Sezzle Q3 adjusted EPS beats estimates as active subscribers grow

Overview

• US fintech BNPL platform's Q3 revenue rose 42.6% yr/yr to $166.5 mln

• Q3 adjusted EPS was $1.37, beating analyst expectations

• Company raised FY2026 guidance for revenue growth and adjusted net income

Outlook

• Sezzle raises FY2026 guidance to ~42.5% total revenue growth and $190 mln adjusted net income

• Company expects FY2026 adjusted net income per diluted share of $5.45–$5.50

• Sezzle introduces preliminary FY2027 guidance for adjusted net income per diluted share of $7.20

Result Drivers

• SUBSCRIBER GROWTH - Active subscribers rose 68.1% yr/yr to 955,000, supporting higher transaction volume and engagement

• INCREASED TRANSACTION VOLUME - Total transaction volume climbed 34.9% yr/yr to $1.4 bln, driven by subscriber growth and new products such as SezzleCash and Sezzle Send

• LOWER TRANSACTION COSTS - Transaction related costs fell to 4.2% of TTV from 5.2% a year earlier, aided by improved credit loss provisions and a payment network incentive

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the business support services peer group is "buy"

• Wall Street's median 12-month price target for Sezzle Inc is $165.00, about 34.8% above its November 3 closing price of $122.43

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 26 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)