Sezzle Inc. (SEZL)

Price$120.58Cached quoteAs of 2026-09-05 06:46 UTC

AI: Fair-priced

Price checkThe stock looks reasonably priced, but not cheap enough to forgive a growth stumble.

At the observed quote, Sezzle trades at about 26 times trailing diluted earnings of roughly $4.58 a share. Management’s 2026 adjusted earnings guidance of $5.25 implies about 23 times that target. Trailing free cash flow—cash left after operations and capital spending—was about $275 million, implying roughly 15 times cash flow, but working-capital swings make that number less dependable. Those multiples are defensible for rapid growth, yet they leave limited margin of safety if guidance slips.

Big pictureProfits and cash have surged, though quarterly cash generation still swings sharply.

The supplied history shows net income rising from $7.1 million in 2023 to $78.5 million in 2024 and $133.1 million in 2025; trailing twelve-month net income through June 2026 is about $161 million. Operating cash flow over the same trailing period is roughly $276 million, with less than $1 million of capital spending. Still, quarterly operating cash flow ranged from negative $19.9 million in Q3 2025 to $154.3 million in Q4, so a value investor should not treat peak cash generation as permanently repeatable.

Business strengthSezzle has ample liquidity, disciplined buybacks, and a funding structure that needs careful reading.

June 2026 supplied figures show $79.8 million cash, $408.4 million current assets versus $101.7 million current liabilities, and $233.0 million equity. Shares outstanding fell about 1% year over year, while first-half buybacks totaled about $32.8 million and stock compensation about $3.4 million, so repurchases more than offset dilution. One caution: Sezzle’s Q2 release separately reports $123.5 million drawn on a $300 million receivables facility, despite the supplied debt series showing only $0.6 million, so simple net-cash math understates funding obligations.

What could change the storyCredit losses and subscriber growth will decide whether today’s valuation proves conservative or demanding.

The bull case is that Sezzle keeps subscriber growth high, reaches its $185 million adjusted-income target, and holds credit losses near its 2.5%–3.0% of merchandise-volume target; that would make a low-20s forward earnings multiple look modest. The bear case is that credit costs rise as receivables grow: the Q2 provision reached 2.4% of merchandise volume and first-half credit-loss provision increased to $44.3 million from $33.4 million. Slower subscriber growth or losses above the target range would quickly weaken earnings and the valuation case.

AI: News

Q2 beat, shares tumbleSezzle beat second-quarter estimates, but a modest guidance raise disappointed investors after a huge run-up.

On August 6, Sezzle reported $40.8 million of net income and adjusted earnings of $1.13 a share, above the $1.03 analyst estimate cited by Dow Jones. Total revenue also beat expectations, while full-year adjusted earnings guidance rose only to $5.25 a share from $5.10. On August 7, the stock was down about 35% in morning trading. The reaction suggests expectations, not the quarter itself, were the main problem.

Cheaper funding securedA larger credit facility lowered funding costs and gave Sezzle more room to finance receivable growth.

On May 11, Sezzle announced a $300 million receivables facility, double the original $150 million commitment. The borrowing spread fell to the Secured Overnight Financing Rate plus 3.86%, from 6.75% previously, and the advance rate rose to as much as 92.5% of eligible receivables. By June 30, $123.5 million was outstanding. Lower funding costs directly support margins, while the larger capacity lets Sezzle grow purchase volume without relying as heavily on balance-sheet cash.

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Revenue

2020

2021

2022

2023

2024

2025

Net income

2020

2021

2022

2023

2024

2025

Free cash flow

2020

2021

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2020

2021

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022	2021	2020
Revenue	$235.9M	$139.4M	$60.6M	$12.0M	$114.8M	$58.8M
Operating expenses	$152.7M	$85.8M	$51.6M	$73.0M	$183.5M	$86.7M
Operating income	$176.8M	$82.2M	$22.2M	−$28.4M	−$68.7M	−$27.9M
Operating margin	74.95%	59.00%	36.62%	−237.77%	−59.82%	−47.51%
EBITDA	$178.1M	$83.2M	$23.1M	−$27.6M	−$67.9M	−$27.5M
EBITDA margin	75.52%	59.69%	38.03%	−230.68%	−59.17%	−46.78%
Net income	$133.1M	$78.5M	$7.1M	−$38.1M	−$75.2M	−$32.4M
Net profit margin	56.44%	56.33%	11.71%	−318.54%	−65.47%	−55.10%
Basic EPSper basic share	$3.93	$2.33	$0.21	-$1.17	-$2.41	-$1.08
Diluted EPSper diluted share	$3.72	$2.19	$0.21	-$1.17	-$2.41	-$1.08

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

≈43.99%of listed shares

Youakim Charles14.81M shares · May 15, 2026

View holders

Top 20 reported holders of SEZL
Holder	% owned
Youakim Charles	≈43.99%14.81M shares
BlackRock, Inc.	7.55%2.54M shares
Divisadero Street Capital Management, LP	4.90%1.65M shares
Paradis Paul	≈3.43%1.15M shares
Accredited Investors Inc.	2.40%807.44K shares
VANGUARD CAPITAL MANAGEMENT LLC	2.26%760.32K shares
STATE STREET CORP	1.96%659.9K shares
PRICE T ROWE ASSOCIATES INC /MD/	1.88%631.85K shares
GEODE CAPITAL MANAGEMENT, LLC	1.66%557.75K shares
MORGAN STANLEY	1.48%496.74K shares
Driehaus Capital Management LLC	1.41%476.03K shares
DIMENSIONAL FUND ADVISORS LP	1.39%467.49K shares
T. Rowe Price Investment Management, Inc.	1.31%439.9K shares
VANGUARD PORTFOLIO MANAGEMENT LLC	1.05%352.61K shares
Brading Lee Dickson	≈0.91%306.93K shares
BANK OF AMERICA CORP /DE/	0.81%271.18K shares
PRINCIPAL FINANCIAL GROUP INC	0.77%260.47K shares
Sabzivand Amin	≈0.77%259.78K shares
GOLDMAN SACHS GROUP INC	0.66%221.63K shares
ARDSLEY ADVISORY PARTNERS LP	0.64%215K shares

Percentages use 33.67M shares of this listed class outstanding on Jun 30, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 4 ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys3$152.2K disclosed value

Sells (SEC code S)256$156.00M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 26, 2026Form 4 · 10b5-1	Brading Lee DicksonChief Financial Officer	SellCommon Stock, par value $0.00001 per share	5.0K	$170.07	$850.4K	306.9K
Jun 26, 2026Form 4 · 10b5-1	Brading Lee DicksonChief Financial Officer	SellCommon Stock, par value $0.00001 per share	574	$165.00	$94.7K	311.9K
Jun 25, 2026Form 4 · 10b5-1	Brading Lee DicksonChief Financial Officer	SellCommon Stock, par value $0.00001 per share	4.4K	$165.19	$731.1K	312.5K
Jun 18, 2026Form 4 · 10b5-1	Brading Lee DicksonChief Financial Officer	SellCommon Stock, par value $0.00001 per share	1.9K	$161.00	$313.6K	316.9K
Jun 18, 2026Form 4 · 10b5-1	Brading Lee DicksonChief Financial Officer	SellCommon Stock, par value $0.00001 per share	2.0K	$160.31	$316.1K	318.9K