Sezzle Soars 35.26 as Earnings Triumph and Retail Frenzy Propel It to 379th Volume Rank in U.S. Markets

Market Snapshot

Sezzle (SEZL) surged 35.26% on February 26, 2026, marking one of its most significant single-day gains in recent history. The stock’s trading volume spiked to $0.37 billion, a 486.65% increase from the prior day, ranking it 379th in volume among U.S. equities. This performance followed the company’s fourth-quarter earnings report, which revealed adjusted earnings per share (EPS) of $1.21—surpassing Wall Street estimates of $0.96—and revenue of $129.9 million, a 32.2% year-over-year increase. The stock’s rally was fueled by a combination of strong financial results, optimistic 2026 guidance, and heightened retail investor enthusiasm.

Key Drivers

Sezzle’s stock surge was primarily driven by its fourth-quarter results, which exceeded expectations across multiple metrics. The company reported a record quarterly Gross Merchandise Volume (GMV) of $1.2 billion, a 35.3% year-over-year increase, driven by strategic investments in subscription offerings and a 6.6x average consumer transaction rate compared to 5.5x in the prior year. This growth was supported by targeted marketing efforts and the adoption of new shopping features, particularly during the holiday season. Additionally, Sezzle’s adjusted EPS of $1.21 and revenue of $129.9 million outperformed analyst forecasts, signaling strong operational execution.

The company’s forward-looking guidance further bolstered investor confidence. Sezzle projected 2026 revenue growth of 25-30% and raised its adjusted EPS forecast to $4.70 per share, exceeding the $4.33 consensus. This optimism was underpinned by plans to expand its ecosystem, including the launch of an AI-powered shopping assistant and “Sezzle Mobile,” a wireless service on the AT&T network priced at $29.99 per month. These initiatives aim to integrate flexible payments, shopping, and essential services into a single platform, enhancing user engagement and recurring revenue streams.

Retail investor sentiment played a pivotal role in amplifying the stock’s momentum. Stocktwits data revealed a 300% surge in message volumes for SEZL in the 24 hours preceding the rally, with retail traders labeling the stock a “steal” below $150 and predicting a “nuclear” move. The platform’s user base for SEZL had also grown by 108% over the past year, reflecting heightened retail participation. Analysts from Needham & Company and UBS Group raised price targets, with the former setting a $94 target (a 50% upside from the previous close) and the latter at $76. This institutional and retail alignment underscored confidence in Sezzle’s ability to capitalize on its BNPL (Buy Now, Pay Later) market position and technological innovations.

Sezzle’s strategic focus on reducing customer costs also contributed to the positive reception. The company emphasized initiatives like Sezzle Mobile, which aims to help consumers save on recurring expenses, and its AI-driven tools, which personalize shopping experiences to boost conversion rates. These efforts align with broader trends in fintech, where user-centric solutions and cost savings are increasingly valued. Furthermore, the company’s balance sheet strength—$104.15 million in cash and a lean debt-to-equity ratio—provided additional reassurance to investors, reinforcing its capacity to fund growth without overleveraging.

While the stock’s rally was largely driven by internal momentum, external factors such as the BNPL sector’s resilience and favorable regulatory tailwinds in 2025 also played a role. Sezzle’s CEO noted that state-level regulations, though a potential long-term risk, were unlikely to disrupt operations in the near term. The company’s exploration of an Industrial Loan Company (ILC) charter and its proactive approach to compliance further mitigated concerns about regulatory headwinds.

In summary, Sezzle’s 35.26% gain was fueled by a combination of outperforming Q4 results, ambitious 2026 guidance, product innovation, and strong retail and institutional support. The stock’s performance highlights investor confidence in the company’s ability to scale its ecosystem, leverage AI, and maintain profitability in a competitive fintech landscape.