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Sezzle Inc.
NASDAQ: SEZL Financials IT 🔎 Screen
$4.0B
Market Cap
17.1
P/E
0.06
PEG
118.8%
ROCE
103.3%
ROE
0.83
D/E
59.1%
OPM
-35.5%
% from 52W High
83
α RS
🔍 SEZL is showing a high-conviction setup because it matches 12 of 39 tracked screener presets, Sector RRG has Technology in the Leading quadrant with the trail still rolling over, and RS Rating is 83. Net: Broad signal stack, not a recommendation. ? Conviction RRG RS Rating
Sources
Conviction 12/39 · Technology in Leading quadrant · RS Rating 83
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🌏 Global Investor Returns
Currency-adjusted total returns for SEZL including FX impact
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
📊 Sector Averages
About

Sezzle Inc. operates as a technology-enabled payments company in the United States and Canada. The company offers Sezzle Platform that provides a payments solution for consumers that extends credit at the point-of-sale allowing consumers to purchase and receive the ordered merchandise at the time of sale while paying in installments over time; Pay-in-Four, which allows consumers to pay a fourth of the purchase price up front and then another fourth of the purchase price every two weeks thereafter over a total of six weeks; Pay-in-Full that allows consumers to pay for the full value of their order up-front through the Sezzle Platform without the extension of credit; Pay-in-five which allows eligible consumers to pay a fifth of the purchase price up front, and then another four installments every two weeks; Pay-in-Two, which allow consumer to pay half of the value of their order up-front and the second half in two weeks; and other alternative installment options. It also provides Sezzle Virtual Card that allows consumers to access the Sezzle Platform in the form of merchants in-store and online with merchants that are not directly integrated with Sezzle; Sezzle Anywhere, a paid subscription service that allows consumers to use their Sezzle Virtual Card at any merchant online or in-store; Sezzle On-Demand, a service that allows consumers who are not subscribed to Sezzle Anywhere to use the Sezzle Platform at any merchant online or in-store; Sezzle Premium, a paid subscription service that allows its consumers to access large, non-integrated premium merchants; Sezzle Balance, a stored-value product that allows consumers to maintain funds in Sezzle account for use toward eligible purchases or make payments on the Sezzle Platform; and Sezzle Up, an opt-in feature of the Sezzle Platform. In addition, the company offers Long-Term Lending through collaboration with third-party lenders. Sezzle Inc. was incorporated in 2016 and is headquartered in Minneapolis, Minnesota.

Key Ratios Snapshot
📈 Growth Pattern
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3-Statement Financial Model
Bear / Base / Bull projections · DCF fair value · Reverse-DCF
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📊 MIXED Sezzle Q1 2026: 37.3% GMV growth, 52.5% EBITDA margin, record profitability.
Revenue & Profitability
Q1 2026 total revenue grew 29.2% year-over-year (exact dollar amount not provided). Net income reached $51.3 million (37.9% profit margin), and adjusted EBITDA was $71.1 million (52.5% margin). Adjusted net income was $50 million. The company raised full-year revenue growth guidance to 30%-35% and adjusted net income guidance to $180 million.
Outlook
Management sees no unusual consumer strain and described credit performance as better than expected. They noted that Q1 benefits from tax refunds and is seasonally the best quarter for margins. The macro environment (e.g., gas prices) has not materially impacted their customer base. Full-year provision for credit losses is targeted at 2.5%-3% of GMV.
Growth Drivers
Key growth levers include subscriber acquisition (44,000 net new subscribers in Q1 to 714,000), marketing spend that more than doubled year-over-year with a sub-six-month payback, and new products: Pay in 5 (high consumer demand), Sezzle Mobile plan (AT&T), enhanced long-term lending via Pagaya, and virtual card in Canada. Purchase frequency increased to 7.1x per quarter.
Balance Sheet & CapEx
Not discussed in detail. Management noted ongoing investment in AI (chatbot, shopping assistant) and product development, but no specific capital expenditure guidance or amounts were provided. The company is also funding corporate strategic projects (antitrust suit, banking charter process).
Margins
Q1 gross margin (revenue less transaction-related costs) was 74%. Adjusted EBITDA margin was 52.5%, and net income margin was 37.9%. Management targets a long-term revenue less transaction-related cost margin of 55%-65% and expects to continue generating operating leverage as top-line growth outpaces non-transaction OpEx. Provision guidance is 2.5%-3% of GMV.
Key Risks
Risks flagged include seasonality (Q1 typically best for margins due to tax refunds), credit performance uncertainty (provisions are estimates and may vary), regulatory risks tied to the bank partnership model (WebBank), an ongoing antitrust suit, and the uncertain outcome of the banking charter application. Macro risks (e.g., gas prices) were mentioned but not currently seen in their data.
Generated by AI · Q1 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-08-06
Q2 2026 delivered record GMV and revenue growth, driven by a surge in subscribers and engagement. New products SezzleCash and Sezzle Send launched, while AI integration improved efficiency. Full-year guidance was raised, with strong liquidity and low leverage maintained.
Q1 2026 Q1 2026 2026-05-06
Q1 2026 saw robust growth, with GMV up 37.3% and revenue up 29.2% year-over-year. Gross margin hit 74%, net income reached $51.3M, and guidance for 2026 was raised across all key metrics. Subscriber engagement and new product launches fueled momentum.
Q4 2025 Q4 2025 2026-02-25
Delivered record 2025 results with 66.1% revenue growth, $133.1M net income, and strong margin expansion. Raised 2026 guidance, continued product innovation, and expanded capital return programs, while maintaining disciplined cost control and monitoring regulatory trends.
Q3 2025 Q3 2025 2025-11-05
Q3 2025 saw 67% revenue growth, strong profitability, and a strategic shift back to subscription products, driving higher customer lifetime value and engagement. Guidance for 2025 and 2026 was raised, with robust cash flow and continued investment in AI and product innovation.
Q2 2025 Q2 2025 2025-08-07
Q2 saw 76% revenue growth, 28% net income margin, and strong user engagement, driven by On-Demand and Anywhere products. Full-year guidance and a new EBITDA target were reaffirmed, with marketing investments expected to yield results in H2 2025.
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📊 Analysis Methodology

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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
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Information Sources:
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