Sezzle Inc. (SEZL) AI Stock Analysis
SEZL AI stock analysis summary
AI ResearchSezzle Inc. (SEZL) provides flexible buy-now-pay-later payment solutions across the United States and Canada. In FY2025, revenue increased 66.1% to $450.3M while net income expanded to $133.1M. Over the trailing twelve months, the company generated $531.9M in revenue with an operating margin of 57.2%.
- Market cap
- $4.31B
- Revenue (TTM)
- $531.9M
- P/E
- 28.0x fwd 17.1x
- 1Y return
- 70.4% S&P 500 16.8%
- Avg. target
- $167.17 31.0% vs last close
Bull case
- Revenue expanded 66.1% to $450.3M in FY2025 and rose 51.7% year-over-year in the quarter ended June 30, 2026.
- The business converted top-line growth into $208.4M of free cash flow in FY2025 while posting an 88.8% trailing twelve month return on equity.
- Sezzle's PEG ratio stands at 0.06, supported by expected FY2026 EPS growth of 46.5%.
Bear case
- Valuation multiples trade at a premium to the median of its US-listed Financial Services peers, including a trailing P/E of 28.0x versus 12.1x.
- Short interest represents 22.1% of the float, accompanied by a high stock beta of 6.73.
- Shares trade down from their 52-week high of $195.71 to $127.65, despite being 20.8% above their 200-day moving average.
What Sezzle does
Sezzle Inc. functions as a technology-enabled payments company primarily serving the United States and Canada. Established in 2016 and based in Minneapolis, Minnesota, the company provides flexible payment solutions for online and brick-and-mortar retail merchants. Sezzle's platform allows consumers to split purchases into four equal, interest-free installments over a six-week period. Through strategic partnerships and digital integrations, the company aims to offer accessible financing options, foster financial inclusivity, and support transactions between shoppers and merchants.
Growth and profitability
Sezzle grew revenue from $114.8M in FY2021 to $450.3M in FY2025, delivering a 5-year revenue CAGR of 50.3% from FY2020 to FY2025. Gross margin expanded from 61.5% in FY2021 to 85.4% in FY2025. Operating margin shifted from -59.8% in FY2021 to 39.3% in FY2025, with net income rising from -$75.2M to $133.1M. For the trailing twelve months ended June 30, 2026, revenue totaled $531.9M with a profit margin of 30.3% and an operating margin of 57.2%. In the quarter ended June 30, 2026, quarterly revenue grew 51.7% year-over-year, while quarterly earnings grew 50.0%.
Balance sheet and cash flow
As of June 30, 2026, Sezzle held $84.3M in cash and short-term investments and $121.8M in total debt, resulting in net debt of $37.5M. The current ratio stood at 4.02 and the debt-to-equity ratio was 0.52 against shareholders' equity of $233.0M. Operating cash flow reached $209.9M in FY2025, yielding free cash flow of $208.4M after capital expenditures of $1.5M. During FY2025, the company deployed $64.7M toward share buybacks.
Valuation and performance
At $127.65, Sezzle trades at a trailing P/E of 28.0x and a forward P/E of 17.1x, above the median of its US-listed Financial Services peers of 12.1x and 10.8x. Its price-to-sales of 8.1x and EV/EBITDA of 18.0x also compare to peer medians of 3.2x and 11.7x. The company's PEG ratio is 0.06. Over the past year, the stock returned 70.4%, outperforming the S&P 500 (SPY) return of 16.8%.
What analysts expect
Wall Street coverage includes 3 Strong Buy, 1 Buy, and 3 Hold ratings, with no Sell or Strong Sell ratings. The mean price target is $167.17, representing 31.0% above the last close of $127.65. For the fiscal year ending December 31, 2026, analysts estimate EPS of $5.26 and revenue of $608.9M. Sezzle has beaten EPS estimates in each of the last 4 quarters, and its next earnings date is November 4, 2026.
Key risks and what to watch
- High market volatility is signaled by a beta of 6.73 and elevated short interest of 22.1% of float.
- Total debt of $121.8M exceeds cash and short-term investments of $84.3M as of June 30, 2026, leaving net debt at $37.5M.
- Growth normalization from the 50.3% 5-year revenue CAGR could impact market expectations as FY2027 revenue growth is projected at 24.3%.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this SEZL AI stock analysis
This page is an AI-written research summary of Sezzle Inc. (SEZL). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: SEZL income statement, SEZL balance sheet, SEZL key metrics, SEZL analyst forecast, SEZL chart. See the SEZL stock overview for the latest quote and news.
SEZL AI stock analysis FAQ
What is Sezzle's core business model?
Sezzle provides flexible payment solutions that allow consumers to split online and in-store retail purchases into four interest-free installments over a six-week duration.
What is Sezzle's current valuation compared to its sector?
Sezzle trades at a trailing P/E of 28.0x and price-to-sales of 8.1x, compared to medians of 12.1x and 3.2x for its US-listed Financial Services peers.
Does Sezzle pay a dividend?
No, Sezzle does not pay a dividend. The company used cash in FY2025 for $1.5M in capital expenditures and $64.7M in share buybacks.
When is Sezzle's next earnings report?
Sezzle's next earnings date is scheduled for November 4, 2026, following 4 consecutive quarters of EPS beats.