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

Key Points

• Sezzle shares surged after strong quarterly results, opening at $172.76 versus the prior close of $136.69, before trading at about $163.37.
• Quarterly EPS was $1.37, beating the $1.28 estimate; revenue reached $166.5 million, up 42.6% year over year and above forecasts.
• Lower credit losses helped support profit growth, and management issued positive 2026–2027 guidance. Needham raised its price target to $220 from $172 and maintained a Buy rating.

Sezzle Inc. (NASDAQ:SEZL - Get Free Report)'s share price gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $136.69, but opened at $172.76. Sezzle shares last traded at $163.3670, with a volume of 497,903 shares.

The company reported $1.37 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.28 by $0.09. Sezzle had a return on equity of 83.48% and a net margin of 30.35%. The business had revenue of $166.50 million during the quarter, compared to the consensus estimate of $155.01 million. During the same period in the previous year, the company posted $0.71 EPS. The firm's quarterly revenue was up 42.6% on a year-over-year basis.

Trending Headlines about Sezzle

Here are the key news stories impacting Sezzle this week:

• Positive Sentiment: Sezzle reported Q3 earnings of $1.37 per share, above the $1.28 consensus and up from $0.71 a year earlier. Revenue rose 42.6% year over year to $166.5 million, also beating estimates. Zacks Q3 earnings report
• Positive Sentiment: Profit growth was supported by lower credit losses as a share of transaction volume, while subscribers continued to shop more frequently—indications of improving profitability and customer engagement. The Motley Fool earnings reaction
• Positive Sentiment: Management delivered positive 2026 and 2027 guidance, adding to investor optimism about continued growth. Sezzle guidance report
• Positive Sentiment: Needham raised its price target to $220 from $172 and reiterated a Buy rating, reinforcing the bullish response to the results. Ticker Report on the price-target increase

Wall Street Analyst Weigh In

Several equities analysts have recently commented on SEZL shares. Keefe, Bruyette & Woods dropped their target price on shares of Sezzle from $190.00 to $155.00 and set a "market perform" rating for the company in a research report on Friday, August 7th. TD Cowen lowered their price target on Sezzle from $165.00 to $160.00 and set a "buy" rating for the company in a report on Tuesday, October 6th. Weiss Ratings reissued a "hold (c+)" rating on shares of Sezzle in a research note on Monday. Needham & Company LLC boosted their target price on shares of Sezzle from $172.00 to $220.00 and gave the stock a "buy" rating in a research note on Thursday. Finally, Wall Street Zen downgraded shares of Sezzle from a "buy" rating to a "hold" rating in a report on Sunday. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat, Sezzle presently has an average rating of "Moderate Buy" and a consensus target price of $153.67.

Insider Transactions at Sezzle

In other news, Director Kyle M. Brehm sold 1,000 shares of the company's stock in a transaction that occurred on Thursday, August 27th. The stock was sold at an average price of $125.92, for a total value of $125,920.00. Following the completion of the transaction, the director owned 23,853 shares of the company's stock, valued at $3,003,569.76. This represents a 4.02% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director Bryan Hunt acquired 250 shares of the company's stock in a transaction that occurred on Friday, September 18th. The stock was acquired at an average price of $115.86 per share, with a total value of $28,965.00. Following the acquisition, the director owned 3,985 shares in the company, valued at $461,702.10. The trade was a 6.69% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Company insiders own 43.90% of the company's stock.

Institutional Investors Weigh In On Sezzle

A number of institutional investors have recently added to or reduced their stakes in the business. Kestra Advisory Services LLC raised its position in shares of Sezzle by 56.8% during the third quarter. Kestra Advisory Services LLC now owns 3,780 shares of the company's stock worth $408,000 after acquiring an additional 1,369 shares during the last quarter. Commonwealth Equity Services LLC boosted its holdings in Sezzle by 1.3% in the third quarter. Commonwealth Equity Services LLC now owns 18,318 shares of the company's stock valued at $1,979,000 after acquiring an additional 229 shares during the last quarter. Kestra Private Wealth Services LLC increased its position in Sezzle by 44.7% during the 3rd quarter. Kestra Private Wealth Services LLC now owns 11,860 shares of the company's stock valued at $1,281,000 after purchasing an additional 3,664 shares during the period. Vise Technologies Inc. increased its position in Sezzle by 53.5% during the 3rd quarter. Vise Technologies Inc. now owns 2,110 shares of the company's stock valued at $228,000 after purchasing an additional 735 shares during the period. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al raised its holdings in Sezzle by 19.5% during the 3rd quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 9,200 shares of the company's stock worth $994,000 after purchasing an additional 1,500 shares during the last quarter. 2.02% of the stock is owned by institutional investors.

Sezzle Trading Up 19.2%

The stock has a market cap of $5.50 billion, a P/E ratio of 35.61 and a beta of 6.59. The company has a debt-to-equity ratio of 0.52, a quick ratio of 4.02 and a current ratio of 4.02. The firm's fifty day simple moving average is $121.28 and its 200-day simple moving average is $109.35.

About Sezzle

Sezzle Inc NASDAQ: SEZL is a financial technology company that provides buy now, pay later solutions. Its platform enables consumers to split eligible purchases into installments, generally at the time of checkout, while giving merchants payment and customer-engagement tools designed to support e-commerce sales.

The company offers installment payment services through its consumer app and merchant integrations, as well as products such as Sezzle Virtual Card and Sezzle Up. Sezzle Up is designed to provide eligible users with credit-building opportunities, while the company's merchant platform supports checkout integration, transaction management and consumer financing.

Sezzle was founded in 2016 and is headquartered in Minneapolis, Minnesota.

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