Sezzle Stock Gains As Strong Transaction Growth Fuels Earnings Outlook Upgrade

Sezzle Inc. (NASDAQ:SEZL) shares were trading higher in Thursday’s premarket session after the company reported better-than-expected third-quarter results and raised its 2026 guidance for the fourth time.

CEO Charlie Youakim highlighted record transaction frequency and subscriber growth approaching one million, alongside early traction for SezzleCash.

Earnings Snapshot

Adjusted EPS came in at $1.37, beating the $1.29 estimate. Revenue increased 42.6% year over year to $166.5 million, exceeding the 54.9 million consensus.

Total transaction volume (TTV) rose 34.9% year over year to $1.4 billion, while transaction frequency reached a company record of 7.8x, compared with 6.5x a year earlier.

Active subscribers grew 68.1% year over year to 955,000, supported by SezzleCash and Sezzle Send.

Operating income surged 80.7% to $64.3 million, with operating margin expanding 8.2 percentage points to 38.6%. Adjusted EBITDA increased 77.1% to $70.2 million, with its margin reaching 42.1%.

Revenue less transaction-related costs reached a record $107.7 million, up 70.3%, while non-transaction-related operating expenses increased 46.2% to $46.2 million.

As of Sept. 30, Sezzle held $107.9 million in cash, cash equivalents and restricted cash.

The company also partnered with WebBank to originate and hold eligible SezzleCash and Sezzle Send loans off its balance sheet while continuing to service them.

Product and Business Updates

SezzleCash completed its first full quarter after launching in June. More than 15% of eligible new Sezzle Anywhere subscribers first transacted through SezzleCash, and over 60% of them later used Sezzle checkout.

Sezzle Send, which launched in beta in Q3, became available to all users in October, adding peer-to-peer payment capabilities.

September updates to Sezzle Up expanded credit-reporting eligibility and simplified enrollment, nearly doubling average weekly sign-ups over the following 30 days.

Sezzle also soft-launched Sezzle Anywhere in Canada, introducing a BNPL virtual card for online and in-store purchases wherever Visa is accepted.

In October, Sezzle applied to the Office of the Comptroller of the Currency (OCC) to establish Sezzle Bank, N.A., and separately sought Federal Deposit Insurance Corporation (FDIC) deposit insurance.

Outlook

For 2026, Sezzle raised its adjusted EPS guidance to $5.45-$5.50 from $5.25, above the $5.26 analyst estimate. Revenue guidance increased to $641.6 million from $607.9 million, surpassing the $608.9 million consensus estimate.

Sezzle also issued 2027 adjusted EPS guidance of $7.20, ahead of the analyst estimate of $6.65.

SEZL Stock Price Activity: Sezzle shares are trading higher by 27.16% at $173.81 during premarket trading on Thursday, according to Benzinga Pro data.

Photo: T. Schneider / Shutterstock