MINNEAPOLIS, Nov. 05, 2025 (GLOBE NEWSWIRE) -- Sezzle Inc. (NASDAQ:SEZL) (Sezzle or Company) // Purpose-driven digital payment platform, Sezzle, is pleased to update the market on key financial metrics for the quarter ended September 30, 2025.

"Our products continue to resonate with consumers, as we're seeing clear momentum in both engagement and scale," noted Charlie Youakim, Sezzle Executive Chairman and CEO. "It's exciting to cross $1 billion in quarterly GMV for the first time, which reflects a growing loyal consumer base. We're sharpening our focus on proven results and long-term innovation, and we're looking forward to supporting shoppers with our tools this holiday season."

Third Quarter 2025 Highlights

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1 See appendix for a reconciliation of non-GAAP financial measures.

2 Per diluted share figures reflect 6-for-1 common stock split effective March 28, 2025.

Balance Sheet and Liquidity

Guidance

  FY2025 Guidance
  August Guidance November Guidance
Total Revenue 60% – 65% No change
Total Revenue Less Transaction Related Costs3as % of Total Revenue 60% – 65% No change
Effective Income Tax Rate ~25% (excluding discrete items) No change
Adjusted Net Income3 $120.0 million No change
Adjusted Net Income Per Diluted Share* $3.25 $3.38
Net Income Net Income Guidance will differ from Adjusted Net Income. See Appendix for a reconciliation of Net Income and Adjusted Net Income. $125.0 million
Net Income Per Diluted Share See above $3.52
Adjusted EBITDA3 $170.0 – $175.0 million $175.0 – $180.0 million
Preliminary FY2026 Guidance

Adjusted Net Income Per Diluted Share		 $4.35 (~25% effective income tax rate)

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3 See appendix for a reconciliation of non-GAAP financial measures.

* Non‑GAAP adjusted financial guidance reflects add-backs for expenses associated with corporate strategic initiatives. The November 2025 Guidance assumes diluted weighted-averaged share count of 35.5 million.

Initiatives Update

Awards and Accolades

Chief Financial Officer Transition

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4 Monthly Active Users is defined as the number of unique users that transacted or engaged with the Sezzle app during the month.

5 Revenue Generating Users are unique users that Sezzle monetized.

6 Session for the month of September 2025. A Session occurs when a Sezzle Consumer opens the Sezzle app and ends after 30 minutes of inactivity.

Upcoming Investor Events

Quarterly Conference Call and Presentation

The Company will host its third quarter earnings conference call on November 5, 2025, at 5:00pm ET.

To register for the call, please navigate to: https://dpregister.com/sreg/10204064/10031acd240 

All participants can access the webcast using the following link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=wINtbIvE 

Upon registration, participants will receive the dial-in number. Those without internet access or unable to pre-register may dial in by calling: 1-866-777-2509 (US/CA toll free) or 1-412-317-5413 (international toll). A replay will be available until November 12, 2025. To access the replay dial 1-855-669-9658 (US toll free) or 1-412-317-0088 (International toll). Replay access code: 9729701.

In conjunction with the earnings call, the Company will release its presentation on the Sezzle Investor Relations website before the call. Please navigate to the Sezzle Investor Relations website for the presentation that management will review on the call.

3Q25 GAAP Operating Results

 For the three months ended
($ in thousands)Sep. 30, 2025Sep. 30, 2024YoY Difference
Total Revenue$116,796 $69,958 67.0%
Operating Expenses$81,235 $49,116 65.4%
Operating Expenses as % of Total Revenue 69.6% 70.2%(0.6 ppt)
Operating Expenses as % of GMV 7.8% 7.4%0.4 ppt 
Operating Income$35,561 $20,842 70.6%
Operating Income as % of Total Revenue 30.4% 29.8%0.6 ppt 
Operating Income as % of GMV 3.4% 3.2%0.2 ppt 
Net Income$26,671 $15,446 72.7%
Net Income as % of Total Revenue 22.8% 22.1%0.7 ppt 
Net Income per Diluted Share$0.75 $0.44 70.5%



3Q25 Non-GAAP Operating Results7

 For the three months ended
($ in thousands)Sep. 30, 2025Sep. 30, 2024YoY Difference
Non-Transaction Related Operating Expenses$31,623 $20,953 50.9%
Non-Transaction Related Operating Expenses as % of Total Revenue 27.1% 30.0%(2.9 ppt)
Transaction Related Costs$53,535 $31,491 70.0%
Transaction Related Costs as % of Total Revenue 45.8% 45.0%0.8 ppt 
Transaction Related Costs as % of GMV 5.1% 4.8%0.3 ppt 
Total Revenue Less Transaction Related Costs$63,261 $38,467 64.5%
Total Revenue Less Transaction Related Costs as % of Total Revenue 54.2% 55.0%(0.8 ppt)
Total Revenue Less Transaction Related Costs as % of GMV 6.0% 5.8%0.2 ppt 
Adjusted EBITDA$39,623 $22,694 74.6%
Adjusted EBITDA Margin 33.9% 32.4%1.5 ppt 
Adjusted Net Income$25,441 $16,668 52.6%
Adjusted Net Income Margin 21.8% 23.8%(2.0 ppt)
Adjusted Net Income per Diluted Share$0.71 $0.47 51.1%

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7 See appendix for a reconciliation of non-GAAP financial measures.

Appendix - Reconciliation of GAAP to Non-GAAP Financial Measures

Reconciliation of Operating Expenses to Non-transaction Related Operating Expenses

 For the three months ended
($ in thousands)September 30, 2025September 30, 2024
Operating expenses$81,235 $49,116 
Transaction expense (17,435) (12,761)
Provision for credit losses (32,177) (15,402)
Non-transaction related operating expenses$31,623 $20,953 



Reconciliation of Operating Expenses to Transaction Related Costs

 For the three months ended
($ in thousands)September 30, 2025September 30, 2024
Operating expenses$81,235 $49,116 
Personnel (14,320) (13,423)
Third-party technology and data (3,705) (2,387)
Marketing, advertising, and tradeshows (8,775) (2,726)
General and administrative (4,823) (2,417)
Net interest expense 3,923  3,328 
Transaction related costs$53,535 $31,491 



Reconciliation of Operating Income to Total Revenue Less Transaction Related Costs

 For the three months ended
($ in thousands)September 30, 2025September 30, 2024
Operating income$35,561 $20,842 
Personnel 14,320  13,423 
Third-party technology and data 3,705  2,387 
Marketing, advertising, and tradeshows 8,775  2,726 
General and administrative 4,823  2,417 
Net interest expense (3,923) (3,328)
Total revenue less transaction related costs$63,261 $38,467 



Reconciliation of Net Income to Adjusted EBITDA

 For the three months ended
($ in thousands)September 30, 2025September 30, 2024
Net income$26,671$15,446 
Depreciation and amortization 369 233 
Income tax expense 4,961 2,163 
Equity and incentive-based compensation 2,409 1,456 
Other (income) expense, net 6 (95)
Corporate strategic projects 1,284 163 
Net interest expense 3,923 3,328 
Adjusted EBITDA$39,623$22,694 



Reconciliation of Net Income to Adjusted Net Income and Adjusted Net Income per Diluted Share

 For the three months ended
($ in thousands, except for per share numbers)September 30, 2025September 30, 2024
Net income$26,671 $15,446 
Discrete tax (benefit) expense(1) (2,520) 1,154 
Corporate strategic projects 1,284  163 
Other (income) expense, net 6  (95)
Adjusted net income 25,441  16,668 
Diluted weighted-average shares outstanding 35,675  35,435 
Adjusted net income per diluted share(2)$0.71 $0.47 

(1) Adjusted prior periods to include the windfall/shortfall to income tax expense for equity-based compensation.

(2) Effective March 28, 2025, we performed a 6-for-1 stock split of the Company's common stock, affected through a stock dividend. Share and per-share amounts have been retroactively adjusted.

Investors should be aware that generally accepted accounting principles prescribe when a company may reserve for particular risks, including litigation exposures. Accordingly, results for a given reporting period could be significantly affected if and when we establish reserves for one or more contingencies. Also, our regular reserve reviews may result in adjustments of varying magnitude as additional information regarding claims activity becomes known. Reported results, therefore, may be volatile in certain accounting periods.

Contact Information

Lee Brading, CFA

Investor Relations

+1 651 240 6001

InvestorRelations@sezzle.com		Erin Foran

Media Enquiries

+1 651 403 2184

erin.foran@sezzle.com
  

About Sezzle Inc.

Sezzle is a forward-thinking fintech company committed to financially empowering the next generation. Through its purpose-driven payment platform, Sezzle enhances consumers' purchasing power by offering access to point-of-sale financing options and digital payment services—connecting millions of customers with its global network of merchants. Centered on transparency, inclusivity, and ease of use, Sezzle empowers consumers to manage spending responsibly, take charge of their finances, and achieve lasting financial independence.

For more information visit sezzle.com.

Consolidated Balance Sheets

 As of
 September 30, 2025December 31, 2024
(in thousands, except per share amounts)(unaudited)(audited)
Assets  
Current Assets  
Cash and cash equivalents$104,147 $73,185 
Restricted cash, current, including amounts held by variable interest entity ("VIE") of $9,930 and $4,096, respectively 10,915  4,850 
Notes receivable 217,849  190,665 
Allowance for credit losses (33,718) (26,103)
Notes receivable, net, including amounts held by VIE of $156,000 and $152,174, respectively 184,131  164,562 
Other receivables, net 7,423  3,629 
Prepaid expenses and other current assets 22,838  11,393 
Total current assets 329,454  257,619 
Non-Current Assets  
Internally developed intangible assets, net 3,094  2,442 
Operating right-of-use assets 700  800 
Restricted cash, non-current 19,594  20,275 
Deferred tax asset, net of $4,013 and $3,742 valuation allowance, respectively 13,443  16,905 
Other assets 679  331 
Total Assets$366,964 $298,372 
   
Liabilities and Stockholders' Equity  
Current Liabilities  
Merchant accounts payable$57,829 $68,967 
Other payables 6,422  7,455 
Deferred revenue 4,845  4,234 
Other current liabilities 24,566  25,021 
Total current liabilities 93,662  105,677 
Non-Current Liabilities  
Operating lease liabilities 711  823 
Line of credit, net of unamortized debt issuance costs of $688 and $1,008, respectively, held by VIE 117,312  103,992 
Other non-current liabilities 9  45 
Total Liabilities 211,694  210,537 
   
Stockholders' Equity*  
Common stock and additional paid-in capital, $0.00001 par value; 750,000 shares authorized; 35,423 and 34,786 shares issued, respectively; 34,153 and 33,735 shares outstanding, respectively 196,004  188,589 
Treasury stock, at cost: 1,270 and 1,051 shares, respectively (20,474) (9,391)
Accumulated other comprehensive loss (1,105) (1,588)
Accumulated deficit (19,155) (89,775)
Total Stockholders' Equity 155,270  87,835 
Total Liabilities and Stockholders' Equity$366,964 $298,372 
       

* Effective March 28, 2025, we performed a 6-for-1 stock split of the Company's common stock, affected through a stock dividend. Share and per-share amounts have been retroactively adjusted.

Consolidated Statements of Operations and Comprehensive Income (unaudited)

 For the three months ended September 30, For the nine months ended September 30,
(in thousands, except per share amounts) 2025  2024   2025  2024 
Total revenue$116,796 $69,958  $320,410 $172,905 
      
Operating Expenses     
Personnel 14,320  13,423   41,049  37,185 
Transaction expense 17,435  12,761   46,995  35,290 
Third-party technology and data 3,705  2,387   10,507  6,724 
Marketing, advertising, and tradeshows 8,775  2,726   22,893  4,376 
General and administrative 4,823  2,417   11,800  7,319 
Provision for credit losses 32,177  15,402   65,624  30,636 
Total operating expenses 81,235  49,116   198,868  121,530 
      
Operating Income 35,561  20,842   121,542  51,375 
      
Other Income (Expense)     
Net interest expense (3,923) (3,328)  (10,338) (10,321)
Other income (expense), net (6) 95   106  55 
Fair value adjustment on warrants —  —   —  (1,261)
Loss on extinguishment of line of credit —  —   —  (260)
Income before taxes 31,632  17,609   111,310  39,588 
      
Income tax expense (benefit) 4,961  2,163   20,871  (13,567)
      
Net Income 26,671  15,446   90,439  53,155 
      
Other Comprehensive Income (Loss)     
Foreign currency translation adjustment (339) 72   483  (2)
      
Total Comprehensive Income$26,332 $15,518  $90,922 $53,153 
      
Net income per share*:     
Basic$0.78 $0.46  $2.67 $1.58 
Diluted$0.75 $0.44  $2.55 $1.49 
      
Weighted-average shares outstanding*:     
Basic 34,048  33,272   33,878  33,725 
Diluted 35,675  35,435   35,448  35,689 
              

* Effective March 28, 2025, we performed a 6-for-1 stock split of the Company's common stock, affected through a stock dividend. Share and per-share amounts have been retroactively adjusted.

Consolidated Statements of Cash Flows (unaudited)

 For the nine months ended September 30,
(in thousands) 2025  2024 
Operating Activities:  
Net income$90,439 $53,155 
Adjustments to reconcile net income to net cash provided from operating activities:  
Depreciation and amortization 967  707 
Provision for credit losses 65,624  30,636 
Provision for other credit losses 20,814  4,940 
Equity based compensation and restricted stock vested 5,180  3,823 
Amortization of debt issuance costs 330  417 
Fair value adjustment on warrants —  1,261 
Impairment losses on long-lived assets 68  48 
Gain on sale of fixed assets (14) (37)
Loss on extinguishment of line of credit —  260 
Deferred income taxes 3,462  (14,941)
Changes in operating assets and liabilities:  
Notes receivable (85,172) (32,994)
Other receivables (24,605) (7,192)
Prepaid expenses and other assets (11,352) (3,122)
Merchant accounts payable (11,445) (3,474)
Other payables (1,059) 4,986 
Accrued and other liabilities 1,738  (334)
Deferred revenue 608  1,730 
Operating leases 35  59 
Net Cash Provided from Operating Activities 55,618  39,928 
   
Investing Activities:  
Purchase of property and equipment (594) (36)
Internally developed intangible asset additions (1,509) (1,022)
Net Cash Used for Investing Activities (2,103) (1,058)
   
Financing Activities:  
Proceeds from line of credit 105,800  74,727 
Payments to line of credit (92,800) (74,727)
Payments of debt issuance costs (10) (1,052)
Proceeds from stock option exercises 3,618  1,566 
Stock subscriptions collected related to stock option exercises 44  39 
Proceeds from warrant exercises —  401 
Repurchase of common stock (34,630) (22,167)
Net Cash Used for Financing Activities (17,978) (21,213)
   
Effect of exchange rate changes on cash 809  (13)
Net increase in cash, cash equivalents, and restricted cash 35,537  17,657 
Cash, cash equivalents, and restricted cash, beginning of period 98,310  70,699 
Cash, cash equivalents, and restricted cash, end of period$134,656 $88,343 
   
Noncash investing and financing activities:  
Conversion of accrued profit-sharing incentive plan liabilities to stockholders' equity$2,301 $— 
Conversion of warrant liabilities to stockholders' equity —  2,229 
   
Supplementary disclosures:  
Interest paid$11,248 $10,477 
Income taxes paid 25,324  3,545 
       

Forward Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends affecting the financial condition of our business. Forward-looking statements include our expectations, whether stated or implied, regarding our financing plans and other future events.

Forward-looking statements generally can be identified by the use of words such as "anticipate," "expect," "plan," "could," "may," "will," "believe," "estimate," "forecast," "goal," "project," other words or expressions of similar meaning (or the negative versions of such words or expressions). These forward-looking statements address various matters including statements regarding the timing or nature of future operating or financial performance or other events. Each forward-looking statement contained in this press release is subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statement. Applicable risks and uncertainties include, among others: impact of the "buy-now, pay-later" ("BNPL") industry becoming subject to increased regulatory scrutiny; impact of operating in a highly competitive industry; impact of macro-economic conditions on consumer spending; our ability to increase our merchant network, our base of consumers and gross merchandise value (GMV); our ability to effectively manage growth, sustain our growth rate and maintain our market share; our ability to maintain adequate access to capital in order to meet the capital requirements of our business; impact of exposure to consumer bad debts and insolvency of merchants; impact of the integration, support and prominent presentation of our platform by our merchants; impact of any data security breaches, cyberattacks, employee or other internal misconduct, malware, phishing or ransomware, physical security breaches, natural disasters, or similar disruptions; impact of key vendors or merchants failing to comply with legal or regulatory requirements or to provide various services that are important to our operations; impact of the loss of key partners and merchant relationships; impact of exchange rate fluctuations in the international markets in which we operate; our ability to protect our intellectual property rights and third party allegations of the misappropriation of intellectual property rights; our ability to retain employees and recruit additional employees; impact of the costs of complying with various laws and regulations applicable to the BNPL industry in the United States and Canada; and our ability to achieve our public benefit purpose and our election to forego B Corporation recertification and other factors identified in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2024 (the "Annual Report") and the Company's subsequent filings filed with the SEC. You are encouraged to read the Company's Annual Report and other filings with the SEC, available at www.sec.gov, for a discussion of these and other risks and uncertainties. The Company cautions investors not to place considerable reliance on the forward-looking statements contained in this press release. You are The forward-looking statements in this press release speak only as of the date of this document, and the Company undertakes no obligation to update or revise any of these statements. The Company's business is subject to substantial risks and uncertainties, including those referenced above. Investors, potential investors, and others should give careful consideration to these risks and uncertainties.

Non-GAAP Financial Measures

To supplement our operating results prepared in accordance with generally accepted accounting principles in the United States ("GAAP"), we present the following non-GAAP financial measures: Total revenue less transaction related costs; transaction related costs; non-transaction related operating expenses; adjusted net income; adjusted net income margin; adjusted net income per diluted share; adjusted earnings before interest, taxes, depreciation, and amortization ("Adjusted EBITDA"); and Adjusted EBITDA margin. Definitions of these non-GAAP financial measures and summaries of the reasons why management believes that the presentation of these non-GAAP financial measures provide useful information to the Company and investors are as follows:

Additionally, we have included these non-GAAP measures because they are key measures used by our management to evaluate our operating performance, guide future operating plans, and make strategic decisions, including those relating to operating expenses and the allocation of resources. Therefore, we believe these measures provide useful information to investors and other users of this press release to understand and evaluate our operating results in the same manner as our management and board of directors. However, non-GAAP financial measures have limitations, should be considered supplemental in nature, and are not meant as a substitute for the related financial information prepared in accordance with U.S. GAAP. These limitations include the following:

Because of these limitations, you should not consider these non-GAAP financial measures in isolation or as substitutes for analysis of our financial results as reported under GAAP, and these non-GAAP financial measures should be considered alongside other financial performance measures, including net income and other financial results presented in accordance with GAAP. We encourage you to review the related GAAP financial measures and the reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures and not rely on any single financial measure to evaluate our business.



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