Sezzle (ASX:SZL) Reports 76% Sales Increase in Q2 2025

Sezzle (ASX:SZL) recently completed a share buyback, repurchasing 2% of its outstanding shares for $23.76 million, amidst reporting a significant 76% sales increase year-over-year for the second quarter of 2025, although net income dipped slightly. Additionally, the introduction of new consumer-focused features and the removal from various Russell indices further shaped the company's trajectory. These corporate actions, paired with a general upward momentum in the market and investor anticipation of Federal Reserve rate cuts, contribute context to the company's 43% price increase over the past quarter.

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Over the course of the last year, Sezzle's total shareholder returns, including both share price appreciation and dividends, amounted to 13.41%. Compared to the broader market, which returned 9.6%, Sezzle outperformed within this timeframe, and also surpassed the Australian Diversified Financial industry’s return of 4.7%. These results are indicative of the company's strong positioning within the sector, despite not being without challenges.

The recent corporate actions, such as the share buyback and innovation in consumer-focused features, have implications for Sezzle's revenue and earnings forecasts. While the buyback could potentially enhance earnings per share, the dip in the net income highlights the need for cautious optimism about future profitability. Additionally, the current share price of A$24.35 remains below the consensus analyst price target of A$29.82, suggesting room for potential appreciation. However, this price target should be interpreted carefully given the limited number of analysts covering Sezzle, which impacts confidence in forecast accuracy. The combination of these factors requires investors to balance recent performance with longer-term expectations.

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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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