Sezzle (NASDAQ: SEZL) boosts FY2026 outlook after strong Q1
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Sezzle Inc. reported strong first quarter 2026 results, with gross merchandise volume rising 37.3% year over year to $1.1 billion and total revenue up 29.2% to $135.5 million.
Net income increased 41.9% to $51.3 million, or $1.47 per diluted share, while adjusted net income reached $50.0 million, or $1.43 per diluted share. Adjusted EBITDA was $71.1 million, giving a 52.5% margin.
Stronger consumer engagement drove a record average purchase frequency of 7.1x and a 48.4% rise in active subscribers. Management also raised full-year 2026 guidance, lifting expected total revenue growth to 30–35% and adjusted net income to $180.0 million, with adjusted EPS guided to $5.10.
Positive
- Profitable high growth with margin expansion: Q1 2026 revenue rose 29.2% to $135.5 million while net income increased 41.9% to $51.3 million, lifting net margin to 37.9% and adjusted EBITDA margin to 52.5%.
- Guidance raised across key metrics: FY2026 outlook now calls for 30–35% total revenue growth, $180.0 million adjusted net income, and $5.10 adjusted EPS, all higher than prior guidance.
Negative
- None.
Insights
Sezzle delivered faster growth, higher margins, and raised 2026 guidance.
Sezzle posted Q1 2026 revenue of $135.5 million, up 29.2%, on GMV of $1.1 billion, up 37.3%. Net income grew 41.9% to $51.3 million, with operating and net margins both expanding, indicating profitable scale.
Unit economics improved as transaction related costs fell to 3.2% of GMV and operating expenses dropped to 49.1% of revenue. Adjusted EBITDA of $71.1 million produced a 52.5% margin, while cash, cash equivalents, and restricted cash totaled $147.4 million against $145.5 million drawn on the credit facility.
Management raised FY2026 targets to 30–35% revenue growth, $180.0 million adjusted net income, and $5.10 adjusted EPS. Execution will depend on sustaining high purchase frequency, managing credit losses at about 1.2% of GMV, and balancing elevated marketing spend with margin preservation over the remainder of 2026.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
GMV: $1.1 billion
Total revenue: $135.5 million
Net income: $51.3 million
+5 more
8 metrics
GMV
$1.1 billion
Q1 2026 gross merchandise volume, up 37.3% YoY
Total revenue
$135.5 million
Q1 2026, 29.2% year-over-year increase
Net income
$51.3 million
Q1 2026, 41.9% year-over-year increase
Diluted EPS
$1.47
Q1 2026 GAAP net income per diluted share
Adjusted EBITDA
$71.1 million
Q1 2026, 52.5% adjusted EBITDA margin
Cash and restricted cash
$147.4 million
Balance as of March 31, 2026
Share repurchases
$24.8 million
Common stock repurchased during Q1 2026
FY2026 adjusted net income guidance
$180.0 million
Updated full-year 2026 outlook
Key Terms
Gross Merchandise Volume (GMV), Adjusted EBITDA, Provision for credit losses, Buy-now, pay-later (BNPL), +1 more
5 terms
Gross Merchandise Volume (GMV) financial
"Gross Merchandise Volume (GMV) increased 37.3% YoY to $1.1 billion"
Gross merchandise volume (GMV) is the total value of goods and services sold through a marketplace or platform over a given period, calculated before subtracting returns, discounts, or fees. Think of it as the sticker‑price sum of everything that passed through a store’s checkout; investors watch GMV as a measure of sales activity and growth momentum, but it does not equal the platform’s actual revenue or profit.
Adjusted EBITDA financial
"Adjusted EBITDA grew 38.3% YoY to $71.1 million"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Provision for credit losses financial
"Provision for credit losses contributed most to the improvement"
Provision for credit losses is an amount set aside by a financial institution to cover potential future losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution manage risks and stay financially healthy. For investors, it signals how cautious a lender is about potential loan defaults and can impact the company's profitability and financial stability.
Buy-now, pay-later (BNPL) financial
"impact of the “buy-now, pay-later” (“BNPL”) industry becoming subject"
Non-GAAP financial measures financial
"we present the following non-GAAP financial measures: Total revenue less transaction related costs"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
Earnings Snapshot
Total Revenue: $135.5 million · Guidance included
Q1 2026
Total Revenue
$135.5 million
+29.2% YoY
Net Income
$51.3 million
+41.9% YoY
Adjusted EBITDA
$71.1 million
+38.3% YoY
GMV
$1.1 billion
+37.3% YoY
Adjusted Net Income
$50.0 million
+41.5% YoY
Guidance
FY2026 guidance increased to 30–35% total revenue growth, $180.0M adjusted net income, and $5.10 adjusted EPS.
| UNITED STATES | ||||||||
| SECURITIES AND EXCHANGE COMMISSION | ||||||||
| WASHINGTON, D.C. 20549 | ||||||||
FORM | ||||||||
| CURRENT REPORT | ||||||||
| Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | ||||||||
Date of Report (Date of earliest event reported): May 6, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
(Address of principal executive offices, including zip code)
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:
| Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Conditions.
On May 6, 2026, Sezzle Inc. issued a press release announcing its first quarter financial results for the period ending March 31, 2026. A copy of the press release is furnished as Exhibit 99.1 and is incorporated herein by reference.
The information in this Form 8-K (including Exhibit 99.1 attached hereto) is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing by the Company, under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
| Exhibit No. | Description | |||||||
| 99.1 | Press Release, dated May 6, 2026 | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| SEZZLE INC. | ||||||||
| Dated: May 6, 2026 | By: | /s/ Charles Youakim | ||||||
| Charles Youakim | ||||||||
| Chief Executive Officer | ||||||||
May 6, 2026
Sezzle Reports First Quarter 2026 Results
•GMV increased 37.3% YoY to $1.1 billion, supported by record average quarterly purchase frequency of 7.1x
•Total Revenue grew 29.2% YoY to $135.5 million, representing 12.2% of GMV
•Net Income and Adjusted Net Income1 increased 41.9% and 41.5% YoY to $51.3 million and $50.0 million, respectively; Net Income per Diluted Share2 and Adjusted Net Income per Diluted Share2 were $1.47 and $1.43, respectively
•Adjusted EBITDA1 was $71.1 million, with Adjusted EBITDA Margin reaching 52.5%
•The Company increased FY2026 guidance across all metrics: Total Revenue Growth to 30-35% from 25-30%, Adjusted Net Income1 to $180.0 million from $170.0 million, and Adjusted Net Income Per Diluted Share2 to $5.10 from $4.70
Sezzle Inc. (NASDAQ:SEZL) (Sezzle or Company) // Purpose-driven digital payment platform, Sezzle, is pleased to update the market on key financial metrics for the quarter ended March 31, 2026.
“This quarter’s results demonstrate the impact of the consumer engagement strategy we advanced throughout 2025,” stated Charlie Youakim, Sezzle Executive Chairman and CEO. “Average quarterly purchase frequency reached a new Company high of 7.1x and Active Subscribers grew 48.4% year over year, reflecting the growing value consumers see in Sezzle. The engagement flywheel we built is working, and our strong first quarter performance gives us the confidence to raise FY2026 Adjusted Net Income guidance to $180 million and Adjusted Net Income per Diluted Share guidance to $5.10.”
First Quarter 2026 Highlights
•Gross Merchandise Volume (GMV) increased 37.3% YoY to $1.1 billion, supported by higher overall consumer purchase frequency and continued platform engagement. Average purchase frequency reached a quarterly record of 7.1x, up from 6.1x in 1Q25.
1 See appendix for a reconciliation of non-GAAP financial measures.
2 Per diluted share figures reflect 6-for-1 common stock split effective March 28, 2025.
Sezzle Inc. (NASDAQ:SEZL) | sezzle.com | 700 Nicollet Mall, Suite 640, Minneapolis, MN 55402
1
•Total Revenue reached a quarterly high of $135.5 million, up 29.2% YoY and equal to 12.2% of GMV.
•Monthly On-Demand & Subscribers (MODS) totaled 887,000 (rounded to the nearest thousand) as of March 31, 2026, up 34.8% YoY. Active Subscribers increased 48.4% YoY, while Monthly On-Demand users declined sequentially, reflecting a subscription-first acquisition strategy and the seasonal moderation that typically follows the fourth-quarter holiday shopping period.
•Total Operating Expenses rose 20.9% YoY to $66.5 million, primarily reflecting higher marketing spend. As a share of Total Revenue and GMV, Operating Expenses fell 3.3 and 0.8 percentage points to new Company lows of 49.1% and 6.0%, respectively.
•Transaction Related Costs3 improved to a Company-low 3.2% of GMV, down from 3.8% in 1Q25. Provision for Credit Losses contributed most to the improvement, contracting to 1.2% of GMV from 1.6% in 1Q25 on sustained favorable consumer repayment performance.
•Operating Income increased 38.4% YoY to $69.0 million. Operating Margin expanded 3.3 percentage points YoY to 50.9% of Total Revenue and held at 6.2% of GMV.
•Total Revenue Less Transaction Related Costs3 increased 35.8% YoY to $100.3 million and reached 74.0% of Total Revenue, up 3.6 percentage points YoY. As a percentage of GMV, the metric was 9.0%, compared with 9.1% in 1Q25.
•Non-Transaction Related Operating Expenses3 increased 27.5% YoY to $34.3 million, with marketing expense accounting for $11.2 million versus $5.3 million in 1Q25 in support of subscriber acquisition, retention, and engagement initiatives. As a percentage of Total Revenue, the metric declined 0.3 percentage points YoY to 25.3%.
◦Corporate Strategic Project Costs for the quarter totaled $0.3 million, covering professional services tied to the ongoing antitrust litigation and bank charter application.
•Net Income jumped 41.9% YoY to $51.3 million, a new Company quarterly high. Net Income Margin expanded 3.4 percentage points to 37.9%, with Earnings per Diluted Share4 of $1.47 versus $1.00 in 1Q25.
3 See appendix for a reconciliation of non-GAAP financial measures.
4 Per diluted share figures reflect 6-for-1 common stock split effective March 28, 2025.
Sezzle Inc. (NASDAQ:SEZL) | sezzle.com | 700 Nicollet Mall, Suite 640, Minneapolis, MN 55402
2
◦Adjusted Net Income5 increased 41.5% YoY to $50.0 million in 1Q26, or 36.9% of Total Revenue, translating to $1.43 per Diluted Share6 compared to $0.98 in 1Q25.
•Adjusted EBITDA5 grew 38.3% YoY to $71.1 million. Adjusted EBITDA Margin reached 52.5% of Total Revenue, 3.5 percentage points above 1Q25.
Balance Sheet and Liquidity
•As of March 31, 2026, Sezzle had $147.4 million of cash, cash equivalents, and restricted cash, $26.9 million of which was restricted.
•The Company had $145.5 million outstanding on its $225.0 million credit facility as of quarter end.
•During 1Q26, the Company repurchased $24.8 million of common stock under its $100.0 million share repurchase program.
Guidance
The Company is raising its FY2026 guidance as follows:
| 2026 Guidance (November 2025) | 2026 Guidance (February 2026) | 2026 Updated Guidance | |||||||||
Total Revenue Growth | Not provided | 25%–30% | 30%–35% | ||||||||
Adjusted Net Income5 | Not provided | $170.0M | $180.0M | ||||||||
Adjusted Net Income Per Diluted Share5 | $4.35 | $4.70 | $5.10 | ||||||||
Initiatives Update
•Sezzle continued to advance its strategy of moving beyond checkout to become a broader part of consumers’ everyday spending. During 1Q26, the Company rolled out Pay-in-5 to consumers, while the Earn Tab continued to gain traction as a daily engagement hub, generating 4.8 million visits since its June 2025 launch.
•Subsequent to quarter end, Sezzle launched Agentic Commerce, a closed-end BNPL virtual card solution in Canada, and Sezzle Mobile. Additionally, Sezzle expanded its long-term lending
5 See appendix for a reconciliation of non-GAAP financial measures. FY2026 Non-GAAP adjusted financial guidance reflects add-backs for estimated FY2026 expenses associated with Corporate Strategic Projects.
6 Per diluted share figures reflect 6-for-1 common stock split effective March 28, 2025.
Sezzle Inc. (NASDAQ:SEZL) | sezzle.com | 700 Nicollet Mall, Suite 640, Minneapolis, MN 55402
3
functionality across its product suite. These launches broaden Sezzle’s payments, shopping, and financial-services capabilities, creating more reasons for consumers to engage with Sezzle in their everyday lives.
Upcoming Investor Events
•Sezzle Management will participate in the upcoming investor events:
◦May 14, 2026: 21st Annual Needham Technology, Media, & Consumer Conference
◦May 18, 2026: J.P. Morgan 2026 Global Technology, Media, and Communications Conference
◦May 20, 2026: B. Riley Securities 2026 Annual Investor Conference
◦June 17, 2026: Needham Non-Deal Roadshow
◦June 23, 2026: Northland Growth Conference 2026
Quarterly Conference Call and Presentation
The Company will host its first quarter earnings conference call on May 6, 2026, at 5:00pm ET.
To register for the call, please navigate to: https://dpregister.com/sreg/10208550/103e1a867dc
All participants can access the webcast using the following link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=eVoVHHdR
Upon registration, participants will receive the dial-in number. Those without internet access or unable to pre-register may dial in by calling: 1-866-777-2509 (US/CA toll free) or 1-412-317-5413 (international toll). A replay will be available until May 13, 2026. To access the replay dial 1-855-669-9658 (US toll free) or 1-412-317-0088 (International toll). Replay access code: 4160608.
In conjunction with the earnings call, the Company will release its presentation on the Sezzle Investor Relations website before the call. Please navigate to the Sezzle Investor Relations website for the presentation that management will review on the call.
Sezzle Inc. (NASDAQ:SEZL) | sezzle.com | 700 Nicollet Mall, Suite 640, Minneapolis, MN 55402
4
1Q26 GAAP Operating Results
| For the three months ended | |||||||||||
| ($ in thousands) | Mar. 31, 2026 | Mar. 31, 2025 | YoY Difference | ||||||||
| Total Revenue | $ | 135,539 | $ | 104,912 | 29.2 | % | |||||
| Operating Expenses | $ | 66,503 | $ | 55,017 | 20.9 | % | |||||
| Operating Expenses as % of Total Revenue | 49.1 | % | 52.4 | % | (3.3 ppt) | ||||||
| Operating Expenses as % of GMV | 6.0 | % | 6.8 | % | (0.8 ppt) | ||||||
| Operating Income | $ | 69,036 | $ | 49,895 | 38.4 | % | |||||
| Operating Income as % of Total Revenue | 50.9 | % | 47.6 | % | 3.3 ppt | ||||||
| Operating Income as % of GMV | 6.2 | % | 6.2 | % | 0.0 ppt | ||||||
| Net Income | $ | 51,303 | $ | 36,164 | 41.9 | % | |||||
| Net Income as % of Total Revenue | 37.9 | % | 34.5 | % | 3.4 ppt | ||||||
| Net Income per Diluted Share | $ | 1.47 | $ | 1.00 | 47.0 | % | |||||
1Q26 Non-GAAP Operating Results7
| For the three months ended | |||||||||||
| ($ in thousands) | Mar. 31, 2026 | Mar. 31, 2025 | YoY Difference | ||||||||
| Non-Transaction Related Operating Expenses | $ | 34,308 | $ | 26,899 | 27.5 | % | |||||
| Non-Transaction Related Operating Expenses as % of Total Revenue | 25.3 | % | 25.6 | % | (0.3 ppt) | ||||||
| Transaction Related Costs | $ | 35,210 | $ | 31,032 | 13.5 | % | |||||
| Transaction Related Costs as % of Total Revenue | 26.0 | % | 29.6 | % | (3.6 ppt) | ||||||
| Transaction Related Costs as % of GMV | 3.2 | % | 3.8 | % | (0.6 ppt) | ||||||
| Total Revenue Less Transaction Related Costs | $ | 100,329 | $ | 73,880 | 35.8 | % | |||||
| Total Revenue Less Transaction Related Costs as % of Total Revenue | 74.0 | % | 70.4 | % | 3.6 ppt | ||||||
| Total Revenue Less Transaction Related Costs as % of GMV | 9.0 | % | 9.1 | % | (0.1 ppt) | ||||||
| Adjusted EBITDA | $ | 71,133 | $ | 51,446 | 38.3 | % | |||||
| Adjusted EBITDA Margin | 52.5 | % | 49.0 | % | 3.5 ppt | ||||||
| Adjusted Net Income | $ | 49,993 | $ | 35,340 | 41.5 | % | |||||
| Adjusted Net Income Margin | 36.9 | % | 33.7 | % | 3.2 ppt | ||||||
| Adjusted Net Income per Diluted Share | $ | 1.43 | $ | 0.98 | 45.9 | % | |||||
7 See appendix for a reconciliation of non-GAAP financial measures.
Sezzle Inc. (NASDAQ:SEZL) | sezzle.com | 700 Nicollet Mall, Suite 640, Minneapolis, MN 55402
5
Appendix - Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of Operating Expenses to Non-transaction Related Operating Expenses
| For the three months ended | ||||||||
| ($ in thousands) | March 31, 2026 | March 31, 2025 | ||||||
| Operating expenses | $ | 66,503 | $ | 55,017 | ||||
| Transaction expense | (18,520) | (15,317) | ||||||
| Provision for credit losses | (13,675) | (12,801) | ||||||
| Non-transaction related operating expenses | $ | 34,308 | $ | 26,899 | ||||
Reconciliation of Operating Expenses to Transaction Related Costs
| For the three months ended | ||||||||
| ($ in thousands) | March 31, 2026 | March 31, 2025 | ||||||
| Operating expenses | $ | 66,503 | $ | 55,017 | ||||
| Personnel | (14,667) | (15,048) | ||||||
| Third-party technology and data | (4,415) | (3,374) | ||||||
| Marketing, advertising, and tradeshows | (11,246) | (5,346) | ||||||
| General and administrative | (3,980) | (3,131) | ||||||
| Net interest expense | 3,015 | 2,914 | ||||||
| Transaction related costs | $ | 35,210 | $ | 31,032 | ||||
Reconciliation of Operating Income to Total Revenue Less Transaction Related Costs
| For the three months ended | ||||||||
| ($ in thousands) | March 31, 2026 | March 31, 2025 | ||||||
| Operating income | $ | 69,036 | $ | 49,895 | ||||
| Personnel | 14,667 | 15,048 | ||||||
| Third-party technology and data | 4,415 | 3,374 | ||||||
| Marketing, advertising, and tradeshows | 11,246 | 5,346 | ||||||
| General and administrative | 3,980 | 3,131 | ||||||
| Net interest expense | (3,015) | (2,914) | ||||||
| Total revenue less transaction related costs | $ | 100,329 | $ | 73,880 | ||||
Sezzle Inc. (NASDAQ:SEZL) | sezzle.com | 700 Nicollet Mall, Suite 640, Minneapolis, MN 55402
6
Reconciliation of Net Income to Adjusted EBITDA
| For the three months ended | ||||||||
| ($ in thousands) | March 31, 2026 | March 31, 2025 | ||||||
| Net income | $ | 51,303 | $ | 36,164 | ||||
| Depreciation and amortization | 436 | 274 | ||||||
| Income tax expense | 14,686 | 10,842 | ||||||
| Equity and incentive-based compensation | 1,321 | 1,273 | ||||||
| Other (income) expense, net | 32 | (25) | ||||||
Corporate strategic projects(1) | 340 | 4 | ||||||
| Net interest expense | 3,015 | 2,914 | ||||||
| Adjusted EBITDA | $ | 71,133 | $ | 51,446 | ||||
(1)Adjusted prior periods to include corporate strategic project costs.
Reconciliation of Net Income to Adjusted Net Income and Adjusted Net Income per Diluted Share
| For the three months ended | ||||||||
| ($ in thousands, except for per share numbers) | March 31, 2026 | March 31, 2025 | ||||||
| Net income | $ | 51,303 | $ | 36,164 | ||||
Discrete tax benefit(1) | (1,682) | (803) | ||||||
Corporate strategic projects(1) | 340 | 4 | ||||||
| Other (income) expense, net | 32 | (25) | ||||||
| Adjusted net income | 49,993 | 35,340 | ||||||
| Diluted weighted-average shares outstanding | 34,932 | 36,171 | ||||||
Adjusted net income per diluted share(2) | $ | 1.43 | $ | 0.98 | ||||
(1)Adjusted prior periods to include the windfall/shortfall to income tax expense for equity-based compensation and corporate strategic project costs.
(2)Effective March 28, 2025, we performed a 6-for-1 stock split of the Company’s common stock, effected through a stock dividend. Share and per-share amounts have been retroactively adjusted.
Investors should be aware that generally accepted accounting principles prescribe when a company may reserve for particular risks, including litigation exposures. Accordingly, results for a given reporting period could be significantly affected if and when we establish reserves for one or more contingencies. Also, our regular reserve reviews may result in adjustments of varying magnitude as additional information regarding claims activity becomes known. Reported results, therefore, may be volatile in certain accounting periods.
Sezzle Inc. (NASDAQ:SEZL) | sezzle.com | 700 Nicollet Mall, Suite 640, Minneapolis, MN 55402
7
Contact Information
Jack Fagan Investor Relations +1 651 240 6001 InvestorRelations@sezzle.com | Erin Foran Media Inquiries +1 651 403 2184 erin.foran@sezzle.com | ||||
About Sezzle Inc.
Sezzle is a forward-thinking fintech company committed to financially empowering the next generation. Through its purpose-driven payment platform, Sezzle enhances consumers' purchasing power by offering access to point-of-sale financing options and digital payment services—connecting millions of customers with its global network of merchants. Centered on transparency, inclusivity, and ease of use, Sezzle empowers consumers to manage spending responsibly, take charge of their finances, and achieve lasting financial independence.
For more information visit sezzle.com.
Sezzle Inc. (NASDAQ:SEZL) | sezzle.com | 700 Nicollet Mall, Suite 640, Minneapolis, MN 55402
8
Consolidated Balance Sheets
| As of | ||||||||
| March 31, 2026 | December 31, 2025 | |||||||
| (in thousands, except per share amounts) | (unaudited) | (audited) | ||||||
| Assets | ||||||||
| Current Assets | ||||||||
Cash and cash equivalents, including amounts held by variable interest entity (“VIE”) of $39,979 and $25,921, respectively | $ | 120,448 | $ | 64,054 | ||||
Restricted cash, current, including amounts held by VIE of $4,701 and $8,245, respectively | 4,745 | 8,413 | ||||||
| Notes receivable | 282,761 | 283,400 | ||||||
| Allowance for credit losses | (19,794) | (28,505) | ||||||
Notes receivable, net, including amounts held by VIE of $247,006 and $237,062, respectively | 262,967 | 254,895 | ||||||
| Other current assets | 23,030 | 24,502 | ||||||
| Total current assets | 411,190 | 351,864 | ||||||
| Non-Current Assets | ||||||||
| Internally developed intangible assets, net | 3,743 | 3,331 | ||||||
| Operating right-of-use assets | 628 | 665 | ||||||
| Restricted cash, non-current | 22,193 | 30,134 | ||||||
| Deferred tax asset | 15,721 | 13,615 | ||||||
| Other assets | 830 | 620 | ||||||
| Total Assets | $ | 454,305 | $ | 400,229 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current Liabilities | ||||||||
| Merchant accounts payable | $ | 57,568 | $ | 56,374 | ||||
Other payables, including amounts held by VIE of $7 and $1,476, respectively | 21,969 | 6,908 | ||||||
| Deferred revenue | 5,669 | 5,431 | ||||||
Other current liabilities, including amounts held by VIE of $1,075 and $0, respectively | 27,396 | 21,053 | ||||||
| Total current liabilities | 112,602 | 89,766 | ||||||
| Non-Current Liabilities | ||||||||
| Operating lease liabilities | 609 | 661 | ||||||
Line of credit, net of unamortized debt issuance costs of $1,128 and $1,268, respectively, held by VIE | 144,372 | 139,991 | ||||||
| Total Liabilities | 257,583 | 230,418 | ||||||
| Stockholders' Equity | ||||||||
Common stock and additional paid-in capital, $0.00001 par value; 750,000 shares authorized; 34,940 and 35,130 shares issued, respectively; 33,594 and 33,798 shares outstanding, respectively | 194,210 | 194,890 | ||||||
Treasury stock, at cost: 1,346 and 1,332 shares, respectively | (25,000) | (24,072) | ||||||
| Accumulated other comprehensive loss | (761) | (683) | ||||||
| Accumulated earnings (deficit) | 28,273 | (324) | ||||||
| Total Stockholders' Equity | 196,722 | 169,811 | ||||||
| Total Liabilities and Stockholders' Equity | $ | 454,305 | $ | 400,229 | ||||
Sezzle Inc. (NASDAQ:SEZL) | sezzle.com | 700 Nicollet Mall, Suite 640, Minneapolis, MN 55402
9
Consolidated Statements of Operations and Comprehensive Income (unaudited)
| For the three months ended March 31, | ||||||||
| (in thousands, except per share amounts) | 2026 | 2025 | ||||||
| Total revenue | $ | 135,539 | $ | 104,912 | ||||
| Operating Expenses | ||||||||
| Personnel | 14,667 | 15,048 | ||||||
| Transaction expense | 18,520 | 15,317 | ||||||
| Third-party technology and data | 4,415 | 3,374 | ||||||
| Marketing, advertising, and tradeshows | 11,246 | 5,346 | ||||||
| General and administrative | 3,980 | 3,131 | ||||||
| Provision for credit losses | 13,675 | 12,801 | ||||||
| Total operating expenses | 66,503 | 55,017 | ||||||
| Operating Income | 69,036 | 49,895 | ||||||
| Other Income (Expense) | ||||||||
| Net interest expense | (3,015) | (2,914) | ||||||
| Other income (expense), net | (32) | 25 | ||||||
| Income before taxes | 65,989 | 47,006 | ||||||
| Income tax expense | 14,686 | 10,842 | ||||||
| Net Income | 51,303 | 36,164 | ||||||
| Other Comprehensive (Loss) Income | ||||||||
| Foreign currency translation adjustment | (78) | 93 | ||||||
| Total Comprehensive Income | $ | 51,225 | $ | 36,257 | ||||
| Net income per share*: | ||||||||
| Basic | $ | 1.52 | $ | 1.07 | ||||
| Diluted | 1.47 | 1.00 | ||||||
| Weighted-average shares outstanding*: | ||||||||
| Basic | 33,764 | 33,852 | ||||||
| Diluted | 34,932 | 36,171 | ||||||
•Effective March 28, 2025, we performed a 6-for-1 stock split of the Company’s common stock, effected through a stock dividend. Share and per-share amounts have been retroactively adjusted.
Sezzle Inc. (NASDAQ:SEZL) | sezzle.com | 700 Nicollet Mall, Suite 640, Minneapolis, MN 55402
10
Consolidated Statements of Cash Flows (unaudited)
| For the three months ended March 31, | ||||||||
| (As restated) | ||||||||
| (in thousands) | 2026 | 2025 | ||||||
| Operating Activities: | ||||||||
| Net income | $ | 51,303 | $ | 36,164 | ||||
| Adjustments to reconcile net income to net cash provided from operating activities: | ||||||||
| Depreciation and amortization | 436 | 274 | ||||||
| Provision for credit losses | 13,675 | 12,801 | ||||||
| Provision for other credit losses | 6,855 | 3,956 | ||||||
| Discount on notes receivable | (345) | (1,224) | ||||||
| Equity based compensation and restricted stock vested | 1,321 | 1,273 | ||||||
| Amortization of debt issuance costs | 241 | 109 | ||||||
| Impairment losses on long-lived assets | — | 66 | ||||||
| Gain on sale of fixed assets | 2 | — | ||||||
| Deferred income taxes | (2,106) | 5,289 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Other assets | (5,374) | (4,385) | ||||||
| Merchant accounts payable | 1,322 | (3,631) | ||||||
| Other payables | 15,074 | 2,779 | ||||||
| Other liabilities | 6,329 | (898) | ||||||
| Deferred revenue | 240 | (109) | ||||||
| Operating leases | 5 | 15 | ||||||
| Net Cash Provided from Operating Activities | 88,978 | 52,479 | ||||||
| Investing Activities: | ||||||||
| Purchases and originations of notes receivable, net of proceeds from repayments | (21,404) | 6,358 | ||||||
| Purchase of property and equipment | (351) | (27) | ||||||
| Internally developed intangible asset additions | (738) | (281) | ||||||
| Net Cash (Used for) Provided from Investing Activities | (22,493) | 6,050 | ||||||
| Financing Activities: | ||||||||
| Proceeds from line of credit | 100,000 | 15,000 | ||||||
| Payments to line of credit | (95,760) | (49,200) | ||||||
| Payments of debt issuance costs | (100) | (10) | ||||||
| Proceeds from stock option exercises | 111 | 540 | ||||||
| Repurchase of common stock | (25,746) | (2,444) | ||||||
| Net Cash Used for Financing Activities | (21,495) | (36,114) | ||||||
| Effect of exchange rate changes on cash | (205) | 144 | ||||||
| Net increase in cash, cash equivalents, and restricted cash | 44,990 | 22,415 | ||||||
| Cash, cash equivalents, and restricted cash, beginning of period | 102,601 | 98,310 | ||||||
| Cash, cash equivalents, and restricted cash, end of period | $ | 147,386 | $ | 120,869 | ||||
Sezzle Inc. (NASDAQ:SEZL) | sezzle.com | 700 Nicollet Mall, Suite 640, Minneapolis, MN 55402
11
Consolidated Statements of Cash Flows (unaudited) (continued)
| For the three months ended March 31, | ||||||||
| (As restated) | ||||||||
| (in thousands) | 2026 | 2025 | ||||||
| Noncash investing and financing activities: | ||||||||
| Conversion of accrued profit-sharing incentive plan liabilities to stockholders' equity | $ | — | $ | 2,301 | ||||
| Supplementary disclosures: | ||||||||
| Interest paid | $ | 3,795 | $ | 3,217 | ||||
| Income taxes paid | 87 | 94 | ||||||
Sezzle Inc. (NASDAQ:SEZL) | sezzle.com | 700 Nicollet Mall, Suite 640, Minneapolis, MN 55402
12
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We have based these forward-looking statements largely on our management’s current expectations and projections about future events and financial trends affecting the financial condition of our business.
Forward-looking statements generally can be identified by the use of words such as "anticipate," "expect," "plan," "could," "may," "will," "believe," "estimate," "forecast," "goal," "project," other words or expressions of similar meaning (or the negative versions of such words or expressions). These forward-looking statements address various matters including the timing and nature of anticipated new products, our business strategy, future operations, financial performance or other future events. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Applicable risks and uncertainties include, among others: impact of the “buy-now, pay-later” (“BNPL”) industry becoming subject to increased regulatory scrutiny; impact of operating in a highly competitive industry; impact of macro-economic conditions on consumer spending; our ability to increase our merchant network, our base of consumers, and gross merchandise value (GMV); our ability to effectively manage growth, sustain our growth rate and maintain our market share; our ability to maintain adequate access to capital in order to meet the capital requirements of our business; impact of exposure to consumer bad debts and insolvency of merchants; our ability to comply with the applicable requirements of Visa and other payment processors; impact of the integration, support and prominent presentation of our platform by our merchants; impact of any data security breaches, cyberattacks, employee or other internal misconduct, malware, phishing or ransomware, physical security breaches, natural disasters, or similar disruptions; impact of key vendors or merchants failing to comply with legal or regulatory requirements or to provide various services that are important to our operations; our ability to protect our intellectual property rights and third party allegations of the misappropriation of intellectual property rights; impact of the costs of complying with various laws and regulations applicable to the BNPL industry in the United States and Canada; the impact of litigation, regulatory investigations and actions, and compliance issues on our business; significant and sudden declines or volatility in the trading price of our common stock and market capitalization; and other factors identified in the “Risk Factors” section of our most recent Annual Report on Form 10-K (the “Annual Report”) and the Company’s subsequent filings filed with the SEC. Investors should not place undue reliance on forward-looking statements contained in this press release, including any accompanying attachments or oral forward-looking statements that we or persons acting on our behalf may issue, which, except as otherwise noted, speak only as of the date of this press release. Except as required by law, we undertake no obligation to update or revise any forward-looking statements contained in this press release, any accompanying materials, or oral forward-looking statements made in connection with this press release.
Sezzle Inc. (NASDAQ:SEZL) | sezzle.com | 700 Nicollet Mall, Suite 640, Minneapolis, MN 55402
13
Non-GAAP Financial Measures
To supplement our operating results prepared in accordance with generally accepted accounting principles in the United States (“GAAP”), we present the following non-GAAP financial measures: Total revenue less transaction related costs; transaction related costs; non-transaction related operating expenses; adjusted net income; adjusted net income margin; adjusted net income per diluted share; adjusted earnings before interest, taxes, depreciation, and amortization (“Adjusted EBITDA”); and Adjusted EBITDA margin. Definitions of these non-GAAP financial measures and summaries of the reasons why management believes that the presentation of these non-GAAP financial measures provide useful information to the Company and investors are as follows:
•Total revenue less transaction related costs is defined as GAAP total revenue less transaction related costs. Transaction related costs is the sum of GAAP transaction expense, provision for credit losses, and net interest expense less certain non-recurring charges as detailed in the reconciliation table of GAAP operating income to non-GAAP total revenue less transaction related costs above. We believe that total revenue less transaction related costs is a useful financial measure to both management and investors for evaluating the economic value of orders processed on the Sezzle Platform.
•Non-transaction related operating expenses is defined as the sum of GAAP personnel; third-party technology and data; marketing, advertising, and tradeshows; and general and administrative operating expenses. We believe that non-transaction related operating expenses is a useful financial measure to both management and investors for evaluating our management of operating expenses not directly attributable to orders processed on the Sezzle Platform.
•Adjusted EBITDA is defined as GAAP net income, adjusted for certain charges including depreciation, amortization, equity and incentive–based compensation, and corporate strategic project costs, as well as net interest expense as detailed in the reconciliation table of GAAP net income to adjusted EBITDA. We believe that this financial measure is a useful measure for period-to-period comparison of our business by removing the effect of certain non-cash and non-recurring charges, as well as funding costs, that may not directly correlate to the underlying performance of our business.
•Adjusted EBITDA margin is defined as Adjusted EBITDA divided by GAAP total revenue. We believe that this financial measure is a useful measure for period-to-period comparison of our business’ unit economics by removing the effect of certain non-cash and non-recurring charges, as well as funding costs, that may not directly correlate to the underlying performance of our business.
Sezzle Inc. (NASDAQ:SEZL) | sezzle.com | 700 Nicollet Mall, Suite 640, Minneapolis, MN 55402
14
•Adjusted net income is defined as GAAP net income, adjusted for certain charges including discrete tax items, fair value adjustments on warrants, losses on the extinguishment of our lines of credit, corporate strategic project costs, and other income and expense, as detailed in the reconciliation table of GAAP net income to adjusted net income. We believe that this financial measure is useful for period-to-period comparison of our business by removing the effect of certain charges that, in management's view, does not correlate to the underlying performance of our business during a given period.
•Adjusted net income margin is defined as Adjusted net income divided by GAAP total revenue. We believe that this financial measure is a useful measure for period-to-period comparison of our business by removing the effect of certain charges that, in management's view, does not correlate to the underlying performance of our business during a given period.
•Adjusted net income per diluted share is defined as non-GAAP adjusted net income divided by GAAP weighted-average diluted shares outstanding. We believe that this financial measure is a useful measure for period-to-period comparison of shareholder return by removing the effect of certain charges that, in management's view, does not correlate to the underlying performance of our business during a given period.
Additionally, we have included these non-GAAP measures because they are key measures used by our management to evaluate our operating performance, guide future operating plans, and make strategic decisions, including those relating to operating expenses and the allocation of resources. Therefore, we believe these measures provide useful information to investors and other users of this press release to understand and evaluate our operating results in the same manner as our management and board of directors. However, non-GAAP financial measures have limitations, should be considered supplemental in nature, and are not meant as a substitute for the related financial information prepared in accordance with U.S. GAAP. These limitations include the following:
•Total revenue less transaction-related costs is not intended to be measures of operating profit or cash flow profitability as they exclude key operating expenses such as personnel, general and administrative, and third-party technology and data, which have been, and will continue to be for the foreseeable future, significant recurring GAAP expenses.
•Transaction related costs exclude significant expenses such as personnel, general and administrative, and third-party technology and data, which have been, and will continue to be for the foreseeable future, significant recurring GAAP expenses.
•Non-transaction related operating expenses exclude significant expenses, including transaction expense and provision for credit losses, which have been, and will continue to be for the foreseeable future, significant recurring GAAP expenses.
Sezzle Inc. (NASDAQ:SEZL) | sezzle.com | 700 Nicollet Mall, Suite 640, Minneapolis, MN 55402
15
•Adjusted EBITDA and adjusted EBITDA margin exclude certain charges such as depreciation, amortization, and equity and incentive–based compensation, which have been, and will continue to be for the foreseeable future, recurring GAAP expenses. Further, these non-GAAP financial measures exclude certain significant cash inflows and outflows, which have a significant impact on our working capital and cash.
•Adjusted EBITDA and adjusted EBITDA margin excludes net interest expense, which has a significant impact on our GAAP net income, working capital, and cash.
•Adjusted net income, adjusted net income margin, and adjusted net income per diluted share excludes certain charges such as losses on the extinguishment of our lines of credit, fair value adjustments on our warrants, other income and expense, and discrete tax items which have been, and may be in the future, recurring GAAP expenses. Further, these non-GAAP financial measures exclude certain significant cash inflows and outflows, which have a significant impact on our working capital and cash.
•Long-lived assets being depreciated or amortized may need to be replaced in the future, and these non-GAAP financial measures do not reflect the capital expenditures needed for such replacements, or for any new capital expenditures or commitments.
•These non-GAAP financial measures do not reflect income taxes that may represent a reduction in cash available to us.
•Non-GAAP measures do not reflect changes in, or cash requirements for, our working capital needs.
•Other companies, including companies in our industry, may calculate the non-GAAP financial measures differently or not at all, which reduces their usefulness as comparative measures.
Because of these limitations, you should not consider these non-GAAP financial measures in isolation or as substitutes for analysis of our financial results as reported under GAAP, and these non-GAAP financial measures should be considered alongside other financial performance measures, including net income and other financial results presented in accordance with GAAP. We encourage you to review the related GAAP financial measures and the reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures and not rely on any single financial measure to evaluate our business.
Sezzle Inc. (NASDAQ:SEZL) | sezzle.com | 700 Nicollet Mall, Suite 640, Minneapolis, MN 55402
16
FAQ
How did Sezzle (SEZL) perform financially in Q1 2026?
Sezzle delivered strong Q1 2026 results, with total revenue of $135.5 million, up 29.2% year over year. Net income grew 41.9% to $51.3 million, and adjusted EBITDA rose to $71.1 million, reflecting improved scale and stronger underlying profitability.
How fast did Sezzle (SEZL) grow GMV and revenue in Q1 2026?
Gross merchandise volume increased 37.3% year over year to $1.1 billion in Q1 2026. Total revenue grew 29.2% to $135.5 million, equal to 12.2% of GMV, showing continued expansion of transaction volumes and monetization on the platform.
What margin trends did Sezzle (SEZL) report for Q1 2026?
Operating income reached $69.0 million with a 50.9% operating margin on revenue, up 3.3 percentage points year over year. Net income margin improved to 37.9%, and adjusted EBITDA margin increased to 52.5%, indicating more efficient operations and lower transaction cost ratios.
What FY2026 guidance did Sezzle (SEZL) increase?
Sezzle raised FY2026 guidance, lifting expected total revenue growth to 30–35%, up from 25–30%. Adjusted net income guidance increased to $180.0 million, and adjusted net income per diluted share guidance rose to $5.10, reflecting management’s confidence after Q1 performance.
How strong is Sezzle (SEZL) subscriber and user engagement?
Average quarterly purchase frequency reached a record 7.1x in Q1 2026, up from 6.1x. Monthly On-Demand & Subscribers totaled 887,000, up 34.8% year over year, while active subscribers increased 48.4%, highlighting deeper consumer engagement with Sezzle’s platform.