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Key Stats for Sezzle Stock
- YTD Price Change for Sezzle stock: 196%
- Current Share Price: $135
- 52-Week High: $187
- SEZL Stock Price Target: $161
What Happened?
Sezzle (SEZL) stock more than doubled following the buy-now-pay-later company’s exceptional first-quarter earnings that showcased explosive growth across all key metrics.
The digital payment platform reported gross merchandise volume (GMV) surging 64% year-over-year to $808.7 million, while revenue skyrocketed 123% to a quarterly record of $104.9 million.
The standout performance was driven by Sezzle’s expanding user base, with monthly on-demand users and subscribers (MODS) growing 77% year-over-year to 658,000.
Its WebBank partnership, launched in September 2024, delivered its first full quarter of benefits, helping boost revenue yield to 13% of GMV from 11.5% in the prior quarter.
Transaction costs also improved dramatically, falling from 4.3% to 3.8% of GMV due to better credit performance and optimized payment processing.
Most impressively, net income more than quadrupled to $36.2 million with a 34.5% margin, while cash flow from operations jumped to $58.8 million.
The strong results prompted management to raise 2025 guidance significantly, now expecting revenue growth of 60-65% versus the previous 25-30% forecast, and boosting net income guidance to $120 million.
See analysts’ growth forecasts and price targets for Sezzle (It’s free!) >>>
What the Market Is Telling Us About Sezzle Stock
The 200% year-to-date surge in SEZL stock reflects investor excitement about Sezzle’s ability to compete and thrive against larger, better-capitalized BNPL peers.
Sezzle is demonstrating that innovation and operational efficiency can drive outsized returns, with its “Rule of 100” metric (combining revenue growth rate and gross margin) hitting an extraordinary 227.5%.
What’s compelling is Sezzle’s expanding market opportunity. The fintech entity controls less than 1% of North America’s $257 billion BNPL market, which represents only 2% of total commerce transactions. This massive runway, combined with improving unit economics and customer engagement metrics, supports the premium valuation of nearly 15x sales.
The market is also rewarding Sezzle’s product innovation, including beta launches of Pay-in-5 (extending payments from 4 to 5 installments) and auto-couponing features that enhance customer loyalty.
Average quarterly purchase frequency has increased from 4.5x to 6.1x, indicating stronger customer stickiness and repeat usage that creates competitive moats.
However, at current valuations of 40x forward earnings versus 23x for the S&P 500, investors are pricing in continued exceptional execution. Any stumble in growth metrics or credit performance could lead to volatility.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
