Sezzle Q1 revenue rises on higher purchase frequency

Sezzle

06/05/2026 22:11

Overview

US digital payment platform's Q1 revenue rose 29% yr/yr, driven by higher purchase frequency

Net income and adjusted net income both increased over 40% yr/yr in Q1

Company raised FY2026 revenue and adjusted net income guidance

Outlook

Sezzle raises FY2026 total revenue growth guidance to 30–35% from 25–30%

Company lifts FY2026 adjusted net income forecast to $180 mln from $170 mln

Sezzle ups FY2026 adjusted net income per diluted share outlook to $5.10 from $4.70

Result Drivers

PURCHASE FREQUENCY - Record average quarterly purchase frequency of 7.1x supported GMV and revenue growth, per CEO Charlie Youakim

ACTIVE SUBSCRIBERS - 48.4% yr/yr growth in active subscribers contributed to higher engagement and transaction volumes

CREDIT PERFORMANCE - Improved consumer repayment performance reduced provision for credit losses to 1.2% of GMV, supporting lower transaction-related costs

Company press release: ID:nGNX1cbbMf

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Total Revenue
$135.50 mln
Q1 EPS
$1.47


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the business support services peer group is "buy"

Wall Street's median 12-month price target for Sezzle Inc is $96.50, about 13.3% above its May 5 closing price of $85.19

The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 14 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)