Sezzle Raises 2026 Net Income Guidance to $185 Million After Revenue Growth of 51.7%

Key Facts

On August 6, 2026, Sezzle raised its full-year adjusted net income guidance to $185 million, from $180 million in its May guidance, and set gross revenue growth at 35%, compared with a previous range of 30% to 35%. It also raised adjusted diluted earnings per share guidance to $5.25, from $5.10. The update accompanied the second-quarter results; it was not a new development on November 3. CEO Charlie Youakim said the company had made its "third raise to fiscal 2026 guidance," attributing the momentum to new products and the expansion of its consumer financial platform. The updated guidance offers an indication of management's expectations for the rest of the year, following strong business growth in the second quarter.

Second-quarter revenue was $149.7 million, up 51.7% year over year and a quarterly record, according to the company. Net income was $40.8 million, up 47.7% from the year-earlier period, while adjusted net income reached $39.3 million, up 58.4%. The company distinguishes between the two figures, as adjusted net income is a non-GAAP measure. Operating income rose 52.3% to $55 million, while its margin was 36.7% of revenue and remained nearly stable year over year. The results reflect growth in revenue and operating earnings alongside higher expenses associated with expanding the business.

Gross merchandise volume was $1.3 billion in the second quarter, up 37.9% from a year earlier, while revenue as a share of gross merchandise volume rose to 11.7% from 10.6%. The company said average purchase frequency reached a record 7.2 times, compared with 6.1 times in the second quarter of 2025. Active subscribers totaled 854,000, up 76.4% year over year. The company attributed its largest annual increase in subscribers on record to marketing investment and expanded subscription benefits. It also linked subscriber growth and enhanced shopping features to increased purchase frequency, illustrating how its user base supported business expansion during the quarter.

Marketing spend rose to $19.4 million in the second quarter, from $8.8 million in the year-earlier period. Total operating expenses increased 51.3% to $94.7 million, but remained at 63.3% of revenue, according to the disclosure. Transaction costs rose 42.2% to $54.6 million, alongside growth in gross merchandise volume and marketing investment. On credit risk, provisions for losses were 2.4% of gross merchandise volume in the quarter, and the company said it expects them to reach a range of 2.5% to 3.0% for 2026. These figures put customer acquisition costs and credit quality among the factors to monitor as the company grows, alongside revenue and earnings.

The company supported its expansion plans with a new receivables financing facility announced in May, with a 3-year term and a value of $300 million, led by Mesirow, replacing a previous $225 million facility. The agreement lowered the interest spread by about 290 basis points to SOFR plus 3.86%, and Youakim said the facility provides funding capacity to support growth and reduces the cost of capital as the business expands. As of June 30, cash, cash equivalents and restricted cash totaled $112 million, including $32.3 million in restricted cash, while $123.5 million had been drawn under the facility. The figures combine a broader funding source and improved terms with drawn obligations and a reported cash balance at quarter-end. The company repurchased $3.1 million of shares during the quarter, bringing total repurchases in the first half to $28 million under a $100 million program.

Sezzle expanded its roster of enterprise merchants in the second quarter, adding Poshmark, Gymshark, Debenhams, Brookshire's Food & Pharmacy and RockAuto.com. It also said SezzleCash launched in June and described it as a cash advance product for eligible Sezzle Anywhere subscribers. Sezzle Send was scheduled to launch in August, as the company sought to expand its product suite beyond buy now, pay later. In trading, SEZL shares closed at $128.32 on November 2, 2026. The company had said the guidance update was supported by momentum from its new products and the expansion of its consumer financial platform.