Sezzle Inc. reported fourth‑quarter and full‑year 2025 results that surpassed expectations, with revenue of $129.9 million and adjusted earnings per share of $1.21, a 26% beat over the consensus estimate of $0.96. Year‑over‑year revenue grew 67% to $129.9 million, driven by a 35.3% increase in gross merchandise value to $1.2 billion. Adjusted net income rose to $170 million, a 31% gain from the prior year, reflecting stronger margins and efficient cost management.
The company’s margin expansion was supported by a 2.0% provision for credit losses—an improvement from the previous year’s 2.3%—and a continued focus on high‑lifetime‑value subscription products. Sezzle’s operating leverage was highlighted by CFO Lee Brading, who noted that the company’s year‑over‑year progression showed “incredible operating leverage.” The shift toward a subscription‑driven model has helped the firm maintain profitability while scaling its merchant and consumer base.
Management raised its 2026 adjusted earnings guidance to $4.70 per share from the previously announced $4.35, and updated revenue guidance to a range of $562.8 million to $585.4 million, above analyst expectations. The guidance reflects confidence in sustained demand for the company’s expanded product suite and the continued growth of its subscription ecosystem.
Executive Chairman and CEO Charlie Youakim emphasized the company’s transformation, stating, “Our tenth year as a company was our most transformative yet, as we achieved new highs in our top and bottom‑line results while advancing our shopping ecosystem.” He added, “By prioritizing higher LTV subscribers and scaling our proprietary shopping features, we have created a platform that delivers daily utility to our consumers.” He also highlighted momentum, noting that “Monthly On‑Demand and Subscribers reached a record 918,000 and app sessions surged 51% year‑over‑year by December.”
Investors responded positively to the earnings, citing the strong EPS beat, margin expansion, and raised guidance as key drivers of confidence in Sezzle’s continued growth trajectory.
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