How New Buyback And Index Inclusions At Sezzle (SEZL) Have Changed Its Investment Story

• Earlier this week, Sezzle Inc. (NasdaqCM: SEZL) completed a US$50.00 million share repurchase program and then authorized a new, open-ended US$100.00 million buyback while also being added to the S&P SmallCap 600, S&P 1000, S&P 600 Financials, and S&P Composite 1500 indices.
• Together, the expanded buyback capacity and new index inclusions suggest Sezzle is tightening its share count while broadening its institutional investor reach.
• With this fresh US$100.00 million repurchase authorization in place, we’ll assess how it reshapes Sezzle’s existing growth-focused investment narrative.

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Sezzle Investment Narrative Recap

To own Sezzle, you need to believe its buy now, pay later model can keep scaling profitably as it leans into higher value subscription products and disciplined credit risk. The fresh US$100.00 million buyback and S&P index additions support the existing bullish narrative but do not materially change the key near term swing factors, which remain execution on profitable user growth and the risk that higher credit losses or marketing spend erode margins.

The new open ended US$100.00 million repurchase plan, coming right after completing a US$50.00 million program, matters most here because it interacts directly with Sezzle’s growth focused story. Management is now pairing rapid revenue and earnings expansion with active share count management, which could amplify earnings per share outcomes if operating momentum and credit discipline hold, but also raises the stakes if credit losses or On Demand mix pressures margins.

Yet against this backdrop of index inclusion and buybacks, investors should still be watching the rising provision for credit losses and what it could mean for...

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 about a $127.6 million earnings increase from $104.6 million today.

Uncover how Sezzle's forecasts yield a $108.50 fair value, a 48% upside to its current price.

Exploring Other Perspectives

Seventeen members of the Simply Wall St Community value Sezzle anywhere between about US$9 and US$267 per share, underscoring very different expectations. Against that wide range, Sezzle’s heavy marketing spend and need to achieve its targeted six month payback period could be an important swing factor for future profitability and how those valuations ultimately stack up.

Explore 17 other fair value estimates on Sezzle - why the stock might be worth over 3x 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 1 important warning sign 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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