Core Insights - Sezzle's stock has experienced a significant pullback, down 16% in September and over 50% since its peak in July, amid broader fintech stock declines and rising credit market risks [1][3][4] Market Performance - The stock was volatile but steady in early September before declining towards the end of the month, influenced by negative employment data and bankruptcies in the auto sector [2][3] - Sezzle's recent IPO status means it has not yet navigated a full credit cycle, contributing to its sensitivity to credit risk [2] Analyst Coverage - TD Cowen initiated coverage of Sezzle with a hold rating and a price target of $82, indicating expectations for a stock pullback despite the company's rapid growth [5] - The analyst noted that Sezzle's growth is largely driven by the BNPL sector's overall strength, which is currently trading within a narrow valuation range [5] Legal Issues - Shopify has requested a judge to dismiss a lawsuit from Sezzle, which claims Shopify's BNPL product is anticompetitive and violates antitrust laws, adding to the stock's sell-off [6][7] Future Outlook - Sezzle forecasts a revenue growth of 60%-65% for 2025, but charge-offs have increased significantly from $8.2 million to $20.3 million in the second quarter, indicating potential challenges in customer repayments [9]

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].

Core Insights - Sezzle Inc.'s stock has increased by 127.9% over the past six months, outperforming both the industry and the broader market [1][7] - The company's On-Demand service has significantly contributed to its growth, with gross merchandise volume (GMV) rising by 74.2% year over year in the second quarter of 2025 [6][8] - Sezzle's financial metrics, including return on equity (ROE) and return on invested capital (ROIC), are well above industry averages, indicating strong profitability [10][18] Stock Performance - Sezzle's stock has outperformed peers such as FirstCash and Mastercard, with a year-to-date increase of 109.4% compared to FirstCash's 41.2% and Mastercard's 10.2% [4][7] - The stock's performance reflects a strong market position and investor confidence in the company's growth trajectory [1][18] On-Demand Growth - The On-Demand service started with 707,000 Monthly On-Demand Subscribers (MODS) in Q4 2024, experiencing a temporary decline of 7% year-over-year in Q1 2025, followed by a 14% growth in Q2 2025 [5][6] - Customer purchase frequency increased from 4.8 times to 6.1 times year-over-year, indicating higher engagement and repeat business [6][8] Profitability and Liquidity - Sezzle's operating margin improved by 680 basis points year over year to 36.6%, despite a 50.4% increase in non-transaction-related operating expenses [8][10] - The company's current ratio stands at 3.51, significantly higher than the industry average of 1.17, indicating strong liquidity and the ability to cover short-term obligations [13][18] Financial Outlook - The Zacks Consensus Estimate for Sezzle's 2025 sales is projected at $442.1 million, reflecting a 63.1% year-over-year increase, with earnings expected to rise by 77.7% to $3.27 per share [15][16] - Analysts have shown confidence in the company's prospects, with upward revisions in earnings estimates for both 2025 and 2026 [16][18]

Group 1 - Michael Wiggins De Oliveira is an inflection investor, focusing on buying undervalued companies at pivotal moments when their profitability is expected to improve significantly over the next year [1] - The investment strategy emphasizes technology and the Great Energy Transition, including uranium, with a concentrated portfolio of approximately 15 to 20 stocks and an average holding period of 18 months [1] - Michael has over 10 years of experience in analyzing companies, particularly in the tech and energy sectors, and has built a following of over 40,000 on Seeking Alpha [2] Group 2 - The Investing Group Deep Value Returns, led by Michael, offers insights through its concentrated portfolio of value stocks, timely updates on stock picks, and a weekly webinar for live advice [3] - The group provides "hand-holding" support for both new and experienced investors, fostering an active and vibrant community accessible via chat [3]

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].