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Sezzle stock surges after strong Q4 earnings beat and raised FY26 outlook.
SEZL sees 79% EBITDA growth and record 918K subscribers.
Rising estimates and support near $67 keep SEZL setup constructive.
Sezzle (SEZL - Free Report) , a Zack Rank #1 (Strong Buy), is a Minneapolis-based buy-now-pay-later (BNPL) fintech operating primarily in the U.S. and Canada. The company extends point-of-sale credit to consumers through its flagship Pay-in-Four product, which splits a purchase into four equal installments over six weeks.
About the Company
Sezzle has built out a payments ecosystem that includes Pay-in-Two, Pay-in-Full, and longer-term installment options through third-party lenders, as well as a virtual card product that lets users shop at any merchant. The company also monetizes through subscription tiers like Sezzle Anywhere and Sezzle Premium, which unlock access to a wider merchant network.
In short, Sezzle is competing in the crowded BNPL space by layering flexible credit options on top of a virtual card infrastructure, giving it reach beyond just its direct merchant partnerships.
SEZL is valued at $2.5 billion and has a Forward PE of 16. The stock has Zacks Style Scores of “A” in Growth and “C” in both Value and Momentum.
Q4 Earnings Beat
Sezzle delivered a strong fourth quarter, beating EPS expectation by 26%, and posting their seventh straight earnings beat. The company reported $1.21 in EPS and revenue of $130 million, ahead of the $128 million consensus.
Adjusted EBITDA jumped 79% year over year to $58.3 million, showing meaningful operating leverage as the platform scales. The company also raised its FY26 outlook, guiding to $4.70 in EPS versus $4.33 expected and projecting revenue growth of 25 to 30% year over year.
User growth and engagement metrics reinforced the beat. Monthly On Demand and Subscribers reached a record 918,000, while app sessions surged 51% year over year by December.
Management emphasized a focus on higher lifetime value subscribers and proprietary shopping features, positioning the company to sustain earnings quality into 2026, with guidance calling for $170 million in adjusted net income, up 31% year over year on a per share basis.
Over the last three months, we have seen analysts move earnings estimates back and forth. But since the earnings report, numbers have shot higher.
For the current quarter, estimates have gone from $1.16 to $1.24 over the last 7 days. This is a 7% jump.
For next quarter, we had a small lift of 3%, with estimates going to $0.96 from $0.93.
For the current year, estimates have gone from $4.33 to $4.69, a jump of 8%.
The longer-term numbers are shooting higher as well, with estimates for next year going from $5.46 to $5.8, an increase of 6%.
One notable upgrade after EPS was B. Riley Securities, which reiterated their “Buy” and lifted their price target from $76 to $99.
The Technical Take
The stock was on fire in 2025, moving from $40 to $186 in just three months. But the froth came out after an August quarter that took the stock down 40% in just a couple days.
Since then, the stock has slowly moved lower, bottoming out at $50 before rallying to $86 after the latest earnings report. SEZL has pulled back since, so let’s look at some moving averages:
21-day: $67
50-day: $68.50
200-day: $92
Investors can look to that $67-69 area as support and the $90-92 level as resistance.
Moreover, there is a 61.8% Fibonacci retracement level that held on the latest pullback. If this $67 area can hold, the stock has a lot of upside. A move back under $60 would signal failure of the technical setup and a larger fundamental problem that isn’t reflected in the latest quarter.
In Summary
Sezzle is delivering consistent earnings beats, expanding margins, raising guidance, and seeing upward estimate revisions across multiple time frames. At 16 times forward earnings, the stock is not priced like a hyper growth fintech, even as revenue is projected to grow 25 to 30% and adjusted net income climbs more than 30%.
That combination of growth, operating leverage, and rising estimates helps explain the Zacks Rank #1.
Technically, the stock is still repairing damage from last year’s sharp pullback but the recent move lower after earnings provides investors a nice buying opportunity.
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Bull of the Day: Sezzle (SEZL)
Key Takeaways
Sezzle (SEZL - Free Report) , a Zack Rank #1 (Strong Buy), is a Minneapolis-based buy-now-pay-later (BNPL) fintech operating primarily in the U.S. and Canada. The company extends point-of-sale credit to consumers through its flagship Pay-in-Four product, which splits a purchase into four equal installments over six weeks.
About the Company
Sezzle has built out a payments ecosystem that includes Pay-in-Two, Pay-in-Full, and longer-term installment options through third-party lenders, as well as a virtual card product that lets users shop at any merchant. The company also monetizes through subscription tiers like Sezzle Anywhere and Sezzle Premium, which unlock access to a wider merchant network.
In short, Sezzle is competing in the crowded BNPL space by layering flexible credit options on top of a virtual card infrastructure, giving it reach beyond just its direct merchant partnerships.
SEZL is valued at $2.5 billion and has a Forward PE of 16. The stock has Zacks Style Scores of “A” in Growth and “C” in both Value and Momentum.
Q4 Earnings Beat
Sezzle delivered a strong fourth quarter, beating EPS expectation by 26%, and posting their seventh straight earnings beat. The company reported $1.21 in EPS and revenue of $130 million, ahead of the $128 million consensus.
Adjusted EBITDA jumped 79% year over year to $58.3 million, showing meaningful operating leverage as the platform scales. The company also raised its FY26 outlook, guiding to $4.70 in EPS versus $4.33 expected and projecting revenue growth of 25 to 30% year over year.
User growth and engagement metrics reinforced the beat. Monthly On Demand and Subscribers reached a record 918,000, while app sessions surged 51% year over year by December.
Management emphasized a focus on higher lifetime value subscribers and proprietary shopping features, positioning the company to sustain earnings quality into 2026, with guidance calling for $170 million in adjusted net income, up 31% year over year on a per share basis.
Sezzle Inc. Price and EPS Surprise
Sezzle Inc. price-eps-surprise | Sezzle Inc. Quote
Estimates Head Higher
Over the last three months, we have seen analysts move earnings estimates back and forth. But since the earnings report, numbers have shot higher.
For the current quarter, estimates have gone from $1.16 to $1.24 over the last 7 days. This is a 7% jump.
For next quarter, we had a small lift of 3%, with estimates going to $0.96 from $0.93.
For the current year, estimates have gone from $4.33 to $4.69, a jump of 8%.
The longer-term numbers are shooting higher as well, with estimates for next year going from $5.46 to $5.8, an increase of 6%.
One notable upgrade after EPS was B. Riley Securities, which reiterated their “Buy” and lifted their price target from $76 to $99.
The Technical Take
The stock was on fire in 2025, moving from $40 to $186 in just three months. But the froth came out after an August quarter that took the stock down 40% in just a couple days.
Since then, the stock has slowly moved lower, bottoming out at $50 before rallying to $86 after the latest earnings report. SEZL has pulled back since, so let’s look at some moving averages:
21-day: $67
50-day: $68.50
200-day: $92
Investors can look to that $67-69 area as support and the $90-92 level as resistance.
Moreover, there is a 61.8% Fibonacci retracement level that held on the latest pullback. If this $67 area can hold, the stock has a lot of upside. A move back under $60 would signal failure of the technical setup and a larger fundamental problem that isn’t reflected in the latest quarter.
In Summary
Sezzle is delivering consistent earnings beats, expanding margins, raising guidance, and seeing upward estimate revisions across multiple time frames. At 16 times forward earnings, the stock is not priced like a hyper growth fintech, even as revenue is projected to grow 25 to 30% and adjusted net income climbs more than 30%.
That combination of growth, operating leverage, and rising estimates helps explain the Zacks Rank #1.
Technically, the stock is still repairing damage from last year’s sharp pullback but the recent move lower after earnings provides investors a nice buying opportunity.