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 Stock Skyrockets 1000% in a Year: Should You Buy It Now?
Read MoreHide Full Article
Key Takeaways
SEZL stock jumped 1000% in a year, far outpacing industry and broader market benchmarks.
The WebBank partnership streamlined fees, boosted Q1 revenues 123.3%, and enables product innovation.
SEZL posted a 114.4% ROE and a current ratio of 2.62, far exceeding industry averages in 1Q25.
Sezzle Inc.’s (SEZL - Free Report) stock skyrocketed an astonishing 1000% in the past year, a performance that should spark conversations. The company’s shares have significantly outperformed the industry’s 29% growth and the 13.2% rally in the Zacks S&P 500 Composite.
1-Year Price Performance
Image Source: Zacks Investment Research
A lot of questions can arise from this remarkable performance. However, one of the questions that needs to be answered is whether there is still an upside in buying the stock now. Let us delve deeper and find out whether the stock can still generate returns.
WebBank Partnership: Sezzle’s Way Forward
Sezzle witnessed the full benefit of the WebBank partnership in the first quarter of 2025 after its launch in September 2024. Before this partnership, the company was subjected to different transaction processing fees, late payments or other services due to multiple banking partners. This exclusive partnership with WebBank has eliminated the hassle of managing multiple relationships with different banks.
SEZL, in its third quarter of 2024 earnings release, stated that the five-year-long partnership with WebBank is expected to provide multiple benefits that include unified fees, an improved streamlined regulatory framework, and opportunities for product innovations.
A single consistent fee structure can simplify the company’s financial operations and lead to better terms for its customers. In the first quarter of 2025, the top line skyrocketed 123.3% on a year-over-year basis. This impressive number is partly due to higher engagement from the WebBank partnership facilitated by the consistent fee structure.
In terms of a more streamlined regulatory framework, the company can continue to operate as a tech company, with WebBank acting as the actual lender. The fact that the company does not originate loans directly makes it fall outside of the scope of the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Federal Reserve and state regulators. This is evidence of how SEZL has dodged the complexity and costs associated with compliance with banking regulations’ by partnering with WebBank.
In terms of future product innovations, it is a no-brainer since WebBank has a long-standing history of fintech collaboration. This can create opportunities for Sezzle to develop and launch products or improve the existing ones.
What is noteworthy is that during the recently reported quarter, SEZL’s revenue growth surpassed the Buy-Now-Pay-Later market’s (BNPL) major players Affirm (AFRM - Free Report) and PayPal (PYPL - Free Report) on a percentage basis in the March-end quarter. While Affirm registered a substantial rise, PayPal’s growth was marginal. By beating Affirm’s 36% year-over-year revenue growth and PayPal’s 1% rise, Sezzle weighs in as a worthwhile competitor. All in all, we can conclude by saying that the WebBank partnership has provided a massive competitive edge to SEZL.
SEZL’s Outstanding Profitability & Liquidity Position
Return on equity (ROE) is a profitability metric that assesses how effectively a company utilizes shareholders' equity to generate earnings. By the end of the first quarter of 2025, SEZL reported an exceptional ROE of 114.4%, surpassing the industry’s 48.5%. This impressive figure emphasizes the company’s efficiency in allocating capital to high-return opportunities.
Image Source: Zacks Investment Research
Additionally, the company’s return on invested capital of 63.5% significantly exceeds the industry’s 22.2%, which is noteworthy. Together, these metrics highlight the company’s strategic and operational excellence, demonstrating its ability to maximize investment returns.
Image Source: Zacks Investment Research
Sezzle demonstrates an equally impressive performance regarding its liquidity position. The company ended the first quarter of 2025 with a current ratio of 2.62, outperforming the industry’s 1.15. Additionally, this metric improved from the previous quarter’s 2.44 and the same quarter last year’s 2.06. These numbers must have a positive impact on investors’ sentiment. Furthermore, the fact that the current ratio exceeds 1 signals that the company can easily pay off short-term obligations, reassuring investors about SEZL’s robust liquidity stance.
Image Source: Zacks Investment Research
Sezzle’s Optimistic Top & Bottom-Line Prospects
The Zacks Consensus Estimate for SEZL’s 2025 sales is $438.4 million, indicating a 61.7% year-over-year surge, with sales anticipated to rise 20.8% in 2026. The consensus estimate for earnings is set at $3.24 per share for 2025, implying a 76.1% year-over-year surge, with an additional 30% increase anticipated in 2026.
Over the past 60 days, two EPS estimates for both 2025 and 2026 have been revised upward with no downward adjustments. In the same period, the Zacks Consensus Estimate for 2025 earnings soared 46.6% and the 2026 estimate rose 45.2%. These upward revisions highlight analysts' growing confidence in Sezzle's ability to enhance its financial performance, driven by its strong business model and robust growth potential.
SEZL Stock: A Strong Buy for Growth
Sezzle is enjoying a massive upside in its overall performance from the WebBank partnership. With the top line registering exploding growth, the company stands its ground firmly within the BNPL market, contesting its major players. Sezzle’s profitability and liquidity position wave a huge green flag for investors, with the metrics exceeding the industry standards by significant margins.
Considering these factors, we are optimistic about the company’s prospects and, thus, recommend investors add this fundamentally strong stock to their portfolios right now.
Image: Bigstock
Sezzle Stock Skyrockets 1000% in a Year: Should You Buy It Now?
Key Takeaways
Sezzle Inc.’s (SEZL - Free Report) stock skyrocketed an astonishing 1000% in the past year, a performance that should spark conversations. The company’s shares have significantly outperformed the industry’s 29% growth and the 13.2% rally in the Zacks S&P 500 Composite.
1-Year Price Performance
A lot of questions can arise from this remarkable performance. However, one of the questions that needs to be answered is whether there is still an upside in buying the stock now. Let us delve deeper and find out whether the stock can still generate returns.
WebBank Partnership: Sezzle’s Way Forward
Sezzle witnessed the full benefit of the WebBank partnership in the first quarter of 2025 after its launch in September 2024. Before this partnership, the company was subjected to different transaction processing fees, late payments or other services due to multiple banking partners. This exclusive partnership with WebBank has eliminated the hassle of managing multiple relationships with different banks.
SEZL, in its third quarter of 2024 earnings release, stated that the five-year-long partnership with WebBank is expected to provide multiple benefits that include unified fees, an improved streamlined regulatory framework, and opportunities for product innovations.
A single consistent fee structure can simplify the company’s financial operations and lead to better terms for its customers. In the first quarter of 2025, the top line skyrocketed 123.3% on a year-over-year basis. This impressive number is partly due to higher engagement from the WebBank partnership facilitated by the consistent fee structure.
In terms of a more streamlined regulatory framework, the company can continue to operate as a tech company, with WebBank acting as the actual lender. The fact that the company does not originate loans directly makes it fall outside of the scope of the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Federal Reserve and state regulators. This is evidence of how SEZL has dodged the complexity and costs associated with compliance with banking regulations’ by partnering with WebBank.
In terms of future product innovations, it is a no-brainer since WebBank has a long-standing history of fintech collaboration. This can create opportunities for Sezzle to develop and launch products or improve the existing ones.
What is noteworthy is that during the recently reported quarter, SEZL’s revenue growth surpassed the Buy-Now-Pay-Later market’s (BNPL) major players Affirm (AFRM - Free Report) and PayPal (PYPL - Free Report) on a percentage basis in the March-end quarter. While Affirm registered a substantial rise, PayPal’s growth was marginal. By beating Affirm’s 36% year-over-year revenue growth and PayPal’s 1% rise, Sezzle weighs in as a worthwhile competitor. All in all, we can conclude by saying that the WebBank partnership has provided a massive competitive edge to SEZL.
SEZL’s Outstanding Profitability & Liquidity Position
Return on equity (ROE) is a profitability metric that assesses how effectively a company utilizes shareholders' equity to generate earnings. By the end of the first quarter of 2025, SEZL reported an exceptional ROE of 114.4%, surpassing the industry’s 48.5%. This impressive figure emphasizes the company’s efficiency in allocating capital to high-return opportunities.
Additionally, the company’s return on invested capital of 63.5% significantly exceeds the industry’s 22.2%, which is noteworthy. Together, these metrics highlight the company’s strategic and operational excellence, demonstrating its ability to maximize investment returns.
Sezzle demonstrates an equally impressive performance regarding its liquidity position. The company ended the first quarter of 2025 with a current ratio of 2.62, outperforming the industry’s 1.15. Additionally, this metric improved from the previous quarter’s 2.44 and the same quarter last year’s 2.06. These numbers must have a positive impact on investors’ sentiment. Furthermore, the fact that the current ratio exceeds 1 signals that the company can easily pay off short-term obligations, reassuring investors about SEZL’s robust liquidity stance.
Sezzle’s Optimistic Top & Bottom-Line Prospects
The Zacks Consensus Estimate for SEZL’s 2025 sales is $438.4 million, indicating a 61.7% year-over-year surge, with sales anticipated to rise 20.8% in 2026. The consensus estimate for earnings is set at $3.24 per share for 2025, implying a 76.1% year-over-year surge, with an additional 30% increase anticipated in 2026.
Over the past 60 days, two EPS estimates for both 2025 and 2026 have been revised upward with no downward adjustments. In the same period, the Zacks Consensus Estimate for 2025 earnings soared 46.6% and the 2026 estimate rose 45.2%. These upward revisions highlight analysts' growing confidence in Sezzle's ability to enhance its financial performance, driven by its strong business model and robust growth potential.
SEZL Stock: A Strong Buy for Growth
Sezzle is enjoying a massive upside in its overall performance from the WebBank partnership. With the top line registering exploding growth, the company stands its ground firmly within the BNPL market, contesting its major players. Sezzle’s profitability and liquidity position wave a huge green flag for investors, with the metrics exceeding the industry standards by significant margins.
Considering these factors, we are optimistic about the company’s prospects and, thus, recommend investors add this fundamentally strong stock to their portfolios right now.
SEZL currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.