We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Sezzle's Q1 Revenues Skyrocket 123%: What's Behind This Outcome?
Read MoreHide Full Article
Key Takeaways
SEZL reported Q1 revenues of $104.9M, up 123.3% year over year, marking a new quarterly high.
Increased GMV, new offerings like Pay-in-5s, and higher user engagement drove SEZL's top-line growth.
Partnership with WebBank enhanced SEZL's funding and operations, boosting transaction volume.
Sezzle (SEZL - Free Report) reported an astounding 123.3% year-over-year upsurge in the top line in the first quarter of 2025 to $104.9 million, marking a new quarterly high.
A surge in transaction volume, evidenced by a 64.1% year-over-year jump in the gross merchandise volume (GMV), led to the top-line growth. The transaction volume growth was dictated by higher engagement from its user base. Recently launched products, including price comparison and the Pay-in-5 option, have improved customer engagement.
One of the most prominent top-line drivers was the rise in annual consumer purchase frequency. It increased to 6.1 times in the first quarter of 2025 from the year-ago quarter’s 4.5 times. This hints at the existing users utilizing SEZL’s platform more often for purchases, leading to higher transactions that translate into greater revenues.
Merchant network expansion benefited the top line as well. Notable partners include Scheels, a sporting goods company, and WHOP, a platform to sell digital products and services. As the prominent Buy Now, Pay Later platform, SEZL expands its merchant network and experiences an influx of customers, which contributes to GMV growth.
Furthermore, the partnership with WebBank plays has played a vital role. Sezzle is reaping benefits since the partnership was forged in August 2024. SEZL has been provided with a funding mechanism and its operational capabilities have improved, enabling it to cater to a large customer base and process a greater volume of transactions. The main goal of this partnership is to originate and finance products on the Sezzle platform, translating directly to increased revenues for the company.
How Do AFRM & PYPL Play Against SEZL?
SEZL’s revenue growth outpaced that of both Affirm (AFRM - Free Report) and PayPal (PYPL - Free Report) on a percentage basis in the March-end quarter. While Affirm displayed a substantial top-line improvement, PayPal's revenue growth was marginal. Affirm’s 36% year-over-year rise in revenues was facilitated by a surge in transaction volume, evidenced by a GMV growth of 36%. PayPal showed a 1% year-over-year rally in its top line, focussing more on margin expansion and bottom-line enhancement.
SEZL’s Price Performance, Valuation & Estimates
The stock has surged a whopping 661.6% in the past year, significantly outperforming the industry’s 28.2% rally and the 12.8% rise of the Zacks S&P 500 composite.
1-Year Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, SEZL trades at a forward price-to-earnings ratio of 31.23, above the industry’s 23.39. It carries a Value Score of F.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Sezzle’s earnings for 2025 has risen 46.6% over the past 30 days.
Image: Bigstock
Sezzle's Q1 Revenues Skyrocket 123%: What's Behind This Outcome?
Key Takeaways
Sezzle (SEZL - Free Report) reported an astounding 123.3% year-over-year upsurge in the top line in the first quarter of 2025 to $104.9 million, marking a new quarterly high.
A surge in transaction volume, evidenced by a 64.1% year-over-year jump in the gross merchandise volume (GMV), led to the top-line growth. The transaction volume growth was dictated by higher engagement from its user base. Recently launched products, including price comparison and the Pay-in-5 option, have improved customer engagement.
One of the most prominent top-line drivers was the rise in annual consumer purchase frequency. It increased to 6.1 times in the first quarter of 2025 from the year-ago quarter’s 4.5 times. This hints at the existing users utilizing SEZL’s platform more often for purchases, leading to higher transactions that translate into greater revenues.
Merchant network expansion benefited the top line as well. Notable partners include Scheels, a sporting goods company, and WHOP, a platform to sell digital products and services. As the prominent Buy Now, Pay Later platform, SEZL expands its merchant network and experiences an influx of customers, which contributes to GMV growth.
Furthermore, the partnership with WebBank plays has played a vital role. Sezzle is reaping benefits since the partnership was forged in August 2024. SEZL has been provided with a funding mechanism and its operational capabilities have improved, enabling it to cater to a large customer base and process a greater volume of transactions. The main goal of this partnership is to originate and finance products on the Sezzle platform, translating directly to increased revenues for the company.
How Do AFRM & PYPL Play Against SEZL?
SEZL’s revenue growth outpaced that of both Affirm (AFRM - Free Report) and PayPal (PYPL - Free Report) on a percentage basis in the March-end quarter. While Affirm displayed a substantial top-line improvement, PayPal's revenue growth was marginal. Affirm’s 36% year-over-year rise in revenues was facilitated by a surge in transaction volume, evidenced by a GMV growth of 36%. PayPal showed a 1% year-over-year rally in its top line, focussing more on margin expansion and bottom-line enhancement.
SEZL’s Price Performance, Valuation & Estimates
The stock has surged a whopping 661.6% in the past year, significantly outperforming the industry’s 28.2% rally and the 12.8% rise of the Zacks S&P 500 composite.
1-Year Price Performance
From a valuation standpoint, SEZL trades at a forward price-to-earnings ratio of 31.23, above the industry’s 23.39. It carries a Value Score of F.
The Zacks Consensus Estimate for Sezzle’s earnings for 2025 has risen 46.6% over the past 30 days.
SEZL currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.