Sezzle (NASDAQ:SEZL) Shares Gap Up After Better-Than-Expected Earnings

Key Points

• Sezzle reported a stronger-than-expected Q1 with EPS $1.43 vs. $1.24 consensus and revenue of $135.5M, up 29.2% YoY, and management raised FY2026 guidance to $5.10 EPS with revenue growth targeted at 30–35%.
• The stock gapped up on the news (closed $86.02, opened $100.66, last ~$103.47) amid heavy volume, while analysts reacted positively — Needham raised its price target from $94 to $122 and the consensus target sits near $113.

Shares of Sezzle Inc. (NASDAQ:SEZL - Get Free Report) gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $86.02, but opened at $100.66. Sezzle shares last traded at $103.4740, with a volume of 963,802 shares changing hands.

The company reported $1.43 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.24 by $0.19. Sezzle had a net margin of 29.57% and a return on equity of 88.61%. The firm had revenue of $135.54 million for the quarter, compared to analysts' expectations of $127.74 million. During the same quarter in the previous year, the company earned $0.98 earnings per share. The company's revenue for the quarter was up 29.2% compared to the same quarter last year. Sezzle has set its FY 2026 guidance at 5.100-5.100 EPS.

Sezzle News Summary

Here are the key news stories impacting Sezzle this week:

• Positive Sentiment: Sezzle reported robust Q1 results: revenue +29.2% YoY to $135.5M, GMV +37.3% to $1.1B, adjusted EBITDA margin 52.5%, and adjusted net income per diluted share of $1.43 — all signaling strong unit economics and margin leverage. GlobeNewswire: Q1 Results
• Positive Sentiment: Management materially raised FY2026 guidance: EPS set at $5.10 (up from prior $4.70) and revenue growth target increased to 30–35% — this beats consensus and supports higher valuation assumptions. Guidance & Press Release
• Positive Sentiment: Needham raised its price target from $94 to $122 and reiterated a Buy rating — the new target implies meaningful upside from recent levels and can attract momentum buying. Benzinga: Needham PT Raise
• Positive Sentiment: Independent outlets highlight the quarter beat: Sezzle posted EPS of $1.43 vs. consensus $1.24, confirming the company’s outperformance on both top and bottom lines. This reinforces investor confidence in recurring metrics (purchase frequency, subscriptions). Zacks: Q1 Beat
• Positive Sentiment: Sezzle expanded point‑of‑sale options via a new Pagaya partnership, which can help merchant reach and consumer payment choice — incremental growth/activation potential. TMCNet: Pagaya Partnership
• Neutral Sentiment: The company posted its earnings slide deck / conference materials for Q1; useful for modeling but not a new catalyst on its own. Seeking Alpha: Slide Deck
• Neutral Sentiment: Pre‑earnings analyst previews flagged subscriptions and AI as upside drivers; these set expectations but were superseded by the actual results and guidance. Zacks: Earnings Preview

Analysts Set New Price Targets

Several equities analysts recently issued reports on SEZL shares. TD Cowen reiterated a "hold" rating on shares of Sezzle in a research report on Thursday. Needham & Company LLC boosted their price target on shares of Sezzle from $94.00 to $122.00 and gave the company a "buy" rating in a research report on Thursday. Keefe, Bruyette & Woods started coverage on shares of Sezzle in a research report on Monday, April 6th. They set an "outperform" rating and a $85.00 price target on the stock. UBS Group set a $76.00 price target on shares of Sezzle in a research report on Tuesday, February 17th. Finally, Zacks Research cut shares of Sezzle from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, April 28th. Four equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, Sezzle has a consensus rating of "Moderate Buy" and a consensus target price of $113.00.

Insider Activity at Sezzle

In related news, Director Paul Paradis sold 26,400 shares of the business's stock in a transaction dated Thursday, February 26th. The shares were sold at an average price of $81.69, for a total transaction of $2,156,616.00. Following the sale, the director owned 487,762 shares of the company's stock, valued at $39,845,277.78. The trade was a 5.13% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Charles Youakim sold 7,185 shares of the business's stock in a transaction dated Tuesday, March 3rd. The stock was sold at an average price of $71.38, for a total transaction of $512,865.30. Following the sale, the chief executive officer directly owned 12,332,279 shares in the company, valued at $880,278,075.02. The trade was a 0.06% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 46,837 shares of company stock valued at $3,615,409 over the last three months. Corporate insiders own 49.49% of the company's stock.

Institutional Investors Weigh In On Sezzle

Several hedge funds have recently bought and sold shares of SEZL. Royal Bank of Canada boosted its stake in Sezzle by 429.0% during the first quarter. Royal Bank of Canada now owns 132,361 shares of the company's stock worth $4,618,000 after acquiring an additional 107,340 shares in the last quarter. AQR Capital Management LLC boosted its stake in Sezzle by 3,973.6% during the first quarter. AQR Capital Management LLC now owns 34,626 shares of the company's stock worth $1,208,000 after acquiring an additional 33,776 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in Sezzle by 2,241.4% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 30,906 shares of the company's stock worth $1,078,000 after acquiring an additional 29,586 shares in the last quarter. Millennium Management LLC boosted its stake in Sezzle by 321.7% during the first quarter. Millennium Management LLC now owns 115,525 shares of the company's stock worth $4,031,000 after acquiring an additional 88,127 shares in the last quarter. Finally, Goldman Sachs Group Inc. boosted its stake in Sezzle by 1,068.2% during the first quarter. Goldman Sachs Group Inc. now owns 169,487 shares of the company's stock worth $5,913,000 after acquiring an additional 154,978 shares in the last quarter. Institutional investors own 2.02% of the company's stock.

Sezzle Price Performance

The company has a debt-to-equity ratio of 0.82, a current ratio of 3.92 and a quick ratio of 3.92. The firm's 50 day moving average is $71.55 and its 200 day moving average is $68.02. The firm has a market cap of $3.56 billion, a P/E ratio of 27.25 and a beta of 6.91.

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.

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