| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 37 | 25.7x | 17.8x | Bottom tier | |
Growth | 95 | 43.1% | 7.1% | Top tier | |
Quality | 100 | — | — | Top tier | |
Safety | 65 | — | — | Around median | |
Capital Return | 71 | — | 2.12% | Top tier | |
Momentum | 68 | 37.5% | 2.9% | Top tier | |
Sentiment | 66 | 4 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Sezzle Inc. (SEZL) operates in buy now, pay later services, with Pay-in-4 forming the foundation of its model before the platform expanded to Pay-in-5, virtual cards, long-term lending through Pagaya, and the Sezzle Mobile plan. The company generates revenue from consumer and merchant transactions, subscription fees, and its share of partner product volumes; it is also gradually shifting toward a direct-to-consumer model that is more open to use across multiple retailers. Management also described merchants as a customer acquisition channel that has become relatively less important, while the direct-to-consumer business is growing faster, and Canada represents about 10% of transaction volume.
In Q1 fiscal 2026, total transaction value rose 37.3% year over year to $1.1 billion, and revenue increased 29.2% to $135.5 million. Net income reached $51.3 million, representing a 37.9% net margin and earnings per share of $1.47, while adjusted earnings before interest, taxes, depreciation, and amortization reached $71.1 million at a 52.5% margin. The revenue less transaction costs margin, which the company also calls gross margin, reached 74%, but management stressed that this level benefits from first-quarter seasonality and is not suitable as a basis for annualization.
Fiscal 2025 revenue was approximately $450.3 million and net income was $133.1 million, while the trailing twelve-month period ending in 2026 recorded revenue of $480.9 million and net income of $148.3 million. Quarterly purchase frequency in Q1 fiscal 2026 rose to 7.1 times from 6.1 times a year earlier, and the number of subscribers reached 714 thousand after a quarterly increase of 44 thousand. This mix reflects growth driven by increased subscriber usage and the expansion of direct-to-consumer products, rather than by the closed merchant network alone.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $168 within a very narrow range of $166 to $170, with the consensus rated Buy; the average is about 14% below the 52-week range high of $195.71 and well above its low of $49.50. Expected revenue growth of 30%–35% and Q1 fiscal 2026 profitability support this consensus, but the breadth of the 52-week range, management's warning about the seasonality of the 74% margin, and credit and regulatory risks mean that the valuation is sensitive to the sustainability of margins after the first quarter.
Figures in the text are as of 2026-08-31; the live price is shown at the top of the page.
Total transaction value rose 37.3% and revenue increased 29.2% in Q1 fiscal 2026, alongside an increase in purchase frequency from 6.1 to 7.1 times. The number of subscribers reached 714 thousand after adding 44 thousand subscribers during the quarter, and data from August 20, 2026, subsequently showed 76.4% year-over-year growth in the subscriber base in Q2 fiscal 2026. Based on this momentum, management raised its fiscal 2026 revenue growth forecast to 30%–35% and its adjusted earnings per share forecast to $5.10.
The revenue less transaction costs margin reached 74% in Q1 fiscal 2026, but it benefited from revenue and collection seasonality. Management explained that some holiday-season payments are recognized as revenue in the first quarter, while credit losses typically improve with tax refunds. The company therefore maintained its long-term target for this margin at 55%–65% and explicitly stated that the 74% result should not be annualized.
Sezzle launched Pay-in-5 in January 2026, and the CEO said during the May 8, 2026, call that it was the most important of the new products because it had already demonstrated actual results. Its launch contributed to an increase in working capital compared with previous quarters, and management expects it to carry a slightly higher loss provision than shorter-duration products. Nevertheless, the company believes the fee structure may offset the financial impact of the higher provision, and it included the product's contribution in its increased fiscal 2026 guidance.
The company launched an artificial intelligence-powered support bot that resolved about 60%–70% of conversations without escalation in Q1 fiscal 2026. It is also testing a shopping assistant that achieved stronger click-to-order conversion and uses the technology for payment dispute analysis, business intelligence, support quality, and engineering. Management said on May 8, 2026, that up to 80% of software code was being developed with artificial intelligence assistance while continuing to undergo team review.
Sezzle is targeting a credit loss provision equal to 2.5%–3% of total transaction value in fiscal 2026 and expects greater pressure as it acquires new customers and expands Pay-in-5. In contrast, it ended Q1 fiscal 2026 with $147.4 million in cash, including $26.9 million in restricted cash, and $69 million available under its credit line. The credit facility matures in April 2027 according to the May 8, 2026, call, and the company was working to refinance it to reduce interest expense, which amounted to 0.3% of total transaction value.
The analyst consensus rates the shares Buy, with an average target of $168. The highest analyst target is $170 and the lowest is $166, a narrow spread that reflects the convergence of the available coverage estimates. The average target is below the 52-week range high of $195.71, while the low of $49.50 highlights the shares' sensitivity to changes in growth and margin expectations.
