Can Sezzle’s (SEZL) Earnings Momentum Sustain Its Competitive Edge in the Fintech Space?

• Sezzle recently announced it will release its third-quarter earnings results after market close, aiming to meet analyst expectations of 49.7% year-on-year revenue growth with adjusted earnings anticipated at $0.65 per share.
• The company’s track record of consistently outperforming Wall Street’s revenue estimates has heightened market anticipation ahead of this announcement.
• Given Sezzle's pattern of beating revenue forecasts, we'll examine how this building anticipation could influence the company's investment narrative.

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Sezzle Investment Narrative Recap

Shareholders in Sezzle typically believe in the company’s potential to expand its user base and grow revenues within the buy-now-pay-later space, especially as younger consumers show sustained interest in flexible financing. The latest earnings release, with the market watching for Sezzle to meet or surpass already high revenue expectations, is likely the most important short-term catalyst, while greater competition and increased marketing spend continue to pose the biggest risks; this announcement does not fundamentally change those dynamics.

One recent announcement closely tied to these themes is Sezzle’s completion of a US$23.76 million share buyback in Q2 2025. This move may signal the company’s confidence in its cash generation and near-term growth prospects, and it coincides with ongoing marketing investments aimed at sustaining top-line expansion, both of which are central to Sezzle’s current investment story.

In contrast, with marketing spending up sharply, the risk of customer acquisition costs rising faster than revenue is a concern that investors should not overlook...

Read the full narrative on Sezzle (it's free!)

Sezzle's narrative projects $885.4 million revenue and $232.2 million earnings by 2028. This requires 33.5% yearly revenue growth and a $127.6 million earnings increase from $104.6 million today.

Uncover how Sezzle's forecasts yield a $119.25 fair value, a 94% upside to its current price.

Exploring Other Perspectives

Sixteen fair value estimates from the Simply Wall St Community stretch from as low as US$4.98 to as high as US$267.23 per share. While many foresee continued revenue growth, opinions vary widely on Sezzle’s earnings sustainability and long-term margin improvement, underscoring the need to compare multiple perspectives before making any conclusions.

Explore 16 other fair value estimates on Sezzle - why the stock might be worth over 4x more than the current price!

Build Your Own Sezzle Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Sezzle research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Sezzle research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Sezzle's overall financial health at a glance.

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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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