Core Insights - Sezzle Inc. (SEZL) is set to release its third-quarter 2025 results on November 5, after market close, following a strong earnings surprise history with an average surprise of 125.1% over the last four quarters [1] Sezzle's Q3 Expectations - The Zacks Consensus Estimate for Sezzle's Q3 2025 revenue is $103.9 million, reflecting a 48.6% increase from the same quarter last year, driven by strong acceptance of On-Demand services and synergies from the partnership with WebBank [2][10] - New app features such as Pay-in-5, Browser Extension, and Sezzle Balance are expected to attract more customers, contributing to revenue growth [3][10] - The consensus estimate for earnings per share is 65 cents, indicating a year-over-year growth of 32.7%, supported by healthy margins and cost discipline [3] Earnings Prediction Model - The current model does not predict an earnings beat for Sezzle, as it has an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold), which does not indicate a strong likelihood of surpassing earnings expectations [4]

Core Thesis - Sezzle Inc. is positioned as a strong player in the buy-now, pay-later (BNPL) sector, with a share price of $86.33 as of October 6th, and trailing and forward P/E ratios of 28.35 and 15.60 respectively [1][2] Company Overview - Sezzle operates as a North American BNPL platform, focusing on empowering smarter spending through access, transparency, and trust [2] - Revenue is primarily generated from merchant fees on transactions, supplemented by consumer fees for reschedules or missed payments, affiliate revenue, and merchant analytics [2] Growth Drivers - The company's growth is driven by network effects, where each transaction enhances both merchant and shopper engagement, leading to low defaults and steady cash flow [3] - Short repayment cycles and repeat usage foster habitual engagement, making Sezzle a preferred payment solution [3] Differentiation and Ethical Positioning - Sezzle differentiates itself with transparent, zero-interest payments and tools like Sezzle Up, which help users build credit responsibly [4] - The company emphasizes a mission-driven approach, focusing on empowering consumers rather than creating indebtedness, and is recognized as a certified B Corp [4] Market Impact - Sezzle enhances financial access for younger and underserved consumers while boosting merchant sales through trust and flexibility [5] - The platform merges fintech innovation with financial wellness, redefining payment methods and strengthening consumer-merchant relationships [5] Future Outlook - The combination of network effects, ethical positioning, and scalable infrastructure positions Sezzle for continued expansion, presenting a compelling risk/reward profile for investors in the evolving BNPL sector [6] - Previous analyses highlighted Sezzle's evolution into a profitable fintech with strong insider alignment, despite a recent stock price depreciation of approximately 4.18% [7]

Financial Results Announcement - Sezzle Inc. will release its Q3 2025 results on November 5, 2025, and host a conference call at 5:00 p.m. Eastern Time on the same day[5] - The press release regarding the conference call is attached as Exhibit 99.1[7] Company Classification - The company is classified as an emerging growth company under the Securities Act of 1933[4]

Core Insights - Sezzle Inc. will release its third quarter 2025 results on November 5, 2025, after market close [1] - A conference call and webcast will be held at 5:00pm ET on the same day, with an earnings presentation available shortly after [1] - Investors are encouraged to submit questions in advance via email [1] Company Overview - Sezzle is a fintech company focused on empowering consumers through its digital payment platform [5] - The platform enhances purchasing power by providing point-of-sale financing options and digital payment services [5] - Sezzle emphasizes transparency, inclusivity, and ease of use to help consumers manage spending and achieve financial independence [5] Upcoming Events - Sezzle management will participate in several investor events, including Oppenheimer Non-Deal Roadshow on November 17, 2025, Wells Fargo's 9th Annual TMT Summit on November 18, 2025, and Northland Growth Conference on December 16, 2025 [6]

Core Insights - Sezzle (NASDAQ: SEZL) reported its 2Q25 results, which, while not negative, indicate potential concerns regarding its valuation and performance [1] Financial Performance - The 2Q25 results suggest that Sezzle's financial metrics may not meet investor expectations, raising questions about its high valuation [1] Investment Perspective - The analysis emphasizes a value-focused investment approach, highlighting the importance of identifying stocks that are undervalued and have upcoming catalysts [1]

Group 1 - The article updates the investment thesis on Sezzle (NASDAQ: SEZL), recommending to wait for a 20-30% correction before considering new entries [1] - Sezzle has experienced a nearly 50% correction since the previous analysis in August 2025 [1] - The author has over 20 years of experience in quantitative research, financial modeling, and risk management, focusing on equity valuation and market trends [1] Group 2 - The research approach combines rigorous risk management with a long-term perspective on value creation [1] - There is a particular interest in macroeconomic trends, corporate earnings, and financial statement analysis to provide actionable investment ideas [1]

Core Viewpoint - The stock price of Sezzle (NASDAQ: SEZL) has declined by approximately 12%, indicating significant underperformance compared to the average company in the S&P 500, yet the bullish thesis for the company remains intact [1]. Company Performance - Sezzle's current trading is at a forward valuation that suggests potential for recovery despite recent stock price declines [1]. Analyst Background - The analyst has over 10 years of experience in asset management, focusing on equity analysis, macroeconomics, and risk-managed portfolio construction, which adds credibility to the insights shared [1]. Investment Philosophy - The analysis emphasizes the importance of understanding macro trends and their influence on asset prices and investor behavior, advocating for accessible and empowering long-term investing strategies [1].

Core Insights - Sezzle Inc. is enhancing its buy now, pay later (BNPL) platform to help retailers attract more shoppers during the 2025 holiday season, particularly for Black Friday and Cyber Monday [1][2] Group 1: Consumer Insights - A Sezzle survey from July 2025 indicated that 47% of shoppers are concerned about rising prices, and 78% stated that extended payment options influence their purchasing decisions [2] - Nearly 60% of shoppers have begun or plan to start their holiday shopping earlier than previous years, indicating a longer and more competitive holiday shopping season [2] Group 2: Sezzle's Offerings - Sezzle provides tools such as Sezzle Up for building credit history, Wishlist for saving items, Price Drop Alerts for deals, and delivery protection for lost or damaged packages, enhancing the shopping experience [3][6] - Monthly Subscribers and On-Demand shoppers increased by 62% year-over-year in Q2 2025, reflecting a growing acceptance of Sezzle's flexible payment ecosystem [3] Group 3: Retailer Benefits - Retailers using Sezzle are experiencing larger basket sizes, higher conversion rates, and improved customer loyalty [4] - Retailers like Bealls have reported that Sezzle helps attract younger customers and reduces cart abandonment through features like Express Checkout [5] Group 4: Market Impact - BNPL shoppers tend to spend approximately $150 more per order compared to non-BNPL shoppers, highlighting the financial impact of Sezzle's services on retail sales [8] - A Forrester TEI Study commissioned by Sezzle found that merchants offering Sezzle experienced a lift of over 45% in average order value [8]

Core Insights - The article discusses the investment positions of Parkev Tatevosian, CFA, and mentions that The Motley Fool has positions in and recommends Sezzle [1] Company Insights - Parkev Tatevosian has no position in any of the stocks mentioned [1] - The Motley Fool has a disclosure policy regarding its investment positions [1] - The Motley Fool may compensate affiliates like Parkev Tatevosian for promoting its services [1]

Core Viewpoint - Sezzle has experienced significant volatility in its stock price, with a remarkable 300% gain earlier in the year followed by a 41% decline after disappointing earnings, yet it remains a leader in the buy now, pay later (BNPL) industry with strong growth prospects [1][2][3]. Company Performance - Sezzle reported a 76% year-over-year revenue growth and projects a continued growth rate of 60% to 65% through 2025, outperforming competitors like Affirm, which reported only 33% revenue growth [5][6]. - The company has shown a sequential customer growth rate of 13.7%, significantly higher than Affirm's 24% year-over-year growth in Q4 FY25, and it maintains higher profit margins compared to peers such as PayPal and Block [6][8]. Market Position - Sezzle is successfully taking market share from other BNPL companies, as evidenced by its strong earnings report despite the stock price drop [4][7]. - The company's fiscal guidance has been raised three times, indicating confidence in its ability to capture more market share from fintech competitors [7]. Valuation Comparison - Sezzle trades at a trailing P/E ratio of 29, which is significantly lower than Affirm's 598, presenting a unique investment opportunity within the fintech sector [8][11]. - While PayPal and Bread Financial have lower P/E ratios of 15 and 11 respectively, their growth rates do not match Sezzle's impressive performance [9][10]. Industry Outlook - The BNPL industry is projected to grow at a compound annual growth rate of 27% until 2033, which could benefit Sezzle significantly if the business model remains viable [12][15]. - However, the industry faces risks as it primarily attracts consumers with poor credit, leading to potential defaults as financial strains increase among users [13][14].