Sezzle Q2 GMV up 74% YoY, Monthly On-Demand & Subscribers at record high.

• Sezzle reports Q2 2025 results • GMV up 74% YoY to a new high • Monthly On-Demand and Subscribers at an all-time high • Investments fuel growth in product features and marketing initiatives • Company scaling with intention, not just growth • Executive Chairman and CEO Charlie Youakim notes early proof of focused investments paying off.

Sezzle Inc. (NASDAQ:SEZL) has reported its Q2 2025 financial results, showcasing robust growth and setting new records in key metrics. The company's Gross Merchandise Volume (GMV) increased by 74% year-over-year (YoY) to a new high of $808.7 million, driven by strong user engagement and operational discipline [2].

The company's monthly On-Demand and Subscribers also reached all-time highs, indicating a significant increase in user activity and retention. Sezzle's revenue for the quarter jumped to $104.9 million, up 123.3% YoY, while net income more than quadrupled to $36.2 million compared to the same period last year [2].

Charlie Youakim, the Executive Chairman and CEO of Sezzle, noted that the company's growth is a result of its strategic investments in product features and marketing initiatives. "We are seeing early proof that our focused investments are paying off," he said. Sezzle has been scaling its operations with a clear intention, not just for growth, but to build a sustainable and profitable business [2].

The company also raised its full-year revenue and net income guidance, showing confidence in its continued growth trajectory. Sezzle now expects total revenue growth of 60-65%, up from its previous guidance of 25-30%, and net income guidance for the year has been raised by nearly 50% to $120 million [2].

The strong performance comes amid a challenging macroeconomic environment, where many consumer lending stocks have seen significant volatility. However, Sezzle's short interest level has been higher than other BNPL stocks, potentially indicating a short squeeze scenario. The company's short interest spiked during the spring correction and has since declined, suggesting a potential short squeeze rally [3].

Despite the short-term volatility, Sezzle's fundamentals remain strong. The company boasts great operating margins of 47%, compared to Affirm's ~12.7%, and has a distinct competitive edge in its business model [3]. Sezzle's largest sales segment is transaction income, which includes fees paid by merchants for processing, fees on consumers for making scheduled payments, and fees for using Sezzle [3].

In conclusion, Sezzle's Q2 2025 results demonstrate the company's ability to navigate challenging market conditions and continue to grow. The company's strategic investments in product features and marketing initiatives, along with its strong fundamentals, position it well for future growth.

References:
[1] https://finviz.com/news/124093/sezzle-sezl-raises-full-year-guidance-after-strong-growth-in-q1
[2] https://seekingalpha.com/article/4809123-sezzle-short-squeeze-over-consumer-macro-risks-ahead