Track market-moving stories before they get noisy

Minneapolis, MN, Oct. 19, 2026 (GLOBE NEWSWIRE) -- Sezzle Inc. (NASDAQ: SEZL) (Sezzle or Company) // - Sezzle, the digital financial platform specializing in Buy Now, Pay Later, today spotlighted the launch of its Gen Z Advisory Council, giving 30 Sezzle users ages 18 to 25 a direct feedback loop to share their financial pain points, along with helping shape Sezzle's products to work better for them.

Gen Z is coming of age at a hard time to get ahead financially. More than a third of Gen Zers have no emergency savings, according to Bankrate's 2026 Emergency Savings Report, and more than 1 in 5 Gen Z respondents in a January 2026 U.S. News & World Report survey said they never use a credit card. As their expectations around money change, Sezzle believes the best way to serve this generation is to ask them directly.

"Our mission is to financially empower the next generation, and we want to hear what that takes straight from the source,” said Sarah Hill, SVP of Product at Sezzle. "Every month, our Gen Z Consumer Advisory Council tells us what's working, what's missing, and what would help them get ahead, and what they tell us goes directly into shaping what we build."

How the council works

Council members meet with Sezzle’s product marketing team every month for 60-minute sessions. They discuss budgeting, spending, and saving; test new features; and point out what's confusing or missing in the app. Sezzle's product and design teams use that feedback to help decide what to build and what to fix. 

In just a few months, council members have already influenced updates to the app, from making the referral link easier to find within the Shop tab, to choosing the next Sezzle virtual card§ design.

What Gen Z is telling Sezzle

For many members, Sezzle started as a way to manage cash flow while balancing school, work, and family. "I'm in college and don't always have the cash to put the money down at once for some purchases," said one council member. And when it comes to repayment, Sezzle's data from January through September 2026 shows that once Gen Z places an order, they pay early more often than any other generation.

Building tools to help Gen Z learn, earn, and spend responsibly

Sezzle has built several tools with this generation in mind:

Learn: More than 338,000 people have completed over 2 million lessons in Money IQ, Sezzle's in-app financial literacy program, covering budgeting, saving and building credit. In a March 2026 Sezzle survey of Money IQ users, 90% said they feel more confident managing their finances since using the platform. Rewards: Sezzle Arcade, gas discounts, receipt scanning, cashback, and browser extension deals help members earn rewards and save as they shop. Spend responsibly: Eligible users can split purchases into smaller payments or request a cash advance‡ through the Sezzle app. Sezzle Send: Sezzle Send lets users send money and pay in full or five† payments. Recipients get the full amount upfront. Build credit history: As Gen Z leans away from traditional credit, Sezzle Up helps users build a credit history by reporting their payments to the credit bureaus**. For one young father on the council, that's what sets Sezzle apart. He said other BNPL apps he tried felt like "they were specifically designed to make someone spend money," while Sezzle felt like an "app designed to actually help someone save."

As Gen Z moves into bigger milestones, from paying for school to starting families, Sezzle will keep building alongside them, with the council’s input guiding the way.

Survey Methodology

The March 2026 Money IQ survey was conducted March 20, 2026 among 360 Sezzle users who had completed Money IQ lessons. Respondents did not receive Sezzle Points for participating. Results are self-reported.

**Opt-in to voluntary credit reporting by enrolling in Sezzle Up. Increases or specific changes to your credit score are not guaranteed. Impact on your credit score may vary depending on your use. All payments, including late payments, are required to be reported, which may negatively impact your credit score. Credit scores are independently determined by credit bureaus based on a number of factors, including the financial decisions you make with other financial services organizations. The program and related services will not remove negative credit history from your credit report.

§Sezzle Virtual Cards are issued by WebBank, pursuant to a license from Visa U.S.A Inc. See User Agreement for details. Sezzle provides access to financing in the form of installment loans. Sezzle is not a bank.

†Loans are originated by WebBank. Refer to your loan agreement for details. All loans are subject to credit approval. Ex: A $300 Pay in 5 loan is $60 down plus a $7.49 service fee today, then 4 payments of $60 every 2 weeks (33.29% APR). Service fees range from $0-$7.49 based on purchase price & merchant. Subscribers pay no service fees (0% APR); subscription fees are billed separate & excluded from the APR.

‡Issued by WebBank. Loan terms, repayment schedules, and fees are disclosed in your SezzleCash agreement prior to acceptance. Optional express delivery may be available for an additional fee.

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 

Sezzle Media Contact:

Erin Foran

Tel: (651) 403-2184

Email: [email protected]

Sezzle, Inc. demonstrates superior profitability and growth, outperforming peers across nearly all key financial metrics in the BNPL sector. SEZL's revenue CAGR of 40.7% (FY2021-FY2025) and net income CAGR of 333.1% (FY2023–FY2025) underpin robust margin expansion and sustained earnings momentum. My discounted cash flow analysis yields a conservative equity value of $125.66 per share, 11.4% above the current price, supporting a Buy rating.

12.27K Followers

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.

The article is for informational purposes only (not a solicitation or recommendation to buy or sell stocks). David is not a registered investment adviser. Investors should do their own research or consult a financial adviser to determine what investments are appropriate for their individual situation. This article expresses my opinions, and I cannot guarantee that the information/results will be accurate. Investing in stocks involves risk and could result in losses.

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.

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight 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 trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.8% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus 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.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee 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.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall 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.

For fiscal 2026, four analysts revised their earnings estimate upwards in the last 60 days, and 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.

1.26K Followers

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in SEZL over 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.

Minneapolis, MN, Sept. 29, 2026 (GLOBE NEWSWIRE) -- Sezzle, a leader in flexible payments, today released new survey findings that carry a clear message for retailers heading into Black Friday and Cyber Monday: offering the right payment option at checkout can be the difference between a completed sale and an abandoned cart.

The survey, conducted in partnership with Morning Consult, found that 66% of shoppers said they were likely to abandon a purchase entirely if their preferred Buy Now, Pay Later option wasn't available at checkout. More than half, 57%, say they always or often compare payment options before they even start shopping, meaning the decision to buy is often made before a shopper ever reaches the cart.

"Retailers spend all year building toward this shopping season," said Paul Paradis, President and co-founder of Sezzle. "The last thing they want is to lose a sale at the final step because checkout didn't offer the payment option a shopper needed. If it isn't there, the cart just gets abandoned, and the shopper will often not come back to try again."

The stakes are especially high with Gen Z, a generation that already shops around for payment options more than any other. 85% of Gen Z BNPL shoppers have used more than one provider, and they use BNPL more often than any other generation, with 72% using the tool two or more times a month, compared with 27% of Boomers. Retailers who offer only one BNPL option risk losing this audience to a competitor who offers the one they actually use.

The findings echo a pattern retailers have seen before. Merchants once routinely refused American Express over its higher fees, but by the end of 2019, 99% of U.S. merchants that already accepted credit cards accepted Amex as well.² In Sezzle's view, that shift reflects a simple trade-off: the cost of turning away a customer's preferred payment method eventually outweighed the cost of accepting it. Buy Now, Pay Later may be heading down the same road: more than a third of shoppers surveyed say they've been declined by a BNPL service before.

For a retailer offering only one BNPL option, a decline isn't just a lost approval — it can be a lost sale entirely. Sezzle approves more than 90% of applicants¹, making it a provider retailers can add specifically to capture the shoppers other options turn away. Offering more than one provider gives retailers a second shot at that same sale. And the upside isn't small: 82% say BNPL has let them make a purchase they would have otherwise postponed or skipped altogether, meaning the option at checkout can be the deciding factor in whether a sale happens at all.

Want to reach more shoppers ahead of the holiday season? See how Sezzle can help.

¹ Based on Sezzle internal data; reflects the percentage of unique applicants approved, YTD 2026.

² Source: CNBC Select, "99% of merchants in the U.S. who accept credit cards now take American Express," citing The Nilson Report (data as of year-end 2019). https://www.cnbc.com/select/american-express-merchant-acceptance/

Methodology: Survey conducted by Morning Consult on behalf of Sezzle from July 29 to August 5, 2026, among 2,090 U.S. general population adults. Of these, 1,245 respondents meet a Federal Reserve-based paycheck-to-paycheck definition; findings on cart abandonment, BNPL declines, and postponed purchases are based on the subset of that group who have used a BNPL service (n=388). Generational comparisons on BNPL usage frequency (Gen Z vs. Baby Boomers) are drawn from a separate sample of past-12-month BNPL users (n=223 Gen Z, n=186 Baby Boomers). Results are weighted to be nationally representative within each sample.

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 

Sezzle Media Contact:

Erin Foran

Tel: (651) 403-2184

Email: [email protected]

Sezzle_AdAsset_Social _Sept2026_SezzleB2BQ1SinglePost_Choice_1200x627_03

Key Takeaways Sezzle is expanding beyond BNPL through subscriptions, SezzleCash, Sezzle Send and merchant additions.Dave's growth is driven by ExtraCash, member gains, larger advances and improving funding flexibility.Similar valuations put focus on growth quality, monetization durability, credit discipline and execution. Sezzle Inc. (SEZL - Free Report) and Dave Inc. (DAVE - Free Report) are trying to solve a similar consumer problem: giving financially stretched users faster, simpler access to payments and short-term liquidity through digital platforms. Both are expanding beyond their original products, using underwriting technology to manage credit risk and leaning on engagement to lift revenue per customer. This common ground makes SEZL and DAVE suitable for a fintech face-off.

Their paths, however, are different. Sezzle began with buy-now, pay-later (BNPL) and is building a wider ecosystem around subscriptions, shopping, cash advances and money transfers. Dave is a neobank whose economics remain centered on ExtraCash, with its debit card, subscriptions and developing Flex product widening the relationship.

Sezzle is currently growing faster and has several products that can deepen user frequency, while Dave brings a larger member base, strong acquisition efficiency and improving funding flexibility. The comparison comes down to growth breadth, monetization durability, credit discipline and execution.

The Case for SEZLSezzle’s appeal starts with a business that is becoming recurring and engaged. Active subscribers reached 854,000 in the second quarter, up 76.4% from a year earlier, while quarterly purchase frequency climbed to a record 7.2 times. These trends suggest Sezzle is building habits, not simply processing occasional BNPL purchases.

The subscription model also gives Sezzle room to add services without relying only on merchant checkout volume. SezzleCash extends the relationship into short-term liquidity, while Sezzle Send moves the platform into peer-to-peer payments. Early SezzleCash usage was encouraging, and management’s guidance assumes little contribution from the newer products, leaving room for upside if adoption develops well. Sezzle’s August agreement with WebBank expanded its bank program to support SezzleCash and Sezzle Send, giving these newer products a clearer funding framework.

Merchant expansion supports the other side of the network. In September, Sezzle announced Gymshark, Debenhams Group and Follett Higher Education as checkout additions, extending its reach across fashion and campus retail. Compared with Dave, which remains more dependent on ExtraCash monetization, Sezzle has more routes to increase transactions and customer touchpoints.

The economics are also supporting investment. Revenues advanced 51.7% year over year, while adjusted EBITDA reached $58 million, and the adjusted EBITDA margin held at 38.8%. Sezzle’s net transaction margin was 63.5%, near the upper end of its stated target range, even as marketing spending increased sharply.

Execution and credit losses still deserve attention, especially as Sezzle expands beyond BNPL. Yet its combination of subscriber growth, higher purchase frequency, merchant additions and new financial products creates a broader growth runway. The upgraded 2026 outlook reinforces the case that growth and profitability can coexist for investors.

The Case for DAVEDave has plenty working in its favor, particularly customer acquisition and ExtraCash engagement. The company added 951,000 new members in the second quarter, up 32% year over year, while customer acquisition cost stayed at $19. Monthly transacting members rose 17% to 3.08 million, showing that acquisition is translating into activity.

ExtraCash remains the core monetization engine. Originations increased 27% to $2.3 billion, while average advance size reached $215. Dave is also removing legacy fee caps and plans to support higher limits, which can lift revenue per user. Compared with Sezzle, however, Dave’s near-term growth remains more concentrated around one credit product.

Credit performance has held up, while originations expanded. The 28-day past-due rate improved to 2.12%, and CashAI V6 is designed to support larger limits while managing losses. The Coastal Community Bank arrangement should also reduce Dave’s direct funding burden and improve capital efficiency as more receivables move through the structure.

There are additional growth options. Subscription revenues are becoming a larger part of the mix, and Dave Flex could eventually deepen card engagement. Still, Flex is in testing, and management does not expect meaningful 2026 revenues from it. This makes the product more optionality than a proven driver today.

Dave’s profitability and guidance remain supportive, with adjusted EBITDA growth outpacing the improvement in revenues. Yet higher ExtraCash limits, pricing changes, increased marketing and an unresolved DOJ matter add execution and regulatory considerations. The business is performing well, but Sezzle currently offers a more diversified set of growth levers for future expansion.

How Do Estimates Compare for SEZL & DAVE?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 60 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 Dave’s 2026 and 2027 sales implies year-over-year growth of 31.73% and 22.48%, respectively. Over the past 60 days, estimates for DAVE’s 2026 and 2027 EPS have been revised northward. The consensus mark for 2026 and 2027 EPS calls for a year-over-year jump of 31.49% and 30.70%, respectively.

For Dave:

Image Source: Zacks Investment Research

Price Performance and Valuation of SEZL & DAVESo far in the year, Sezzle shares have surged 72.9%, while Dave shares have risen 49.7%. In comparison, the S&P 500 composite has advanced 12% in the same time frame. 

Image Source: Zacks Investment Research

On a forward 12-month price-to-sales basis, SEZL and DAVE now trade at broadly similar valuations. SEZL is valued at 5.14 times forward sales, while DAVE is at 4.97 times. With little valuation gap between them, the comparison shifts toward growth quality. Sezzle’s faster revenue expansion, rising subscriber base and broader product rollout provide stronger support for its multiple. Dave’s growth and improving margins remain attractive, but greater dependence on ExtraCash makes execution and credit trends more important.

Image Source: Zacks Investment Research

ConclusionBoth SEZL and DAVE have credible growth paths, improving economics and clear consumer demand, but their risk-reward profiles are starting to separate. Sezzle combines faster top-line growth with subscriber gains, rising purchase frequency, merchant expansion and a product roadmap that is widening beyond BNPL without sacrificing profitability.

Dave is executing well, particularly in acquisition, credit performance and capital efficiency, yet its next leg relies more heavily on higher ExtraCash monetization, larger advances and products still being tested. For investors choosing between the two today, SEZL offers the more compelling setup for fresh capital, while DAVE looks better suited to patient existing shareholders.

While SEZL carries a Zacks Rank #2 (Buy), DAVE has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Sezzle Inc. (NASDAQ:SEZL – Get Free Report) Director Bryan Hunt purchased 250 shares of the company’s stock in a transaction on Friday, September 18th. The shares were purchased at an average cost of $115.86 per share, with a total value of $28,965.00. Following the transaction, the director directly owned 3,985 shares in the company, valued at $461,702.10. This trade represents a 6.69% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is available through this hyperlink.

Sezzle Price Performance SEZL stock opened at $106.89 on Thursday. The firm’s 50-day moving average price is $134.73 and its two-hundred day moving average price is $116.90. Sezzle Inc. has a 12-month low of $49.50 and a 12-month high of $195.71. The stock has a market capitalization of $3.60 billion, a price-to-earnings ratio of 23.24 and a beta of 6.66. The company has a current ratio of 4.02, a quick ratio of 4.02 and a debt-to-equity ratio of 0.52.

Sezzle (NASDAQ:SEZL – Get Free Report) last posted its earnings results on Thursday, August 6th. The company reported $1.13 earnings per share for the quarter, topping analysts’ consensus estimates of $1.03 by $0.10. Sezzle had a net margin of 30.35% and a return on equity of 83.48%. The company had revenue of $149.68 million during the quarter, compared to analyst estimates of $135.09 million. Sezzle has set its FY 2026 guidance at 5.250-5.250 EPS. As a group, equities analysts predict that Sezzle Inc. will post 5.24 earnings per share for the current year.

Hedge Funds Weigh In On Sezzle A number of institutional investors have recently added to or reduced their stakes in SEZL. Royal Bank of Canada increased its stake in shares of Sezzle by 10.2% in the 1st 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 in the last quarter. California State Teachers Retirement System grew its holdings in Sezzle by 65.1% in the first quarter. California State Teachers Retirement System now owns 28,262 shares of the company’s stock worth $1,789,000 after purchasing an additional 11,145 shares during the period. Quantinno Capital Management LP purchased a new stake in Sezzle in the first quarter worth about $1,089,000. Bank of America Corp DE increased its stake in shares of Sezzle by 296.1% during the first quarter. Bank of America Corp DE now owns 326,063 shares of the company’s stock valued at $20,637,000 after purchasing an additional 243,747 shares in the last quarter. Finally, Cetera Investment Advisers increased its stake in shares of Sezzle by 134.4% during the first quarter. Cetera Investment Advisers now owns 32,452 shares of the company’s stock valued at $2,054,000 after purchasing an additional 18,609 shares in the last quarter. Institutional investors own 2.02% of the company’s stock. Wall Street Analysts Forecast Growth A number of brokerages recently commented on SEZL. Freedom Capital upgraded Sezzle to a “hold” rating in a report on Wednesday, June 24th. Zacks Research raised shares of Sezzle from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, May 27th. Wall Street Zen cut shares of Sezzle from a “buy” rating to a “hold” rating in a research report on Saturday, September 12th. Keefe, Bruyette & Woods cut 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. Finally, B. Riley Financial reiterated a “buy” rating on shares of Sezzle in a research report on Friday, August 7th. One investment analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat.com, Sezzle presently has an average rating of “Moderate Buy” and a consensus target price of $146.50.

View Our Latest Research Report on Sezzle

About Sezzle (Get Free Report)

Sezzle Inc is a financial technology company that operates a buy now, pay later platform. Its services allow consumers to split eligible purchases into scheduled installments, typically through participating online and in-store merchants. Sezzle’s platform is designed to provide flexible payment options while helping merchants attract customers and support e-commerce sales.

The company offers products and services that include installment payment solutions, a virtual card, and subscription-based access to additional purchasing features.

Further Reading Five stocks we like better than Sezzle Chips to Bots: Qualcomm’s Agentic AI Breakout Ciena Fell 40%—Now One Analyst Sees 50% Upside Energy Transfer Taps the AI Power Boom Viking’s Obesity Edge May Be Staying Power, Not Weight Loss

Receive News & Ratings for Sezzle Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Sezzle and related companies with MarketBeat.com's FREE daily email newsletter.

Key Takeaways Sezzle added 140,000 net new subscribers, lifting active subscribers 76.4% year over year.Marketing expense rose to $19.4 million, yet payback remained below six months after spending tests.Sezzle plans to reduce core marketing spending sequentially in the third quarter. Sezzle’s (SEZL - Free Report) second-quarter 2026 results show that higher marketing spending is translating into strong subscriber growth. Marketing, advertising and tradeshows expenses rose to $19.4 million from $8.8 million a year earlier, helping active subscribers climb 76.4% year over year to 854,000. The company also added 140,000 net new subscribers during the quarter, its largest quarterly gain since the subscription program’s inception.

The key measure is payback. Management said its marketing investments continued to produce a payback period of less than six months, even after testing higher spending levels. Sezzle uses that threshold to determine how aggressively to invest, suggesting that marketing growth remains tied to returns rather than subscriber additions alone.

Engagement trends further support the higher spending. Average quarterly purchase frequency reached a record 7.2 times, up from 6.1 times in the prior-year quarter, while MODS increased 31.3% to 982,000. Repeat usage reached 97.2% of total orders, and average quarterly revenue per monetized user increased 16.2%.

Importantly, the heavier marketing expense did not prevent earnings growth. Second-quarter revenues increased 51.7% to $149.7 million, while adjusted net income rose 58.4% to $39.3 million. Adjusted EBITDA increased 51.3% to $58 million, with the margin remaining broadly steady at 38.8%.

Management plans to reduce core marketing spending sequentially in the third quarter, although SezzleCash and Sezzle Send may require additional awareness spending. Sezzle intends to let expected payback determine the level of investment, while recently acquired customers are expected to begin contributing returns during the second half of 2026.

How Are Others Strengthening Marketing ROI?

Affirm (AFRM - Free Report) continues to spend on customer acquisition and merchant partnerships while delivering stronger profitability and operating leverage. Its expanding GMV and revenue base is helping absorb higher marketing costs, indicating that marketing investment is supporting scalable growth. In fourth-quarter fiscal 2026, sales and marketing expense increased 16% year over year, while operating income rose 154%.

Klarna (KLAR - Free Report) is also increasing marketing investment to strengthen customer engagement and expand its merchant network, yet profitability continues to improve. Revenues and GMV growth are helping offset the higher spending, reflecting better transaction economics and operating efficiency. In second-quarter 2026, sales and marketing expenses rose 38% year over year, while adjusted operating income surged 214%.

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 C. In terms of forward 12-month Price/Sales, SEZL stock is trading at 5.32X, which is at a premium to the Zacks Financial Transaction Services Market industry’s 4.84X.

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 two months. The consensus estimate for the metric indicates a year-over-year increase of 45.96%.

Image Source: Zacks Investment Research

Sezzle currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Key Takeaways Sezzle's merchant additions are expanding acceptance and supporting higher customer engagement.Active subscribers rose 76.4% to 854,000, while quarterly purchase frequency hit a record 7.2 times.Sezzle trades at about 18.8X forward earnings, below Affirm's 32.96X and Klarna's 41.15X. Sezzle Inc.’s (SEZL - Free Report) recent merchant additions are giving its engagement story another leg. The company has added enterprise names such as Gymshark, Debenhams, Poshmark and Follett, expanding the number of places where consumers can use its payment products. Management says its On-Demand offering is helping Sezzle compete for merchants with tighter margins, while a more engaged subscriber base is supporting its pitch to larger retailers.

The market has already rewarded that progress. SEZL has significantly outperformed close BNPL peers such as Affirm Holdings, Inc. (AFRM - Free Report) and Klarna Group plc (KLAR - Free Report) in 2026, reflecting investor confidence in Sezzle’s growth and profitability.

Even so, the stock has pulled back from its highs, keeping the debate open over whether the current valuation still leaves enough room for further gains.

Image Source: Zacks Investment Research

The bigger question is whether new merchants can translate into deeper customer relationships rather than just more checkout volume. Rising subscription adoption, more frequent purchases and new financial tools suggest Sezzle is becoming useful in more situations. This could support longer customer lifetimes and stronger economics if credit performance and customer-acquisition spending remain disciplined.

Merchant Growth Can Fortify the Engagement Flywheel for SEZLAdding merchants matters because Sezzle’s model becomes more useful as consumers find more places to transact. Management noted that enterprise sales cycles can be lengthy, but said the pipeline has strengthened and that merchants are increasingly willing to add Sezzle alongside other BNPL providers rather than choose a single platform.

This creates a useful loop. More merchant acceptance can drive higher transaction frequency, while greater customer activity can make Sezzle more attractive to additional merchants. For a smaller platform competing with Affirm and Klarna, that relationship is important because Sezzle cannot rely on scale alone.

The evidence so far points to deeper usage. Active subscribers reached 854,000 at the end of June, up 76.4% from a year earlier, while average quarterly purchase frequency increased to a record 7.2 times from 6.1 times. Repeat usage represented 97.2% of orders, and average quarterly revenue per monetized user rose 16.2%. These numbers matter more as proof of improving customer behavior than as a simple quarterly scorecard.

Sezzle’s New Products Can Deepen Customer RelationshipsSezzle is also trying to give users reasons to return when they are not making a retail purchase. SezzleCash provides eligible Anywhere subscribers with access to short-term liquidity, while Sezzle Send extends the platform into peer-to-peer money transfers.
Early interest has been encouraging. Nearly 10% of eligible new subscribers were using SezzleCash as their first transaction in the Anywhere ecosystem, while Sezzle Send had attracted more than 100,000 users to its waitlist ahead of launch.

These products could make the platform harder to replace. Card-linked offers, cashback, rewards and Sezzle Mobile add further reasons for customers to remain active. This is important in a BNPL market where Affirm and Klarna are also broadening their consumer offerings.

SEZL’s Estimate Revisions Depict a Bright OutlookOver the past 30 days, 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

Valuation Still Leaves an Opening for SEZLThe stock’s rally has made valuation more important, but Sezzle does not look stretched relative to close peers on forward earnings. SEZL trades at roughly 18.82X forward 12-month price-to-earnings compared with about 32.96X for Affirm and about 41.15X for Klarna.

While the comparison is not exact because the three companies differ in size and business mix, the discount gives Sezzle some room to grow into its valuation if execution remains solid.

Valuation

Image Source: Zacks Investment Research

The main risks are still credit quality and customer-acquisition efficiency. Management expects provision for credit losses to remain within 2.5%-3% of GMV for 2026 and continues to evaluate marketing spending against a payback period of less than six months. Newer products could increase credit exposure, particularly as they bring in first-time users. Still, if engagement keeps rising without weakening loss performance, earnings growth can remain a meaningful driver of the stock.

What Should Investors Do With SEZL Now?Sezzle’s newest merchant additions make its engagement story broader and more durable. More places to use the platform can support purchase frequency, while subscriptions, SezzleCash and Sezzle Send create additional reasons for customers to return. The stock’s strong 2026 performance raises the bar for execution, and credit trends need monitoring as the product set expands.

Still, rising engagement, disciplined customer-acquisition economics and a forward earnings multiple below Affirm and Klarna keep the risk-reward profile favorable. For investors comfortable with the volatility of a smaller fintech, the current level presents a reasonable opportunity to build long-term exposure as the company expands its consumer and merchant ecosystem.

At present, SEZL carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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.

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…

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

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.

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.

Sezzle US Media Contact:

Erin Foran

Tel: (651) 403-2184

Email: [email protected]

Gymshark, Debenhams Group, and Follett Higher Education Now Offer Sezzle

Gymshark, Debenhams Group, and Follett Higher Education Now Offer Sezzle

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.

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 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.

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.

475 Followers

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 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.

Posted by Defense World Staff on Aug 13th, 2026

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).

Receive News & Ratings for Sezzle Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Sezzle and related companies with MarketBeat.com's FREE daily email newsletter.

« PREVIOUS HEADLINEZOOZ Power Ltd. (NASDAQ:ZOOZW) Short Interest Up 2,814.3% in July

NEXT HEADLINE »Subaru (OTCMKTS:FUJHY) Stock Crosses Below 200-Day Moving Average – Here’s What Happened

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.

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.

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.

Posted by Defense World Staff on Aug 11th, 2026

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.

See Also Five stocks we like better than Sezzle SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat 3 Dividend Champion Utilities for a Market That Can’t Sit Still These 3 Most-Upgraded Stocks Have Almost Nothing to Do With AI First Solar’s Profit Engine Faces a New Policy Test in Washington

Receive News & Ratings for Sezzle Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Sezzle and related companies with MarketBeat.com's FREE daily email newsletter.

« PREVIOUS HEADLINEFirst Bank & Trust Sells 2,013 Shares of Amgen Inc. $AMGN

NEXT HEADLINE »Financial Management Professionals Inc. Purchases New Holdings in Dimensional Emerging Core Equity Market ETF $DFAE

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

(

-33.89

%) $

-60.51

Current Price

$

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.