Key Highlights

  • Revenue was USD 166.5 million against a USD 155.01 million estimate, with adjusted EPS of USD 1.37 against USD 1.28.
  • GAAP Net Income was USD 47.8 million, or USD 1.38 per diluted share, against USD 26.7 million, or USD 0.75.
  • Transaction Volume reached USD 1.4 billion, up 34.9%, and active subscribers reached 955,000, up 68.1%.
  • Full year 2026 adjusted EPS guidance is USD 5.45 to USD 5.50, with preliminary 2027 guidance at USD 7.20.

Sezzle Inc. (NASDAQ:SEZL) reported third quarter Revenue of USD 166.5 million, which the company described as a record and 42.6% above the USD 116.8 million of a year earlier. Adjusted Earnings per diluted share were USD 1.37 against USD 0.70, while GAAP diluted EPS was USD 1.38. The company also raised its 2026 guidance for the fourth time.

Revenue

Total revenue of USD 166.5 million compares with an estimate of USD 155.01 million. Total transaction volume rose 34.9% to USD 1.4 billion, a measure that now includes cash advances through SezzleCash and peer-to-peer payments through Sezzle Send. Total revenue was 11.9% of that volume, against 11.3% in the third quarter of 2025. Active subscribers rose 68.1% to 955,000, and average quarterly transaction frequency was 7.8 times against 6.5.

Profit and Margins

Operating expenses were USD 102.3 million, up 25.9%, or 61.4% of revenue against 69.6%. Operating Income was USD 64.3 million against USD 35.6 million, a Margin of 38.6%. The provision for Credit losses was 2.7% of transaction volume against 3.1%, and transaction expense was 1.3% against 1.7%, which included a USD 3.7 million payment network incentive. Marketing expense was USD 15.9 million, against USD 19.4 million in the second quarter and USD 8.8 million a year earlier.

GAAP net income was USD 47.8 million, or USD 1.38 per diluted share, with a net income margin of 28.7%. Adjusted net income was USD 47.7 million, or USD 1.37 per diluted share, and adjusted EBITDA was USD 70.2 million, a margin of 42.1% of revenue. Corporate strategic project costs were USD 2.4 million, reflecting professional services for the antitrust suit and the national bank charter application.

Cash and Balance Sheet

Cash, cash equivalents and restricted cash were USD 107.9 million at September 30, of which USD 37.7 million was restricted. USD 104.0 million was outstanding on the USD 300.0 million credit facility. Stockholders' Equity was USD 277.7 million.

To support the wider launch of SezzleCash and Sezzle Send, the company entered a retention arrangement with WebBank, under which WebBank originates and holds eligible loans off Sezzle's Balance Sheet while Sezzle continues to service them.

Guidance and Initiatives

Full year 2026 total revenue growth is now guided to approximately 42.5%, against 35% in August. Adjusted net income is guided to USD 190.0 million and adjusted EPS to USD 5.45 to USD 5.50, against USD 5.25 in August. The company also targets a 2026 provision for credit losses of approximately 2.5% of transaction volume. Preliminary 2027 adjusted EPS guidance is USD 7.20.

Chief executive Charlie Youakim said subscribers were approaching one million heading into the holiday season. More than 15% of SezzleCash-eligible new Anywhere subscribers made their first transaction through SezzleCash. Sezzle Send reached all users in October, and the company soft-launched Sezzle Anywhere in Canada after quarter end.

Key Figures Side by Side

Revenue of USD 166.5 million sits alongside adjusted EPS of USD 1.37, GAAP EPS of USD 1.38 and transaction volume of USD 1.4 billion. Cash of USD 107.9 million is held against USD 104.0 million drawn on the credit facility.

Management named adjusted EPS guidance of USD 5.45 to USD 5.50 for 2026 and USD 7.20 for 2027. In October 2026 it filed an application with the Office of the Comptroller of the Currency to establish Sezzle Bank, N.A., alongside an application to the Federal Deposit Insurance Corporation for deposit insurance.