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Sezzle Stock Skyrockets 324% in a Year: Is it the Right Time to Buy?
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Key Takeaways
Sezzle shares jumped 324.1% in a year, far outpacing the industry and key competitors.
On-Demand increased revenues 76.4% and GMV to a record $927M in 2Q25.
Sezzle posted 102.9% ROE and 58.2% ROIC, well above industry averages.
Sezzle Inc.’s (SEZL - Free Report) stock has skyrocketed 324.1% over the past year. The company’s shares have significantly outperformed the industry’s 19.7% growth and the 15.9% rally in the Zacks S&P 500 Composite.
SEZL’s performance over the past year exceeds its close competitors, PagSeguro Digital’s (PAGS - Free Report) and Western Union’s (WU - Free Report) declines of 38.1% and 29.2%, respectively.
1-Year Price Performance
Image Source: Zacks Investment Research
Sezzle’s performance was impressive in the year-to-date period as well, with the stock soaring 115.5%, outpacing PagSeguro Digital’s 44.2% growth and Western Union’s 21.2% fall.
Let us delve deeper to find out whether investors should buy this stock, essentially betting on its prolonged growth, or stay away from it for now.
On-Demand: Sezzle’s Long-Term Growth Driver
SEZL launched On-Demand in October 2024, offering flexibility for Pay-in-4 wherever Visa is accepted. This product relieved customers from the limitations of its direct merchant partnership, positioning the company as a Buy Now, Pay Later anywhere solution.
On-Demand has been successful since its launch. In the fourth quarter of 2024, Sezzle recorded 707,000 Monthly On-Demand Subscribers (MODS), which then declined to 658,000 in the first quarter of 2025. This decrease is attributed to seasonal trends following the holiday shopping period. However, the fall was short-lived as SEZL registered 748,000 MODS in the second quarter of 2025.
This progress led to higher user engagement, with customers averaging 6.1 purchases this quarter, up from 4.8 in the same quarter last year. Strong On-Demand growth drove SEZL’s revenues, increasing the metric 76.4% year over year from the previous year. The gross merchandise volume (GMV) reached a record $927 million, a 74.2% year-over-year surge in the June quarter. Overall, SEZL’s performance in the second quarter of 2025 highlights the success of Sezzle’s product diversification strategy in the form of On-Demand.
SEZL’s Profitability Impressive, Liquidity Strong
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 second quarter of 2025, SEZL reported a remarkable ROE of 102.9%, exceeding the industry’s 48.6%.
Image Source: Zacks Investment Research
The company’s return on invested capital (ROIC) of 58.2% significantly beat the industry’s 22.2%, which is noteworthy. These metrics in unison signal maximization of returns on investment, appealing to investors at large.
Image Source: Zacks Investment Research
Sezzle’s current ratio in the second quarter of 2025 was 3.51, which is significantly higher than the industry average of 1.15. That being said, SEZL surpasses its close competitors, PagSeguro Digital’s 1.42 and Western Union’s 1.15. Given that the current ratio exceeds 1, we are optimistic about SEZL’s ability to cover short-term obligations efficiently.
Image Source: Zacks Investment Research
SEZL’s Strong Top & Bottom-Line Outlook
The Zacks Consensus Estimate for SEZL’s 2025 sales is $442.1 million, indicating a 63.1% year-over-year surge, with sales estimated to rise 28.4% in 2026. The consensus estimate for earnings is set at $3.27 per share for 2025, implying a 77.7% year-over-year surge, with an additional 32.1% increase anticipated in 2026.
Over the past 60 days, one EPS estimate for both 2025 and 2026 has been revised upward with no downward adjustments. In the same period, the Zacks Consensus Estimate for 2025 earnings soared marginally, and the 2026 estimate rose 1.6%. These upward revisions highlight analysts' confidence.
Buy Sezzle Now
SEZL’s On-Demand product strategy has been a successful venture for the company, driving in more customers. With consistently higher consumer engagement and growing GMV, we expect the company to reap the benefits of this product in the long run as well.
Sezzle is a fundamentally strong stock with earnings estimates moving upward, signaling analyst confidence. That being said, on the profitability front, investors are more likely to favor SEZL due to its high ROE and ROIC, indicating return maximization. A strong liquidity position is an added advantage.
Given all these positives, we recommend investors buy the stock now and anticipate increasing returns over the long term.
Image: Bigstock
Sezzle Stock Skyrockets 324% in a Year: Is it the Right Time to Buy?
Key Takeaways
Sezzle Inc.’s (SEZL - Free Report) stock has skyrocketed 324.1% over the past year. The company’s shares have significantly outperformed the industry’s 19.7% growth and the 15.9% rally in the Zacks S&P 500 Composite.
SEZL’s performance over the past year exceeds its close competitors, PagSeguro Digital’s (PAGS - Free Report) and Western Union’s (WU - Free Report) declines of 38.1% and 29.2%, respectively.
1-Year Price Performance
Sezzle’s performance was impressive in the year-to-date period as well, with the stock soaring 115.5%, outpacing PagSeguro Digital’s 44.2% growth and Western Union’s 21.2% fall.
Let us delve deeper to find out whether investors should buy this stock, essentially betting on its prolonged growth, or stay away from it for now.
On-Demand: Sezzle’s Long-Term Growth Driver
SEZL launched On-Demand in October 2024, offering flexibility for Pay-in-4 wherever Visa is accepted. This product relieved customers from the limitations of its direct merchant partnership, positioning the company as a Buy Now, Pay Later anywhere solution.
On-Demand has been successful since its launch. In the fourth quarter of 2024, Sezzle recorded 707,000 Monthly On-Demand Subscribers (MODS), which then declined to 658,000 in the first quarter of 2025. This decrease is attributed to seasonal trends following the holiday shopping period. However, the fall was short-lived as SEZL registered 748,000 MODS in the second quarter of 2025.
This progress led to higher user engagement, with customers averaging 6.1 purchases this quarter, up from 4.8 in the same quarter last year. Strong On-Demand growth drove SEZL’s revenues, increasing the metric 76.4% year over year from the previous year. The gross merchandise volume (GMV) reached a record $927 million, a 74.2% year-over-year surge in the June quarter. Overall, SEZL’s performance in the second quarter of 2025 highlights the success of Sezzle’s product diversification strategy in the form of On-Demand.
SEZL’s Profitability Impressive, Liquidity Strong
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 second quarter of 2025, SEZL reported a remarkable ROE of 102.9%, exceeding the industry’s 48.6%.
The company’s return on invested capital (ROIC) of 58.2% significantly beat the industry’s 22.2%, which is noteworthy. These metrics in unison signal maximization of returns on investment, appealing to investors at large.
Sezzle’s current ratio in the second quarter of 2025 was 3.51, which is significantly higher than the industry average of 1.15. That being said, SEZL surpasses its close competitors, PagSeguro Digital’s 1.42 and Western Union’s 1.15. Given that the current ratio exceeds 1, we are optimistic about SEZL’s ability to cover short-term obligations efficiently.
SEZL’s Strong Top & Bottom-Line Outlook
The Zacks Consensus Estimate for SEZL’s 2025 sales is $442.1 million, indicating a 63.1% year-over-year surge, with sales estimated to rise 28.4% in 2026. The consensus estimate for earnings is set at $3.27 per share for 2025, implying a 77.7% year-over-year surge, with an additional 32.1% increase anticipated in 2026.
Over the past 60 days, one EPS estimate for both 2025 and 2026 has been revised upward with no downward adjustments. In the same period, the Zacks Consensus Estimate for 2025 earnings soared marginally, and the 2026 estimate rose 1.6%. These upward revisions highlight analysts' confidence.
Buy Sezzle Now
SEZL’s On-Demand product strategy has been a successful venture for the company, driving in more customers. With consistently higher consumer engagement and growing GMV, we expect the company to reap the benefits of this product in the long run as well.
Sezzle is a fundamentally strong stock with earnings estimates moving upward, signaling analyst confidence. That being said, on the profitability front, investors are more likely to favor SEZL due to its high ROE and ROIC, indicating return maximization. A strong liquidity position is an added advantage.
Given all these positives, we recommend investors buy the stock now and anticipate increasing returns over the long term.
SEZL currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.