Sezzle Inc. (SEZL) Earnings
Sezzle Inc. is expected to report next earnings on August 6, 2026 (in NaN days), with a consensus EPS estimate of $0.96. SEZL has beaten EPS estimates in 8 of its last 8 reported quarters (average surprise +17.4% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 6, 2026 | $1.24 | $1.43 | +15.3% | $136M | +6.1% |
| Feb 25, 2026 | $0.96 | $1.21 | +26.0% | $130M | +1.8% |
| Nov 5, 2025 | $0.65 | $0.71 | +9.2% | $117M | -9.0% |
| Aug 7, 2025 | $0.58 | $0.69 | +19.0% | $99M | +4.0% |
| Feb 25, 2025 | $0.51 | $0.73 | +42.2% | $98M | +32.9% |
| Nov 7, 2024 | $0.15 | $0.49 | +226.7% | $70M | -5.7% |
| Feb 26, 2024 | $0.00 | $0.09 | +5289.2% | $49M | +23.2% |
| May 15, 2023 | $0.00 | $0.05 | +2997.0% | $35M | +2.0% |
| Jun 29, 2019 | — | $-0.25 | — | $2M | — |
| Mar 30, 2019 | — | $-0.25 | — | $2M | — |
| Sep 29, 2018 | — | $-0.17 | — | $688079 | — |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q1 FY2026 · May 6, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
• 2026 focus is to move beyond checkout and serve consumers broadly in everyday lives, expanding into areas like deposit accounts, card products, enhanced lending options. • First quarter had strong growth, profitability, and improved engagement. Average quarterly purchase frequency increased to 7.1 times. • Investments in marketing paying off, with 4.8 million visits to the Earn tab and 55% increase in BNPL conversion within 30 days after first Earn tab activity. • AI embedded into product building, consumer support, data analysis, and business operation. • Using AI to improve consumer experience, increase output, and scale business while keeping expense growth below revenue growth. • Progress made on several fronts in Q1: expanded short-term installment optionality, launched and enhanced long-term lending, introduced virtual card in Canada, launched Sezzle mobile plan.
Guidance
• Raised total revenue growth guidance from 25% to 30% to a new range of 30% to 35%. • Increased adjusted net income guidance by $10 million to $180 million. • Raised adjusted EPS guidance to $5.10 to $4.70. • Guidance reflects confidence in the momentum of the business. • Expect to continue leveraging operating expense base while investing in areas delivering attractive returns.
Segment performance
GMD grew 37.3% year over year. Total revenue grew 29.2%. Gross margins reached 74% of total revenue. Generated 51.3 million of net income (37.9% profit margin) and 71.1 million of adjusted EBITDA (52.5% adjusted EBITDA margin). Total subscribers increased by 44,000 to 714,000. Marketing spend increased in Q1 but payback period is less than six months. PAN 5 expanded short-term installment optionality, long-term lending capability enhanced, virtual card launched in Canada, Sezzle mobile plan launched on AT&T's network.
Risks & headwinds
• Antitrust suit is currently ongoing. • Banking charter process is long and not guaranteed. • Marketing spend is a variable, and while payback period is less than six months, there's always risk in marketing effectiveness. • Provision for credit losses is an estimation and can be affected by various factors including seasonality and new product launches.
Analyst Q&A
Q: Mike Grondahl asked about projecting the most important product out of PAN 5, Virtual Card in Canada, mobile plan, and enhanced long-term lending, and about marketing channels and outlook.
A: Charlie said Pay in 5 is important as it has proven results, Virtual Card in Canada has potential but is in Canada with 10% volume, mobile plan is for retention, enhanced long-term lending is a nice sidecar. Marketing channels include web ads, social media ads, in-app ad networks, connected TV; marketing spend is up year over year but as a percent of revenue is reasonable.
Q: Kyle Peterson asked about credit costs, expectations of getting back to 2.5 to 3% range, and partnership with Pagaya.
A: Lee said provision is an estimation, trend lines are good, paying 5 has slightly higher provision but they're comfortable with 2.5 to 3%. Partnership with Pagaya is for monetization as a take rate on volume, helps win merchant deals.
Q: Hal Goetsch asked about middle market merchants, enterprise customers, marketing spend outlook, and macro.
A: Charlie said business is becoming more direct to consumer, marketing spend will continue to rise as team finds more ad places, macro not affecting their customer base much.
Q: Raina Kumar's substitute asked about product pipeline timeline, AI use.
A: Charlie said products may be completed by end of 2027, AI is used everywhere in product development, making teams more productive.
Q: Ryan Tomasello asked about cash advance product, checking product.
A: Cash advance product is being tested, planned to launch in next few months, checking product planned for third quarter, will figure out ways to incentivize uptake.
Q: Hoang Nguyen asked about revenue less transaction cost margin, levers to improve margin, and bank charter.
A: Lee said margin is helped by scale, transaction expense, net interest expense, provision; bank charter provides regulatory defensibility and moves variable cost to fixed cost.
Q: Hoang Nguyen's follow-up on bank charter asked about products it allows to launch.
A: Bank charter provides regulatory defensibility, moves variable cost to fixed cost, and may allow faster product launch as bank is more focused.