Sezzle Inc. (SEZL) AI Stock Analysis

• Market Cap: $1.61B
• Dividend Yield: N/A
• Average Volume (3M): 848.06K
• Price to Earnings (P/E): 21.7
• Beta (1Y): 4.59
• Revenue Growth: 70.14%
• EPS Growth: 1359.37%
• Country: US
• Employees: 402
• Sector: Financial
• Sector Strength: 83
• Industry: Financial - Credit Services
• EPS (TTM): 2.18
• Shares Outstanding: 33,853,687
• 10 Day Avg. Volume: 825,862
• 30 Day Avg. Volume: 848,060
• PEG Ratio: 0.02
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $218.50
• Price Target Upside: 360.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Sezzle Inc. scores highly due to its transition to profitability and strong revenue growth, as highlighted in the earnings call. Technical indicators show positive momentum, although caution is advised due to overbought conditions. Valuation remains balanced, providing room for growth but also reflecting risks such as increased credit losses. The overall score is driven by strong financial performance and optimistic guidance, despite some concerns over leverage and cash flow consistency.

Sezzle Inc. Business Overview & Revenue Model

Company Description

Sezzle Inc. operates as a technology-enabled payments company primarily in the United States and Canada. The company provides payment solution at online stores and various brick-and-mortar retail locations that connects consumers with merchants. Its platform enables customers to make online purchases and split the payment for the purchase in four equal interest free payments over six weeks. Sezzle Inc. was incorporated in 2016 and is headquartered in Minneapolis, Minnesota.

How the Company Makes Money

Sezzle Inc. makes money primarily through transaction fees charged to merchants each time a consumer uses the Sezzle platform for a purchase. These fees are typically a percentage of the transaction amount. Additionally, Sezzle may earn revenue from consumer-related fees, such as late payment fees, although these are a smaller part of their revenue model. Sezzle's partnerships with a wide range of merchants increase its transaction volume, thereby contributing significantly to its earnings. The company also benefits from strategic partnerships with retail and e-commerce platforms that integrate Sezzle as a payment option, helping to expand its user base and transaction frequency.

Sezzle Inc. Financial Statement Overview

Summary

Sezzle Inc. has shown remarkable financial improvement, transitioning from losses to profitability with strong revenue growth and improved margins. The balance sheet reveals growing equity and assets, although leverage remains a concern. While operating cash flow has turned positive, the company needs to maintain consistency in free cash flow generation for sustainable growth.

Income Statement

Sezzle Inc. has demonstrated substantial revenue growth, with the latest annual revenue figures showing a significant increase compared to previous years. The gross profit margin and net profit margin have improved markedly, showcasing enhanced profitability. The company has transitioned from net losses to substantial net income, indicating effective cost management and revenue enhancement strategies.

Balance Sheet

The balance sheet shows a healthy increase in stockholders' equity and total assets, indicating growth and stability. However, the debt-to-equity ratio remains relatively high, pointing to potential leverage risks. The company has also improved its equity ratio, which suggests a stronger capital structure over time.

Cash Flow

Operating cash flow has turned positive, reflecting improved cash generation from core operations. However, the free cash flow growth rate is volatile, suggesting potential concerns regarding sustainable cash flow generation. The company needs to focus on maintaining positive free cash flow to ensure long-term financial health.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
271.13M	159.36M	125.57M	114.82M	58.79M
	Gross Profit
219.36M	73.78M	74.35M	70.59M	35.87M
	EBIT
82.25M	22.20M	-30.31M	-68.68M	-27.92M
	EBITDA
82.04M	24.53M	-28.58M	-69.09M	-27.63M
	Net Income Common Stockholders
78.52M	7.10M	-38.09M	-75.17M	-32.39M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
73.19M	67.62M	68.28M	76.98M	84.29M
	Total Assets
298.37M	212.65M	172.58M	161.93M	174.11M
	Total Debt
104.91M	95.67M	64.11M	56.70M	41.30M
	Net Debt
31.73M	28.05M	-4.17M	899.02K	-42.99M
	Total Liabilities
210.54M	190.55M	163.73M	134.54M	114.15M
	Stockholders Equity
87.84M	22.09M	8.84M	27.39M	59.96M
Cash Flow		Free Cash Flow
39.44M	-27.06M	7.50M	―	―
	Operating Cash Flow
40.90M	-25.69M	8.51M	-52.28M	-19.00M
	Investing Cash Flow
-1.46M	-1.37M	-1.01M	―	―
	Financing Cash Flow
-10.37M	28.22M	-15.69M	45.84M	59.46M

Sezzle Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 47.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SEZL, the sentiment is Positive. The current price of 47.42 is above the 20-day moving average (MA) of 38.31, above the 50-day MA of 41.66, and above the 200-day MA of 37.07, indicating a bullish trend. The MACD of 1.69 indicates Negative momentum. The RSI at 62.04 is Neutral, neither overbought nor oversold. The STOCH value of 88.80 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SEZL.

Sezzle Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SEZL	74 Outperform	$1.61B	21.73	142.86%	―	70.14%	1359.37%
WU	72 Outperform	$3.36B	3.78	136.84%	9.23%	-5.16%	59.60%
OMF	69 Neutral	$5.15B	10.18	15.96%	8.54%	7.96%	-20.11%
SOFI	63 Neutral	$13.59B	32.22	8.26%	―	29.33%	―
Sector *	63 Neutral	$12.32B	9.52	7.97%	79.23%	12.77%	-4.57%
LU	52 Neutral	$2.44B	―	-3.79%	4.23%	-38.81%	-425.73%
UPST	52 Neutral	$4.44B	―	-20.27%	―	24.50%	49.38%

Sezzle Inc. Corporate Events

Sezzle Inc. Reports Strong Q4 and 2024 Financials

Sezzle Inc. reported exceptional financial performance for the fourth quarter and fiscal year 2024, with significant growth in Gross Merchandise Volume and Total Revenue, driven by strong holiday shopping and strategic partnerships. The company achieved a tenfold increase in its 2024 bottom line, reflecting disciplined execution and strategic focus, and anticipates continued growth in 2025 with new product launches and expanded market presence. Sezzle’s operational efficiency and profitability have improved, with notable increases in Net Income and Adjusted EBITDA, positioning the company strongly within the industry.