Sezzle Inc
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.90%.
Did SEZL Beat Earnings? Q3 2025 Results
Sezzle posted a standout third quarter, with adjusted earnings per diluted share of $0.71 beating the $0.65 consensus by 9.23% and revenue of $116.80 million clearing estimates by 11.55% as the buy-now-pay-later platform continued its rapid expansion. Revenue climbed 67.0% year-over-year, powered primarily by a 58.7% surge in Gross Merchandise Volume, which crossed the $1.00 billion threshold for the quarter, while consumer purchase frequency rose to 6.5 times from 5.4 times a year ago, reflecting stronger platform engagement. GAAP net income grew 72.7% to $26.67 million, and adjusted EBITDA expanded 74.6% to $39.62 million, with management tightening its full-year provision for credit losses guidance to 2.5%-2.75% of GMV, a sign of increased underwriting confidence. Looking ahead, Sezzle raised its FY2025 adjusted net income per diluted share guidance to $3.38 from $3.25 and lifted adjusted EBITDA guidance to $175.00-$180.00 million, while introducing preliminary FY2026 adjusted EPS guidance of $4.35, even as the stock has retreated roughly 25% from recent highs despite its strong underlying earnings trajectory.
- GMV climbed 58.7% YoY to $1.0 billion driven by subscription products and On-Demand usage
- Consumer purchase frequency rose to 6.5x from 5.4x YoY
- Monthly Active Users grew 38% YoY
- Revenue-Generating Users by month rose 120% YoY
- Monthly Sessions climbed 78% YoY
- MODS reached 784,000, adding 36,000 incremental subscribers during the quarter
- Marketing and advertising spend increased to $8.8 million from $2.7 million in Q3 2024
- Operating leverage with non-transaction related expenses declining 2.9 ppt as % of revenue
“Our products continue to resonate with consumers, as we're seeing clear momentum in both engagement and scale. It's exciting to cross $1 billion in quarterly GMV for the first time, which reflects a growing loyal consumer base. We're sharpening our focus on proven results and long-term innovation, and we're looking forward to supporting shoppers with our tools this holiday season.”
Sezzle CEO, on the earnings call
Forward Guidance & Outlook
For FY2025, Sezzle raised guidance: total revenue growth of 60%-65% YoY (unchanged), net income of $125.0 million, net income per diluted share of $3.52, adjusted net income per diluted share raised to $3.38 (from $3.25), and adjusted EBITDA raised to $175.0-$180.0 million (from $170.0-$175.0 million). Effective income tax rate expected at ~25% excluding discrete items. Provision for credit losses guidance tightened to 2.5%-2.75% of GMV (from 2.5%-3.0%). The company introduced preliminary FY2026 adjusted net income per diluted share guidance of $4.35, assuming ~25% effective income tax rate.
SEZL YoY Financials
Figures from SEC filings and company reports. Not investment advice.