Sezzle (NASDAQ:SEZL) Shares Gap Up on Earnings Beat

Shares of Sezzle Inc. (NASDAQ:SEZL) gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $62.62, but opened at $78.30. Sezzle shares last traded at $80.5780, with a volume of 1,153,485 shares trading hands.

The company reported $1.21 EPS for the quarter, beating the consensus estimate of $0.96 by $0.25. The company had revenue of $129.87 million during the quarter, compared to analysts’ expectations of $128.29 million. Sezzle had a net margin of 29.57% and a return on equity of 93.89%. The business’s quarterly revenue was up 32.3% compared to the same quarter last year. Sezzle has set its FY 2026 guidance at 4.350-4.700 EPS.

Key Headlines Impacting Sezzle

Here are the key news stories impacting Sezzle this week:

• Positive Sentiment: Q4 results beat and company upgraded FY‑2026 guidance — EPS $1.21 vs. $0.96 est.; revenue ~$129.9M; management raised adjusted net income guidance and provided higher revenue/earnings ranges for FY‑2026, which materially improves forward earnings visibility for investors. Sezzle Reports Fourth Quarter and Fiscal Year 2025 Results
• Positive Sentiment: GMV acceleration and “super app” progress — GMV reached $1.2B in 4Q25 (+35% YoY). Management said it is accelerating super‑app plans after increasing engagement in 2025, which supports revenue diversification and longer‑term monetization upside. Sezzle GMV Surges as Super App Plans Advance
• Positive Sentiment: Investor commentary reinforces bullish thesis — a Seeking Alpha shareholder write‑up cites recent results (and related partner performance) to support continued conviction in Sezzle’s growth story and long‑term potential. Blockbuster Q4 Earnings Confirm My Conviction As A Shareholder In Sezzle
• Neutral Sentiment: Coverage reiterations of the beat — analyst and market media (Zacks) reported the Q4 beat and the stronger margins, which helps validate results but largely restates company disclosures. Sezzle Inc. (SEZL) Q4 Earnings and Revenues Top Estimates
• Negative Sentiment: B. Riley cuts price target to $76 (from $111) and warns of tougher comps after Sezzle’s strong two‑year run — the firm kept a Buy rating but highlighted potential near‑term growth headwinds, a factor that can cap upside and increase volatility. B. Riley Flags Tougher Comparisons For Sezzle Inc. (SEZL) After Strong Two-Year Run

Wall Street Analysts Forecast Growth

SEZL has been the topic of several recent research reports. TD Cowen cut their price target on Sezzle from $83.00 to $82.00 and set a “hold” rating on the stock in a report on Thursday, January 8th. UBS Group set a $76.00 price objective on Sezzle in a research report on Tuesday, February 17th. Needham & Company LLC restated a “buy” rating and set a $94.00 target price (up from $85.00) on shares of Sezzle in a research note on Thursday. Wall Street Zen cut shares of Sezzle from a “buy” rating to a “hold” rating in a report on Saturday, December 6th. Finally, Weiss Ratings reiterated a “hold (c+)” rating on shares of Sezzle in a research note on Monday, December 29th. Three analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $113.00.

Hedge Funds Weigh In On Sezzle

Hedge funds have recently added to or reduced their stakes in the stock. Divisadero Street Capital Management LP boosted its holdings in shares of Sezzle by 64.7% in the 3rd quarter. Divisadero Street Capital Management LP now owns 1,494,617 shares of the company’s stock valued at $118,867,000 after buying an additional 587,129 shares in the last quarter. Vanguard Group Inc. raised its stake in Sezzle by 16.9% during the 4th quarter. Vanguard Group Inc. now owns 1,188,883 shares of the company’s stock worth $75,464,000 after acquiring an additional 172,115 shares in the last quarter. Accredited Investors Inc. purchased a new stake in Sezzle in the fourth quarter valued at $57,955,000. State Street Corp boosted its stake in Sezzle by 59.1% in the fourth quarter. State Street Corp now owns 600,656 shares of the company’s stock valued at $38,127,000 after acquiring an additional 223,052 shares in the last quarter. Finally, Geode Capital Management LLC boosted its stake in Sezzle by 2.2% in the fourth quarter. Geode Capital Management LLC now owns 489,382 shares of the company’s stock valued at $31,068,000 after acquiring an additional 10,625 shares in the last quarter. 2.02% of the stock is currently owned by hedge funds and other institutional investors.

Sezzle Stock Performance

The firm has a fifty day simple moving average of $67.96 and a 200-day simple moving average of $73.37. The company has a quick ratio of 3.52, a current ratio of 3.52 and a debt-to-equity ratio of 0.76. The company has a market cap of $2.89 billion, a PE ratio of 22.65 and a beta of 8.70.

About Sezzle

Sezzle Inc is a financial technology company specializing in buy now, pay later (BNPL) services that enable consumers to split purchases into interest-free installment payments. By integrating its platform with e-commerce merchants, Sezzle provides shoppers with flexible payment options at checkout while merchants benefit from increased conversion rates and average order values. The company’s technology is designed to offer a seamless user experience, with instant approval decisions and no hidden fees, positions it as a consumer-friendly alternative to traditional credit products.

Founded in 2016 and headquartered in Minneapolis, Minnesota, Sezzle completed its initial public offering on the Nasdaq under the ticker SEZL.