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Sezzle tops earnings and raises 2026 outlook, shares tumble
The buy now, pay later provider said active subscribers rose 76.4% year over year to about 854,000 in the quarter, but the stock fell roughly 34% the next day.
Sezzle beat Wall Street expectations and lifted its outlook for a third consecutive time, but the stock dropped sharply after results, according to MarketBeat Ratings. The companys buy-now-pay-later platform is designed to split purchases into interest-free installments, and it also offers subscription and recurring revenue products.
For the quarter reported on Aug. 6, Sezzle said active subscribers climbed 76.4% year over year to about 854,000. Revenue reached a record $149.7 million, up 51.7% from a year earlier, compared with analysts expectations of about $135.1 million.
Sezzle reported net income of $40.8 million, up 47.7%, and adjusted net income of $39.3 million, up 58.4%. Adjusted earnings per share came in at $1.13, up 61.4%, ahead of expected $1.03.
Looking ahead, management raised guidance to 35% full-year revenue growth, $185 million in adjusted net income, and $5.25 in adjusted earnings per share. MarketBeat Ratings noted that investors appeared to weigh valuation, regulatory, and credit-loss risks even as the companys performance improved, sending shares down about 34% the next day.