Sezzle's Rally Justified by Strong Earnings and Raised Guidance

Earnings

โดย Zacks Investment Research·Read original

Summary · why it matters

Sezzle's stock has surged over 37% in the past month, outpacing its industry and peers like PayPal and Shift4 Payments, but the rally is supported by robust fundamentals. First-quarter 2026 results showed gross merchandise volume up 37.3% to roughly $1.1 billion, revenue up 29.2% to $135.5 million, and net income of $51.3 million with a 37.9% profit margin. Management raised its full-year 2026 outlook, now expecting revenue growth of 30-35%, adjusted net income of $180 million, and adjusted EPS of $5.10. User engagement is strengthening, with average quarterly purchase frequency rising to 7.1 times and active consumers reaching about 3.1 million. While valuation at 8.88 times forward sales is above the industry average, the premium appears defensible given the company's high-margin growth and positive estimate revisions.

Sezzle Inc. ▲