Sezzle's 34.32% Plunge Ranks 188th in Market Activity Despite Record Earnings and Revenue Surge

On August 8, 2025, Sezzle (SEZL) fell 34.32% with a trading volume of $0.51 billion, ranking 188th in market activity. The decline followed mixed investor reactions to its earnings report, despite strong financial results.

Sezzle reported Q2 revenue of $98.7 million, up 76.4% year-over-year, surpassing estimates of $94.9 million. Adjusted earnings per share rose 97% to $0.69, driven by a 116.1% increase in operating income to $36.1 million. The company also saw a 74.2% rise in gross merchandise volume to $927 million and a 9.6% growth in high-frequency users to 748,000. CEO Charlie Youakim highlighted product innovations and marketing efforts as key growth drivers.

Despite robust performance, the stock plummeted as guidance signaled slowing momentum. Sezzle projected 60%-65% revenue growth for the second half of 2025, below the 76.4% pace in H1. The forward P/E ratio of under 30, while attractive for a high-growth company, failed to offset concerns about decelerating expansion. Sector-wide selloffs, including a 9.18% drop in Affirm (AFRM), amplified market anxiety over regulatory risks and margin pressures in the buy-now-pay-later space.

Backtest analysis of a volume-weighted strategy revealed a 12.17% compound annual growth rate from 2022 to 2025, underscoring the potential of high-liquidity stocks in short-term trading. However, Sezzle’s recent volatility highlights the sector’s sensitivity to growth expectations and macroeconomic shifts.