Sezzle (NASDAQ:SEZL) Releases Earnings Results, Beats Estimates By $0.09 EPS

Sezzle (NASDAQ:SEZL) issued its quarterly earnings data on Wednesday. The company reported $1.37 EPS for the quarter, beating the consensus estimate of $1.28 by $0.09, FiscalAI reports. Sezzle had a net margin of 31.39% and a return on equity of 89.97%. The company had revenue of $166.50 million during the quarter, compared to analysts’ expectations of $155.01 million. During the same quarter in the previous year, the company earned $0.71 earnings per share. Sezzle’s revenue for the quarter was up 42.6% on a year-over-year basis.

Here are the key takeaways from Sezzle’s conference call:

• Q3 revenue grew 42.6% year over year to $166.5 million, while net income increased 79.3% to $47.8 million. Sezzle raised its 2026 revenue-growth outlook to approximately 42.5% and adjusted diluted EPS guidance to $5.45–$5.50, and introduced preliminary 2027 adjusted EPS guidance of $7.20.
• Active subscribers increased 68.1% year over year to 955,000, and average quarterly transaction frequency rose to 7.8 from 6.5 a year earlier. Average quarterly revenue per monetized user grew 28.1% to $41, alongside 34.9% growth in total transaction volume.
• Net transaction margin reached 64.7% of revenue, near the top of Sezzle’s 55%–65% target range; the company said it would have been about 62.5% without a $3.7 million benefit from its Visa arrangement. Marketing expense fell to $15.9 million from $19.4 million in Q2 while subscriber numbers continued to grow.
• SezzleCash showed early signs of cross-selling to BNPL, but remains new and relatively small, while Sezzle Send is still being refined. Executives cautioned that newer products may carry lower margins and higher credit losses as they scale, and said Send is being managed partly as a customer-acquisition channel.

Sezzle Price Performance

SEZL traded up $3.17 during midday trading on Friday, hitting $158.17. The stock had a trading volume of 288,556 shares, compared to its average volume of 688,722. The company has a market cap of $5.34 billion, a P/E ratio of 30.24 and a beta of 6.59. The business has a fifty day moving average of $121.91 and a 200 day moving average of $109.79. The company has a debt-to-equity ratio of 0.52, a quick ratio of 4.02 and a current ratio of 4.02. Sezzle has a 1 year low of $49.50 and a 1 year high of $195.71.

Analyst Upgrades and Downgrades

SEZL has been the topic of several recent analyst reports. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Sezzle in a report on Monday. B. Riley Financial reissued a “buy” rating on shares of Sezzle in a report on Friday, August 7th. Needham & Company LLC upped their price objective on shares of Sezzle from $172.00 to $220.00 and gave the stock a “buy” rating in a research report on Thursday. Keefe, Bruyette & Woods lowered their target price on shares of Sezzle from $190.00 to $155.00 and set a “market perform” rating on the stock in a research note on Friday, August 7th. Finally, Wall Street Zen lowered shares of Sezzle from a “buy” rating to a “hold” rating in a research report on Sunday, November 1st. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and four have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $160.33.

Sezzle News Summary

Here are the key news stories impacting Sezzle this week:

• Positive Sentiment: Sezzle reported Q3 earnings of $1.37 per share, beating the $1.28 consensus, while revenue of $166.5 million topped estimates of about $155 million and rose 42.6% year over year. Coverage also highlighted profit growth and lower credit losses relative to platform volume. Sezzle Q3 earnings and revenues surpass estimates Sezzle profit jumps as credit costs ease
• Positive Sentiment: The company raised its 2026 outlook and shared 2027 targets; management cited subscriber growth, stronger transaction activity and new products as growth drivers. This suggests confidence in continued expansion. Q3 call highlights higher outlook and new products
• Positive Sentiment: Analyst expectations moved higher after the results. Northland raised its FY2026 EPS forecast to $5.46 from $5.25 and increased estimates for Q4 2026 and the first two quarters of 2027. Needham lifted its price target to $220 from $172 and TD Cowen raised its target to $200 from $160; both maintain Buy ratings. Needham analyst ratings TD Cowen analyst ratings

Insider Activity at Sezzle

In other news, Director Kyle Brehm sold 1,000 shares of the business’s stock in a transaction that occurred on Thursday, August 27th. The shares were sold at an average price of $125.92, for a total value of $125,920.00. Following the completion of the sale, the director directly owned 23,853 shares in the company, valued at approximately $3,003,569.76. The trade was a 4.02% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Bryan Hunt bought 250 shares of Sezzle stock in a transaction that occurred on Friday, September 18th. The shares were acquired at an average cost of $115.86 per share, for a total transaction of $28,965.00. Following the acquisition, the director owned 3,985 shares in the company, valued at $461,702.10. The trade was a 6.69% increase in their position. The SEC filing for this purchase provides additional information. Company insiders own 43.90% of the company’s stock.

Sezzle Company Profile

Sezzle Inc (NASDAQ: SEZL) is a financial technology company that provides buy now, pay later solutions. Its platform enables consumers to split eligible purchases into installments, generally at the time of checkout, while giving merchants payment and customer-engagement tools designed to support e-commerce sales.

The company offers installment payment services through its consumer app and merchant integrations, as well as products such as Sezzle Virtual Card and Sezzle Up. Sezzle Up is designed to provide eligible users with credit-building opportunities, while the company’s merchant platform supports checkout integration, transaction management and consumer financing.

Sezzle was founded in 2016 and is headquartered in Minneapolis, Minnesota.