Key Highlights

• Sezzle shares fell approximately 33.89 percent to $118.02, a decline of $60.51 from a prior close of $178.53, marking the stock's worst single-day decline in a year.

• The drop came despite second quarter revenue of $149.7 million, up 51.7 percent year over year, and adjusted EPS of $1.13, both beating estimates.

• Investors reacted to cautious second-half guidance, with full-year 2026 revenue growth now expected to normalize toward 30 percent from a prior outlook, and the company signaled H2 2026 credit loss margin could rise to the upper half of the 55 to 65 basis-point target range.

• Analyst reaction was split following the drop: KBW cut its price target to $105 from $190 while maintaining a Market Perform rating, while B. Riley raised its target to $196 from $141 and reiterated a Buy.

Guidance Concerns Overshadow the Beat

Sezzle Inc. (NASDAQ:SEZL) shares closed down 33.89 percent at $118.02, near $118, marking the stock's worst single-day decline in a year. The drop came despite the company reporting second quarter revenue of $149.7 million, up 51.7 percent year over year, and adjusted EPS of $1.13, both topping estimates, and management signaling H2 2026 revenue growth expected to normalize toward 30 percent.

Investors instead focused on the company's signal that H2 2026 credit loss margin could rise to the upper half of its 55 to 65 basis-point target range, a factor that appears to have driven the sharp reassessment of near-term profitability.

Valuation Reset and Analyst Split

The decline highlights a valuation reset for the buy now pay later platform even as shares remain up about 86 percent year-to-date after the drop. Analyst reaction was split following the move, with KBW cutting its price target to $105 from $190 while maintaining a Market Perform rating, while B. Riley raised its target to $196 from $141 and reiterated a Buy rating, reflecting genuine disagreement about how much weight to place on the guidance caution relative to the underlying growth trajectory.

A decline of this magnitude, following a strong beat on both revenue and earnings, illustrates how forward guidance can outweigh backward-looking results in shaping market reaction, particularly for high-growth names carrying elevated valuations.

What Investors May Watch Next

Market participants are likely to watch whether credit loss margin trends stabilize within the guided range through the second half of the year, and whether GMV and active subscriber growth continue at the pace reported this quarter. New product launches, including Sezzle Cash and Sezzle Send, may also be monitored as potential contributors to future revenue diversification.

Conclusion

In summary, Sezzle (NASDAQ:SEZL) shares fell approximately 33.89 percent to $118.02 at last closing, as cautious second-half guidance on credit loss margin overshadowed a strong second quarter earnings beat. These are the verified facts from the earnings release and market data. Whether the decline marks a durable valuation reset or an overreaction may depend on how credit metrics trend through the remainder of the year.