Sezzle: Explosive Growth & BNPL Tailwinds Drive Long-Term Upside

Sezzle, a buy-now, pay-later (BNPL) financial technology company, has experienced significant growth over the past 12 months, with a 270% appreciation in its stock price. Despite a 50% pullback from its high in July 2025, Sezzle has long-term upside due to its explosive growth and BNPL tailwinds.

Sezzle (NASDAQ: SEZL), a high-growth financial technology company operating in the buy-now, pay-later (BNPL) market, has experienced significant appreciation over the past 12 months. Despite a 50% pullback from its high in July 2025, the stock has shown robust growth, rising nearly 270% overall. This substantial retracement presents a compelling opportunity for long-term investors to consider this small-cap name.

Sezzle's forward P/E of around 26 may seem premium compared to the broader market, but it grows 11x faster than the sector median at 92.95% versus 7.15%. The company's rapid growth is underpinned by its position in a rapidly expanding BNPL market. In 2024, the market was valued at $235 billion, but it is expected to reach $1.6 trillion by 2032, indicating a 21.2% CAGR Sezzle: Explosive Growth And BNPL Tailwinds Drive Long-Term Upside^[1].

Sezzle offers a BNPL solution, allowing clients to split their purchases into multiple interest-free installments. The company targets Gen Z and Millennials, who find the service attractive due to its flexibility and accessibility. The BNPL market, driven by the young generation, is expected to sustain growth, positioning Sezzle well for future years.

The company generates revenue through merchant processing fees and subscription services, occasionally benefiting from consumer fees such as late fees. Sezzle partners with retailers to integrate its payment widget into e-commerce platforms, offering pay-in-4, pay-in-2, and up to 48-month installment options, which may include interest.

Sezzle reported a strong double-beat quarter in Q2 2025, with an incredible 76.4% revenue growth to $98.7 million compared to $55.97 million in the same quarter last year. The company's operating income grew 116% year-over-year, and its net income came in at $27.6 million, roughly 28% of revenue Sezzle: Explosive Growth And BNPL Tailwinds Drive Long-Term Upside^[1].

The company's forward P/E of 25.93 is higher than the industry's average of 11.61 and the S&P 500's average of 23.13, but it is not out of line for a rapidly growing small-cap stock. Sezzle's forward PEG of 0.11 suggests it is significantly undervalued, and its forward EV/Sales and EV/EBITDA of 6.63 and 16.83, respectively, indicate a higher growth expectation Sezzle: Explosive Growth And BNPL Tailwinds Drive Long-Term Upside^[1].

Sezzle is a low-leverage company with total obligations of $131.39 million and $88.94 million in cash, providing financial flexibility. The company's forward revenue growth rate at 52.13% is substantially higher than peers' 6.84%, and its EBITDA grew nearly 177% year-over-year, significantly outperforming the industry average of 13% Sezzle: Explosive Growth And BNPL Tailwinds Drive Long-Term Upside^[1].

Wall Street analysts expect continued double-digit growth over the next few years. FY2025 estimates are in line with the company's guidance, while FY2026 revenue is expected to increase by 28%, followed by a 42% top-line increase in 2027. Analysts anticipate a 77% bottom-line increase in FY2025, with 32% EPS growth for FY2026 and 30% growth expectations for FY2027 Sezzle: Explosive Growth And BNPL Tailwinds Drive Long-Term Upside^[1].

Sezzle's explosive growth and BNPL tailwinds suggest long-term upside potential for investors. The company's high growth rates, profitability, and shareholder-friendly capital strategy make it an attractive investment for those seeking exposure to the fast-growing BNPL market.

References:
Sezzle: Explosive Growth And BNPL Tailwinds Drive Long-Term Upside^[1] https://seekingalpha.com/article/4821306-sezzle-explosive-growth-and-bnpl-tailwinds-drive-long-term-upside