Updated Aug 10 at 7:02pm ET.
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Sezzle reported a strong second quarter, earning $1.13 per share which was better than the $1.03 analysts expected. The company's total revenue rose about 52 percent to nearly $150 million. This growth was driven by its subscription business, where the number of active subscribers jumped 76 percent to a record 854,000. These subscriptions are important because they provide steady monthly fees and encourage users to use the service more often for everyday purchases.
Management raised its profit forecast for the full year, now expecting to earn $5.25 per share instead of the previous $5.10. The company is also expanding its features with a new service called Sezzle Send launching in August. This shift from a simple checkout button to a broader financial platform is working well, as the business is growing its profits much faster than its costs while keeping loan losses under control.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
The buy-now-pay-later lender is set to report its second-quarter results today. Analysts expect about 140 million dollars in revenue. The company has a consistent track record of beating these targets, having done so in each of its last eight quarters.
Beyond the headline numbers, the focus is on whether its subscription tiers and virtual card are still driving more frequent use. We are also watching for any signs that loan losses, which have been low at about 1.2 percent of transaction volume, are starting to rise as the economy shifts.
CNBC, Newsweek, and U.S. News & World Report named the company to their lists of top fintech firms and online platforms for 2026. These awards highlight the company's successful transition from a basic checkout tool to a broader financial platform. While these honors are mostly for reputation, they can help the company attract more users and employees. This comes as the business continues to see growth from its virtual card and subscription services.
Source: GlobeNewsWire
President Paul Paradis and CFO Lee Dickson sold shares in mid-July. Mr. Paradis sold about 3.6 million dollars worth across several transactions, while Mr. Dickson sold about 500,000 dollars worth.
Large sales by top leaders can sometimes be a warning, but they are often just a way for executives to get cash from their pay packages. Since the company's profits have been growing and it recently raised its full-year targets, these sales do not necessarily signal a problem with the business itself.
The firm downgraded the stock from an outperform rating to Market Perform. This means they expect the stock to perform about the same as the rest of the market rather than beating it.
The stock has risen significantly this year, and this move suggests analysts think the current price already reflects much of the company's recent success. Even with the change, the company's shift to a high-margin subscription model remains a core part of its growth story.
Analysts have recently cooled on the stock, issuing two downgrades following the company's latest earnings report. Three of the six analysts rate the stock a buy, and the average price target suggests a 16% upside from current levels.
Management has a perfect record of beating expectations over the last two years. They consistently set targets they can clear, and the business is currently outrunning even the most bullish forecasts.
| Expectation | |
|---|---|
| EPS | $1.25 |
| Revenue | $155M |
