Sezzle (OTCPK:SEZN.L) Q1 2025 Earnings Double Year-Over-Year

Sezzle (OTCPK:SEZN.L) recently experienced a significant stock movement, with a 90% increase over the last quarter, coinciding with its removal from key indices such as the Russell 3000E series. This could potentially decrease the company's visibility in the market. Despite this turbulence, Sezzle reported robust Q1 2025 earnings with revenue and net income more than doubling from the previous year, potentially buoying investor confidence. Concurrently, while major market indexes like the S&P 500 and Nasdaq rose, likely due to global economic optimism, Sezzle's specific operational achievements might have provided additional upward momentum.

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Over the past year, Sezzle's total return, including share price alongside dividends, declined by 7.24%. This performance is contrasted by the US Market's growth of 19.3% and the US Diversified Financial industry's increase of 16.1%, highlighting Sezzle's underperformance relative to both benchmarks. The significant recent quarterly increase of 90% in Sezzle's share price, despite its annual underperformance, suggests the market might be reacting to the company's strengthened earnings and positive revenue figures. However, concerns about Sezzle's visibility following its recent exclusion from key indices remain prevalent.

The impressive results in Q1 2025, including the doubling of sales to US$104.91 million and net income to US$36.16 million, may drive revisions in revenue and earnings forecasts upwards. Investor sentiment could be further influenced by the updated guidance projecting higher net income and revenue growth for fiscal year 2025. Yet, no share repurchases in recent months might indicate a different prioritization of capital allocation. Sezzle’s current share price surge contrasts with analysts’ consensus price targets, leaving open questions about the stock's valuation in light of its significant recent movement.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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