Sezzle Stock Earnings Reports

Sezzle reported a very strong Q1 2026 with 37.3% year-over-year GMV growth, 29.2% revenue growth, exceptional margins (gross margin ~74% of revenue), GAAP net income of $51.3M (37.9% margin) and adjusted EBITDA of $71.1M (52.5% margin). Management raised full-year guidance: revenue growth now expected to be 30%–35%, adjusted net income to $180M and adjusted EPS to $5.10. Key drivers include improving credit performance, higher consumer engagement (average quarterly purchase frequency rose to 7.1x), subscriber growth (subscribers up 44k to 714k), and continued marketing investments with payback periods under six months. Product expansion is underway—Pay-in-5, virtual card in Canada, enhanced long-term lending, Sezzle Mobile on AT&T, and roadmap items such as deposit accounts and checking—positioning Sezzle to become an all-in-one services platform for value-focused consumers. Management is embedding AI across support, product and operations to increase efficiency and scale. Unit economics remain a core focus: transaction-related costs have benefited from ACH adoption, improving loss rates and low net interest expense, and the company targets revenue less transaction-related cost margin of 55%–65% and a provision for credit losses of roughly 2.5%–3% of GMV. Liquidity is strong with $147.4M cash and $69M availability on the line; Sezzle repurchased $24.8M of stock in the quarter. Management is pursuing a bank charter (application targeted mid-2026) to improve regulatory defensibility and long-term economics.