Sezzle Inc. (SEZL)
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Sezzle (Nasdaq: SEZL), the "buy now, pay later" provider from Minneapolis, sits at no. 1 in our Terry Smith quality scanner (U.S. selection, as of July 18, 2026): revenue up 66 percent, a 39 percent operating margin, return on equity beyond 90. We read the annual reports (10-K) and the latest quarterly report (10-Q) — and found out who pays for those dream numbers: only 23 percent of revenue comes from merchants, the rest mostly from the consumers themselves, the loans come from a single bank partner, and consumer underwriting was deliberately loosened. Not investment advice — just a close look at whose money a dream margin is made of.
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This stock currently matches 28 of our scanner strategies — each hit links to the scanner.
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Basics
Performance
Valuation
Profitability
Balance Sheet & Safety
Growth
Quality & Screener
AI Rating
Uses AISezzle setzt maschinelles Lernen dokumentiert operativ im Kerngeschäft ein: Der firmeneigene „Prophet Score“ — ein Machine-Learning-Modell — steuert laut 10-K/10-Q die Kreditrisikobewertung des gesamten Forderungsportfolios und wird mindestens jährlich überprüft. KI/ML ist keine Umsatzquelle (kein KI-Produktverkauf), und die KI-Erwähnungen in den Risikofaktoren (Wettbewerb, Datenschutzregulierung zu AI/ML) bleiben allgemein — daher „Nutzt KI“.
View the full file — quotes, sources, reviewed filings
„When assessing the credit quality and risk of our portfolio, we monitor a variety of internal risk indicators and consumer attributes that are shown to be predictive of ability and willingness to repay, and combine these factors to establish an internal, proprietary score as a credit quality indicator (the “Prophet Score”). […] The risk and fraud team also evaluates the integrity of the Prophet Score machine learning model at least annually and updates it as necessary. We last updated the Prophet Score model in October 2023."
Bei der Beurteilung der Kreditqualität und des Risikos unseres Portfolios beobachten wir eine Reihe interner Risikoindikatoren und Konsumentenmerkmale, die sich als aussagekräftig für Zahlungsfähigkeit und Zahlungsbereitschaft erwiesen haben, und kombinieren diese Faktoren zu einem internen, firmeneigenen Score als Kreditqualitätsindikator (dem „Prophet Score“). […] Das Risiko- und Betrugsteam überprüft zudem mindestens jährlich die Integrität des Prophet-Score-Machine-Learning-Modells und aktualisiert es bei Bedarf. Zuletzt haben wir das Prophet-Score-Modell im Oktober 2023 aktualisiert.
„Our risk and fraud team closely monitors the distribution of Prophet Scores for signs of changes in credit risk exposure and portfolio performance. The risk and fraud team also evaluates the integrity of the Prophet Score machine learning model at least annually and updates it as necessary."
Unser Risiko- und Betrugsteam beobachtet die Verteilung der Prophet Scores engmaschig auf Anzeichen für Veränderungen des Kreditrisikos und der Portfolioentwicklung. Das Risiko- und Betrugsteam überprüft zudem mindestens jährlich die Integrität des Prophet-Score-Machine-Learning-Modells und aktualisiert es bei Bedarf.
„As a result, we are subject to a complex and evolving array of laws, rules, directives, and regulations, as well as contractual obligations, relating to privacy and data protection, including with respect to cloud computing and artificial intelligence and machine learning (“AI/ML”)."
Infolgedessen unterliegen wir einem komplexen und sich weiterentwickelnden Geflecht aus Gesetzen, Regeln, Richtlinien und Verordnungen sowie vertraglichen Pflichten zu Privatsphäre und Datenschutz, auch mit Blick auf Cloud-Computing sowie künstliche Intelligenz und maschinelles Lernen („AI/ML“).
Filings Reviewed: 10-Q 2026-05-07 · 10-Q 2025-11-06 · 10-Q 2025-08-08 · 10-Q 2025-05-08 · 10-K 2026-02-26 · 10-K 2025-02-27
Rated on July 18, 2026 · How the Rating Is Built
Highlighted are things our editorial team noticed: green = stands out as strong, red = deserves a closer look. No single metric is a verdict on its own — always read it in context.
Quarterly Figures
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2024: Q4 | 4.47 | 5,153.00 | 98 | 100.90 | 25.80 | 1 | 1 |
| 2025: Q1 | 1.00 | 346.60 | 105 | 123.30 | 34.50 | 59 | 59 |
| 2025: Q2 | 0.76 | -7.10 | 99 | 76.40 | 28.00 | -36 | -37 |
| 2025: Q3 | 0.74 | -72.90 | 117 | 67.00 | 22.80 | 33 | 32 |
| 2025: Q4 | 1.19 | -73.30 | 130 | 32.20 | 32.90 | 154 | 154 |
| 2026: Q1 | 1.47 | 46.90 | 136 | 29.20 | 37.90 | 89 | 89 |
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Assessment: Opportunities & Risks
A genuine turnaround: from a $38.1 million loss (2022) to $133.1 million of net income on $450.3 million of revenue (+66.1 percent) in fiscal year 2025; Q1 2026 with $51.3 million of profit and a 50.9 percent operating margin (10-K FY 2025, 10-Q as of 03/31/2026).
Only 23 percent of 2025 revenue came from merchants and partners; 77 percent was carried mostly by consumers (consumer fees $131.9 million, subscriptions $99.4 million, other income $116.8 million) — and per the 10-Q the latest fee growth came mainly from higher fee prices. Exposed to regulation and reputation (CFPB oversight).
The "substantial majority" of loans has been originated since 09/26/2024 by a single bank partner (WebBank) with termination and suspension rights, which remains free to work with competitors (10-K FY 2025, Item 1A) — a supplier concentration in the business model's most important ingredient.
Provision for credit losses up 62.3 percent to $89.3 million (19.8 percent of revenue, ratio slightly down), but per the 10-K partly a result of deliberately loosened consumer underwriting "to promote consumer acquisition and retention"; the fourth quarter seasonally brings the highest charge-offs.
CEO and Chairman Youakim holds approximately 44.2 percent (Schedule 13D/A of 02/11/2025), the remaining stockholders have "minimal control" per the 10-K; only two analyst firms cover the stock, and 19 insider sales stand against 1 buy (data as of July 10, 2026). Counterweight: $50 million of buybacks in 2025 plus a $100 million program.
Roughly $5.7 billion of market value, P/E around 38 and P/S around 12 on the trailing four quarters (data as of July 10, 2026) — sporty for growth normalizing from 66 to 29 percent; a solid balance sheet ($120.4 million cash, $196.7 million equity as of 03/31/2026) as a buffer.
By the numbers, Sezzle is currently one of the most profitable BNPL providers on the market: no. 1 in our Terry Smith quality scanner (U.S. selection, as of July 18, 2026), $133.1 million of net income in fiscal year 2025, an operating margin above 50 percent in the latest quarter. But the filings show what the dream margin is made of: 77 percent of revenue is carried mostly by consumers (fees, subscriptions, late payment fees), the loans come from a single bank partner with termination rights, the credit filter was deliberately loosened, and one man controls 44.2 percent of the shares. Whoever invests here buys a highly profitable but concentratedly risky fee powerhouse at nearly 40 times annual earnings. Not investment advice.
- SEZL landed on the research list via the Terry Smith quality scanner (no. 1 of the U.S. selection, as of July 18, 2026); the confluence with 27 mostly momentum scanners describes the same price climb (plus 414 percent in the second quarter of 2025, minus 56 percent in the third) and is no independent proof of quality.
- The return on equity around 92 percent is partly a consequence of equity still being small after loss years ($196.7 million as of 03/31/2026); the 2024 profit contained a one-time tax benefit of $11.2 million — read the return metrics as a snapshot rather than a steady state.
- Price and valuation figures dated July 10, 2026 (market value roughly $5.7 billion); analyses are evergreen, daily prices are not a buy argument. Identity verified via EDGAR submissions: U.S. domestic filer (10-K/10-Q), CIK 0001662991, incorporated in Delaware on 01/04/2016, no name changes, Nasdaq the sole trading exchange since the 2023 ASX delisting; 6-for-1 stock split effective 03/28/2025.
About the Company
Sezzle Inc. ist als technologiegestütztes Zahlungsunternehmen in den USA und Kanada tätig.
| CEO Insider Trades (12 Mo.) | selling own stock |
|---|---|
| Employees | 201 |
| Headquarters | Minneapolis, MN |
| Website | sezzle.com |
| IPO Date | 17. Aug 2023 |
| Next Earnings | 6. Aug 2026 |
Management
| Name | Title | Birth Year |
|---|---|---|
| Charles G. Youakim | Co-Founder, Executive Chairman & CEO | 1977 |
| Paul Victor Paradis | Co-Founder, President & Executive Director | 1984 |
| Lee Dickson Brading C.F.A. | Chief Financial Officer | 1968 |
| Amin Sabzivand | Chief Operating Officer | 1989 |
| Justin Krause | Senior VP of Finance & Financial Controller | – |
Executives per the latest required filings; titles kept in their original language. Source: fundamental data.
Chart
Interactive price chart (TradingView).
Data as of: July 20, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.