Key Points Rising credit market risk weighed on Sezzle and its peers. One Wall Street analyst weighed in on the stock with a tepid assessment. Shopify asked a judge to toss Sezzle's lawsuit against it. 10 stocks we like better than Sezzle › Shares of Sezzle (NASDAQ: SEZL), the high-flying BNPL (buy now, pay later) stock, were pulling back in September as part of a broader retreat among fintech stocks. Investors sensed a weakening in the credit market as downbeat employment data and a pair of ban ...

Core Insights - Both DAVE and Sezzle are prominent fintech companies focusing on consumer payments and banking alternatives, with DAVE specializing in cash advances and Sezzle offering interest-free installment plans [1] Sezzle Analysis - Sezzle's financial performance in Q2 2025 showed a record year-over-year gross merchandise volume (GMV) increase of 74.2% to $927 million, leading to a 76.4% year-over-year revenue growth [3][10] - The rise in GMV was supported by a 13.7% sequential increase in Monthly On-Demand & Subscribers (MODS) and a 62.6% year-over-year increase in transactions [3] - Sezzle's marketing expenditure surged by 780% year-over-year, resulting in a 116.1% increase in operating income and a 52% growth in monthly active users [5] - The launch of Sezzle Balance has enhanced user engagement and diversified revenue streams, indicating a positive growth outlook [6] - The consensus estimate for Sezzle's 2025 sales is $442.1 million, reflecting a 63.1% year-over-year increase, with earnings expected to rise by 77.7% to $3.27 per share [13] DAVE Analysis - DAVE's membership base grew by 722,000 in Q2 2025, leading to a 16% year-over-year increase in monthly transacting members [7] - The company reported a 64% year-over-year revenue increase, with adjusted EBITDA rising 236% to $50.9 million [8][10] - ExtraCash originations increased by 27% year-over-year, although the 28-day delinquency rate rose to 2.4%, up 900 basis points from the previous year [9] - The consensus estimate for DAVE's 2025 sales is $511.9 million, indicating a 47.5% year-over-year growth, with earnings projected to increase by 98.3% to $10.39 per share [12] Valuation Comparison - Sezzle is trading at a forward price/earnings ratio of 21.56X, slightly below its 12-month median of 22.59X, suggesting it is undervalued [14] - DAVE's forward price/earnings ratio is 19.48X, significantly lower than its 12-month median of 30.08X, indicating a discounted valuation compared to Sezzle [14] Market Outlook - Sezzle's strong GMV growth and user engagement metrics support a positive growth narrative, making it a buy opportunity [16][17] - DAVE faces challenges from rising credit default risks and intense competition, which may hinder its growth trajectory [18]

Core Viewpoint - The article expresses a renewed interest in discussing stocks, particularly focusing on identifying asymmetrical risk/reward opportunities in the market [1]. Group 1 - The investment style emphasized is a combination of long and short positions, utilizing both stock and derivatives [1]. - The time horizon for investments varies, indicating a flexible approach to market opportunities [1]. Group 2 - The author has a beneficial long position in the shares of SEZL, indicating confidence in the company's future performance [2]. - The article is written independently, reflecting the author's personal opinions without external compensation [2].

Key Takeaways Sezzle stock skyrocketed 127.9% in six months, outpacing the industry and the broader market's rallies.On-Demand growth boosted GMV 74.2% and lifted the operating margin by 680 basis points.Sezzle posts ROE of 102.9% and ROIC of 58.2%, both well above the industry averages.Sezzle Inc.’s (SEZL) stock has soared 127.9% over the past six months. The company’s shares have significantly surpassed the industry’s marginal rise and the 17.5% jump in the Zacks S&P 500 Composite.MVST outperformed its in ...

Michael Wiggins De Oliveira is an inflection investor. This means buying into cheap companies at the moment when their narrative is changing and the business is on a path toward becoming significantly more profitable over the next year.With a focus on tech and “the Great Energy Transition (including uranium)”, Michael runs a concentrated portfolio with approximately 15 to 20 stocks and an average holding period of 18 months. Through his 10+ years analyzing countless companies, Michael has accumulated outsta ...

Core Insights - Sezzle (SEZL) launched On-Demand, allowing users to Pay-in-4 wherever Visa is accepted, enhancing its buy-now-pay-later solution and expanding merchant partnerships [1] - In Q4 2024, Sezzle registered 707,000 Monthly On-Demand & Subscribers (MODS), with a seasonal decline of 7% in the March quarter [2] - The recent quarter saw a 14% sequential increase in MODS, reaching a record 748,000, attributed to targeted marketing initiatives with an 8-fold increase in marketing spend year-over-year [3] Financial Performance - On-Demand's popularity led to a 74.2% year-over-year increase in gross merchandise volume and a rise in purchase frequency from 4.8 to 6.1 times, resulting in a 76.4% year-over-year top-line growth [4] - Non-transaction-related operating expenses increased by 50.4% year-over-year, yet the operating margin expanded by 6.8 basis points to 36.6%, indicating a scalable cost structure [5] - The lifetime value of MODS is strong due to recurring interactions, supporting expectations for continued top-line growth [6] Market Performance - Sezzle's stock surged 281.8% over the past year, outperforming the industry’s 15% increase and the S&P 500's 19.4% rise, as well as competitors Green Dot (GDOT) and OppFi (OPFI) [7] - The forward price-to-earnings ratio for SEZL is 22.25, higher than Green Dot's 9.14 and OppFi's 6.97, while the industry average is 21.74 [11] - The Zacks Consensus Estimate for SEZL's earnings in 2025 is $3.27 per share, indicating a 77.7% increase from the previous year [14]

Core Insights - Sezzle Inc. is positioned as a promising multibagger stock within the rapidly growing "Buy Now, Pay Later" (BNPL) market, providing flexible payment solutions for both merchants and consumers [1] - The global BNPL online value is projected to grow at a 9% CAGR, reaching approximately $580 billion by 2030, indicating substantial growth opportunities for Sezzle [2] - In Q2 2025, Sezzle reported a Gross Merchandise Volume (GMV) of $927 million, a 74% year-over-year increase, with total revenue rising 76.4% to $98.7 million [3] Financial Performance - Sezzle's adjusted net income increased by 92%, and the adjusted EBITDA margin improved by 550 basis points year-over-year to 38.4%, showcasing strong operational discipline [3] - Despite strong financial results, the stock experienced a decline of around 34% due to management's guidance indicating a slowdown in growth, which disappointed investors [4] - The stock remains up 100% year-to-date, reflecting overall positive market sentiment despite recent challenges [4] Analyst Sentiment - Analysts have maintained a positive outlook on Sezzle, with B. Riley Financial raising its price target from $101 to $111 while keeping a Buy rating, indicating the stock is attractively valued [5] - The company's consumer-focused features, such as Sezzle Up, which has over 2.9 million users, differentiate it from competitors by linking installment payments with credit-building [2] Industry Context - Sezzle operates in the U.S. financial technology sector, specializing in BNPL solutions that allow consumers to split purchases into interest-free installments, thereby enhancing merchant sales and customer engagement [6]

Core Insights - Sezzle (NASDAQ: SEZL) has over 36 million shares outstanding on a fully diluted basis, highlighting its market position in the context of supply and demand dynamics [1] Company Analysis - Sezzle is positioned within the small and midcap investment space, which is characterized by asymmetric upsides, indicating potential for significant growth [1] - The company operates in a competitive landscape, with comparisons drawn to Affirm, suggesting a need for strategic differentiation [1] Industry Context - The analysis reflects a broader understanding of the Industrials and chemicals sector, indicating the analyst's diverse experience which enriches the evaluation of companies like Sezzle [1]

Core Insights - The article emphasizes the search for undervalued stocks across various sectors and geographies, highlighting the importance of identifying hidden investment opportunities [1]. Group 1 - The author is a professional portfolio manager with a background in business studies from multiple countries, including France, the U.S., and Russia [1]. - The investment strategy focuses on lesser-known and underrated stocks, suggesting a contrarian approach to investing [1]. - The author operates as a Popular Investor on eToro, where a publicly available portfolio showcases investment opinions and decisions [1]. Group 2 - The article does not provide specific financial data or performance metrics related to any particular company or industry [2][3].

Group 1 - The article discusses the author's extensive experience as a Merchant Seaman and a growing interest in investing over the past 15 years, particularly in Tech stocks due to an engineering background [1]. - The author attributes much of their investment knowledge to The MF, indicating a reliance on established investment resources for learning [1]. Group 2 - There is a disclosure stating that the author has no current stock or derivative positions in any mentioned companies and has no plans to initiate any such positions in the near future [2]. - The article emphasizes that past performance is not indicative of future results, highlighting the uncertainty inherent in investment decisions [2].