For the quarter ended March 2026, Booz Allen Hamilton (BAH - Free Report) reported revenue of $2.78 billion, down 6.4% over the same period last year. EPS came in at $1.78, compared to $1.61 in the year-ago quarter.
The reported revenue represents a surprise of -3.43% over the Zacks Consensus Estimate of $2.88 billion. With the consensus EPS estimate being $1.32, the EPS surprise was +35.02%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Booz Allen performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Total Backlog: $38.19 billion versus the two-analyst average estimate of $40.04 billion.Revenue by Customer Type- U.S. Government- Defense Customers: $1.52 billion versus $1.6 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -0.6% change.Revenue by Customer Type- U.S. Government- Civil Customers: $766 million versus $808.09 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -22.6% change.Revenue by Customer Type- U.S. Government- Intelligence Customers: $499 million versus $477.66 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +9% change.View all Key Company Metrics for Booz Allen here>>>
Shares of Booz Allen have returned -3.4% over the past month versus the Zacks S&P 500 composite's +5.5% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
Booz Allen Hamilton is rated a conservative 'BUY' reflecting 15x P/E for 2028E. Despite a 40%+ market cap decline and revenue headwinds, BAH delivered strong 4Q26 EPS, a robust $38B backlog, and improved margins. The current valuation under 14-16x P/E is seen as overly discounted given BAH's resilient business model, government client base, and quality metrics.
Key Takeaways Booz Allen topped EPS estimates as margins improved despite a 6.4% year-over-year revenue decline.BAH's Civil business faced contract cuts, while demand in National Security remained strong.Booz Allen's backlog reached a record $38B as demand for AI-native cyber & defense technologies accelerated. Booz Allen Hamilton Holding Corporation (BAH - Free Report) reported mixed fourth-quarter fiscal 2026 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.
The company’s fourth-quarter fiscal 2026 adjusted earnings per share of $1.78 surpassed the consensus mark of $1.32 and increased 10.6% year over year.
Revenues of $2.78 billion missed the consensus estimate of $2.88 billion and declined 6.4% from the year-ago quarter. BAH continued to benefit from strength in its National Security business, while Civil operations remained under pressure amid difficult market conditions.
BAH’s Margins Expand Despite Revenue PressureAdjusted EBITDA declined 2.2% year over year to $309 million. The adjusted EBITDA margin on revenues expanded 50 basis points to 11.1% due to disciplined cost management and strong contract execution.
Adjusted net income increased 5.9% year over year to $215 million. GAAP net income rose 6.2% to $205 million, while GAAP earnings per share improved 10.5% to $1.68.
The company noted that profitability benefited from lower taxes, a reduced share count and unrealized investment gains. Operating income totaled $263 million compared with $274 million in the prior-year quarter.
Booz Allen Faces Civil Market HeadwindsBooz Allen’s revenues, excluding billable expenses, decreased 6.8% year over year to $1.91 billion. Per management, the Civil business continued to face challenging comparisons and lower demand levels.
Civil operations were affected by contract reductions and lower Treasury-related work. Management expects the Civil portfolio to remain under pressure in the first half of fiscal 2027, although demand trends are improving gradually.
Meanwhile, the National Security portfolio continued to support overall performance. The business benefited from strong demand in intelligence, cyber and defense technology programs.
BAH’s Backlog & Demand Trends Stay HealthyTotal backlog increased 3.1% year over year to a record $38 billion. The company reported a quarterly book-to-bill ratio of 0.9X and a trailing 12-month book-to-bill ratio of 1.1X.
Management highlighted strong momentum in cyber and defense technology opportunities. During the quarter, Booz Allen secured a $937 million engineering and technology contract supporting the U.S. Army’s modernization initiatives.
The company continued investing in AI-enabled cyber offerings and advanced technology solutions. Management stated that demand for AI-native cyber products and outcomes-based contracts is accelerating across government and commercial markets.
Booz Allen Generates Strong Cash FlowBooz Allen generated $240 million in operating cash flow during the quarter compared with $218 million in the prior-year period. Free cash flow improved 9.3% year over year to $212 million.
For fiscal 2026, free cash flow totaled $951 million, compared with $911 million in the prior year. The company attributed the improvement to billing efficiencies and strong collections activity.
BAH exited fiscal 2026 with cash and cash equivalents of $728 million compared with $885 million at fiscal 2025-end. Long-term debt, net of current portion, was $3.92 billion compared with $3.91 billion a year ago.
BAH Initiates Fiscal 2027 OutlookFor fiscal 2027, BAH expects revenues to be between $11.2 billion and $11.7 billion, indicating 0% to 4% year-over-year growth, with the midpoint of $11.45 billion below the Zacks Consensus Estimate of $11.55 billion. The company guided adjusted earnings per share between $6.00 and $6.35, with the midpoint of $6.18 marginally above the Zacks Consensus Estimate of $6.17.
The company projects adjusted EBITDA in the range of $1.24-$1.29 billion with an adjusted EBITDA margin of nearly 11%.
Management expects free cash flow to be between $825 million and $925 million. Booz Allen expects continued growth in its National Security business, while the Civil portfolio is likely to remain challenged in the near term.
The company continued returning capital to its shareholders. During fiscal 2026, Booz Allen deployed $1.1 billion through strategic investments, share repurchases and dividends.
Booz Allen carries a Zacks Rank #4 (Sell) at present.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings SnapshotsRollins, Inc. (ROL - Free Report) reported impressive first-quarter 2026 results. ROL’s adjusted earnings of 24 cents per share matched the consensus mark and rose 9.1% from the year-ago quarter. ROL’s total revenues of $906.4 million surpassed the consensus mark by 1.3% and increased 10.2% year over year.
Waste Connections, Inc. (WCN - Free Report) posted impressive first-quarter 2026 results. WCN’s adjusted earnings of $1.23 per share outpaced the consensus mark by 3.4% and rose 8.9% from the year-ago quarter. WCN’s total revenues of $2.37 billion beat the consensus mark by 0.7% and increased 6.4% year over year.
Key Takeaways BAH guides FY27 revenues of $11.2B-$11.7B, signaling an uneven recovery rather than a clean rebound.BAH expects Civil to decline again in FY27; 1H hit hardest despite a 1.2X Q4 segment book-to-bill.BAH leans into cyber and defense tech, cites Golden Dome and $937M BEATS award plus faster Vellox releases. Booz Allen Hamilton Holding Corporation (BAH - Free Report) used its fourth-quarter call to argue that fiscal 2027 will be a transition year, with national security growth offsetting another year of civil-market weakness.
Management’s tone was constructive, but measured. Executives spent more time on procurement shifts, cyber and defense-tech opportunities, and the timing of a civil recovery than on the quarterly beat itself.
BAH Sets Up a Bifurcated FY27Chair and CEO Horacio Rozanski said fiscal 2026 was Booz Allen’s most challenging year as a public company, shaped by unusual pressure in the Civil business and broader market disruption. He framed the response as tighter execution, cost discipline, and faster strategic repositioning.
For fiscal 2027, management guided to revenues of $11.2 billion to $11.7 billion, adjusted EBITDA of $1.24 billion to $1.29 billion, adjusted EPS of $6.00 to $6.35, and free cash flow of $825 million to $925 million.
That outlook implies a company still working through uneven conditions. Rozanski said procurement changes should create near-term uncertainty, but also align with the faster, more outcome-based market Booz Allen has been preparing for.
Booz Allen Sees Civil Drag Lasting LongerPresident and COO Kristine Anderson said the company expects Civil to decline again in fiscal 2027, with the first half under the most pressure. She pointed to difficult comparisons, prior contract cuts, Treasury-related reductions, and smaller, shorter recompetes.
The quarter showed the pressure clearly. Revenues fell 6.4% year over year to $2.78 billion, missing the Zacks Consensus Estimate of $2.88 billion by 3.43%, even as adjusted EPS of $1.78 beat the $1.32 consensus by 34.85%. Civil revenues were down sharply, while defense and intelligence remained firmer.
Still, Anderson said demand in Civil is improving. She highlighted a 1.2X fourth-quarter book-to-bill in the segment, led by Health, but made clear that stronger demand will take time to convert into growth.
BAH Leans Harder Into Cyber and Defense TechManagement’s clearest conviction was around national security, especially cyber and defense technology. Anderson said Booz Allen expects that portfolio to drive overall growth in the coming quarters, supported by strong positioning in cyber, engineering, and advanced mission work.
Executives also used the call to underscore productization and AI. Anderson described rising demand for AI-enabled cyber offerings, while Rozanski said the company is accelerating releases in its Vellox cyber suite to meet demand now rather than on a longer timetable.
That message was reinforced by recent wins and pipeline commentary. Management cited work tied to Golden Dome and the $937 million BEATS award, while emphasizing broader opportunities in autonomy, C2 at the edge, quantum, 6G and AI RAN.
Booz Allen Defends Margins and Investment PaceCFO Troy Lahr said fourth-quarter profitability came in above expectations on disciplined cost management and contract execution. Adjusted EBITDA margin improved 50 basis points to 11.1%, while free cash flow rose to $212 million.
The more important point for investors was how management plans to use that flexibility. Lahr said fiscal 2027 margins should remain around 11% even as the company absorbs Civil weakness and steps up investment in cyber and defense tech.
In Q&A, he added that Booz Allen generally keeps about 40% of realized cost savings, with about one-third of the targeted cost takeout captured in fiscal 2026. The rest of the savings can support competitiveness or be reinvested in growth areas.
BAH Q&A Focuses on Funding and ConversionsAnalyst questions centered on whether improved demand signals are durable. Management said funding and award activity have improved since January, though still not back to historical norms, and described the current guide as reflecting better conditions than fiscal 2026 but not a full normalization.
Another recurring topic was the shift toward fixed-price and outcomes-based work. Rozanski said that the move should be steady rather than abrupt, but he tied it directly to better productivity, higher revenue growth relative to headcount, and stronger margin potential where Booz Allen can deliver more efficiently.
Management also pushed back on concerns about reputational fallout from prior issues at Treasury. Executives said customer conversations remain constructive and pointed to mid-single-digit growth expected in national security as evidence that demand remains intact.
Booz Allen Leaves a Measured MessageThe clearest takeaway from the call was that Booz Allen sees fiscal 2027 as a year of uneven recovery rather than a clean rebound. Management sounded confident in execution, backlog and strategic positioning, but consistently acknowledged a fluid procurement and funding backdrop.
That leaves investors with a company leaning into cyber, defense tech and AI-led offerings while waiting for Civil to stabilize. The posture was not defensive, but it was disciplined and selective about where growth is expected to show up first.
BAH’s Zacks Signals Stay MixedBAH carries a Zacks Rank #4 (Sell), alongside a Value Score of A, Growth Score of A, Momentum Score of D, and VGM Score of A. In Zacks terms, the strong Value, Growth and VGM marks indicate attractive style characteristics, while the weak Momentum score points to less favorable trading strength.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The broader Zacks framework places the greatest weight on earnings estimate revisions, with Style Scores used as a complement rather than a substitute. That makes the current combination more cautious than the A-level style grades alone would imply, and the Zacks Rank can still change as estimate revisions adjust after the quarter.
Booz Allen Hamilton is a market-leading government consulting firm, currently trading at a significant discount to historical valuation multiples. BAH boasts a 14-year dividend growth streak, strong dividend safety, and the highest yield in a decade, supporting its status as a long-term dividend growth play. Recent headwinds from government unpredictability and contract losses have stabilized, with defense and intelligence segments showing resilience and civil business signaling some recovery.
Booz Allen Chairman and CEO Horacio Rozanski joins 'Mornings with Maria' to discuss the risks Chinese AI models pose to U.S. national security, combating agentic AI threats, their partnership with Anduril and more. 00:00 The AI race between the US and China 01:05 Vulnerabilities in Chinese AI models 01:45 Risks to the software supply chain 03:52 2026: The year of Agentic AI 05:03 Booz Allen's role in National Security 06:01 Partnership with Anduril and drone production
On June 01, 2026, Booz Allen Hamilton Holding Corp BAH shares rose 6.2% to a current price of $84.05. This price is situated within a 52-week range of $68.84 to $120.05, reflecting notable volatility over the past year.
GF Value™ verdict: The current price is $84.05, which is 39.9% below the GF Value™ estimate of $139.80.GF Score™: 76/100, indicating an above-average potential for long-term returns.Most notable signal: There have been no insider transactions in the last 3 months. Is BAH Overvalued or Undervalued? With a current price of $84.05 compared to a GF Value™ of $139.80, Booz Allen Hamilton Holding Corp BAH appears to be significantly undervalued, presenting a margin of safety of approximately 39.9%. The GF Valuation label indicates that the stock is significantly undervalued, which suggests that there is substantial upside potential if the market corrects itself toward the intrinsic value. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
However, while the undervaluation presents an opportunity, it is important to consider potential risks associated with the company’s recent performance. The stock has experienced a decline of 18.9% over the past year, indicating it may be facing challenges that could affect its recovery and the realization of its intrinsic value.
How Does BAH's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 12.2x 23.9x Forward P/E 13.4x N/A BAH's current P/E (TTM) of 12.2x is significantly below its 5-year median P/E of 23.9x, indicating that the stock is trading at a substantial discount relative to its historical valuation. This analysis aligns with the GF Value™ verdict, reinforcing the notion that the stock is undervalued and may present a buying opportunity for investors who are willing to navigate the associated risks.
What Does BAH's GF Score™ Tell Us? Metric Rating GF Score™ 76 Financial Strength 5/10 Profitability 9/10 Growth 9/10 Valuation 4/10 Momentum 1/10 The GF Score™ of 76/100 indicates that Booz Allen Hamilton Holding Corp BAH has a strong potential for long-term returns, particularly highlighted by its high profitability rank (9/10) and growth rank (9/10). However, it shows weakness in momentum (1/10) and valuation (4/10), suggesting that while the fundamentals are solid, the stock may not be experiencing favorable market trends at this time.
What Are Insiders Doing with BAH Stock? In the last three months, there have been no insider transactions reported for Booz Allen Hamilton Holding Corp BAH . This lack of activity may suggest that insiders are not currently taking positions in the stock, which could indicate either a lack of confidence in the near-term prospects or a wait-and-see approach amidst market fluctuations.
What This Means for Investors Based on the GF Value™ assessment, Booz Allen Hamilton Holding Corp BAH appears to be undervalued at its current price of $84.05, suggesting a significant opportunity for investors who can withstand potential volatility. However, it’s crucial for potential investors to consider the recent performance trends and the lack of insider activity before making any decisions.
For the complete analysis, visit the Booz Allen Hamilton Holding Corp BAH stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is BAH's GF Score™?
BAH's GF Score™ is 76/100, indicating an above-average potential for long-term returns based on key financial metrics.
Is BAH overvalued or undervalued?
BAH is undervalued according to the GF Value™ estimate, with a current price of $84.05 being 39.9% below its intrinsic value of $139.80.
What is BAH's P/E ratio?
The P/E ratio for BAH is currently 12.2x, which is significantly below its 5-year median P/E of 23.9x, indicating that the stock is trading at a discount compared to its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Booz Allen Hamilton (BAH - Free Report) closed at $80.33 in the latest trading session, marking a -4.43% move from the prior day. This change lagged the S&P 500's daily gain of 0.13%. Meanwhile, the Dow experienced a rise of 0.45%, and the technology-dominated Nasdaq saw an increase of 0.03%.
The defense contractor's shares have seen an increase of 7.98% over the last month, surpassing the Business Services sector's gain of 0.89% and the S&P 500's gain of 5.25%.
The investment community will be closely monitoring the performance of Booz Allen Hamilton in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.49, marking a 0.68% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.81 billion, down 4% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.22 per share and revenue of $11.44 billion. These totals would mark changes of -4.45% and +1.97%, respectively, from last year.
Any recent changes to analyst estimates for Booz Allen Hamilton should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 1.5% rise in the Zacks Consensus EPS estimate. As of now, Booz Allen Hamilton holds a Zacks Rank of #3 (Hold).
In terms of valuation, Booz Allen Hamilton is currently trading at a Forward P/E ratio of 13.52. This denotes no noticeable deviation relative to the industry average Forward P/E of 13.52.
Also, we should mention that BAH has a PEG ratio of 4.81. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Consulting Services industry currently had an average PEG ratio of 1.04 as of yesterday's close.
The Consulting Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 186, positioning it in the bottom 24% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
First head-to-head analysis finds Chinese LLMs produced and obfuscated vulnerable code for U.S. applications
MCLEAN, Va.--(BUSINESS WIRE)--Booz Allen has released a new report, What's In America's Code?, examining the national security implications of popular Chinese large language models (LLMs) used in software development and security workflows. Using its AI-native testing platform, Booz Allen evaluated four Chinese frontier models and one American model to assess code quality, security, and model behavior.
Following comparative testing and scenario-driven analysis across more than 2,800 trials and nearly 450,000 lines of code, the research revealed that three of four Chinese models produced significantly more vulnerable code when prompted with a U.S. government persona, and the vulnerabilities were highly obfuscated.
Key takeaways and recommendations from the report include:
Chinese LLMs generated more vulnerable code for U.S. government users. The models produced less secure code overall, with vulnerabilities increasing when prompted by users identifying as members of the U.S. government. Chinese LLMs exhibited PRC-aligned political bias. The models refused certain politically sensitive requests and incorporated China-aligned perspectives into generated outputs. Ban untrusted AI models from government and critical infrastructure environments. Models that cannot demonstrate trustworthy and reliable behavior should not be used in systems supporting national security or critical functions. Invest To Make Trusted American AI Models the Global Default. To drive adoption, American AI companies must collaborate with the U.S. government to ensure American models are both commercially compelling and economically viable. The findings raise concerns about the growing access and use of foreign-developed AI models across software supply chains supporting critical infrastructure and national security missions that security processes cannot detect. Read the full report.
About Booz Allen Hamilton
Booz Allen is an advanced technology company delivering outcomes with speed for America’s most critical defense, civil, and national security priorities. We build technology solutions using AI, cyber, and other cutting-edge technologies to advance and protect the nation and its citizens. By focusing on outcomes, we enable our people, clients, and their missions to succeed—accelerating the nation to realize our purpose: Empower People to Change the World®.
With global headquarters in McLean, Virginia, our firm employs approximately 31,500 people globally as of March 31, 2026, and had revenue of $11.2 billion for the 12 months ended March 31, 2026. To learn more, visit www.boozallen.com. (NYSE: BAH)
Booz Allen has released a new report, What's In America's Code?, examining the national security implications of popular Chinese large language models (LLMs) used in software development and security workflows. Using its AI-native testing platform, Booz Allen evaluated four Chinese frontier models and one American model to assess code quality, security, and model behavior.
Following comparative testing and scenario-driven analysis across more than 2,800 trials and nearly 450,000 lines of code, the research revealed that three of four Chinese models produced significantly more vulnerable code when prompted with a U.S. government persona, and the vulnerabilities were highly obfuscated.
Key takeaways and recommendations from the report include:
Chinese LLMs generated more vulnerable code for U.S. government users. The models produced less secure code overall, with vulnerabilities increasing when prompted by users identifying as members of the U.S. government. Chinese LLMs exhibited PRC-aligned political bias. The models refused certain politically sensitive requests and incorporated China-aligned perspectives into generated outputs. Ban untrusted AI models from government and critical infrastructure environments. Models that cannot demonstrate trustworthy and reliable behavior should not be used in systems supporting national security or critical functions. Invest To Make Trusted American AI Models the Global Default. To drive adoption, American AI companies must collaborate with the U.S. government to ensure American models are both commercially compelling and economically viable. The findings raise concerns about the growing access and use of foreign-developed AI models across software supply chains supporting critical infrastructure and national security missions that security processes cannot detect. Read the full report.
About Booz Allen Hamilton
Booz Allen is an advanced technology company delivering outcomes with speed for America’s most critical defense, civil, and national security priorities. We build technology solutions using AI, cyber, and other cutting-edge technologies to advance and protect the nation and its citizens. By focusing on outcomes, we enable our people, clients, and their missions to succeed—accelerating the nation to realize our purpose: Empower People to Change the World®.
With global headquarters in McLean, Virginia, our firm employs approximately 31,500 people globally as of March 31, 2026, and had revenue of $11.2 billion for the 12 months ended March 31, 2026. To learn more, visit www.boozallen.com. (NYSE: BAH)
BAHPR-CO
View source version on businesswire.com: https://www.businesswire.com/news/home/20260605220546/en/
Have you ever heard of Succession Risk? It occurs when key leaders of a company leave their position—whether expected or not—and a clear successor isn’t already in place.
When key leaders leave, there is a loss of both knowledge and experience that can be hard to replace. And there is always a lag getting someone new up to speed, even though that can be minimized with an internal promotion.
It often creates uncertainty among shareholders that ends up being priced into shares.
That’s exactly what happened to The Clorox Company (CLX) last week. Chairman and Chief Executive Officer Linda Rendle decided to step down for health reasons. The plan is for her to remain in office while a search is conducted and then through a period where she will act as an advisor.
The stock was already struggling, and CLX shares slid another 6% on Friday on the news.
Now, I still like CLX as a long-term holding, and I think some new blood in the C-suite could be a good thing. But still, markets are clearly trying to quantify the risks during this succession period and price it into the shares.
Personally, I will grab a few more shares at an even lower price.
This is another example of “hidden risks” that can sneak into your portfolio. On the surface, they can spook investors and erase your gains, even if just temporarily. On a deeper level, they can disrupt a company’s operations, negatively impact earnings, and cause our dividend payments to become vulnerable.
Let’s take a look at other risks.
Some Risks Can Be Measured It is hard to put a specific dollar amount on the succession risk for Clorox (despite the market trying anyway). But there are risks that can be measured.
One is key customer concentration risk. This becomes an issue when a few customers—or maybe even a single customer—make up a large share of a company’s revenue. This also applies if your customers are concentrated in a specific industry or geographic location.
An example in the news is Booz Allen Hamilton Holding Corp. (BAH). Roughly 98% of its revenue comes from government contracts, and dozens of them were cancelled over the past year. This included 31 contracts with the Treasury Department cancelled in January. Shares are down 20% over the past year while the overall market is at all-time highs.
We can put into numbers the revenue that would be lost if a specific customer or contract falls off the balance sheet.
Another risk that’s incredibly relevant right now is refinancing risk. This occurs when a company has debt maturing that must be refinanced. Debt issued at low interest rates during 2020-2021 may end up being replaced by debt at much higher interest rates. That raises finance costs and can eat into free cash flow and possibly into our dividends.
Lastly, there’s currency risk. As a dividend investor who looks for long-term holdings, I always hold some global consumer staples giants.
These companies earn revenue in multiple currencies that must be converted into their reporting currency. Changes in exchanges rates can impact both earnings and forward guidance numbers. This is another thing to consider when investing in foreign companies.
Analysts are continually running the numbers to estimate the impact these risks will have on future earnings and dividend health. Some risks, however, require a more creative approach.
And Other Risks, Not So Much Potential hazards such as regulatory risk and litigation risk are much harder to measure. Instead of the spread between interest rates or the percentage of revenues, we are talking about complex probability models.
Both of these risks can severely impact a company’s future profits and be largely beyond its control. I always have pharmaceutical and tobacco companies in my portfolio. They both rely heavily on the decisions of regulators, specifically the FDA.
Pfizer (PFE) needs approvals on new drugs in its pipeline to offset patent cliffs. And Philip Morris (PM) still sells its outdated IQOS heated tobacco device here in the US because it’s waiting on approval for its new model.
Litigation risks are even harder to measure as they can pop up out of nowhere.
That brings me to the most top-of-mind risk—technology disruption risk. These days, it might be more accurate to call it AI adoption risk. This concern ripped through software stocks in the first quarter and is far from over.
I’m still not convinced that AI is ready to take on most tasks today… or in the near term. But it will for sure change the future of many companies, industries, and professions. And analysts are trying to measure the risk.
None of these risks should be instant deal breakers when screening for stocks to add to your portfolio, but you want to recognize when they are present. For some stocks, you might be able to use temporary risk speculation to lock in an even better price, and in turn a higher yield.
Do you consider these risks when you add new positions to your portfolio? What other hidden risks are you watching for in the current economy?
For more income, now and in the future,
Kelly Green
Originally published June 3, 2026
For more news, information, and strategy, visit ETF Trends.
Booz Allen Hamilton (BAH - Free Report) closed at $77.29 in the latest trading session, marking a -2.09% move from the prior day. This change lagged the S&P 500's daily loss of 1.62%. Meanwhile, the Dow experienced a drop of 1.87%, and the technology-dominated Nasdaq saw a decrease of 1.98%.
The defense contractor's stock has climbed by 4.65% in the past month, exceeding the Business Services sector's gain of 0.29% and the S&P 500's loss of 0.03%.
The investment community will be paying close attention to the earnings performance of Booz Allen Hamilton in its upcoming release. In that report, analysts expect Booz Allen Hamilton to post earnings of $1.49 per share. This would mark year-over-year growth of 0.68%. Alongside, our most recent consensus estimate is anticipating revenue of $2.81 billion, indicating a 4% downward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $6.22 per share and a revenue of $11.44 billion, demonstrating changes of -4.45% and +1.97%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Booz Allen Hamilton. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 1.5% higher within the past month. As of now, Booz Allen Hamilton holds a Zacks Rank of #3 (Hold).
In terms of valuation, Booz Allen Hamilton is presently being traded at a Forward P/E ratio of 12.7. This indicates no noticeable deviation in contrast to its industry's Forward P/E of 12.7.
We can also see that BAH currently has a PEG ratio of 4.52. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Consulting Services stocks are, on average, holding a PEG ratio of 0.98 based on yesterday's closing prices.
The Consulting Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 190, finds itself in the bottom 23% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Bright Minds Biosciences Inc. (NASDAQ: DRUG - Get Free Report) has been given a consensus recommendation of "Moderate Buy" by the six analysts that are covering the firm, MarketBeat.com reports. One analyst has rated the stock with a hold recommendation and five have assigned a buy recommendation to the company. The average 1 year price target
B Group, Inc. disclosed a new stake in Bright Minds Biosciences (DRUG +0.02%) in its May 15, 2026, SEC filing, acquiring 67,500 shares—an estimated $5.43 million trade based on quarterly average pricing.
What happenedAccording to a May 15, 2026, SEC filing, B Group, Inc. initiated a new position in Bright Minds Biosciences, purchasing 67,500 shares. The estimated transaction value is $5.43 million, calculated using the average closing price for the first quarter of 2026. The value of the stake at quarter-end was $4.93 million, a figure that includes both share purchases and movement in the company’s stock price during the period.
What else to knowThis is a new position for B Group, Inc., representing roughly 4% of reportable AUM as of March 31, 2026.Top five holdings after the filing:NASDAQ: ADMA: $28.90 million (21.4% of AUM)NASDAQ: PALI: $19.97 million (14.8% of AUM)NASDAQ: PRAX: $10.71 million (7.9% of AUM)NASDAQ: CLLS: $10.40 million (7.7% of AUM)NASDAQ: ZLAB: $8.48 million (6.3% of AUM)As of Thursday, Bright Minds Biosciences shares were priced at $83.24, up nearly 175% over the past year and well outperforming the S&P 500, which is instead up about 25%.Company OverviewMetricValuePrice (as of market close May 14, 2026)$83.24Market Capitalization$815 millionNet Income (TTM)($19.8 million)Company SnapshotDRUG develops selective 5-HT receptor agonists targeting epilepsy, pain, and neuropsychiatric disorders, with a portfolio focused on 5-HT2C, 5-HT2A, and 5-HT2C/A compounds.The firm operates a pre-clinical biotechnology model, generating value through research collaborations and intellectual property development rather than product sales.It targets patients with severe neurological and psychiatric conditions, collaborating with research institutions and healthcare partners to advance clinical applications.Bright Minds Biosciences is a pre-clinical biotechnology company specializing in the development of next-generation serotonin-based therapeutics for neurological and neuropsychiatric conditions. The company leverages strategic collaborations with leading medical research institutions to accelerate innovation and expand its intellectual property portfolio. With a focus on high unmet medical needs, Bright Minds aims to establish a competitive edge through targeted drug development and scientific partnerships.
What this transaction means for investorsB Group is stepping into Bright Minds during a massive run higher, suggesting it sees additional upside tied to the company's drug pipeline (given the nature of pre-revenue biotechs). The company's most important asset remains BMB-101, a serotonin receptor agonist being developed for drug-resistant epilepsies. Management has been accelerating development efforts, with research and development spending climbing to C$18.7 million during the first six months of fiscal 2026, up from C$3.6 million a year earlier as clinical and preclinical programs advanced.
Just as important, Bright Minds ended March with roughly C$309.7 million in cash and cash equivalents after completing a January equity offering that raised about $175 million. That gives the company substantial resources to fund development without the near-term financing pressure that often weighs on early-stage biotech firms. For long-term investors, this is still a high-risk, high-reward story. The company has no commercial revenue and remains loss-making. But with a well-funded balance sheet and pipeline progress, there are reasons to be bullish.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Adma Biologics. The Motley Fool has a disclosure policy.
May 26, 2026 19:18 ET | Source: Bright Minds Biosciences
NEW YORK, May 26, 2026 (GLOBE NEWSWIRE) -- Bright Minds Biosciences, Inc. (“Bright Minds,” “BMB” or the “Company”) (NASDAQ: DRUG), a pioneering company focused on developing highly selective 5-HT2 agonists for the treatment of drug-resistant epilepsy, Prader-Willi Syndrome, depression, and other central nervous system (CNS) disorders, today announced that the Company will present at the Jefferies Global Healthcare Conference as follows:
DATE:Wednesday, June 3, 2026TIME:4:20PM EDTWEBCAST:Click Here The live and archived webcast will be accessible from the Company’s website at https://investors.brightmindsbio.com/news-events/presentations under Events and Presentation. The replay of the webcast will be accessible for 30 days.
Bright Minds further releases that the Company has granted stock options (the “Options”) to certain directors, officers and consultants of the Company to purchase an aggregate of 109,000 common shares in the capital of the Company (the “Shares”) pursuant to the Company's share option plan. The Options are exercisable at a price of US$83.40 per Share for a period of five (5) years from the date of grant. The Options vest in four (4) equal annual instalments of 25% each, commencing on the first anniversary of the date of grant.
About Bright Minds Biosciences
Bright Minds is a biotechnology company developing innovative treatments for patients with neurological and psychiatric disorders. Our pipeline includes novel compounds targeting key receptors in the brain to address conditions with high unmet medical need, including epilepsy, Prader-Willi Syndrome, depression, and other CNS disorders. Bright Minds is focused on delivering breakthrough therapies that can transform patients' lives.
Bright Minds has developed a unique platform of highly selective serotonergic agonists exhibiting selectivity at different serotonergic receptors. This has provided a rich portfolio of NCE programs within neurology and psychiatry.
Contact Information
Investor Relations
Lisa M. Wilson
T: 212-452-2793
E: [email protected]
Alex Vasilkevich
Chief Operating Officer
Bright Minds Biosciences Inc.
T: 414-731-6422
E: [email protected]
WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of securities of Gossamer Bio, Inc. (NASDAQ: GOSS) between June 16, 2025 and February 20, 2026, inclusive (the “Class Period”), of the important June 1, 2026 lead plaintiff deadline.
SO WHAT: If you purchased Gossamer securities during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.
WHAT TO DO NEXT: To join the Gossamer class action, go to https://rosenlegal.com/submit-form/?case_id=61894 or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than June 1, 2026. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.
WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually handle securities class actions, but are merely middlemen that refer clients or partner with law firms that actually litigate the cases. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm has achieved, at that time, the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered hundreds of millions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs’ Bar. Many of the firm’s attorneys have been recognized by Lawdragon and Super Lawyers.
DETAILS OF THE CASE: According to the lawsuit, defendants provided overwhelmingly positive statements to investors while, at the same time, disseminating false and misleading statements and/or concealing material adverse facts concerning the study design for Gossamer’s Phase 3 PROSERA study, particularly, controlling for the placebo response at the Latin American testing sites. When the true details entered the market, the lawsuit claims that investors suffered damages.
To join the Gossamer class action, go to https://rosenlegal.com/submit-form/?case_id=61894 or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm, on Twitter: https://twitter.com/rosen_firm or on Facebook: https://www.facebook.com/rosenlawfirm/.
Attorney Advertising. Prior results do not guarantee a similar outcome.
-------------------------------
Contact Information:
Laurence Rosen, Esq.
Phillip Kim, Esq.
The Rosen Law Firm, P.A.
275 Madison Avenue, 40th Floor
New York, NY 10016
Tel: (212) 686-1060
Toll Free: (866) 767-3653
Fax: (212) 202-3827 [email protected]
www.rosenlegal.com
Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses In Gossamer To Contact Him Directly To Discuss Their Options
If you purchased or acquired securities in Gossamer between June 16, 2025 and February 20, 2026 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
[You may also click here for additional information]
New York, New York--(Newsfile Corp. - May 31, 2026) - Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Gossamer Bio, Inc. ("Gossamer" or the "Company") (NASDAQ: GOSS) and reminds investors of the June 1, 2026 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that the study design for the Company's Phase 3 PROSERA study, particularly, controlling for the placebo response at the Latin American testing sites.
On February 23, 2026, Gossamer Bio, Inc. revealed adverse topline results from its Phase 3 PROSERA study, announcing that the trial failed to meet its primary endpoint of improving six-minute walk distance ("6MWD") at Week 24. While the study reported a placebo-adjusted gain of +13.3 meters, the result did not achieve statistical significance under the prespecified alpha threshold of 0.025 (p=0.0320). The Company attributed the outcome, in part, to unexpectedly strong placebo performance among patients enrolled at Latin American sites, which it characterized as a heavily treated, lower-risk population.
Following this disclosure, investors and analysts reacted swiftly and negatively. On February 23, 2026, Gossamer's common stock price plummeted from a closing price of $2.13 per share on February 20, 2026 to $0.42 per share, representing a decline of more than 80% in a single trading day.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Gossamer's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
To learn more about the Gossamer Bio class action, go to www.faruqilaw.com/GOSS or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
Follow us for updates on LinkedIn, on X, or on Facebook.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/299429
Source: Faruqi & Faruqi LLP
Ready to Announce with Confidence? Send us a message and a member of our TMX Newsfile team will contact you to discuss your needs.
New York, New York--(Newsfile Corp. - May 31, 2026) - WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of securities of Gossamer Bio, Inc. (NASDAQ: GOSS) between June 16, 2025 and February 20, 2026, inclusive (the "Class Period"), of the important June 1, 2026 lead plaintiff deadline.
SO WHAT: If you purchased Gossamer securities during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.
WHAT TO DO NEXT: To join the Gossamer class action, go to https://rosenlegal.com/submit-form/?case_id=61894 or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than June 1, 2026. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.
WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually handle securities class actions, but are merely middlemen that refer clients or partner with law firms that actually litigate the cases. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm has achieved, at that time, the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered hundreds of millions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs' Bar. Many of the firm's attorneys have been recognized by Lawdragon and Super Lawyers.
DETAILS OF THE CASE: According to the lawsuit, defendants provided overwhelmingly positive statements to investors while, at the same time, disseminating false and misleading statements and/or concealing material adverse facts concerning the study design for Gossamer's Phase 3 PROSERA study, particularly, controlling for the placebo response at the Latin American testing sites. When the true details entered the market, the lawsuit claims that investors suffered damages.
To join the Gossamer class action, go to https://rosenlegal.com/submit-form/?case_id=61894 or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm, on Twitter: https://twitter.com/rosen_firm or on Facebook: https://www.facebook.com/rosenlawfirm/.
Attorney Advertising. Prior results do not guarantee a similar outcome.
-------------------------------
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/299388
Source: The Rosen Law Firm PA
Ready to Announce with Confidence? Send us a message and a member of our TMX Newsfile team will contact you to discuss your needs.
SAN FRANCISCO, May 31, 2026 (GLOBE NEWSWIRE) -- A securities class action lawsuit has been filed against Gossamer Bio, Inc. (NASDAQ: GOSS) and an executive, seeking to represent investors who purchased or otherwise acquired Gossamer securities between June 16, 2025 and February 20, 2026.
LOS ANGELES, May 31, 2026 (GLOBE NEWSWIRE) -- The Schall Law Firm, a national shareholder rights litigation firm, reminds investors of a class action lawsuit against Gossamer Bio, Inc. (“Gossamer” or “the Company”) (NASDAQ: GOSS) for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission.
Investors who purchased the Company’s securities between June 16, 2025 and February 20, 2026, inclusive (the “Class Period”), are encouraged to contact the firm before June 1, 2026.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
The class, in this case, has not yet been certified, and until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
According to the Complaint, the Company made false and misleading statements to the market. Gossamer concealed adverse facts about the design of its Phase 3 PROSERA study, especially regarding controls for placebo response at certain testing sites. Based on these facts, the Company’s public statements were false and materially misleading throughout the class period. When the market learned the truth about Gossamer, investors suffered damages.
Join the case to recover your losses
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
CONTACT:
The Schall Law Firm
Brian Schall, Esq.,
www.schallfirm.com
Office: 310-301-3335 [email protected]
, /PRNewswire/ -- The DJS Law Group reminds investors of a class action lawsuit against Gossamer Bio, Inc. ("Gossamer" or "the Company") (NASDAQ: GOSS) violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission.
Shareholders who purchased shares of GOSS during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointments. Appointment as lead plaintiff is not required to partake in any recovery.
CLASS PERIOD: June 16, 2025 to February 20, 2026
DEADLINE: June 1, 2026
CASE DETAILS: According to the Complaint, the Company made false and misleading statements to the market. Gossamer misled investors by concealing facts about issues with its Phase 3 PROSERA study. Based on these facts, Gossamer's public statements were false and materially misleading throughout the class period.
If you are a shareholder who suffered a loss, contact us to participate.
WHY DJS LAW GROUP? DJS Law Group's primary focus is to enhance investor return through balanced counseling and aggressive advocacy. We specialize in securities class actions, corporate governance litigation, and domestic/international M&A appraisals. Our clients are some of the largest and most sophisticated hedge funds and alternative asset managers in the world. The litigation claims of our clients are extraordinarily valuable assets that demand respect, focus, and results.
Join the case to recover your losses.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
CONTACT:
David J. Schwartz
DJS Law Group
274 White Plains Road, Suite 1
Eastchester, NY 10709
Phone: 914-206-9742
Email: [email protected]
Gossamer Bio, Inc. Sued for Securities Law Violations - Contact the DJS Law Group to Discuss Your Rights - GOSS PR Newswire
LOS ANGELES, June 1, 2026
, /PRNewswire/ -- The DJS Law Group reminds investors of a class action lawsuit against Gossamer Bio, Inc. ("Gossamer" or "the Company") (NASDAQ: GOSS) violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission.
Shareholders who purchased shares of GOSS during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointments. Appointment as lead plaintiff is not required to partake in any recovery.
CLASS PERIOD: June 16, 2025 to February 20, 2026
DEADLINE: June 1, 2026
CASE DETAILS: According to the Complaint, the Company made false and misleading statements to the market. Gossamer misled investors by concealing facts about issues with its Phase 3 PROSERA study. Based on these facts, Gossamer's public statements were false and materially misleading throughout the class period.
If you are a shareholder who suffered a loss, contact us to participate.
WHY DJS LAW GROUP? DJS Law Group's primary focus is to enhance investor return through balanced counseling and aggressive advocacy. We specialize in securities class actions, corporate governance litigation, and domestic/international M&A appraisals. Our clients are some of the largest and most sophisticated hedge funds and alternative asset managers in the world. The litigation claims of our clients are extraordinarily valuable assets that demand respect, focus, and results.
Join the case to recover your losses.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
CONTACT:
David J. Schwartz
DJS Law Group
274 White Plains Road, Suite 1
Eastchester, NY 10709
Phone: 914-206-9742
Email: [email protected]
View original content:https://www.prnewswire.com/news-releases/gossamer-bio-inc-sued-for-securities-law-violations---contact-the-djs-law-group-to-discuss-your-rights--goss-302786661.html
, /PRNewswire/ -- A securities class action lawsuit has been filed against Gossamer Bio, Inc. (NASDAQ: GOSS) and an executive, seeking to represent investors who purchased or otherwise acquired Gossamer securities between June 16, 2025 and February 20, 2026.
The lawsuit follows Gossamer's bombshell announcement on February 23, 2026 that top-line results for its Phase 3 PROSERA study did not meet the primary endpoint (the change from baseline in six-minute-walk distance at week 24). The study evaluated seralutinib for the treatment of pulmonary arterial hypertension ("PAH").
The developments, including the trial failure and 80% stock drop, prompted national shareholder rights firm Hagens Berman to commence an investigation into the alleged pending claims that Gossamer violated federal securities laws. The firm encourages Gossamer investors who suffered substantial losses on Class Period GOSS investments to submit your losses now.
The firm also encourages persons with knowledge who may be able to assist the investigation to contact its attorneys.
View our latest video summary of the allegations: youtu.be/TOr_OsDdBXY
Class Period: June 16, 2025 – Feb. 20, 2026
Lead Plaintiff Deadline: June 1, 2026
Visit: www.hbsslaw.com/investor-fraud/goss
Contact the Firm Now: [email protected]
844-916-0895
Gossamer Bio, Inc. (GOSS) Securities Class Action:
The litigation is focused on the propriety of Gossamer's disclosures about the Phase 3 PROSERA trial design, including its patient recruitment protocol and site-level monitoring.
In the past, Gossamer has emphasized that serlutinib is a "potential first-in-class therapeutic[,]" which "represents the possibility of a multi-billion-dollar opportunity across multiple indications[.]"
As recently as mid-November 2025, the company's management cited the highly successful Merck Phase 3 STELLAR study of sotatercept for treating PAH. Gossamer's management said, "if you look at their data, the best performing region was Latin America, and we have actually more patients coming from those same geographies and same sites." Management also assured investors that "we have gone to the places where precedent studies have shown the greatest amount of efficacy, as well as having an entry criteria that is ensuring that we have patients who, we believe, will really show an improvement based upon, again background disease at week 24."
The complaint alleges that, unknown to investors, Gossamer knew of or recklessly disregarded the trial design issues with the Phase 3 PROSERA study and, instead, crafted a narrative assuring investors that it would meet its primary endpoint. Also unknown to investors, patients at the study's Latin America sites were largely heavily-treated and performing particularly well on placebo.
Investors' expectations were dashed on February 23, 2026. That day, Gossamer announced that PROSERA did not meet its primary endpoint and therefore efficacy was not statistically significant.
Management said during the conference call that day, "[t]he overall treatment effect and statistical parameters were materially diluted by an outsize placebo response and meaningful regional heterogeneity, which compressed the pool placebo-adjusted difference." More specifically, management revealed that in "Latin America, outsized placebo improvements materially compressed the pool treatment difference."
The market swiftly reacted, sending the price of Gossamer shares down by 80%.
After the Class Period, on April 9, 2026, the company revealed that since February 24, 2026 it has not met the minimum share bid price ($1) required for continued listing on the Nasdaq Global Select Market.
"We're focused on whether Gossamer may have misled investors about the PROSERA trial design, including patient entry criteria, as alleged in the pending lawsuit," said Reed Kathrein, the Hagens Berman partner leading the firm's investigation.
If you invested in Gossamer Bio and have substantial losses, or have knowledge that will assist the firm's investigation, submit your losses now.
If you'd like more information and answers to additional frequently asked questions about the Gossamer case and the firm's investigation, read more »
Whistleblowers: Persons with non-public information regarding Gossamer Bio should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
, /PRNewswire/ -- A securities class action lawsuit has been filed against Gossamer Bio, Inc. (NASDAQ: GOSS) and an executive, seeking to represent investors who purchased or otherwise acquired Gossamer securities between June 16, 2025 and February 20, 2026.
The lawsuit follows Gossamer's bombshell announcement on February 23, 2026 that top-line results for its Phase 3 PROSERA study did not meet the primary endpoint (the change from baseline in six-minute-walk distance at week 24). The study evaluated seralutinib for the treatment of pulmonary arterial hypertension ("PAH").
The developments, including the trial failure and 80% stock drop, prompted national shareholder rights firm Hagens Berman to commence an investigation into the alleged pending claims that Gossamer violated federal securities laws. The firm encourages Gossamer investors who suffered substantial losses on Class Period GOSS investments to submit your losses now.
The firm also encourages persons with knowledge who may be able to assist the investigation to contact its attorneys.
View our latest video summary of the allegations: youtu.be/TOr_OsDdBXY
Class Period: June 16, 2025 – Feb. 20, 2026
Lead Plaintiff Deadline: June 1, 2026
Visit: www.hbsslaw.com/investor-fraud/goss
Contact the Firm Now: [email protected]
844-916-0895
Gossamer Bio, Inc. (GOSS) Securities Class Action:
The litigation is focused on the propriety of Gossamer's disclosures about the Phase 3 PROSERA trial design, including its patient recruitment protocol and site-level monitoring.
In the past, Gossamer has emphasized that serlutinib is a "potential first-in-class therapeutic[,]" which "represents the possibility of a multi-billion-dollar opportunity across multiple indications[.]"
As recently as mid-November 2025, the company's management cited the highly successful Merck Phase 3 STELLAR study of sotatercept for treating PAH. Gossamer's management said, "if you look at their data, the best performing region was Latin America, and we have actually more patients coming from those same geographies and same sites." Management also assured investors that "we have gone to the places where precedent studies have shown the greatest amount of efficacy, as well as having an entry criteria that is ensuring that we have patients who, we believe, will really show an improvement based upon, again background disease at week 24."
The complaint alleges that, unknown to investors, Gossamer knew of or recklessly disregarded the trial design issues with the Phase 3 PROSERA study and, instead, crafted a narrative assuring investors that it would meet its primary endpoint. Also unknown to investors, patients at the study's Latin America sites were largely heavily-treated and performing particularly well on placebo.
Investors' expectations were dashed on February 23, 2026. That day, Gossamer announced that PROSERA did not meet its primary endpoint and therefore efficacy was not statistically significant.
Management said during the conference call that day, "[t]he overall treatment effect and statistical parameters were materially diluted by an outsize placebo response and meaningful regional heterogeneity, which compressed the pool placebo-adjusted difference." More specifically, management revealed that in "Latin America, outsized placebo improvements materially compressed the pool treatment difference."
The market swiftly reacted, sending the price of Gossamer shares down by 80%.
After the Class Period, on April 9, 2026, the company revealed that since February 24, 2026 it has not met the minimum share bid price ($1) required for continued listing on the Nasdaq Global Select Market.
"We're focused on whether Gossamer may have misled investors about the PROSERA trial design, including patient entry criteria, as alleged in the pending lawsuit," said Reed Kathrein, the Hagens Berman partner leading the firm's investigation.
If you invested in Gossamer Bio and have substantial losses, or have knowledge that will assist the firm's investigation, submit your losses now.
If you'd like more information and answers to additional frequently asked questions about the Gossamer case and the firm's investigation, read more »
Whistleblowers: Persons with non-public information regarding Gossamer Bio should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
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LOS ANGELES, June 01, 2026 (GLOBE NEWSWIRE) -- The Law Offices of Frank R. Cruz reminds investors that class action lawsuits have been filed on behalf of shareholders of the following publicly-traded companies. Investors have until the deadlines listed below to file a lead plaintiff motion.
Investors suffering losses on their investments are encouraged to contact The Law Offices of Frank R. Cruz to discuss their legal rights in these class actions at 310-914-5007 or by email to [email protected].
Gossamer Bio, Inc. (NASDAQ: GOSS)
Class Period: June 16, 2025 – February 20, 2026
Lead Plaintiff Deadline: June 1, 2026
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) patients at the Latin American sites were largely heavily-treated and lower risk and, ultimately, performed particularly well on the placebo, thus, Gossamer’s Phase 3 PROSERA study failed to meet the primary endpoint of improved six-minute walk distance at week 24; and (2) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you are a Gossamer shareholder who suffered a loss, click here to participate.
New Era Energy & Digital, Inc. (NASDAQ: NUAI)
Class Period: November 6, 2024 – December 29, 2025
Lead Plaintiff Deadline: June 1, 2026
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) the Company overstated its progress in its permitting and regulatory filings for its flagship Texas Critical Data Centers project; (2) the Company was involved in a fraudulent scheme “to pocket revenues from hundreds of oil and gas wells in New Mexico” by transferring wells among related entities and then placing liability-bearing companies into bankruptcy to avoid plugging and remediation costs; (3) that, as a result, the Company’s financial results were false and/or misleading; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
If you are a New Era shareholder who suffered a loss, click here to participate.
Medpace Holdings, Inc. (NASDAQ: MEDP)
Class Period: April 22, 2025 – February 9, 2026
Lead Plaintiff Deadline: June 5, 2026
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants: (1) consistently oversold the Company’s projected book-to-bill ratio for fourth quarter 2025; (2) knew or recklessly disregarded the impact that cancellations have on the Company’s book-to-bill ratio; (3) frequently claimed that the projection of a 1.15 book-to-bill ratio for fourth quarter 2025 was reasonable and achievable and that cancellations were not a sign of a weak business environment; (4) reassured investors that the Company was not concerned about the lack of diversity in its pre-backlog; (5) stated that, despite the uptick in metabolic growth, the Company’s upside was broad-based and not isolated to any handful of studies; and (6) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you are a Medpace shareholder who suffered a loss, click here to participate.
Follow us for updates on Twitter: twitter.com/FRC_LAW.
To be a member of these class actions, you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about these class actions, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to [email protected], or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
The Law Offices of Frank R. Cruz, Los Angeles
Frank R. Cruz, 310-914-5007 [email protected]
www.frankcruzlaw.com
The Schall Law Firm, a national shareholder rights litigation firm, reminds investors of a class action lawsuit against Gossamer Bio, Inc. (“Gossamer” or “the Company”) (NASDAQ: GOSS) for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission.
Investors who purchased the Company’s securities between June 16, 2025 and February 20, 2026, inclusive (the “Class Period”), are encouraged to contact the firm before June 1, 2026.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
The class, in this case, has not yet been certified, and until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
According to the Complaint, the Company made false and misleading statements to the market. Gossamer concealed adverse facts about the design of its Phase 3 PROSERA study, especially regarding controls for placebo response at certain testing sites. Based on these facts, the Company’s public statements were false and materially misleading throughout the class period. When the market learned the truth about Gossamer, investors suffered damages.
Join the case to recover your losses
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260601367847/en/
NEW YORK, June 01, 2026 (GLOBE NEWSWIRE) -- Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against Gossamer Bio, Inc. (NASDAQ: GOSS) and certain of its officers.
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Gossamer securities between June 16, 2025 and February 20, 2026, both dates inclusive (the “Class Period”). Such investors are encouraged to join this case by visiting the firm’s site: bgandg.com/GOSS.
Gossamer Case Details
The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements and/or failed to disclose that:
while publicly touting overwhelmingly positive results to investors, Defendants concealed material adverse facts regarding the design of the Company’s Phase 3 PROSERA study, including their failure to adequately control for placebo response at the Latin American testing sites; and
as a result of the foregoing, Gossamer’s securities traded at artificially inflated prices, causing Plaintiff and other Class members to purchase shares at inflated levels. What's Next for Gossamer Investors?
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm’s site: bgandg.com/GOSS. or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in Gossamer you have until June 1, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.
No Cost to Gossamer Investors
We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys’ fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman, LLC for Gossamer Securities Class Action?
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com
"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.
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Contact Info
Peretz Bronstein, Esq. or Nathan Miller
Bronstein, Gewirtz & Grossman, LLC
917-590-0911 | [email protected]
Attorney advertising.
Prior results do not guarantee similar outcomes.
New York, New York--(Newsfile Corp. - June 1, 2026) - Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against Gossamer Bio, Inc. (NASDAQ: GOSS) and certain of its officers.
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Gossamer securities between June 16, 2025 and February 20, 2026, both dates inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: bgandg.com/GOSS.
Gossamer Case Details
The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements and/or failed to disclose that:
while publicly touting overwhelmingly positive results to investors, Defendants concealed material adverse facts regarding the design of the Company's Phase 3 PROSERA study, including their failure to adequately control for placebo response at the Latin American testing sites; and as a result of the foregoing, Gossamer's securities traded at artificially inflated prices, causing Plaintiff and other Class members to purchase shares at inflated levels.What's Next for Gossamer Investors?
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm's site: bgandg.com/GOSS, or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in Gossamer you have until June 1, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.
No Cost to Gossamer Investors
We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys' fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman, LLC for Gossamer Securities Class Action?
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com
"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.
Follow us for updates on LinkedIn, X, Facebook, or Instagram.
Attorney advertising.
Prior results do not guarantee similar outcomes.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/294910
Source: Bronstein, Gewirtz & Grossman, LLC
Ready to Announce with Confidence? Send us a message and a member of our TMX Newsfile team will contact you to discuss your needs.
NEW YORK--(BUSINESS WIRE)---- $GOSS #Bio--Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Gossamer Bio, Inc. (“Gossamer” or the “Company”) (NASDAQ: GOSS) and reminds investors of the June 1, 2026 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has.
Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Gossamer Bio, Inc. (“Gossamer” or the “Company”) (NASDAQ: GOSS) and reminds investors of the June 1, 2026 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260601532429/en/
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that the study design for the Company’s Phase 3 PROSERA study, particularly, controlling for the placebo response at the Latin American testing sites.
On February 23, 2026, Gossamer Bio, Inc. revealed adverse topline results from its Phase 3 PROSERA study, announcing that the trial failed to meet its primary endpoint of improving six-minute walk distance (“6MWD”) at Week 24. While the study reported a placebo-adjusted gain of +13.3 meters, the result did not achieve statistical significance under the prespecified alpha threshold of 0.025 (p=0.0320). The Company attributed the outcome, in part, to unexpectedly strong placebo performance among patients enrolled at Latin American sites, which it characterized as a heavily treated, lower-risk population.
Following this disclosure, investors and analysts reacted swiftly and negatively. On February 23, 2026, Gossamer’s common stock price plummeted from a closing price of $2.13 per share on February 20, 2026 to $0.42 per share, representing a decline of more than 80% in a single trading day.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Gossamer’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
To learn more about the Gossamer Bio class action, go to www.faruqilaw.com/GOSS or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
Follow us for updates on LinkedIn, on X, or on Facebook.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260601532429/en/
SAN DIEGO--(BUSINESS WIRE)--Gossamer Bio, Inc. (NASDAQ: GOSS) (the “Company” or “Gossamer”), a biopharmaceutical company focused on the development and commercialization of seralutinib for the treatment of pulmonary arterial hypertension (PAH) and pulmonary hypertension associated with interstitial lung disease (PH-ILD), today announced that it has extended the early tender date (as extended, the “Extended Early Tender Date”) until 5:00 p.m., New York City time, on June 2, 2026 with respect to.
SAN DIEGO--(BUSINESS WIRE)--Gossamer Bio, Inc. (NASDAQ: GOSS) (the “Company” or “Gossamer”), a biopharmaceutical company focused on the development and commercialization of seralutinib for the treatment of pulmonary arterial hypertension (PAH) and pulmonary hypertension associated with interstitial lung disease (PH-ILD), today announced the early tender results of its previously announced exchange offer (the “Exchange Offer”) to exchange any and all of its 5.00% Convertible Senior Notes due 202.
Shares of Klarna Group (NYSE:KLAR | KLAR Price Prediction) are up roughly 15% intraday in Thursday morning trading, changing hands near $15.80 after a prior close of $13.69. The pop comes against an otherwise quiet session for the broader buy now, pay later (BNPL) group.
By contrast, Affirm Holdings (NASDAQ:AFRM) stock is up 2% at $64.61, and Sezzle (NASDAQ:SEZL) stock is up 1% to $103.48. On a single-day basis, Klarna stock is decisively leading the BNPL pack.
Yet, the headline question deserves a more honest answer once the timeframe expands. Today’s leadership doesn’t undo what has been a difficult stretch for Klarna stock since its NYSE debut.
Reaction to Klarna’s Earnings Today’s move in Klarna stock is a reaction to the company’s Q1 2026 report. Klarna delivered a strong quarter with revenue of $1 billion (up 44% year-over-year) and adjusted operating profit of $68 million, a massive swing from $3 million in the year-ago quarter. Gross Merchandise Volume reached $33.7 billion (up 33% YoY), with US GMV up 39% and international up 31%.
Furthermore, Klarna turned the bottom line positive: operating income of $17 million versus a $90 million loss a year ago, and net income of $1 million versus a $99 million net loss. Active consumers grew to 119 million (up 21% YoY) and merchants surpassed 1 million (up 49% YoY).
The “Fair Financing” big-ticket installment product was a standout, with GMV up 138% YoY, while the Klarna Card reached 5 million active users across 16 countries. Klarna’s management reiterated full-year 2026 guidance and issued Q2 guidance of $35.5-36.5 billion GMV, $960 million to $1 billion in revenue, and adjusted operating income of $30-50 million.
Peers Tell a Very Different YTD Story Zoom out, however, and Klarna stock isn’t outperforming its peers as it’s down 46% year to date (YTD). Sezzle shares are up 59% YTD, following Sezzle’s Q1 2026 beat-and-raise that lifted its FY2026 EPS guide to $5.10.
Affirm sits in the middle. AFRM stock is down 15% YTD but up 22% over the past month following a Q3 FY2026 report that showed $1.04 billion in revenue and 35% gross merchandise volume (GMV) growth. The spread between Sezzle’s gain and Klarna’s loss YTD is quite wide — one of the widest intra-category gaps in fintech.
That divergence reflects very different business profiles. Klarna carries IPO overhang and broad European exposure, while Affirm has emerged as a focused U.S. pure-play operator.
What to Watch Next For Klarna stock, the immediate question is whether today’s bid holds into the close or fades like prior bounces. With the stock trading well below its 200-day moving average of $26.25 and a 52-week low of $12.06 still nearby, technical follow-through matters.
The bull case for KLAR stock rests on stabilizing credit costs, banking conversion progress, and a forward P/E ratio of 25x that looks reasonable if growth holds. The bear case centers on continued regulatory scrutiny and the simple fact that AFRM and SEZL are executing better right now.
Prudent investors looking at the BNPL space should weigh whether they want category exposure or operator exposure. Today’s pop in Klarna stock is real, but it doesn’t yet rewrite a YTD ranking where Sezzle remains the clear leader and Affirm the steadier middle ground. The next Klarna earnings update will be the more meaningful test.
, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Sezzle Inc. ("Sezzle" or the "Company") (NASDAQ: SEZL). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Sezzle and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On April 9, 2026, Sezzle disclosed in a filing with the U.S. Securities and Exchange Commission that it had "received a letter from Karen Webster", who served on the Company's Audit and Risk Committee, Compensation Committee, and Nominating and Corporate Governance Committee, stating that "she resigned from her position as a member of the Company's Board of Directors (the 'Board'), effective immediately." According to Sezzle, "Ms. Webster stated in her letter that her resignation resulted from a growing difference in perspective with management concerning the Company's direction, key decisions, and governance."
On this news, Sezzle's stock price fell $9.41 per share, or 13.61%, to close at $59.71 per share on April 10, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
Key Takeaways Sezzle has surged 103%, outperforming FirstCash and Mastercard as On-Demand fuels growth.MODS rose 34.8% year over yey/yar, while On-Demand lifted GMV 37.3% in the first quarter.SEZL holds a 3.65 current ratio, zero current debt, and rising 2026 sales and EPS estimates. Sezzle Inc.’s (SEZL - Free Report) stock has skyrocketed 103% over the past six months against an 8.6% dip and compared with the 13.9% jump in the Zacks S&P 500 Composite.
Meanwhile, SEZL has outperformed its industry peers; FirstCash (FCFS - Free Report) has jumped 47.5%, while Mastercard (MA - Free Report) has declined 8.4%.
6-Month Share Price PerformanceImage Source: Zacks Investment Research
The recent performance shows that SEZL outperforms FirstCash and Mastercard as well. Sezzle has gained 39.5%, beating FirstCash’s 9.9% growth and Mastercard’s 5.5% dip.
Let us delve deeper to find whether riding the rally is still worth it for investors.
SEZL Banks on On-Demand for Sustained Top-Line GrowthSezzle’s On-Demand provides users with a flexible option to Pay-in-4 wherever Visa is accepted. As of March 31, 2026, Monthly On-Demand & Subscribers (MODS) totaled 887,000, a 34.8% year-over-year increase. Seasonality risks resulted in a sequential dip in Monthly On-Demand users; however, active subscribers climbed 48.4% year over year.
On-Demand boosted the gross merchandise volume (GMV) by 37.3% year over year, backed by its popularity during the first quarter of 2026. In addition to that, average purchase frequency reached a quarterly record of 7.1X, up from 6.1X in the year-ago quarter. In the first quarter of 2026, these aforementioned vectors resulted in top-line growth of 29.2% from the year-ago quarter.
In the first quarter of 2026, marketing expenses more than doubled due to subscriber acquisition, retention and engagement. Despite this growth, the operating margin widened 3.3 percentage points, with net income expanding 3.4 percentage points. It displayed Sezzle’s ability to conduct prudent cost management, which supports On-Demand’s growth trajectory, driving the company’s top line in the long haul.
The highly recurring nature of MODS results in a robust lifetime value. Hence, it is certain that the company’s growth trajectory is dependent on its ability to win and retain On-Demand users.
SEZL’s Robust Liquidity PositionThe company maintains an outstanding liquidity position. Its current ratio stands at 3.65. While the metric showed a slight decline from the preceding quarter’s 3.92, it gained 39.3% from the year-ago quarter. The improvement is certainly due to substantial growth in SEZL’s cash chest. That being said, the company holds zero current debt, solidifying its liquidity position. A current ratio of more than 1 ensures efficient payment of short-term obligations.
Image Source: Zacks Investment Research
Sezzle’s Top & Bottom-Line Outlook Appears StrongThe Zacks Consensus Estimate for SEZL’s 2026 sales is set at $592.6 million, suggesting a 31.6% year-over-year rally, with 24.4% growth anticipated for 2027. The consensus estimate for earnings is pegged at $5.09 per share for 2026, hinting at a 41.8% year-over-year jump, and that for 2027 suggests a 23.8% rise.
Over the past 60 days, four EPS estimates for 2025 and three for 2026 have been revised upward with no downward adjustments. In the same period, the Zacks Consensus Estimate for 2025 earnings moved up 8.5%, and the 2026 estimate showed an 8.6% uptrend. These upward revisions highlight analysts' confidence.
Image Source: Zacks Investment Research
Hurry Up & Buy Sezzle NowWe recommend investors buy SEZL now because of its outstanding growth and robust financial prowess. Sezzle is witnessing a significant surge in customer wins on the back of its On-Demand payment flexibility and purchase frequency of 7.1X, resulting in an explosive top-line growth in the first quarter of 2026.
While the company recorded a significant rise in marketing expenses, cost optimization is evident from its expanding margins. A current ratio of 3.65, combined with zero current debt, demonstrates a solid liquidity profile. Sezzle’s solid top and bottom-line prospects and bullish analyst sentiment for 2026 make it a highly profitable and high-momentum investment.
SEZL currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Sezzle (SEZL) stands out as a compelling BNPL investment among recent IPOs in the sector. Modern BNPL players like AFRM and Afterpay have solved legacy financing challenges, fueling sector growth. SEZL's positioning leverages advancements in BNPL infrastructure and addresses retailer pain points.
LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz is investigating potential claims against the board of directors of Sezzle Inc. (“Sezzle” or the “Company”) (NASDAQ: SEZL) concerning whether the board breached its fiduciary duties to shareholders.
If you are a shareholder, click here to participate.
Follow us for updates on Twitter: twitter.com/FRC_LAW.
If you still hold Sezzle shares purchased before December 2024 and wish to discuss this matter with us, or have any questions concerning your rights and interests with regards to this matter, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 2121 Avenue of the Stars, Suite 800, Los Angeles, California 90067 at 310-914-5007, by email to [email protected], or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces it is investigating potential claims against the board of directors of Sezzle Inc. (“Sezzle” or the “Company”) (NASDAQ: SEZL) concerning whether the board breached its fiduciary duties to shareholders.IF YOU ARE AN SEZZLE INC. (SEZL) SHAREHOLDER, CONTACT THE LAW OFFICES OF HOWARD G. SMITH TO PARTICIPATE.Contact Us To Participate or Learn More:If you still hold Sezzle shares purchased before December 2024 and wish to discuss.
Law Offices of Howard G. Smith announces it is investigating potential claims against the board of directors of Sezzle Inc. (“Sezzle” or the “Company”) (NASDAQ: SEZL) concerning whether the board breached its fiduciary duties to shareholders.
IF YOU ARE AN SEZZLE INC. (SEZL) SHAREHOLDER, CONTACT THE LAW OFFICES OF HOWARD G. SMITH TO PARTICIPATE.
Contact Us To Participate or Learn More:
If you still hold Sezzle shares purchased before December 2024 and wish to discuss this matter with us, or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us:
Law Offices of Howard G. Smith,
3070 Bristol Pike, Suite 112,
Bensalem, Pennsylvania 19020,
Telephone: (215) 638-4847
Email: [email protected],
Visit our website at: www.howardsmithlaw.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260519665747/en/
NEW YORK, May 19, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Sezzle Inc. (“Sezzle” or the “Company”) (NASDAQ: SEZL). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Sezzle and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On April 9, 2026, Sezzle disclosed in a filing with the U.S. Securities and Exchange Commission that it had “received a letter from Karen Webster”, who served on the Company’s Audit and Risk Committee, Compensation Committee, and Nominating and Corporate Governance Committee, stating that “she resigned from her position as a member of the Company’s Board of Directors (the ‘Board’), effective immediately.” According to Sezzle, “Ms. Webster stated in her letter that her resignation resulted from a growing difference in perspective with management concerning the Company’s direction, key decisions, and governance.”
On this news, Sezzle’s stock price fell $9.41 per share, or 13.61%, to close at $59.71 per share on April 10, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
Bragar Eagel & Squire, P.C. Litigation Partner Brandon Walker Encourages Investors Who Suffered Losses In Sezzle (SEZL) To Contact Him Directly To Discuss Their Options
If you purchased or acquired stock in Sezzle and would like to discuss your legal rights, call Bragar Eagel & Squire partner Brandon Walker or Melissa Fortunato directly at (212) 355-4648.
Click here to participate in the action.
NEW YORK, May 19, 2026 (GLOBE NEWSWIRE) --
What’s Happening:
Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, is investigating potential claims against Sezzle, Inc. (“Sezzle” or the “Company”) (NASDAQ:SEZL) on behalf of Sezzle stockholders. Our investigation concerns whether Sezzle has violated the federal securities laws and/or engaged in other unlawful business practices. Investigation Details:
On April 9, 2026, Sezzle disclosed in a filing with the U.S. Securities and Exchange Commission that it had "received a letter from Karen Webster", who served on the Company's Audit and Risk Committee, Compensation Committee, and Nominating and Corporate Governance Committee, stating that "she resigned from her position as a member of the Company's Board of Directors (the ‘Board'), effective immediately." According to Sezzle, "Ms. Webster stated in her letter that her resignation resulted from a growing difference in perspective with management concerning the Company's direction, key decisions, and governance."
On this news, Sezzle's stock price fell $9.41 per share, or 13.61%, to close at $59.71 per share on April 10, 2026. Next Steps:
If you purchased or otherwise acquired Sezzle shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Melissa Fortunato by email at [email protected], by telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you. About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, South Carolina, and California. The firm represents individual and institutional investors in securities,
derivative, and commercial litigation as well as individuals in consumer protection and data privacy litigation. The firm has a nationwide practice and routinely handles cases in both federal and state courts. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
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LOS ANGELES, May 19, 2026 (GLOBE NEWSWIRE) -- The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of Sezzle Inc. (“Sezzle” or “the Company”) (NASDAQ: SEZL) for violations of the securities laws.
The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Sezzle revealed in an SEC filing on April 9, 2026, that it had received correspondence from Karen Webster, a member of its Board of Directors who served on its Audit and Risk Committee, Compensation Committee, and Nominating and Corporate Governance Committee. According to the Company, Weber stated that "she resigned from her position as a member of the Company's Board of Directors (the ‘Board'), effective immediately." The Company added, "Ms. Webster stated in her letter that her resignation resulted from a growing difference in perspective with management concerning the Company's direction, key decisions, and governance." Based on this news, shares of Sezzle fell by more than 13.6% on the next day.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
CONTACT:
The Schall Law Firm
Brian Schall, Esq.
310-301-3335 [email protected]
www.schallfirm.com
On May 19, 2026, Sezzle Inc SEZL shares rose 4.2% to a current price of $106.76. The stock has exhibited significant price performance over recent time frames, including a 68.2% increase year-to-date and a remarkable 263.4% surge over the last three years. The stock also has a 52-week range, with a high of $186.74 and a low of $49.50.
GF Value™ verdict: Shares are currently priced at $106.76, which is 51.7% above the GF Value™ of $70.36.GF Score™ of 67/100 suggests the stock is above average in quality compared to its peers.Notable signal: Insiders have sold $7.6M worth of stock in the last three months, indicating a lack of buying interest. Is SEZL Overvalued or Undervalued? According to the GF Value™, Sezzle Inc is significantly overvalued. The current price of $106.76 indicates a 51.7% premium over the estimated fair value of $70.36. This substantial margin suggests that investors might be paying too much for the stock relative to its intrinsic value. The GF Valuation label indicates that the stock is significantly overvalued, posing potential risks for new investors if the market adjusts toward the fair value in the future.
The GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Given this assessment, the high current price raises concerns about the sustainability of Sezzle Inc's valuation, especially in the context of insider selling activity.
How Does SEZL's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 25.6x 21.8x Forward P/E 21.3x N/A The current P/E (TTM) of 25.6x is 17% above its 5-year median P/E of 21.8x, indicating that Sezzle’s stock is trading at a higher valuation compared to its historical averages. This analysis aligns with the GF Value™ verdict, supporting the notion that the stock may be overvalued at its current price.
What Does SEZL's GF Score™ Tell Us? Metric Rating GF Score™ 67 Financial Strength 6/10 Profitability 4/10 Growth 5/10 Valuation 3/10 Momentum 7/10 The GF Score™ of 67/100 indicates that Sezzle Inc is above average compared to its peers. The strongest area is its momentum rank of 7/10, reflecting a positive trend in share price performance. However, the weakest area is its valuation rank of 3/10, which confirms the concerns raised by the GF Value™ assessment regarding the stock's current overvaluation.
What Are Insiders Doing with SEZL Stock? Insider activity in Sezzle Inc has shown a trend of selling, with insiders having sold $7.6 million worth of stock over the past three months without any purchases reported. This pattern often raises caution among potential investors, as it may suggest a lack of confidence in the stock's future performance or a belief that the stock is currently overvalued. The absence of insider buying further reinforces the concerns raised by the GF Value™ assessment.
What This Means for Investors Based on the analysis of GF Value™, Sezzle Inc SEZL shares are assessed to be overvalued at the current price of $106.76. With a significant margin above the estimated fair value of $70.36, potential investors should consider the associated risks. The current valuation, combined with insider selling activity, suggests a cautious approach to entering or holding this stock.
For the complete analysis, visit the Sezzle Inc SEZL stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is SEZL's GF Score™?
SEZL has a GF Score™ of 67/100, indicating that the stock is above average in quality compared to its peers.
Is SEZL overvalued or undervalued?
SEZL is currently assessed as overvalued, with a significant premium of 51.7% over its estimated GF Value™ of $70.36.
What is SEZL's P/E ratio?
SEZL's P/E (TTM) is 25.6x, which is 17% above its 5-year median of 21.8x, indicating that the stock is trading at a higher valuation compared to its historical averages.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay Wolke & Rotter LLP, a leading national shareholder rights law firm, today announced that it is investigating potential claims against the board of directors of Sezzle Inc. (“Sezzle” or the “Company”) (NASDAQ: SEZL) whether the board breached its fiduciary duties to shareholders.
IF YOU ARE AN SEZZLE INC. (SEZL) SHAREHOLDER, CLICK HERE TO PARTICIPATE.
Contact Us To Participate or Learn More:
If you still hold Sezzle shares purchased before December 2024 and wish to discuss this matter with us, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us.
Charles Linehan, Esq.,
Glancy Prongay Wolke & Rotter LLP,
1925 Century Park East, Suite 2100,
Los Angeles, California 90067
Email: [email protected]
Telephone: 310-201-9150 (Toll-Free: 888-773-9224)
Visit our website at www.glancylaw.com.
Follow us for updates on LinkedIn, Twitter, or Facebook.
Whistleblower Notice
Persons with non-public information regarding Sezzle should consider their options to aid the investigation or take advantage of the SEC Whistleblower Program. Under the program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Charles H. Linehan at 310-201-9150 or 888-773-9224 or email [email protected].
About Glancy Prongay Wolke & Rotter LLP
GPWR is a premier law firm with decades of experience representing investors and consumers in securities litigation and other complex class action litigation. Recognizing the firm’s recent successes, GPWR was named one of Law360’s Securities Groups of the Year and ranked second-highest in total investor recoveries by Institutional Shareholder Services Securities Class Action Services in 2025. GPWR’s lawyers have handled cases covering a wide spectrum of corporate misconduct and relating to nearly all industries and sectors. GPWR’s past successes have been widely covered by leading news and industry publications such as The Wall Street Journal, The Financial Times, Bloomberg Businessweek, Reuters, the Associated Press, Barron’s, Investor’s Business Daily, Forbes, and Money. Prior results do not guarantee a similar outcome.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Sezzle Inc. ("Sezzle" or the "Company") (NASDAQ: SEZL). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Sezzle and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On April 9, 2026, Sezzle disclosed in a filing with the U.S. Securities and Exchange Commission that it had "received a letter from Karen Webster", who served on the Company's Audit and Risk Committee, Compensation Committee, and Nominating and Corporate Governance Committee, stating that "she resigned from her position as a member of the Company's Board of Directors (the 'Board'), effective immediately." According to Sezzle, "Ms. Webster stated in her letter that her resignation resulted from a growing difference in perspective with management concerning the Company's direction, key decisions, and governance."
On this news, Sezzle's stock price fell $9.41 per share, or 13.61%, to close at $59.71 per share on April 10, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
NEW YORK, May 22, 2026 (GLOBE NEWSWIRE) -- Lowey Dannenberg P.C., a top complex litigation law firm, is investigating Sezzle Inc. (NASDAQ: SEZL) (“Sezzle” or the “Company”) for potential violations of the federal securities laws.
On April 9, 2026, Sezzle disclosed in a filing with the U.S. Securities and Exchange Commission that it had “received a letter from Karen Webster,” who served on the Company’s Audit and Risk Committee, Compensation Committee, and Nominating and Corporate Governance Committee, stating that “she resigned from her position as a member of the Company’s Board of Directors (the ‘Board’), effective immediately.” According to Sezzle, “Ms. Webster stated in her letter that her resignation resulted from a growing difference in perspective with management concerning the Company's direction, key decisions, and governance.”
“Our investigation concerns whether the company and its executives provided investors with accurate and complete information about the company,” said attorney Andrea Farah, Lowey Dannenberg, P.C. partner and head of the firm’s securities practice.
If you suffered a loss of more than $50,000 in SEZL securities, and wish to participate, or learn more about your eligibility, contact our attorneys Andrea Farah ([email protected]) at (914)733-7256 or Vincent R. Cappucci Jr. ([email protected]) at (914)733-7278.
About Lowey Dannenberg
Lowey Dannenberg is a national firm representing institutional and individual investors, who suffered financial losses resulting from corporate fraud and malfeasance in violation of federal securities and antitrust laws. The firm has significant experience in prosecuting multi-million-dollar lawsuits and has previously recovered billions of dollars on behalf of investors.
Attorney advertising. Prior results do not guarantee similar outcomes.
Contact
Lowey Dannenberg P.C.
44 South Broadway, Suite 1100
White Plains, NY 10601
Tel: (914) 733-7256
Email: [email protected]
Sezzle delivered a robust Q1 FY26, with 29% revenue growth, record profitability, and a 48% YoY subscriber surge, underscoring operating leverage and strategic execution. Management raised FY26 guidance (revenue growth to 30%-35%, adjusted EPS to $5.10), reflecting accelerating momentum and mid-year visibility for continued beat-and-raise performance. We rate SEZL a buy with a $147 price target, citing durable growth, platform expansion, and attractive risk/reward.
Key Takeaways DAVE's Q1 2026 new members rise 22% to 695K. Revenues rise 47% and adjusted EBITDA soars 57%.SEZL's Q1 GMV rises 37.3%. Revenues increase 29.2% (12.2% of GMV) with MODS up 34.8%.DAVE ExtraCash originations gained 7% y/y, while CashAI v5.5 helped push 28-day DPD to 1.69%. Dave (DAVE - Free Report) and Sezzle (SEZL - Free Report) are fintech companies that target consumer-oriented payments and provide banking alternatives. While DAVE focuses on cash advances, SEZL offers interest-free installment plans at online stores.
Let us delve deeper to find out which of these two stocks investors should add to their portfolios.
The Case for DAVEDave’s growth is grounded in its customer-first strategy, whereby membership expansion contributes to the company’s solid financial performance. During the first quarter of 2026, the company witnessed 22% year-over-year growth in its new members to 695,000, with monthly transacting members gaining 18% year over year. Despite this sharp growth in customer base, the company managed to keep the customer acquisition cost flat year over year at $18 flat.
The company’s customer base expansion drove its first-quarter top line by 47% year over year. This impressive growth drove the company’s adjusted EBITDA by 57% year over year. Furthermore, the bottom line gained 64% year over year. Overall, the company displayed substantial operational efficiency and profitability.
With an upsurge in customer activity, ExtraCash originations surged 37% year over year. While this solid growth increased the inherent risk of credit default, the company’s proprietary AI and machine-learning-based CashAI v5.5 catered to the heightened risk. During the first quarter of 2026, Dave’s 28-day past-due (DPD) rate dipped to a record low of 1.69% from 1.7% reported in the year-ago quarter. Subsequently, the company’s net monetization rate was at 5.1%, marking the highest level achieved over the past four years.
On the liquidity front, Dave appears to hold a solid position. The company ended the first quarter of 2026 with $176 million in cash against current debt of $75 million. Furthermore, its current ratio of 3.86 surpassed the industry average of 1.57. A current ratio of more than bodes well with investors as it signals efficiency in paying short-term obligations.
The Case for SEZLDuring the first quarter of 2026, Sezzle recorded remarkable growth of 37.3% year over year in its gross merchandise volume (GMV). This lofty growth led to a solid 29.2% year-over-year upsurge in the top line, which represented 12.2% of GMV. The top-line growth can also be attributed to a 34.8% year-over-year gain in Monthly On-Demand & Subscribers (MODS).
Sezzle’s noteworthy performance is fueled by the company’s customer-centric strategy that successfully boosted customer engagement. An improvement in average purchase frequency to 7.1X from the year-ago quarter’s 6.1X reflects the company’s solid customer engagement strategy. It demonstrates that customers do not use SEZL for one-off transactions, but rather utilize it for daily spending habits.
SEZL’s marketing expense more than doubled from the year-ago quarter. While this could have affected profitability, it improved operating income by 38.4% year over year. It highlights that the company’s ability to draw in customers is tied to its vigorous marketing spend without compromising scalability and efficiency. It led to a 48.4% year-over-year upsurge in active subscribers.
The company’s liquidity profile is a standout. As of the end of March 31, 2026, SEZL held cash amounting to $125 million with no current debt. Strength in its liquidity position is further evidenced by its current ratio of 3.65, an improvement from the preceding quarter’s 2.62. Furthermore, the metric exceeds the industry average of 1.1. That said, Sezzle’s current ratio is greater than 1, which is a green flag for investors as it signals efficiency in fulfilling short-term obligations.
How Do Estimates Compare for DAVE & SEZL?The Zacks Consensus Estimate for Dave’s 2026 revenues is $713.7 million, indicating an upside of 28.8% year over year. For 2026, the consensus mark for earnings is pegged at $15.46 per share, suggesting a 17.3% upsurge from the year-ago quarter’s actual. Over the past 60 days, three estimates for 2026 have shifted upward, with no downward revisions.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Sezzle’s 2026 sales is pinned at $592.6 million, implying a 31.6% year-over-year increase. The consensus estimate for earnings is pegged at $5.09 per share, suggesting a 41.8% jump from the year-ago quarter’s actual. Four estimates for 2026 have moved north in the past 60 days versus no southward revisions.
Image Source: Zacks Investment Research
DAVE Trades Cheaper Than SEZLSezzle is currently trading at a forward 12-month price/earnings (P/E) ratio of 18.46, which is higher than the 12-month median of 17.24. Dave trades at a 12-month P/E ratio of 13.41, which is below the 12-month median of 21.29. This comparison highlights the fact that Dave is undervalued compared to Sezzle.
Image Source: Zacks Investment Research
Verdict: DAVE is a Better BuyBoth Dave and Sezzle are outstanding stocks to add to your portfolio. However, Dave appears to be a better buy due to its superior financial growth and undervaluation. During the first quarter of 2026, DAVE outperformed SEZL with solid 47% year-over-year growth in its top line, fueled by a 22% year-over-year rise in members.
While the company experienced swift scaling, it maintained a customer acquisition cost of $18 and leveraged CashAI v5.5 to manage credit risk, resulting in a dip in its 28 DPD rate to a record low. Furthermore, Dave’s current ratio stands at 3.86, hinting at a stellar liquidity position. Notably, Dave trades at a cheaper price than SEZL, making it an undervalued gem and providing investors with a high-growth opportunity as the market realizes the stock’s true potential.
SEZL and DAVE sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.