user population can strengthen engagement, repeat usage and brand familiarity, making Affirm a significant Sezzle competitor in overall consumer reach. In third-quarter fiscal 2026, Affirm reported 26.8 million active customers.
Klarna Group plc (KLAR - Free Report) maintains a substantially larger global user community, giving it broad consumer visibility across payments and shopping services. Its growing active-user base suggests strong adoption and frequent interaction, supporting Klarna’s competitive position against Sezzle in attracting and retaining consumers. In second-quarter 2026, Klarna reported 120 million active consumers worldwide.
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 19.36X, which is at a premium to the Zacks Financial Transaction Services Market industry’s 18.84X.
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 $5.24 in the past month. The consensus estimate for the metric indicates a year-over-year increase of 45.96%.
Image Source: Zacks Investment Research
Sezzle currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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Stock to Watch: Sezzle Inc. (SEZL - Free Report) Sezzle Inc. is a technology-enabled payments company offering a digital shopping and payments platform as an alternative to traditional credit at checkout. Formed in 2016 and launching its platform in 2017, Sezzle is headquartered in Minneapolis, MN, and primarily operates in the United States and Canada, having exited India and some European markets in recent years.
SEZL is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. SEZL has a Growth Style Score of A, forecasting year-over-year earnings growth of 46% for the current fiscal year.
Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.15 to $5.24 per share. SEZL boasts an average earnings surprise of +17.4%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, SEZL should be on investors' short list.
California State Teachers Retirement System lifted its position in Sezzle Inc. (NASDAQ:SEZL – Free Report) by 65.1% in the first quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 28,262 shares of the company’s stock after purchasing an additional 11,145 shares during the quarter. California State Teachers Retirement System owned 0.08% of Sezzle worth $1,789,000 at the end of the most recent quarter.
Other institutional investors have also recently modified their holdings of the company. Royal Bank of Canada raised its holdings in shares of Sezzle by 429.0% during the 1st quarter. Royal Bank of Canada now owns 132,361 shares of the company’s stock valued at $4,618,000 after buying an additional 107,340 shares in the last quarter. AQR Capital Management LLC lifted its position in Sezzle by 3,973.6% in the 1st quarter. AQR Capital Management LLC now owns 34,626 shares of the company’s stock worth $1,208,000 after buying an additional 33,776 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in Sezzle by 2,241.4% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 30,906 shares of the company’s stock worth $1,078,000 after buying an additional 29,586 shares in the last quarter. Millennium Management LLC boosted its stake in Sezzle by 321.7% in the first quarter. Millennium Management LLC now owns 115,525 shares of the company’s stock worth $4,031,000 after buying an additional 88,127 shares in the last quarter. Finally, Goldman Sachs Group Inc. boosted its stake in Sezzle by 1,068.2% in the first quarter. Goldman Sachs Group Inc. now owns 169,487 shares of the company’s stock worth $5,913,000 after buying an additional 154,978 shares in the last quarter. 2.02% of the stock is currently owned by institutional investors.
Insider Activity In related news, CFO Lee Dickson Brading sold 10,000 shares of the company’s stock in a transaction on 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 directly owned 296,931 shares in the company, valued at $52,922,012.13. This represents a 3.26% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Justin Krause sold 3,178 shares of the stock in a transaction on Wednesday, May 27th. The shares were sold at an average price of $117.72, for a total transaction of $374,114.16. Following the sale, the senior vice president directly owned 72,457 shares of the company’s stock, valued at $8,529,638.04. The trade was a 4.20% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 86,928 shares of company stock valued at $13,510,889 in the last three months. Corporate insiders own 49.49% of the company’s stock.
Analyst Ratings Changes Several research firms have commented on SEZL. B. Riley Financial reissued a “buy” rating on shares of Sezzle in a research note on Friday, August 7th. Keefe, Bruyette & Woods cut their price objective on shares of Sezzle from $190.00 to $155.00 and set a “market perform” rating for the company in a research note on Friday, August 7th. Freedom Capital raised shares of Sezzle to a “hold” rating in a report on Wednesday, June 24th. Oppenheimer cut shares of Sezzle from an “outperform” rating to a “market perform” rating in a research report on Monday, June 29th. Finally, Needham & Company LLC boosted their price target on shares of Sezzle from $166.00 to $172.00 and gave the stock a “buy” rating in a research note on Friday, August 7th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $146.50.
Check Out Our Latest Report on Sezzle
Sezzle Price Performance SEZL opened at $125.44 on Thursday. The company has a debt-to-equity ratio of 0.52, a current ratio of 4.02 and a quick ratio of 3.65. The stock’s 50 day simple moving average is $157.51 and its 200 day simple moving average is $105.77. The firm has a market cap of $4.22 billion, a price-to-earnings ratio of 27.27 and a beta of 6.76. Sezzle Inc. has a 1 year low of $49.50 and a 1 year high of $195.71.
Sezzle (NASDAQ:SEZL – Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The company reported $1.13 earnings per share for the quarter, beating the consensus estimate of $1.03 by $0.10. The firm had revenue of $149.68 million during the quarter, compared to the consensus estimate of $135.09 million. Sezzle had a return on equity of 83.48% and a net margin of 30.35%.Sezzle has set its FY 2026 guidance at 5.250-5.250 EPS. As a group, analysts predict that Sezzle Inc. will post 5.24 earnings per share for the current year.
About Sezzle (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.
See Also Five stocks we like better than Sezzle GE Vernova’s AI Power Boom Faces a Profit Test Cardinal Health Earnings: Can Perfection Get Priced In Twice? Nebius’ Q2 Beat Shows the AI Bottleneck Is Capacity, Not Demand Legacy Jet Builders Stall While Embraer Accelerates to New Highs Want to see what other hedge funds are holding SEZL? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Sezzle Inc. (NASDAQ:SEZL – Free Report).
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Charles Youakim, executive chairman and CEO of Sezzle Inc. (SEZL -2.21%), disposed of 6,978 shares of common stock on August 10, according to a recent SEC Form 4 filing.
Transaction summaryMetricValueTransaction value$823,404Shares sold (directly held)6,978Post-transaction shares14,802,150Post-transaction shares (directly held)12,346,326Post-transaction shares (indirectly held)2,455,824Transaction value based on SEC Form 4 weighted average sale price ($118.00); post-transaction value based on the August 10 market close ($118.00).
Key questionsWhat initiated this stock disposition?
The transaction was a non-discretionary forfeiture of 6,978 shares to meet tax withholding requirements triggered by the vesting of restricted stock units. This type of automated disposal is a standard part of equity compensation management and occurs independently of the insider's market outlook.What is the current distribution of the CEO's ownership?
Youakim maintains a position of 12.3 million shares directly and 2.5 million shares indirectly. The indirect holdings are held through Cerro Gordo LLC and another entity where the reporting person is deemed to have voting and dispositive power. Collectively, these holdings represent approximately 44% of the company.How has the stock performed relative to this transaction?
The shares were priced at $118.00 at the time of the tax withholding on August 10. As of that date, Sezzle had generated a one-year return of 30%, with the stock subsequently priced at $128.27 as of the August 11 market close.Company OverviewMetricValueShare Price (as of market close 2026-08-11)$128.27Market Capitalization$4.3 billionRevenue (TTM)$531.9 millionNet Income (TTM)$161.4 millionCompany SnapshotSezzle Inc. operates a tech-powered point-of-sale financing platform that enables consumers to divide purchases into four equal, interest-free installments across e-commerce and physical retail channels in the United States and Canada.The company generates revenue through merchant fees charged to retailers and businesses that use its payment platform, capturing a percentage of the transaction volume processed through its network.Sezzle targets digitally-native consumers and merchants seeking flexible payment solutions, with primary customers including online retailers and brick-and-mortar establishments seeking to increase conversion rates and average order values.Sezzle Inc. operates as a fintech-enabled payment platform with a market capitalization of $4.3 billion, demonstrating significant scale with TTM revenue of $531.9 million and net income of $161.4 million. The company's competitive positioning centers on its frictionless buy-now-pay-later (BNPL) model, which differentiates it through interest-free installment structures and omnichannel deployment capabilities. With 201 employees and operations spanning North America, Sezzle has established itself as a material participant in the consumer credit services sector, leveraging technology infrastructure to facilitate merchant-consumer transactions at scale.
What this transaction means for investorsA founder who controls 44% of his company having 6,978 shares withheld for taxes is as close to a nonevent as an insider filing gets. The stranger story is the stock itself, which fell roughly 30% the same week on a quarter that, by the numbers, looked excellent.
Sezzle grew second-quarter revenue 52% to $150 million, lifted gross merchandise volume 38% to a record $1.3 billion, grew subscribers 76%, and raised full-year guidance for the third time this year. And the stock still cratered. The reason sits in the second-half outlook: Management is deliberately pulling back marketing spend and guiding revenue yield lower into year-end, so investors who had priced in relentless acceleration got moderation instead. Youakim himself framed the new products as steps toward "an all-in-one financial platform" for consumers. The lesson buried in that drop is that this is a stock priced for perfection, with a beta near seven, so a strong quarter with a merely good outlook can still trigger a 28% fall, which tells you more about the risk in owning Sezzle than any tax withholding by its founder ever could.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Sezzle. The Motley Fool has a disclosure policy.
Chief Operating Officer Amin Sabzivand disposed of 6,973 shares of Sezzle Inc. (SEZL -2.21%) on August 10, according to a recent SEC Form 4 filing.
Transaction summaryMetricValueTransaction value$822,814Shares sold6,973Post-transaction shares (directly held)252,807Post-transaction value$29.8 millionTransaction value based on SEC Form 4 weighted average sale price ($118.00); post-transaction value based on the August 10 market close ($118.00).
Key questionsWhat was the structural nature of this transaction?
The disposition of 6,973 shares was non-discretionary and occurred automatically to meet tax withholding obligations triggered by the vesting of restricted stock units.What is the current scale of Amin Sabzivand's equity exposure?
Following this automatic liquidation, the Chief Operating Officer holds 252,807 shares of common stock directly, representing a market value of $29.8 million as of the August 10 market close.How has the equity performed leading up to this vesting event?
As of the August 10 transaction date, the company's shares had achieved a roughly 30% total return over the preceding 12-month period.How significant was this liquidation relative to the total position?
The reduction of 6,973 shares accounted for 3% of the executive's total direct holdings, leaving the vast majority of the vested equity compensation intact.Company OverviewMetricValueShare Price (as of market close 2026-08-11)$128.27Market Capitalization$4.3 billionRevenue (TTM)$531.9 millionNet Income (TTM)$161.4 millionCompany SnapshotSezzle Inc. operates a tech-powered point-of-sale financing platform that enables consumers to divide purchases into four equal, interest-free installments across e-commerce and physical retail channels in the United States and Canada.The company generates revenue through merchant fees charged to retailers and businesses that use its payment platform, capturing a percentage of the transaction volume processed through its network.Sezzle targets digitally-native consumers and merchants seeking flexible payment solutions, with primary customers including online retailers and brick-and-mortar establishments seeking to increase conversion rates and average order values.Sezzle Inc. operates as a fintech-enabled payment platform with a market capitalization of $4.3 billion, demonstrating significant scale with TTM revenue of $531.9 million and net income of $161.4 million. The company's competitive positioning centers on its frictionless buy-now-pay-later (BNPL) model, which differentiates it through interest-free installment structures and omnichannel deployment capabilities. With operations spanning North America, Sezzle has established itself as a material participant in the consumer credit services sector, leveraging technology infrastructure to facilitate merchant-consumer transactions at scale.
What this transaction means for investorsSabzivand wasn’t alone in making this kind of transaction on Monday; the same vesting, same day, same tax withholding was noted in filings from others, including the company's founder. Sabzivand kept nearly 253,000 shares, so the slice taken for taxes leaves his position essentially whole, and again, this wasn’t a discretionary move.
More important for long-term investors, the company behind the filing just posted the kind of quarter that should have sent shares up and instead sent them down some 30%. Sezzle grew revenue 52% to $150 million, hit a record $1.3 billion in volume, and raised full-year guidance, yet the stock fell hard because management signaled slower growth ahead. As chief operating officer, Sabzivand oversees the engine at the center of that decision, since the deceleration is partly self-imposed, with the company deliberately pulling back marketing spend in the second half after testing how hard it could push in the second quarter. CFO Lee Brading told analysts the company "will not grow for growth's sake." That choice, spending less to protect margins rather than chasing every last sale, is the real question for Sezzle holders because it trades near-term growth the market clearly wanted for a discipline that may serve the business better over time. The good news is the business is executing, and expectations now seem reset.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Sezzle. The Motley Fool has a disclosure policy.
Brading Lee Dickson, the chief financial officer of Sezzle Inc. (SEZL -2.21%), disposed of 1,405 shares of common stock on August 10, according to an SEC Form 4 filing.
Transaction summaryMetricValueTransaction value$165,790Shares sold1,405Post-transaction shares (directly held)285,000Post-transaction value$33.64 millionTransaction value based on SEC Form 4 weighted average sale price ($118.00); post-transaction value based on the August 10 market close ($118.00).
Key questionsWhat was the structural nature of this disposition?
The sale was non-discretionary, executed solely to cover tax obligations arising from equity compensation vesting, and does not reflect the insider's elective view on the stock's valuation.What is the scale of the CFO's remaining equity exposure?
Dickson maintains a direct stake of about 285,000 shares.How does this transaction compare to the company's financial performance?
The $165,790 transaction occurred against a backdrop of $531.9 million in trailing twelve-month revenue and $161.4 million in net income, during a period where the stock recorded a roughly 30% return for the year ending August 10.Company OverviewMetricValueShare Price (as of market close 2026-08-11)$128.27Market Capitalization$4.3 billionRevenue (TTM)$531.9 millionNet Income (TTM)$161.4 millionCompany SnapshotSezzle Inc. operates a tech-powered point-of-sale financing platform that enables consumers to divide purchases into four equal, interest-free installments across e-commerce and physical retail channels in the United States and Canada.The company generates revenue through merchant fees charged to retailers and businesses that utilize its payment platform, capturing a percentage of transaction volumes processed through its network.Sezzle targets digitally-native consumers and merchants seeking flexible payment solutions, with primary customers including online retailers and brick-and-mortar establishments seeking to increase conversion rates and average order values.Sezzle Inc. operates as a fintech-enabled payment platform with a market capitalization of $4.3 billion, demonstrating significant scale with TTM revenue of $531.9 million and net income of $161.4 million. The company's competitive positioning centers on its frictionless buy-now-pay-later (BNPL) model, which differentiates it through interest-free installment structures and omnichannel deployment capabilities. With 201 employees and operations spanning North America, Sezzle has established itself as a material participant in the consumer credit services sector, leveraging technology infrastructure to facilitate merchant-consumer transactions at scale.
What this transaction means for investorsThe tiniest of the five Sezzle insider filings this week belongs to its finance chief, who had 1,405 shares withheld for taxes, a footnote to the vesting that also touched the CEO and COO, among others, the same day. There is nothing to interpret in a routine withholding this small.
What the CFO's own quarter showed is a company getting more efficient as it grows, which is the crux of the Sezzle debate. Revenue rose 52% to $150 million while adjusted EBITDA margin reached nearly 39%, and management pointed to AI doing real work, with a support chatbot handling 68% of customer inquiries. Combine that growth and margin and Sezzle clears the "Rule of 40" that investors use to judge software and fintech businesses, by a wide margin. Yet the stock fell close to 30% on the report, because the market wanted faster growth, rather than a company easing off the gas to protect profitability. That is the tension the numbers can't currently settle. Sezzle is choosing durable margins over maximum growth, and the sell-off is the market's verdict that, for now, it would rather have the growth. For long-term investors, that’s not necessarily bad news, though, especially if the firm executes from here.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Sezzle. The Motley Fool has a disclosure policy.
Justin Krause, SVP of finance and controller of Sezzle Inc. (SEZL -2.21%), disposed of 1,571 shares of common stock on August 10, according to a recent SEC Form 4 filing.
Transaction summaryMetricValueTransaction value$185,378Shares sold1,571Post-transaction shares (directly held)70,841Post-transaction value$8.4 millionTransaction value based on SEC Form 4 weighted average sale price ($118.00); post-transaction value based on the August 10 market close ($118.00).
Key questionsWhat was the primary driver of this transaction?
The sale was non-discretionary, executed to cover tax obligations associated with the vesting of previously awarded equity, and does not reflect the insider's view on the company's valuation or prospects.What is the scale of the insider's remaining equity position?
Following this disposition, Krause holds 70,841 shares directly, which corresponds to a 0.21% ownership stake in Sezzle.How has the stock performed leading into this vesting event?
As of the August 10 transaction date, Sezzle common stock had delivered a one-year return of roughly 30%.What is the current market valuation of the executive's holdings?
Based on the August 11 market close of $128.27, the remaining direct position is valued at approximately $9.1 million.Company OverviewMetricValueShare Price (as of market close 2026-08-11)$128.27Market Capitalization$4.3 billionRevenue (TTM)$531.9 millionNet Income (TTM)$161.4 millionCompany SnapshotSezzle Inc. operates a tech-powered point-of-sale financing platform that enables consumers to divide purchases into four equal, interest-free installments across e-commerce and physical retail channels in the United States and Canada.The company generates revenue through merchant fees charged to retailers and businesses that use its payment platform, capturing a percentage of the transaction volume processed through its network.Sezzle targets digitally-native consumers and merchants seeking flexible payment solutions, with primary customers including online retailers and brick-and-mortar establishments seeking to increase conversion rates and average order values.Sezzle Inc. operates as a fintech-enabled payment platform with a market capitalization of $4.3 billion, demonstrating significant scale with TTM revenue of $531.9 million and net income of $161.4 million. The company's competitive positioning centers on its frictionless buy-now-pay-later (BNPL) model, which differentiates it through interest-free installment structures and omnichannel deployment capabilities. With 201 employees and operations spanning North America, Sezzle has established itself as a material participant in the consumer credit services sector, leveraging technology infrastructure to facilitate merchant-consumer transactions at scale.
What this transaction means for investorsThis past week has been a wild ride for Sezzle stock, which traded at $118 the day this vesting hit and was back near $128 a day later after a roughly 30% drop that followed due to disappointing guidance. Against that whipsaw, Krause's 1,571 shares withheld for taxes are noise, and he’s one of several insiders whose stock vested on the same date.
What actually determines where Sezzle goes is buried under the volatility. The company grew revenue 52% to $150 million and subscribers 76% to 854,000 last quarter, and its model works by advancing cash to those shoppers and collecting in four installments. That is enormously profitable while people keep paying, which makes credit quality the metric that matters most for a lender of this kind, more than the growth rates that grab the headlines.
So the durable question for Sezzle is not what its executives withheld for taxes but whether a fast-growing book of short-term consumer loans holds up if household finances weaken, since that is what a buy-now-pay-later business ultimately runs on. For now, however, the firm is clearly executive, even if cautious guidance temporarily rattled investors.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Sezzle. The Motley Fool has a disclosure policy.
Paul Paradis, a director and president of Sezzle Inc. (SEZL -2.21%), disposed of 7,110 shares of common stock at $118.00 per share on August 10, according to a recent SEC Form 4 filing.
Transaction summaryMetricValueTransaction value$838,980Shares sold7,110Post-transaction shares~1.1 millionPost-transaction shares (directly held)~390,000Post-transaction shares (indirectly held)~737,000Post-transaction value~$133.01 millionTransaction value based on SEC Form 4 weighted average sale price ($118.00); post-transaction value based on the August 10 market close ($118.00).
Key questionsWhat was the specific nature of this transaction?
The disposition was a non-discretionary event where 7,110 shares were forfeited to Sezzle to meet tax withholding obligations arising from the vesting of restricted stock units.How is the remaining equity stake structured?
Paradis’ total interest of roughly 1.1 million shares is divided between 390,000 shares held directly and 737,000 shares held indirectly through a spouse and other disclaimed beneficial interest entities.What is the current valuation of the insider's position?
Based on the August 11 market close of $128.27, the total position is valued at approximately $144.6 million, reflecting a period where the stock delivered a roughly 30% return over the year ending on the transaction date.What is the current operational profile of Sezzle?
Sezzle Inc. is a Minneapolis-based financial technology company operating in the United States and Canada. It provides a payment platform that connects consumers and businesses through interest-free installment plans at e-commerce and retail locations.Company OverviewMetricValueShare Price (as of market close 2026-08-11)$128.27Market Capitalization$4.3 billionRevenue (TTM)$531.9 millionNet Income (TTM)$161.4 millionCompany SnapshotSezzle Inc. operates a tech-powered point-of-sale financing platform that enables consumers to divide purchases into four equal, interest-free installments across e-commerce and physical retail channels in the United States and Canada.The company generates revenue through merchant fees charged to retailers and businesses that use its payment platform, capturing a percentage of the transaction volume processed through its network.Sezzle targets digitally-native consumers and merchants seeking flexible payment solutions, with primary customers including online retailers and brick-and-mortar establishments seeking to increase conversion rates and average order values.Sezzle Inc. operates as a fintech-enabled payment platform with a market capitalization of $4.3 billion, demonstrating significant scale with TTM revenue of $531.9 million and net income of $161.4 million. The company's competitive positioning centers on its frictionless buy-now-pay-later (BNPL) model, which differentiates it through interest-free installment structures and omnichannel deployment capabilities. With 201 employees and operations spanning North America, Sezzle has established itself as a material participant in the consumer credit services sector, leveraging technology infrastructure to facilitate merchant-consumer transactions at scale.
What this transaction means for investorsTwo of Sezzle's founders had stock vest on the same August day, and just as with CEO Charlie Youakim, the president's filing is a tax withholding and nothing more. Paradis holds around 1.1 million shares worth roughly $145 million currently, so 7,110 going to cover taxes is immaterial to a stake that size.
The vesting landed days after a quarter that the market badly interpreted on first glance. Sezzle grew revenue 52% to $150 million and, notably, raised its full-year guidance for the third time this year, lifting expected revenue growth to 35% and adjusted net income to $185 million. Still, the stock still fell close to 30% on worries about a slower second half, but the raised outlook is the fact that cuts hardest against the gloom. Ultimately, two founders holding a combined fortune in stock, letting only the tax slip away while the company lifts its targets again, is a steadier signal than one day's sell-off, and it points the other way. That’s a good indicator for long-term investors.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Sezzle. The Motley Fool has a disclosure policy.
Key Takeaways Sezzle's Q2 revenues rose 51.7, while GMV climbed 37.9% to a record $1.3 billion.Active subscribers surged 76.4 to 854,000, with purchase frequency rising to 7.2 times.Sezzle raised 2026 revenue growth guidance to 35% and adjusted EPS guidance to $5.25. Sezzle Inc. (SEZL - Free Report) shares entered August carrying high expectations, but the sharp post-earnings reset has changed the investment setup. The company had already attracted attention in 2026 with rapid subscriber growth, rising profitability and an expanding set of financial products. After the recent correction, investors have a different question to consider: whether the lower share price now offers a better entry into a business that is still delivering growth well above that of many payments peers.
SEZL closed at $178.53 on Aug. 6 before plunging nearly 34% on Aug. 7 following its second-quarter report. The selling pressure did not mark the end of the story. Shares subsequently recovered and jumped 8.7% on Aug. 11 to $128.27. Even after that rebound, SEZL remained roughly 28% below its pre-results close. The move has been far more dramatic than recent trading in PayPal (PYPL - Free Report) , while Shift4 Payments (FOUR - Free Report) has also experienced earnings-related volatility. The correction has removed a meaningful part of the valuation risk that surrounded Sezzle before the report.
The reset makes the investment case more interesting. Sezzle continues to grow considerably faster than PayPal and has a different growth profile from Shift4 Payments, while its expanding subscriber base, high engagement and new products could support further earnings gains. Credit costs and execution remain worth watching, but the current share price offers a better balance between growth potential and valuation than it did before earnings.
Year-to-date Price Performance
Image Source: Zacks Investment Research
Sezzle's Growth Story Remains StrongSezzle's second-quarter results showed that the underlying business has not lost momentum. Gross merchandise volume increased 37.9% year over year to a record $1.3 billion, while total revenues climbed 51.7% to $149.7 million. Net income rose to $40.8 million, representing a 27.2% margin, and adjusted EBITDA reached $58 million with a 38.8% margin. Total revenue less transaction-related costs represented 63.5% of revenues, placing the metric near the upper end of management's 55%-65% target range.
The customer metrics make the growth story even stronger. Active subscribers increased 76.4% year over year to 854,000, while Sezzle added a record 140,000 net new subscribers during the quarter. Average quarterly purchase frequency reached 7.2 times, up from 6.1 times in the prior-year period. This combination suggests Sezzle is benefiting from both a larger customer base and deeper engagement among existing users, giving it more than one driver of revenue growth.
Higher Marketing Spending Holds PotentialMarketing expense climbed to $19.4 million during the second quarter as Sezzle deliberately tested how aggressively it could invest in customer acquisition. The encouraging part is that management said the payback period remained below its six-month threshold. Sezzle intends to reduce core marketing spending sequentially in the third quarter, although spending tied to newer products could partly offset that decline. This suggests management is pursuing growth without abandoning its return requirements.
This ability to add customers profitably helps distinguish Sezzle from larger peers. PayPal has far greater scale and a more mature payments ecosystem, while Shift4 Payments has broader exposure to merchant acquiring and payment processing. Sezzle's advantage is its current pace of expansion. If it can continue converting marketing dollars into subscribers with short payback periods, the company can sustain a growth rate that justifies some premium over slower-growing payments businesses.
Raised Guidance Could Still Prove ConservativeManagement lifted its 2026 revenue-growth forecast to 35%, effectively moving to the top of the previous 30%-35% range. Adjusted net income guidance increased to $185 million from $180 million, while adjusted diluted EPS guidance rose to $5.25 from $5.10. Raising both top- and bottom-line expectations after a quarter of elevated marketing investment is a positive signal about the underlying economics of the business.
There may also be upside that is not fully captured in those numbers. Management said the guidance includes very little contribution from SezzleCash and no contribution from Sezzle Send. Nearly 10% of eligible new Sezzle Anywhere subscribers were already requesting a SezzleCash advance as their first transaction, while Sezzle Send had attracted about 100,000 people to its waitlist ahead of launch. If adoption develops without materially weakening credit performance, these products could create another leg of growth.
SEZL’s Estimate Revisions Depict a Bright OutlookOver the past week, earnings estimates for both 2026 and 2027 have been revised upward, signaling a bullish outlook from analysts. These figures also suggest year-over-year growth of 45.96% and 27.10%, respectively.
Image Source: Zacks Investment Research
The Pullback Makes Valuation More AppealingThe biggest improvement in the investment argument may simply be the price investors now have to pay. The stock trades at 6.31X forward 12-month sales per share versus 5.20X for the Zacks sub-industry. On the other hand, PYPL trades at 1.42X forward 12-month sales per share, while FOUR trades near 1.19X forward 12-month sales per share.
This is still not a bargain multiple in isolation, but it looks much more reasonable for a company targeting 35% revenue growth while producing strong profitability. The multiple is also substantially less demanding than it was immediately before second-quarter earnings.
Valuation
Image Source: Zacks Investment Research
Sezzle's faster subscriber and revenue growth gives investors something different from either PYPL or FOUR. If earnings continue to compound quickly, today's valuation could become increasingly reasonable rather than expensive.
SEZL: Credit Is the Main IssueCredit performance remains the most important counterweight to the bullish case. Management expects the provision for credit losses to equal 2.5%-3% of GMV for 2026 and expects normal seasonal increases during the second half. Rapid user acquisition can also increase provisions because newer customers generally produce higher loss rates than established users.
Still, management said it was not seeing an underlying deterioration in repayment behavior or consumer credit health. Sezzle also finished the second quarter with more than $205 million of liquidity, while total debt to trailing-12-month adjusted EBITDA was only 0.5 times. This financial position gives the company room to invest in growth while absorbing normal fluctuations in credit costs.
What Should Investors Do With SEZL Now?The market's initial reaction to the second quarter appears more severe than the change in Sezzle's business outlook. Revenues, GMV, subscribers and earnings remain on a strong upward path, while management raised its 2026 forecasts despite heavier marketing spending. New products provide additional upside that is barely included in guidance.
The rebound on Tuesday also suggests some investors are already reassessing the selloff. SEZL carries volatility and credit risk, but the pullback from its Aug. 6 close has improved the potential reward relative to those risks. For investors comfortable with fintech volatility, the current level looks increasingly attractive for building exposure.
At present, SEZL sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all.
In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.
However, the task of finding cutting-edge growth stocks is made easy 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 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 331.1%, investors should actually focus on the projected growth. The company's EPS is expected to grow 46% this year, crushing the industry average, which calls for EPS growth of 14.7%.
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 -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 12.6%.
Promising Earnings Estimate RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
The current-year earnings estimates for Sezzle Inc. have been revising upward. The Zacks Consensus Estimate for the current year has surged 2.8% over the past month.
Bottom LineWhile the overall earnings estimate revisions have made Sezzle Inc. a Zacks Rank #1 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 positions Sezzle Inc. well for outperformance, so growth investors may want to bet on it.
Focus Financial Network Inc. bought a new stake in Sezzle Inc. (NASDAQ:SEZL – Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor bought 14,528 shares of the company’s stock, valued at approximately $2,493,000.
A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Vestcor Inc acquired a new position in shares of Sezzle in the third quarter valued at about $29,000. Covestor Ltd raised its stake in shares of Sezzle by 109.4% in the fourth quarter. Covestor Ltd now owns 490 shares of the company’s stock worth $31,000 after purchasing an additional 256 shares during the last quarter. Empowered Funds LLC acquired a new stake in shares of Sezzle during the fourth quarter worth about $33,000. Versant Capital Management Inc lifted its holdings in shares of Sezzle by 245.9% during the second quarter. Versant Capital Management Inc now owns 256 shares of the company’s stock worth $44,000 after purchasing an additional 182 shares during the period. Finally, Strengthening Families & Communities LLC purchased a new stake in Sezzle in the fourth quarter valued at approximately $49,000. Hedge funds and other institutional investors own 2.02% of the company’s stock.
Insider Activity In other news, SVP Justin Krause sold 3,178 shares of Sezzle stock in a transaction that occurred on Wednesday, May 27th. The shares were sold at an average price of $117.72, for a total transaction of $374,114.16. Following the completion of the transaction, the senior vice president directly owned 72,457 shares of the company’s stock, valued at $8,529,638.04. The trade was a 4.20% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Amin Sabzivand sold 6,930 shares of the business’s stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $179.91, for a total transaction of $1,246,776.30. Following the completion of the transaction, the chief operating officer owned 259,780 shares of the company’s stock, valued at approximately $46,737,019.80. This represents a 2.60% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 86,928 shares of company stock worth $13,510,889 over the last 90 days. Company insiders own 49.49% of the company’s stock.
Sezzle Stock Down 0.0% Shares of SEZL opened at $118.00 on Tuesday. The company has a market capitalization of $3.97 billion, a price-to-earnings ratio of 25.65 and a beta of 6.76. Sezzle Inc. has a 52 week low of $49.50 and a 52 week high of $195.71. The stock’s 50-day moving average price is $157.07 and its 200-day moving average price is $104.93. The company has a quick ratio of 3.65, a current ratio of 4.02 and a debt-to-equity ratio of 0.52.
Sezzle (NASDAQ:SEZL – Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The company reported $1.13 earnings per share for the quarter, beating the consensus estimate of $1.03 by $0.10. Sezzle had a return on equity of 83.48% and a net margin of 30.35%.The company had revenue of $149.68 million during the quarter, compared to analysts’ expectations of $135.09 million. Sezzle has set its FY 2026 guidance at 5.250-5.250 EPS. On average, sell-side analysts predict that Sezzle Inc. will post 5.22 EPS for the current year.
Analysts Set New Price Targets Several equities analysts recently weighed in on the stock. Needham & Company LLC increased their price target on shares of Sezzle from $166.00 to $172.00 and gave the stock a “buy” rating in a report on Friday. Northland Securities set a $170.00 price objective on shares of Sezzle in a research note on Thursday, June 25th. Freedom Capital raised shares of Sezzle to a “hold” rating in a report on Wednesday, June 24th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Sezzle in a research note on Tuesday, August 4th. Finally, Oppenheimer cut shares of Sezzle from an “outperform” rating to a “market perform” rating in a report on Monday, June 29th. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $146.50.
Read Our Latest Stock Analysis on SEZL
About Sezzle (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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Pre-Market Stock Futures: Futures are trading lower after a record-breaking week on Wall Street, during which two major indices once again hit all-time highs. Despite a gloomy jobs report for July, traders were buoyed by the hope that a September rate hike is not a done deal yet. The inflation data on Wednesday and Thursday this week will likely decide that, as the jobs data could have been a one-off, and the Federal Reserve will get the August jobs and inflation reports before they meet in September. Both the Dow Jones Industrial Average and the S&P 500 set new all-time highs last week, with the DJIA closing at 54,036, up 0.28%, and the S&P 500 finishing the session at 7,757, up 0.53%. The Nasdaq was the big winner, closing the day at 26,690, up 1.30%, and once again, the small-cap Russell 2000, which is up over 20% this year, continued to extend its lead, closing at 3,035, up 1.12%.
Treasury Bonds: Yields were down across the Treasury curve as weak jobs data spurred buying, though the rate-hike narrative took a hit, albeit perhaps temporarily. The buying was strongest in the 1-to 5-year maturities, while the long and short ends were less active. When the final trade was posted, the 30-year long bond finished at 5.19%, while the 10-year note was last seen at 4.64%.
Oil and Gas: Prices were lower across the energy complex on Friday as reports indicated that Iran and Oman were nearing a temporary deal to reopen the Strait of Hormuz, aiming to provide safe lanes through the critical passageway for cargo. When the final bell sounded, Brent Crude finished the session down 0.56% at $82.03, while West Texas Intermediate ended the day at $76.96, down 0.43%. Natural gas had a winning day to close out a rough week, closing up 1.06% at $2.67.
Gold: Gold and Silver had a strong day to finish the week, as the weak payroll data, as we mentioned, dampened the rate hike narrative, and the drop in yields and oil prices helped the non-dividend-paying precious metals. By the close, Gold closed up 2.37% at $4,339, while Silver was last seen at $63.60, up 3.18%.
Crypto: Cryptocurrencies advanced on Friday, as Bitcoin climbed above $65,000 (gaining more than 1%) and Ethereum rose past $1,920. The modest gains were supported by a weaker-than-expected U.S. jobs report for July, which outweighed the negative reaction to the Senate’s decision to delay a vote on the crypto Clarity Act until September. At 8 AM EDT, Bitcoin was trading at $64,999, while Ethereum was trading at $1,919.
24/7 Wall St. reviews dozens of analyst research reports every day to identify fresh investment ideas for investors and traders alike. These daily analyst notes include recommendations on stocks to buy, sell, or avoid, as well as new coverage initiations. Important reminder: No single analyst report should ever be the sole basis for buying or selling a stock.
Here are some of the top Wall Street analyst upgrades, downgrades, and initiations seen on Monday, August 10, 2026.
Upgrades: Dicks Sporting Goods (NYSE: DKS | DKS Price Prediction) was upgraded to Overweight from Equal Weight at Wells Fargo, which bumped the target price for the stock to $240 from $220. Firstcash Holdings (NASDAQ: FCFS) was raised to Buy from Hold at Loop Capital, which raised the price target to $255 from $220. NetApp (NASDAQ: NTAP) was upgraded to Equal Weight from Underweight at Morgan Stanley, which raised the target price for the shares to $173 from $137. SanDisk Corporation (NASDAQ: SNDK) was upgraded to Buy from Hold at Argus, without a price target. Sezzle (NASDAQ: SEZL) was raised to Buy from Hold at TD Cowen, with a $165 target price. Downgrades: Akamai Technologies (NASDAQ: AKAM) was downgraded to Hold from Buy at HSBC, which lowered the price target for the stock to $123 from $171. Apple (NASDAQ: AAPL) was downgraded to Underperform from Hold at Jefferies, which trimmed the target price for the legacy tech giant to $263.66 from $285.56. Domino’s Pizza (NYSE: DPZ) was downgraded to Hold from Buy at Loop Capital, which slashed the target price for the stock to $353 from $522. Doximity (NYSE: DOCS) was cut to Underweight from Equal Weight at Wells Fargo, with an unchanged $19 target price. Trade Desk (NASDAQ: TTD) was downgraded to Reduce from Hold at HSBC, with a $10 target. Initiations: BankUnited (NYSE: BKU) was assumed with an Overweight rating by Wells Fargo, which trimmed the target price to $54 from $55. Kestra Medical Technologies (NASDAQ: KMTS) was initiated with an Overweight rating at JPMorgan, with a $30 target price. Standard Nuclear (NYSE: STDN) was started with a Buy rating at UBS, with a $14 target. RBC Capital initiated coverage with an Outperform rating and an $11 target, while Stifel began coverage with a Buy rating and an $16 target. The stock was a recent IPO. Guidewire Software (NYSE: GWRE) was initiated with an Overweight rating at Piper Sandler, with a $210 target price. UMB Financial (NASDAQ: UMBF) was assumed with an Equal Weight rating at Wells Fargo, which raised the target price to $160 from $139.
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Buy now, pay later (BNPL) company Sezzle (SEZL -33.89%) closed at $178.53 on Thursday. By Friday's close, the stock was at $118.02 -- a one-day decline of 33.89% that wiped out about $2 billion of market value. The whole company was worth about $6 billion at Thursday's close and just under $4 billion a day later.
The report that triggered it, released Thursday evening, didn't look like that kind of news. Second-quarter revenue rose 51.7% year over year to $149.7 million -- a record, and ahead of analysts' estimates. Net income came in at $40.8 million, up 47.7%, and earnings per diluted share reached $1.17, from $0.78 a year earlier.
Active subscribers surged 76.4% to 854,000, the largest year-over-year gain in the company's history. And management raised its full-year guidance for the third time this year.
So why did a quarter that strong cost the stock a third of its value? Much of it comes down to the second half the new guidance implies, and to where the stock was trading when the report landed.
Image source: Getty Images.
Another record quarter Measured against a year ago, the second quarter was Sezzle's best. Gross merchandise volume, or GMV (the total dollar value of purchases financed on the platform), grew 37.9% year over year to $1.3 billion. Non-GAAP (adjusted) net income rose 58.4% to $39.3 million, and adjusted EBITDA reached $58 million, a 38.8% margin.
And the engagement behind those numbers deepened. Average purchase frequency hit a company high of 7.2 times per quarter, up from 6.1 a year ago.
The updated outlook moved higher, too. Management now expects revenue to grow 35% this year, the top of its prior 30% to 35% range, and raised its adjusted earnings target to $5.25 per diluted share. In February, that guidance was 25% to 30% growth and $4.70 per share. The company keeps outrunning its own forecasts.
Why did the stock fall so hard? Revenue, though, grew about 14 percentage points faster than the dollar volume behind it. That gap came from yield: Revenue as a percentage of GMV reached 11.7%, after 10.6% in the year-ago quarter. Sezzle earned more on every dollar its shoppers spent, and that yield expansion drove a meaningful share of the quarter's 51.7% growth rate.
The guidance carries the bigger signal. First-half revenue totaled $285.2 million, up 40% year over year. Growing 35% for the full year, on last year's $450.3 million, implies about $608 million of revenue in 2026, which leaves roughly $323 million for the second half.
That's about 31% growth, a sharp slowdown from the 51.7% just reported.
Some of that math reflects an easy comparison, since the year-ago second quarter was the softest stretch of Sezzle's 2025. This quarter's growth rate was likely always going to flatter the trend. But the direction is the same either way -- a second half growing near 31%, closer to volume growth than to the headline rate Sezzle just reported.
That mattered because of where the stock stood. Coming into the report, shares had climbed about 260% from their 52-week low of $49.50 and sat within about 10% of their 52-week high.
At Thursday's close, shares cost about 34 times the newly raised full-year adjusted earnings target. Investors were paying for the 51.7%, not the 31%.
Today's Change
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-33.89
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Current Price
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118.02
A much cheaper stock than on Thursday One day later, the price asks far less. At $118.02, Sezzle trades at about 22 times the full-year adjusted earnings figure management just guided to. That's for a growth stock still expected to grow revenue 35% this year, with a net income margin near 27% and a subscriber base up 76% from a year ago.
Of course, BNPL is a credit business, and a credit business's growth can look terrific right up until losses catch up with it. Sezzle's yield gains won't repeat forever, either. And the second half will test whether marketing spending, which more than doubled in the first half, keeps producing subscribers at this pace.
Still, I'd call Friday's move a repricing more than a verdict on the business. The quarter was excellent, but investors had been paying for the headline rate, and the new outlook shows that rate cooling toward volume growth in the second half. At about 22 times guided earnings, the stock is arguably priced much closer to the forecast the company gave.
Key Takeaways Sezzle posted record Q2 GMV of $1.3B, with revenues up 51.7% and active subscribers up 76.4%.Sezzle added 140,000 net new subscribers and reached a record 7.2 average quarterly purchases.Sezzle launched SezzleCash, plans Sezzle Send, and raised full-year revenue and income guidance. Sezzle Inc. (SEZL - Free Report) used its second-quarter 2026 earnings call to emphasize a broader platform strategy built around subscriber growth, new financial products, and expanding consumer engagement beyond traditional buy now, pay later transactions.
Management raised full-year guidance for the third time this year, pointing to strong user acquisition trends, improving platform stickiness, and early traction from recently launched offerings.
Sezzle Sees Growth Echoes of Earlier ExpansionChief executive officer Charlie Youakim said the company’s growth trajectory resembles the strong expansion period experienced in 2020 and 2021. He highlighted that May gross merchandise volume surpassed December holiday-season levels, an event that occurred earlier than in recent years.
That momentum translated into record quarterly GMV of $1.3 billion, up 37.9% year over year, while revenues climbed 51.7% to $149.7 million.
Earnings per share of $1.13 exceeded the Zacks Consensus Estimate of $0.95. Revenues of $149.7 million topped the Zacks Consensus Estimate of $130.3 million.
Sezzle Inc. Price, Consensus and EPS Surprise
SEZL Pushes Subscriber Acquisition AggressivelyA central theme of the call was subscriber growth. Active subscribers increased 76.4% year over year to 854,000, while average quarterly purchase frequency reached a company record of 7.2 times.
Youakim said Sezzle added 140,000 net new subscribers during the quarter, the largest quarterly increase since launching its subscription program.
Management attributed the gains partly to elevated marketing spending of $19.4 million. Executives stressed that the spending increase was a deliberate test rather than a permanent run rate, noting that customer acquisition economics remained within the company’s target payback period of less than six months.
Sezzle Expands Beyond Checkout FinancingManagement devoted significant attention to new products intended to broaden the platform’s role in consumers’ financial lives.
SezzleCash, launched during the quarter, provides eligible subscribers with cash advances repaid through Pay-in-4 or Pay-in-5 structures. According to Youakim, the average advance size is about $165, and nearly 10% of eligible new subscribers used the product as their first transaction within the Sezzle Anywhere ecosystem.
The company also plans to launch Sezzle Send in August. The peer-to-peer money transfer product will allow users to send funds using installment repayment options. Management described the offering as both a customer acquisition tool and a retention driver because recipients do not need an existing Sezzle account to receive funds.
SEZL Highlights Engagement and AI BenefitsExecutives repeatedly connected product expansion with higher engagement levels.
Monthly On-Demand and Subscriber users reached 982,000, while repeat usage represented 97.2% of total orders. Average quarterly revenue per monetized user increased 16.2% year over year.
Youakim also detailed the growing role of artificial intelligence across the company. Sezzle’s AI support chatbot now handles 68% of customer inquiries and is generating higher customer satisfaction scores than human agents. The company’s AI-powered shopping assistant has produced a 3.6-times improvement in product click-through rates versus control groups.
Enterprise Merchant Wins Add Another Growth LeverWhile consumer initiatives dominated the discussion, management also pointed to progress on the merchant side.
Youakim said the company’s On-Demand offering is helping attract larger merchants by providing more flexible pricing structures.
Recent enterprise additions included Poshmark, Gymshark, Debenhams, Brookshire’s Food & Pharmacy, and RockAuto.com. Management acknowledged that enterprise sales cycles remain lengthy but said the strategy is beginning to generate results.
Sezzle Raises Outlook While Funding ImprovesChief financial officer Lee Brading emphasized that growth continued without sacrificing profitability.
The company raised its full-year revenue growth outlook to 35%, the high end of its prior range. Adjusted net income guidance increased to $185 million from $180 million, while adjusted net income per diluted share rose to $5.25 from $5.10.
Brading also highlighted a new $300 million receivables funding facility led by Mesirow. The arrangement lowered funding costs, increased advance rates, and provides additional capacity to support future growth initiatives.
Management Focuses on Long-Term Platform ExpansionManagement’s tone throughout the call remained focused on expanding Sezzle’s ecosystem rather than maximizing near-term transaction volume.
Executives emphasized that products such as SezzleCash and Sezzle Send are designed to create more frequent consumer interactions, improve retention, and increase wallet share over time. Notably, guidance assumes no material contribution from SezzleCash and no contribution from Sezzle Send.
The company also continues pursuing a national bank charter application and advancing its antitrust case against Shopify as broader strategic initiatives.
What Zacks Signals IndicateSEZL currently carries a Zacks Rank #2 (Buy). Under the Zacks framework, Rank #1 (Strong Buy) and #2 stocks have historically offered stronger potential for outperformance than lower-ranked stocks because the ranking system is driven primarily by earnings estimate revisions. You can see the complete list of today’s Zacks #1 Rank stocks here.
The stock’s Style Scores are mixed, with a Growth Score of A, Value Score of D, Momentum Score of F, and VGM Score of C. According to Zacks methodology, stronger Style Scores can complement a favorable Zacks Rank, while weaker scores may temper near-term attractiveness for certain investment styles. As with all Zacks-ranked stocks, the rating can change as analysts revise earnings estimates following the latest results.
Sezzle Inc (NASDAQ:SEZL) on Thursday posted upbeat earnings for the second quarter.
The company reported quarterly earnings of $1.13 per share which beat the analyst consensus estimate of $1.03 per share. The company reported quarterly sales of $149.683 million which beat the analyst consensus estimate of $135.087 million.
Sezzle raised its FY2026 adjusted EPS guidance from $5.10 to $5.25 and also raised sales guidance from $585.363 million-$607.877 million to $607.905 million.
“With SezzleCash now live and Sezzle Send launching in August, we are another step closer to realizing our vision of an all-in-one financial platform for our consumers,” stated Charlie Youakim, Sezzle Executive Chairman and CEO.
Sezzle shares fell 22.7% to $138.00 in pre-market trading.
These analysts made changes to their price targets on Sezzle following earnings announcement.
Needham analyst Kyle Peterson maintained the stock with a Buy and raised the price target from $166 to $172. Keefe, Bruyette & Woods analyst Ryan Tomasello maintained the stock with a Market Perform and cut the price target from $190 to $155. Considering buying SEZL stock? Here’s what analysts think:
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3 Overbought Stocks Ripe for a PullbackSezzle NASDAQ: SEZL reported record second-quarter results for 2026, with gross merchandise volume, revenue, subscriber growth and profitability all increasing from a year earlier. The buy now, pay later company also raised its full-year revenue and adjusted earnings outlook, citing momentum across its subscription platform and consumer-engagement products.
Second-quarter GMV rose 37.9% year over year to $1.3 billion, exceeding the company’s prior holiday-season peak in the fourth quarter of 2025. Revenue increased 51.7% to $149.7 million, while net income climbed 47.7% to $40.8 million. Sezzle reported a net income margin of 27.2% and adjusted EBITDA of $58 million, representing a 38.8% margin.
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2 High Growth Buy Now, Pay Later Stocks Challenging PayPal“Growth did not come at the sacrifice of margins,” CFO Lee Brading said. Revenue less transaction-related costs, which Sezzle also refers to as net transaction margin, reached 63.5% of revenue, up 240 basis points from a year earlier and near the upper end of the company’s 55% to 65% target range.
Guidance Raised as Subscriber Growth Accelerates Sezzle raised its full-year revenue-growth target to 35%, the upper end of its previous 30% to 35% range. The company also increased adjusted net income guidance to $185 million from $180 million and lifted adjusted net income per diluted share guidance to $5.25 from $5.10.
Affirm Hits Profitability—Here’s What Investors Should WatchManagement said the outlook includes little contribution from SezzleCash, which launched during the second quarter, and no contribution from Sezzle Send, a peer-to-peer transfer product expected to launch in August. The company also said its Pagaya partnership was helpful but not yet a material contributor to results.
Subscriber growth was a central driver of the quarter. Active subscribers reached 854,000, up 76.4% year over year, after Sezzle added 140,000 net new subscribers during the period. CEO and Executive Chairman Charlie Youakim said it was the company’s largest quarterly and year-over-year subscriber addition since its subscription program began.
Average quarterly purchase frequency reached a record 7.2 times, compared with 6.1 times a year earlier. Monetized users increased by 234,000 from the prior year to 982,000, while repeat usage accounted for 97.2% of total orders. Average quarterly revenue per monetized user increased 16.2%.
Marketing Spending Increased to Test Acquisition Returns Sezzle spent $19.4 million on marketing in the second quarter, more than doubling its spending from a year earlier. Management said the increase was a deliberate test of higher acquisition spending while maintaining a target payback period of less than six months.
Youakim said the company’s preliminary data indicated the marketing payback remained below six months, but he characterized the second-quarter spending level as a test rather than a new baseline. Core marketing spending is expected to decline from the second to third quarter on an apples-to-apples basis, though promotional spending for newer products could affect the total.
“We wanted to hit the gas on the car, push that cycle through,” Youakim said during the question-and-answer session. “Let’s see how it looks as it cycles through.”
Brading said higher marketing spending initially can weigh on results but should begin producing returns in later quarters as newly acquired consumers generate revenue.
New Products Expand Beyond Checkout Financing During the quarter, Sezzle expanded access to SezzleCash, a cash-advance product available to Sezzle Anywhere subscribers. The product allows subscribers to access funds and repay them through Pay in 4 or Pay in 5 installments, without a down payment. The phased rollout reached the full eligible Sezzle Anywhere subscriber base by the end of the quarter.
Management said the average SezzleCash advance was about $165. Nearly 10% of eligible new subscribers used SezzleCash as their first transaction in the Sezzle Anywhere ecosystem, according to Youakim.
Sezzle also plans to introduce Sezzle Send in August. The peer-to-peer money-transfer service will enable consumers to send funds by phone number either by paying in full or using Pay in 5. Recipients will receive the full amount upfront and will not need to be Sezzle users. The company said approximately 100,000 users had joined the waiting list.
For Sezzle Anywhere subscribers, Sezzle said it will waive the service fee for Pay in 5 transfers. Non-subscribers will pay what Youakim described as a de minimis fee, estimated at about $3 for a $100 transfer. Management said it would initially take a conservative approach to underwriting for the new lending-related products.
The company also cited new card-linked offers, expanded cashback programs, gamified daily activities and rewards as tools intended to improve engagement and retention. On the merchant side, Sezzle said its onDemand pricing program has helped it pursue enterprise relationships, with recent wins including Poshmark, Gymshark and Debenhams.
Credit, Liquidity and Bank Charter Plans Brading said Sezzle expects full-year provision for credit losses to remain between 2.5% and 3% of GMV. The provision increased during the second quarter due to typical seasonal factors and a larger number of newly acquired users, which management said generally carry higher loss rates. The company said it had not seen unusual changes in consumer repayment behavior or credit health.
At quarter-end, Sezzle had more than $205 million of liquidity, including unrestricted cash and availability under a new $300 million credit facility. Total debt to trailing 12-month adjusted EBITDA was 0.5 times, and total debt to equity was also 0.5 times.
The company said it plans to submit an application for a national bank charter during the current quarter. Youakim said Sezzle expects the overall charter process, including approvals involving the Office of the Comptroller of the Currency, FDIC and Federal Reserve, to take roughly 12 to 18 months.
About Sezzle (NASDAQ:SEZL)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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Sezzle Inc. (SEZL) Q2 2026 Earnings Call August 6, 2026 5:00 PM EDT
Company Participants
Charles Youakim - Co-Founder, Executive Chairman & CEO
Lee Brading - Chief Financial Officer
Paul Paradis - Co-Founder, President & Executive Director
Conference Call Participants
Michael Pochucha
Harold Goetsch - B. Riley Securities, Inc., Research Division
Ryan Tomasello - Keefe, Bruyette, & Woods, Inc., Research Division
Kyle Peterson - Needham & Company, LLC, Research Division
Rayna Kumar - Oppenheimer & Co. Inc., Research Division
Hoang Nguyen - TD Cowen, Research Division
Presentation
Operator
Good day, and welcome to Sezzle's Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded.
I would now like to turn the conference over to Charlie Youakim, CEO and Executive Chairman. Please go ahead.
Charles Youakim
Co-Founder, Executive Chairman & CEO
Thank you, and good afternoon, everyone, and welcome to Sezzle's Second Quarter 2026 Earnings Call. I'm Charlie Youakim, CEO and Executive Chairman of Sezzle. I'm joined today by our CFO, Lee Brading; my Co-Founder and Company President, Paul Paradis; and Head of IR and Corporate Development, Jack Fagan.
In conjunction with this conference call, we filed our earnings announcement with the SEC and have posted it along with our earnings presentation on our Investor website at sezzle.com.
To retrieve the documents, please go to the Investor Relations section of our website. Please be advised of the cautionary note on forward-looking statements and the reconciliation of GAAP to non-GAAP measures included in the presentation, which also covers our statements on today's call.
Okay. With the boilerplate completed, let's get started. We know you can now see that 2026 is off to a great start. I was remarking to our leadership team earlier this past quarter that our volume growth curves look a lot like they did back in 2020 and 2021, which was an amazing growth
Sezzle Inc. (SEZL - Free Report) came out with quarterly earnings of $1.13 per share, beating the Zacks Consensus Estimate of $0.95 per share. This compares to earnings of $0.69 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +18.95%. A quarter ago, it was expected that this company would post earnings of $1.24 per share when it actually produced earnings of $1.43, delivering a surprise of +15.32%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Sezzle Inc., which belongs to the Zacks Financial Transaction Services industry, posted revenues of $149.68 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 14.88%. This compares to year-ago revenues of $98.7 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Sezzle Inc. shares have added about 174.8% since the beginning of the year versus the S&P 500's gain of 12.8%.
What's Next for Sezzle Inc.?While Sezzle Inc. has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Sezzle Inc. was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.21 on $153.92 million in revenues for the coming quarter and $5.10 on $592.59 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial Transaction Services is currently in the bottom 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Repay Holdings (RPAY - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 10.
This company is expected to post quarterly earnings of $0.20 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Repay Holdings' revenues are expected to be $102.13 million, up 35% from the year-ago quarter.
Edgestream Partners L.P. raised its stake in shares of Sezzle Inc. (NASDAQ:SEZL – Free Report) by 81.6% in the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 32,269 shares of the company’s stock after purchasing an additional 14,504 shares during the period. Edgestream Partners L.P. owned 0.10% of Sezzle worth $2,042,000 at the end of the most recent quarter.
A number of other institutional investors have also recently made changes to their positions in SEZL. California State Teachers Retirement System increased its stake in shares of Sezzle by 65.1% in the first quarter. California State Teachers Retirement System now owns 28,262 shares of the company’s stock valued at $1,789,000 after buying an additional 11,145 shares during the period. Royal Bank of Canada lifted its stake in shares of Sezzle by 10.2% in the first quarter. Royal Bank of Canada now owns 112,957 shares of the company’s stock worth $7,148,000 after acquiring an additional 10,486 shares during the period. Quantinno Capital Management LP acquired a new position in shares of Sezzle in the first quarter worth approximately $1,089,000. Sei Investments Co. boosted its holdings in Sezzle by 12.3% in the first quarter. Sei Investments Co. now owns 14,093 shares of the company’s stock valued at $892,000 after acquiring an additional 1,540 shares during the last quarter. Finally, Cetera Investment Advisers boosted its holdings in Sezzle by 134.4% in the first quarter. Cetera Investment Advisers now owns 32,452 shares of the company’s stock valued at $2,054,000 after acquiring an additional 18,609 shares during the last quarter. Institutional investors own 2.02% of the company’s stock.
Analyst Ratings Changes Several research analysts have issued reports on SEZL shares. Oppenheimer lowered shares of Sezzle from an “outperform” rating to a “market perform” rating in a report on Monday, June 29th. Keefe, Bruyette & Woods reaffirmed a “market perform” rating and issued a $190.00 price objective (up from $115.00) on shares of Sezzle in a research note on Monday, July 13th. Freedom Capital upgraded shares of Sezzle to a “hold” rating in a research report on Wednesday, June 24th. Zacks Research raised shares of Sezzle from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, May 27th. Finally, Weiss Ratings upgraded shares of Sezzle from a “hold (c-)” rating to a “hold (c+)” rating in a report on Thursday, May 7th. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat, Sezzle presently has an average rating of “Moderate Buy” and a consensus target price of $151.33.
Check Out Our Latest Stock Report on Sezzle
Insider Activity at Sezzle In other news, SVP Justin Krause sold 3,178 shares of the company’s stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $117.72, for a total transaction of $374,114.16. Following the transaction, the senior vice president owned 72,457 shares in the company, valued at approximately $8,529,638.04. This represents a 4.20% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Lee Dickson Brading sold 10,000 shares of the stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $178.23, for a total transaction of $1,782,300.00. Following the transaction, the chief financial officer directly owned 296,931 shares in the company, valued at $52,922,012.13. This trade represents a 3.26% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 124,382 shares of company stock valued at $17,416,662. Company insiders own 49.49% of the company’s stock.
Sezzle Price Performance Shares of SEZL opened at $154.75 on Monday. Sezzle Inc. has a 52-week low of $49.50 and a 52-week high of $195.71. The company has a debt-to-equity ratio of 0.73, a quick ratio of 3.65 and a current ratio of 3.65. The business’s 50 day moving average price is $152.26 and its two-hundred day moving average price is $101.36. The firm has a market cap of $5.20 billion, a PE ratio of 36.76 and a beta of 6.70.
Sezzle (NASDAQ:SEZL – Get Free Report) last announced its quarterly earnings data on Wednesday, May 6th. The company reported $1.43 EPS for the quarter, topping the consensus estimate of $1.24 by $0.19. The company had revenue of $135.54 million during the quarter, compared to the consensus estimate of $127.74 million. Sezzle had a net margin of 30.83% and a return on equity of 87.46%. The company’s quarterly revenue was up 29.2% on a year-over-year basis. During the same quarter last year, the firm posted $0.98 EPS. Sezzle has set its FY 2026 guidance at 5.100-5.100 EPS. On average, equities analysts anticipate that Sezzle Inc. will post 5.1 EPS for the current year.
Sezzle Profile (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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Stock to Watch: Sezzle Inc. (SEZL - Free Report) Sezzle Inc. is a technology-enabled payments company offering a digital shopping and payments platform as an alternative to traditional credit at checkout. Formed in 2016 and launching its platform in 2017, Sezzle is headquartered in Minneapolis, MN, and primarily operates in the United States and Canada, having exited India and some European markets in recent years.
SEZL is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. SEZL has a Growth Style Score of A, forecasting year-over-year earnings growth of 42.1% for the current fiscal year.
For fiscal 2026, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.01 to $5.10 per share. SEZL boasts an average earnings surprise of +17.4%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, SEZL should be on investors' short list.
Key Takeaways Sezzle posted 29.2% revenue growth, 37.3% GMV growth and a 52.5% adjusted EBITDA margin.SEZL raised 2026 revenue-growth guidance to 30%-35% and adjusted EPS guidance to $5.10.Premium valuation, lower revenue yield and Pay-in-5 funding needs leave little room for execution misses. Sezzle Inc. (SEZL - Free Report) has moved deeper into investor focus after rapid revenue growth, expanding profitability and a higher full-year 2026 outlook. The stock’s appeal now depends on whether operating momentum can keep pace with its valuation.
The central question is not whether the latest quarter was strong. It was. The harder question is whether Sezzle can sustain growth while managing yield normalization, funding needs and product execution risk.
SEZL Posts Strong Growth and ProfitabilityFirst-quarter 2026 revenues rose 29.2% year over year to $135.5 million. Gross merchandise volume, the value of transactions processed on the platform, increased 37.3% to $1.1 billion.
Profitability scaled with revenues. Adjusted EBITDA was $71.1 million, equal to a 52.5% margin, while adjusted earnings per share were $1.43. Those figures show that higher consumer engagement and expense discipline translated into meaningful operating leverage.
The platform also benefited from greater purchase frequency, rising subscribers and broader use of virtual card and open-loop capabilities. Affirm Holdings (AFRM - Free Report) offers another public-market reference point for installment payment investors, as it is also built around paying over time at the point of sale.
Sezzle's Valuation Demands ExecutionSEZL trades at 7.79X forward 12-month sales per share. That is above 5.34X for the Zacks sub-industry, 3.20X for the Zacks sector and 4.87X for the S&P 500.
The valuation leaves less room for operational slippage. The $181 price target reflects 8.98X sales per share, which means investors are already being asked to underwrite continued growth, rising engagement and successful product expansion.
Image Source: Zacks Investment Research
Block Inc. (XYZ - Free Report) , through Afterpay, is another relevant comparison in digital payments and buy now, pay later. Its presence reinforces that Sezzle is operating in a competitive payments market where product breadth and consumer retention matter.
SEZL Gains From Raised EstimatesManagement raised full-year 2026 revenue-growth guidance to 30% to 35%, up from the prior range of 25% to 30%. Adjusted net income guidance increased to $180 million, and adjusted earnings per share guidance rose to $5.10 from $4.70.
Funding costs could become another lever. Sezzle expects net interest expense to improve as it moves forward with refinancing its current credit facility, which matures next April.
Share repurchases may also help per-share earnings. The company repurchased $24.8 million of common stock in the first quarter, and management noted some benefit from repurchases in its updated earnings-per-share outlook.
Image Source: Zacks Investment Research
Sezzle Still Faces Yield and Funding RisksThe bullish case is not without offsets. First-quarter revenue yield declined roughly 80 basis points year over year because of mix shifts in merchant and virtual-card activity and fewer consumer fees.
Management also cautioned against annualizing first-quarter margins. The first quarter is typically helped by tax refunds and stronger credit performance, while later quarters may face more normal provisions and a smoother yield profile.
Pay-in-5 adds another watch item. The product increased working capital in the first quarter, and broader adoption could lengthen the cash conversion cycle while making funding terms more important.
Regulatory and product timing also matter. Sezzle plans to submit a banking charter application in mid-2026, but the process is long and not guaranteed. Products now in development are excluded from 2026 guidance, so delays could push upside further out.
SEZL’s Scorecard Points to Selective OptimismThe bottom line is that SEZL looks attractive for investors willing to pay for growth, but the setup is execution-heavy. Revenue growth, product adoption, funding efficiency and credit discipline all need to remain aligned for the premium valuation to hold.
The stock currently carries a Zacks Rank #2 (Buy). Its Growth Score of A, Momentum Score of A and VGM Score of A support a favorable near-term and growth-oriented view, especially when considered alongside a top Zacks Rank. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Value Score of D is the counterweight. It signals that SEZL is not a low-entry-valuation story. The stock’s attractiveness depends more on sustained execution than on valuation support alone.
Key Takeaways Sezzle's quarterly purchase frequency rose to 7.1 from 6.1, signaling more habitual platform use.SEZL subscribers increased by 44,000 sequentially to 714,000, supporting higher-value engagement.Sezzle targets credit-loss provisions of 2.5%-3% of GMV as Pay-in-5 raises working-capital needs. Sezzle Inc. (SEZL - Free Report) is moving beyond its checkout roots. The company is building a wider consumer finance platform designed to keep users engaged more often and across more spending occasions.
That shift matters because a broader product set could raise purchase frequency, deepen wallet share and reduce reliance on new merchant integrations. The opportunity is promising, but execution and credit control remain central to the story.
Sezzle Expands Beyond CheckoutSezzle’s core model lets consumers make a down payment and repay purchases through scheduled installments, while the company earns revenues from merchant and partner income, consumer fees and subscriptions. That checkout foundation remains important to its merchant network and user acquisition funnel.
The growth agenda now extends into open-loop and virtual cards, enhanced longer-term lending, Sezzle Mobile and rewards-led engagement. Affirm Holdings (AFRM - Free Report) offers a useful industry comparison because it also competes in point-of-sale installment financing, while PayPal Holdings (PYPL - Free Report) shows how large payment platforms can embed buy-now-pay-later options into broader checkout ecosystems.
SEZL Builds a Higher-Frequency ModelSezzle’s first-quarter 2026 metrics show a platform becoming more habitual. Average quarterly purchase frequency rose to 7.1 times from 6.1 times a year earlier, a full additional purchase across the consumer base.
Subscribers increased by 44,000 sequentially to 714,000. That supports a strategy centered on higher-lifetime-value customers and more activity from existing users, rather than relying only on acquiring new shoppers or signing new merchants.
Sezzle Adds Products Not in GuidanceManagement’s product roadmap includes cash-flow management tools, checking and deposit accounts, broader card acceptance and other services that can move Sezzle closer to an everyday money platform. These offerings could create more reasons for users to return between checkout moments.
Full-year 2026 guidance does not include projections for products still in development. That leaves room for incremental upside if launches gain traction, although product adoption and timing still need to prove out through the rest of 2026 and into 2027.
Image Source: Zacks Investment Research
SEZL Balances Growth With Credit DisciplinePay-in-5 is an important part of the engagement push because it adds another short-term installment option and can fit consumer demand for more flexibility. Management has described it as a meaningful driver, but it also increased working-capital needs after its January 2026 launch.
The product carries somewhat higher loss rates by design, so underwriting discipline remains critical. Sezzle continues to target provision for credit losses of 2.5% to 3% of gross merchandise volume, supported by model improvements, new data sources and collection efforts.
Sezzle’s Signals Support the ThesisThe bottom line is that Sezzle’s platform expansion gives the growth story more depth than a narrow checkout-only model. More products, more frequent usage and subscriber-led engagement support a favorable growth-oriented view, provided credit performance and funding needs stay controlled.
SEZL currently carries a Zacks Rank #2 (Buy). It also has a Growth Score of A, Momentum Score of A and VGM Score of A, which align with favorable growth and trading-style characteristics for investors focused on top-ranked stocks. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Value Score of D adds an important balance. Investors are paying a premium for Sezzle’s growth trajectory, so the case depends less on a low entry valuation and more on sustained execution across the broader product roadmap.
Key Takeaways Sezzle's AI chatbot resolves 60%-70% of customer chats, while AI-assisted coding speeds development.SEZL's open-loop cards broaden acceptance beyond integrated merchants and support everyday spending.Sezzle's Earn Tab drew 4.8 million visits and lifted 30-day BNPL conversion 55% after first use. Sezzle Inc. (SEZL - Free Report) is using artificial intelligence, open-loop payments and direct-to-consumer engagement to widen its role in consumer finance.
For investors, the question is whether these tools can support faster product development, lower operating friction and broader consumer usage without weakening credit discipline or execution quality.
Sezzle Uses AI to Scale OperationsSezzle has embedded artificial intelligence across customer support, underwriting, chargebacks, software development and business intelligence. The goal is to increase output while keeping expense growth below revenue growth.
Its AI support chatbot is already resolving roughly 60% to 70% of customer chats without escalation. Management also said AI is helping review chargebacks, improve support quality, expand access to company data and speed up engineering workflows.
AI-assisted coding is another part of the efficiency story. With up to around 80% of code AI-generated and then reviewed, Sezzle is using automation to shorten development cycles and support a broader product roadmap.
SEZL Broadens Open-Loop Card UsageSezzle’s open-loop and virtual-card strategy extends the platform beyond merchants that are directly integrated at checkout. That matters because broader acceptance can give consumers more ways to use Sezzle in everyday spending.
The company has also introduced a virtual card in Canada with select integrated merchants. Broader card acceptance could reduce reliance on new merchant onboarding over time, while merchants still remain an important source of customer acquisition.
This approach places SEZL in a competitive payments landscape that also includes Affirm Holdings (AFRM - Free Report) , which offers pay-over-time options, including longer payment plans. PayPal Holdings (PYPL - Free Report) is another relevant comparison because its digital wallet includes buy now, pay later options and broader consumer payment features.
Sezzle Targets Deeper Consumer EngagementSezzle’s engagement strategy is built around giving consumers more reasons to return to the platform. Subscription products, rewards and the Earn Tab are central to that model.
Since its June 2025 launch, the Earn Tab has generated 4.8 million visits. Consumers also showed a 55% increase in buy-now-pay-later conversion within 30 days of their first Earn Tab activity.
Those metrics support the idea of a self-reinforcing engagement loop. More visits can lift product discovery, while higher conversion can support repeat usage and stronger direct-to-consumer relationships.
Image Source: Zacks Investment Research
SEZL's Roadmap Extends Into Financial ServicesThe product roadmap is moving beyond traditional Pay-in-4. Sezzle has added Pay-in-5, enhanced longer-term lending, Sezzle Mobile and broader card-based usage, while also working on cash-flow management tools and checking or deposit accounts.
These offerings could move Sezzle closer to an everyday money platform. A wider set of products may deepen wallet share and create more frequent customer touchpoints than a checkout-only model.
The expansion also adds complexity. Pay-in-5 can support engagement, but it increased working capital in the first quarter of 2026. Regulatory milestones, funding needs and product launch timing remain watch items as Sezzle pushes further into financial services.
Sezzle’s Growth and Momentum Scores Stand OutSezzle’s emerging trends support a growth-oriented narrative, but the stock still depends on execution. AI efficiency, open-loop adoption and deeper engagement need to translate into durable earnings growth rather than simply a broader feature set.
SEZL currently carries a Zacks Rank #2 (Buy). The company also has a Growth Score of A, Momentum Score of A and VGM Score of A, which align with a favorable growth and momentum profile over the near term. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Value Score of D keeps the valuation discussion in focus. Investors are paying for Sezzle’s growth trajectory, making the next phase less about the number of new products and more about whether those products can scale profitably.
Key Takeaways Sezzle uses AI across support, engineering, underwriting, chargebacks and business intelligence.Its AI chatbot resolved about 60% to 70% of chats without escalation in first-quarter 2026.AI assists with about 80% of code, helping Sezzle accelerate development with roughly 500 employees. Sezzle Inc. (SEZL - Free Report) has placed AI across its operating stack, making it part of daily work. The tools support customer service, engineering, underwriting, chargebacks, support quality and business intelligence, helping the company raise output without matching growth in staffing.
The clearest result is in customer support. In the first quarter of 2026, Sezzle’s AI chatbot resolved roughly 60% to 70% of chats without escalation. Automated ticket scoring also helps monitor compliance, service quality and retention signals across a growing user base.
Engineering may offer the larger payoff. Management said about 80% of code is generated with AI assistance and then reviewed by employees. This can shorten development cycles and let a roughly 500-person workforce support more products without building a much larger cost base.
This matters as Sezzle moves beyond Pay-in-4. Pay-in-5 was launched in January 2026, while cash-flow management tools and deposit accounts are expected by the third quarter. AI-supported development can help teams release and refine these products faster while maintaining control over credit, compliance and customer experience.
The financial framework further supports that approach. Management expects revenue growth to outpace spending and continues targeting total revenue less transaction-related costs of 55% to 65%. First-quarter non-transaction operating expenses were 25.3% of revenues, suggesting AI-led productivity can compound as transaction volumes and data increase.
How Are Affirm Holdings and Block Applying AI?Affirm Holdings (AFRM - Free Report) is extending pay-over-time into AI-led commerce through Google Search, Gemini and Stripe’s Shared Payment Tokens. Affirm Holdings also applies continuously learning models to transaction-level underwriting across roughly 27 million active consumers. Affirm Holdings shows how AI can widen distribution while keeping credit decisions and terms controlled.
Block (XYZ - Free Report) is using its goose AI platform across engineering, finance, legal and design. Block reported 40% more production code shipped per engineer, while a BNPL risk model took two days rather than a full quarter. With 100% of engineers regularly using AI, Block shows how automation can raise product velocity.
SEZL's Price Performance, Valuation & EstimatesShares of Sezzle have outperformed over the past three months compared with the broader industry and the S&P 500 composite.
Image Source: Zacks Investment Research
From a valuation standpoint, Sezzle shares have a Value Score of D. Following the share rally, SEZL is trading at a forward 12-month price-to-sales of 7.64X, which is at a premium to the industry’s 5.15X.
Image Source: Zacks Investment Research
Over the past 30 days, estimates for SEZL’s 2026 and 2027 EPS have been revised upward. The figures indicate a year-over-year increase of 42.06% and 25.74%, respectively.
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.
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. However, it isn't easy to find a great growth stock.
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, 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.
Sezzle Inc. (SEZL - Free Report) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it 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 42% this year, crushing the industry average, which calls for EPS growth of 15.4%.
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 -3.7%.
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 12.6%.
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.
The current-year earnings estimates for Sezzle Inc. have been revising upward. 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.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
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.
