Record Q3 Growth and Raised Guidance Might Change the Case for Investing In Sezzle (SEZL)

• Earlier this week, Sezzle Inc. reported its fiscal Q3 2025 results, posting nearly 67% year-over-year revenue growth and record quarterly gross merchandise volume of US$1 billion due to strong adoption of its subscription products and a focus on consumer engagement.
• The company also raised its full-year EPS and Adjusted EBITDA guidance, underlining management's increased confidence in Sezzle’s sustained momentum and operational outlook.
• We’ll now explore how Sezzle’s raised guidance and record subscription growth might influence its long-term investment case.

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Sezzle Investment Narrative Recap

To be a Sezzle shareholder, you need to believe in the continued shift toward digital payments and that expanding subscription products will drive sustainable, higher-margin growth. The recent Q3 results, with record US$1 billion gross merchandise volume and raised earnings guidance, reinforce the importance of subscriptions as a catalyst; however, elevated provision for credit losses remains the main near-term risk, and these results do not materially lessen this concern for many investors. One particularly relevant development is Sezzle's announcement of new partnerships, such as with Backcountry and Rural King, expanding its buy-now-pay-later reach in key markets. This supports the momentum behind transaction growth, but it only becomes an advantage if user acquisition keeps delivering stronger economics, especially as competitive spending rises. By contrast, investors should be aware of how persistently high credit losses could...

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 currently.

Uncover how Sezzle's forecasts yield a $108.50 fair value, a 99% upside to its current price.

Exploring Other Perspectives

Sixteen fair value estimates from the Simply Wall St Community range from US$8.83 to US$267.23 per share. Diverging opinions meet head-on with Sezzle’s elevated credit risk and increased lending to first-time users, so check out a few views for yourself.

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 3 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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