Companies /Financial Services

Sezzle Inc

NASDAQ: SEZL Credit Services
$124.12
▼ $1.68 (−1.34%) today
Markets closed · 5:34pm ET

Q2 2025 Earnings

Reported Aug 7, 2025, 4:31pm ET · SEC source
$0.69
Beat +18.97%
EPS · est. $0.58
$98.7M
Beat +3.97%
Revenue · est. $94.9M
−5.0%
Trailing market
SEZL vs S&P since report
5 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−20%0+20%Aug 7Aug 8report 4:31pm ETearnings+1.0%−17.6%
−20%0+20%Aug 7Aug 8earnings+1.0%−17.6%
SEZL −17.6%S&P 500 +1.0%
−20%0+20%Aug 7Aug 8report 4:31pm ETearnings+1.1%−17.4%
−20%0+20%Aug 7Aug 8earnings+1.1%−17.4%
SEZL −17.4%NASDAQ +1.1%
−20%0+20%+40%Aug 6Aug 15report 4:31pm ETearnings+1.6%−12.4%
−20%0+20%+40%Aug 6Aug 15earnings+1.6%−12.4%
SEZL −12.4%S&P 500 +1.6%
−20%0+20%+40%Aug 6Aug 15report 4:31pm ETearnings+1.3%−12.4%
−20%0+20%+40%Aug 6Aug 15earnings+1.3%−12.4%
SEZL −12.4%NASDAQ +1.3%
−34.32%
Day of report
−4.59%
Next session
+0.39%
One week
−2.63%
30 days

S&P 500 over the same 30 days: +2.36%.

Did SEZL Beat Earnings? Q2 2025 Results

Sezzle posted a standout second quarter, beating Wall Street on both top and bottom lines as the buy-now-pay-later company continued its rapid expansion. Adjusted earnings came in at $0.69 per diluted share, ahead of the $0.58 consensus by 18.97%, while revenue of $98.70 million topped estimates by 3.97% and surged 76.3% year-over-year, fueled by record gross merchandise volume of $927.00 million, itself up 74.2% from the prior-year period. The primary engine behind the growth was deepening consumer engagement, with users averaging 6.1 purchases per quarter compared to 4.8 a year ago, alongside a sharp ramp in marketing investment that lifted Monthly On-Demand and Subscribers to 748,000. Operating income climbed 116.1% to $36.09 million as total operating expenses grew well below the revenue rate, expanding operating margin by 6.8 percentage points to 36.6%. Some analysts have flagged macro and regulatory risks tied to the company's borrower mix, but management signaled confidence in the trajectory, reiterating full-year 2025 guidance of 60-65% revenue growth and adjusted net income of $120.00 million, or $3.25 per diluted share.

Key Takeaways
  • GMV reached record $927.0 million, up 74.2% YoY
  • Monthly On-Demand & Subscribers (MODS) hit all-time high of 748,000
  • Higher consumer engagement with 6.1 purchases per quarter vs 4.8 in prior year
  • Strong On-Demand growth and ongoing WebBank synergies
  • Improved payment processing efficiency and increased ACH adoption lowered transaction-related costs as % of GMV from 4.5% to 4.1%
  • Significant marketing spend increase to $8.8 million from $1.0 million driving subscriber acquisition
  • Operating margin expanded 6.8 percentage points YoY to 36.6% of Total Revenue

“We're scaling with intention. It's not just about growing fast, but investing the right way. The product features and marketing initiatives we've rolled out are driving stronger engagement and broader adoption. With GMV up 74% year-over-year and Monthly On-Demand and Subscribers (MODS) at an all-time high, we're seeing early proof that our focused investments are paying off.”

Sezzle CEO, on the earnings call

Forward Guidance & Outlook

For FY2025, Sezzle guides for total revenue growth of 60-65%, adjusted net income of $120.0 million ($3.25 per diluted share), and adjusted EBITDA of $170.0-$175.0 million. Total revenue less transaction related costs is expected to be 60-65% of total revenue. The company anticipates a 25% effective tax rate for the second half of FY2025, excluding discrete items. Year-to-date net income has exceeded adjusted net income by $4.1 million as discrete items have lowered the effective tax rate below 25%.

SEZL YoY Financials

Q2 2025 vs Q2 2024 · SEC filings Q2 2024 Q2 2025
$0$30.0M$60.0M$90.0M$56.0M$98.7MRevenue$16.7M$36.1MOperating Income$29.7M$27.6MNet Income
$0$30.0M$60.0M$90.0MRevenueOperating IncomeNet Income

Figures from SEC filings and company reports. Not investment advice.