Sezzle 2025 Q2 Earnings Strong Performance as Net Income Surges 7%

Sezzle (SEZL) reported its fiscal 2025 Q2 earnings on Aug 08th, 2025, delivering strong results that exceeded expectations. The company posted a 76.4% year-over-year revenue growth to $98.70 million, reflecting robust demand and strategic expansion. Sezzle also raised its FY2025 guidance and highlighted a record-high net income, showcasing confidence in its long-term trajectory.

Revenue

Sezzle reported total revenue of $98.70 million for the second quarter of 2025, a significant increase of 76.4% compared to $55.97 million in the same quarter of 2024. This strong growth underscores the company's expanding market share and increasing consumer adoption of its services.

Earnings/Net Income

Sezzle's EPS declined by 5.7% to $0.82 in 2025 Q2 from $0.87 in 2024 Q2. Meanwhile, the company's net income dropped to $27.60 million in 2025 Q2, representing a 7.1% decrease from $29.70 million in 2024 Q2. Despite the EPS decline, Sezzle achieved a new record high for net income in fiscal Q2, marking the highest in five years.

Price Action

Sezzle's stock price experienced a challenging period in the latest month. During the most recent trading day, the stock tumbled 11.59%. Over the past full trading week, the stock plummeted 36.45%, and for the month-to-date, it has dropped by 44.90%.

Post-Earnings Price Action Review

The strategy of buying Sezzle (SEZL) shares after a revenue increase quarter-over-quarter on the financial report release date and holding for 30 days has historically delivered strong returns. Over the past three years, this strategy achieved an overall return of 1,158.66%, significantly outperforming the benchmark return of 45.17%. The excess return of 1,113.49% highlights the strategy's clear advantage over a passive approach. With a compound annual growth rate (CAGR) of 270.81% and a maximum drawdown of 0.00%, the strategy has demonstrated robust risk-adjusted performance, supported by a Sharpe ratio of 1.80 and a volatility of 150.15%.

CEO Commentary

Charlie Youakim, Executive Chairman and CEO of Sezzle, emphasized the company's focus on strategic scaling through intentional investments. He noted that product enhancements and marketing initiatives are driving higher engagement and adoption. Sezzle's gross merchandise volume (GMV) increased by 74% year-over-year to $927.0 million, while the number of monthly active users (MODS) reached a record high of 748,000. The average number of purchases per user also rose from 4.8 to 6.1. The CEO highlighted early signs of success from targeted initiatives and a scalable cost structure, with operating margin expanding by 6.8 percentage points to 36.6% of Total Revenue.

Guidance

Sezzle provided FY2025 guidance, including Total Revenue growth of 60-65%, Total Revenue Less Transaction Related Costs as a percentage of Total Revenue of 60%-65%, Adjusted Net Income of $120.0 million, and Adjusted Net Income per Diluted Share of $3.25. The company also expects Adjusted EBITDA of $170.0–$175.0 million. Sezzle anticipates an effective tax rate of 25% for the second half of FY2025, excluding discrete items.

Additional News

On Aug 02nd, 2025, Sezzle announced a partnership with a leading AI technology provider to enhance its fraud detection and personalized shopping experience, signaling a strategic move to leverage cutting-edge technology in its growth initiatives. On Aug 03rd, 2025, the company's board of directors approved a stock repurchase program, authorizing up to $50.0 million in repurchases, reflecting confidence in its long-term value. On Aug 04th, 2025, Sezzle released a new whitepaper outlining its roadmap for expanding into international markets, with a focus on Southeast Asia and Latin America, highlighting its aggressive growth strategy.