Sezzle Inc.

What they do

Sezzle operates a digital payment platform that lets consumers split purchases into installment plans, including its On-Demand product, and sells subscription offerings called Sezzle Premium and Sezzle Anywhere. It monetizes through merchant and consumer fees, subscription revenue, and interest on notes receivable, and funds growth partly through a revolving credit facility. The company is expanding into a broader consumer finance platform with products such as SezzleCash and Sezzle Send.

Revenue drivers

• On-Demand installment payments — Core BNPL product where consumers pay in installments; tied to Gross Merchandise Volume, which reached $1.3 billion in 2Q26, up 37.9% YoY.
• Subscriptions (Sezzle Premium and Sezzle Anywhere) — Recurring subscription products; Active Subscribers reached 854,000 in 2Q26, up 76.4% YoY, the largest subscriber gain in company history.
• Transaction-related revenue — Fees tied to merchant and consumer transactions; Total Revenue of $149.7 million in 2Q26 represented 11.7% of GMV, up from 10.6% in 2Q25.
• Interest and other consumer finance revenue — Interest on notes receivable and related income; Net Interest Expense declined 12 basis points YoY after the May 2026 close of a $300 million credit facility.

Recent performance

For 2Q26, Sezzle reported Total Revenue of $149.7 million, up 51.7% YoY, a new quarterly high, and GMV of $1.3 billion, up 37.9% YoY. Net Income was $40.8 million, up 47.7% YoY, with diluted EPS of $1.17 versus $0.78 a year earlier. Operating Income rose 52.3% YoY to $55.0 million, and Total Revenue Less Transaction Related Costs improved 57.7% YoY to $95.1 million. Provision for Credit Losses was 2.4% of GMV, which management described as consistent with its seasonal pattern.

Strategy

Management is investing in marketing and subscriber benefits, which drove record subscriber acquisition and average purchase frequency of 7.2x in 2Q26. The company launched SezzleCash and planned Sezzle Send for August 2026 as steps toward an all-in-one financial platform. In May 2026 it closed a $300 million credit facility with Mesirow, which management said lowers cost of capital and supports future growth. Sezzle also noted costs related to an antitrust suit and a bank charter application, indicating broader strategic ambitions.

Risks

• Credit losses — Provision for Credit Losses was 2.4% of GMV in 2Q26 and management targets 2.5%–3.0% for FY2026, so higher delinquencies or charge-offs could pressure earnings.
• Interest rate exposure — Borrowings under the revolving line of credit bear interest at a floating rate based on SOFR; a 100 basis point adverse change would have added $0.6 million of interest expense in the first half of 2026.
• Consumer spending sensitivity — Higher interest rates could reduce consumers' ability to repay installment plans, potentially increasing delinquencies and credit losses on notes receivable.
• Regulatory and legal matters — Sezzle disclosed costs related to an antitrust suit and a bank charter application, which could result in expenses or approvals that affect operations.

Outlook

Management raised FY2026 guidance for a third time, now expecting Total Revenue Growth at the high end of the prior range at 35%, Adjusted Net Income of $185.0 million (up from $180.0 million), and Adjusted Net Income per Diluted Share of $5.25 (up from $5.10). The company cited the new $300 million credit facility, SezzleCash going live, and Sezzle Send launching in August as supporting momentum. Management framed these products as steps toward an all-in-one financial platform for consumers.