Sezzle Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −8.32%.
Did SEZL Beat Earnings? Q4 2025 Results
Sezzle closed out fiscal 2025 with a blowout fourth quarter, posting diluted EPS of $1.21 against a consensus estimate of $0.96, a beat of 26.04%, as revenue climbed 32.2% year-over-year to $129.87 million, edging past the $127.58 million Wall Street had expected. The standout driver was a powerful combination of operating leverage and accelerating consumer engagement, with operating expenses growing just 10.8% against that 32.2% revenue gain, pushing Q4 operating margin to 42.5%, while Gross Merchandise Volume hit a quarterly record of $1.20 billion, up 35.3% year-over-year, fueled by peak holiday demand and rising subscription adoption. Transaction frequency reached 6.6 times per quarter, up from 5.5 times a year ago, reflecting the company's ongoing pivot from a pure buy-now-pay-later provider toward a broader financial ecosystem. B.Riley raised its price target on the stock to $99, citing the strength of the quarter. Looking ahead, management lifted FY2026 adjusted EPS guidance to $4.70 from $4.35, projecting total revenue growth of 25% to 30% and adjusted net income of approximately $170 million.
- Expansion of subscription offerings (Premium and Anywhere) driving MODS to 918,000
- Consumer transaction frequency increased to 6.6x per quarter from 5.5x YoY
- App sessions surged 51% YoY by December
- Favorable repayment performance and conservative holiday underwriting reduced provision for credit losses to 2.0% of GMV
- Operating leverage with expenses growing 10.8% vs revenue growth of 32.2%
- Payment processing enhancements and greater ACH adoption for repayments
“Our tenth year as a company was our most transformative yet, as we achieved new highs in our top and bottom-line results while advancing our shopping ecosystem. By prioritizing higher LTV subscribers and scaling our proprietary shopping features, we have created a platform that delivers daily utility to our consumers. This momentum is clear in our performance: Monthly On-Demand and Subscribers reached a record 918,000 and app sessions surged 51% year-over-year by December. As we enter 2026, we are positioned to sustain this quality of earnings, guiding to Adjusted Net Income of $170 million, representing a 31% year-over-year increase in Adjusted Net Income per Diluted Share.”
Sezzle CEO, on the earnings call
Forward Guidance & Outlook
Sezzle raised FY2026 adjusted net income per diluted share guidance to $4.70 from $4.35, introduced total revenue growth guidance of 25% to 30%, and set FY2026 adjusted net income guidance at $170.0 million, representing a 31% YoY increase in adjusted net income per diluted share. The company plans key product launches in FY2026 including Agentic Commerce (AI-powered shopping assistant), Sezzle Mobile wireless service starting at $29.99/month on the AT&T network, enhanced long-term lending with higher credit limits and flexible monthly payments, and user community and receipt scanning & rewards features.
SEZL YoY Financials
Figures from SEC filings and company reports. Not investment advice.