Financial Data and Key Metrics Changes - The company reported a 123% year-over-year increase in revenue, reaching $104.9 million, and a 286% year-over-year growth in adjusted net income to $36.1 million [18][10][24] - The gross margin for the quarter was 70.4%, with a net income margin of 34.5% [10][24] - Cash and cash equivalents increased by $15.7 million quarter-over-quarter, with cash from operations growing nearly $20 million year-over-year to $58.8 million [25][24] Business Line Data and Key Metrics Changes - Gross Merchandise Volume (GMV) rose 64% year-over-year, significantly outpacing the overall Buy Now Pay Later (BNPL) industry [8] - Monthly on-demand users and subscribers (referred to as mods) grew by 77% year-over-year to 658,000 [8][15] - The average quarterly purchase frequency increased from 4.5 to 6.1 times per quarter, indicating stronger consumer engagement [16] Market Data and Key Metrics Changes - The company continues to represent less than 10% of the overall payments market, indicating significant growth potential within the BNPL sector [4] - The take rate increased to 13% at GMV, reflecting improved monetization strategies [20] Company Strategy and Development Direction - The company is focusing on expanding its product offerings, including new features like Pay in Five and auto couponing, aimed at enhancing consumer experience and retention [12][56] - There is a strategic push towards enterprise-level merchants and new categories such as grocery and bills, which have been slower to adopt BNPL solutions [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to thrive despite economic uncertainties, highlighting the demand for flexible payment options during challenging times [4][26] - The company raised its 2025 guidance for net income by nearly 50% to $120 million and adjusted EPS from $2.21 to $3.25, reflecting strong performance and market conditions [9][25] Other Important Information - The company announced a $50 million share repurchase program and completed a six-for-one stock split to enhance liquidity [13] - The partnership with WebBank has begun to show significant benefits, contributing to improved revenue yield and operational efficiency [39] Q&A Session Summary Question: Can you tell us about your funnel of new merchants? - The company is focusing on enterprise-level merchants while also maintaining a mid-sized funnel, with a push into new categories like grocery and bills [28][30] Question: What is the frequency or optimism you're seeing from on-demand products? - Monthly sequential growth indicates strong performance, with a lower barrier to entry for users, enhancing the potential for upselling subscription products [32][33] Question: Can you quantify the financial benefit from the WebBank partnership? - The partnership has improved revenue yield as a percentage of GMV, with operational efficiencies realized across various states [39] Question: How is the company managing credit quality? - The company is maintaining profitability levels while being open to higher costs, ensuring gross margins are preserved [48][50] Question: Can you describe the new features like Pay in Five and auto couponing? - Pay in Five allows for an additional payment option, while auto couponing aims to enhance customer loyalty by providing unexpected savings [52][56]

[PART I - FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) This section presents the unaudited consolidated financial statements for Q1 2025, including Balance Sheets, Statements of Operations, Stockholders' Equity, and Cash Flows, detailing significant accounting policies and notes, and highlighting a 6-for-1 stock split and substantial growth in revenue and net income [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheet Highlights (in thousands of dollars) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $88,893 | $73,185 | | Notes receivable, net | $146,628 | $164,562 | | Total Assets | $298,074 | $298,372 | | **Liabilities & Equity** | | | | Line of credit, net | $69,890 | $103,992 | | Total Liabilities | $172,312 | $210,537 | | Total Stockholders' Equity | $125,762 | $87,835 | - A 6-for-1 stock split was affected through a stock dividend, effective March 28, 2025, with all share and per-share amounts retroactively adjusted[15](index=15&type=chunk) [Consolidated Statements of Operations and Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) Statement of Operations Highlights (in thousands of dollars, except per share) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total revenue | $104,912 | $46,979 | | Operating Income | $49,895 | $13,835 | | Net Income | $36,164 | $8,007 | | Diluted EPS | $1.00 | $0.22 | [Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) - Total stockholders' equity increased from **$87.8 million** at the beginning of 2025 to **$125.8 million** as of March 31, 2025, primarily driven by a net income of **$36.2 million**[19](index=19&type=chunk) - The company repurchased common stock for **$2.4 million** during the first quarter of 2025[19](index=19&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Highlights (in thousands of dollars) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Cash Provided from Operating Activities | $58,837 | $38,613 | | Net Cash Used for Investing Activities | ($308) | ($340) | | Net Cash Used for Financing Activities | ($36,114) | ($26,761) | | Net increase in cash, cash equivalents, and restricted cash | $22,415 | $11,512 | - Financing activities in Q1 2025 were primarily driven by net payments of **$34.2 million** on the line of credit and **$2.4 million** in common stock repurchases[21](index=21&type=chunk)[130](index=130&type=chunk) [Notes to the Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) - The company's Board of Directors approved a 6-for-1 stock split, effective March 28, 2025, with all share and per-share amounts in the financial statements retroactively adjusted[31](index=31&type=chunk) Disaggregation of Total Revenue - Q1 2025 vs Q1 2024 (in thousands of dollars) | Revenue Category | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Transaction income | $58,166 | $26,618 | | Subscription revenue | $23,428 | $14,673 | | Income from other sources | $23,318 | $5,688 | | **Total revenue** | **$104,912** | **$46,979** | - The allowance for credit losses on notes receivable was **$20.5 million** as of March 31, 2025, with a provision of **$12.8 million** recorded for the quarter[52](index=52&type=chunk) - As of March 31, 2025, the company had an outstanding principal of **$70.8 million** on its line of credit and an unused borrowing capacity of **$52.2 million**[62](index=62&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's performance, highlighting significant growth in key metrics such as **64.1% YoY GMV increase to $808.7 million** and **123.3% total revenue growth to $104.9 million**, driven by diverse income sources, and confirms strong liquidity [Key Operating Metrics](index=22&type=section&id=Key%20Operating%20Metrics) Key Metrics Comparison | Metric | Q1 2025 | Q1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Gross Merchandise Volume (GMV) | $808.7M | $492.7M | +64.1% | | Active Consumers (as of period end) | 2.73M | N/A | +0.3% (vs Q4'24) | - The increase in GMV was driven by growth in subscription products and On-Demand services, as well as changes to consumer underwriting to promote acquisition[84](index=84&type=chunk) - Monthly On-Demand Users and Subscribers (MODS) decreased to **658,000** from **707,000** at the end of Q4 2024, attributed to seasonality following the holiday season[85](index=85&type=chunk)[86](index=86&type=chunk) [Results of Operations](index=26&type=section&id=Results%20of%20Operations) Revenue Breakdown - Q1 2025 vs Q1 2024 (in thousands of dollars) | Revenue Category | Q1 2025 | Q1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Transaction income | $58,166 | $26,618 | +118.5% | | Subscription revenue | $23,428 | $14,673 | +59.7% | | Income from other sources | $23,318 | $5,688 | +310.0% | | **Total revenue** | **$104,912** | **$46,979** | **+123.3%** | - The increase in 'Income from other sources' was primarily driven by consumer late payment fees, which rose to **$16.8 million** in Q1 2025 from **$2.7 million** in Q1 2024[107](index=107&type=chunk) - Provision for credit losses increased by **149.0%** to **$12.8 million**, attributed to higher GMV and changes in consumer underwriting to promote growth[115](index=115&type=chunk) - Net interest expense decreased by **28.6%** to **$2.9 million** due to a lower interest rate on a new line of credit, despite higher outstanding borrowings[116](index=116&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity Position (in millions of dollars) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $88.9 | $73.2 | | Restricted cash | $32.0 | $25.1 | | Working capital | $164.3 | $151.9 | | Unused line of credit capacity | $52.2 | $39.0 | - The company believes its existing cash, unused borrowing capacity, and cash flows from operations will be sufficient to meet working capital and investment needs for more than the next twelve months[122](index=122&type=chunk) - Net cash provided by operating activities increased to **$58.8 million** in Q1 2025 from **$38.6 million** in Q1 2024, driven by increased profitability[124](index=124&type=chunk)[128](index=128&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company identifies interest rate risk from its floating-rate line of credit and foreign currency risk from Canadian dollar transactions, concluding that hypothetical adverse changes would not materially impact financial results, and does not employ hedging instruments - The company is exposed to interest rate risk on its line of credit, which had a balance of **$70.8 million** as of March 31, 2025, where a hypothetical **100 basis point** adverse change in SOFR would have resulted in an additional **$0.2 million** of interest expense for the quarter[139](index=139&type=chunk) - Foreign currency risk from transactions in Canadian dollars is considered immaterial, and the company does not currently use derivatives to hedge this exposure[141](index=141&type=chunk) [Item 4. Controls and Procedures](index=34&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting identified during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures are effective as of March 31, 2025[144](index=144&type=chunk) - No changes in internal control over financial reporting occurred during the first quarter of 2025 that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[145](index=145&type=chunk) [PART II - OTHER INFORMATION](index=35&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=35&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any material legal proceedings expected to have a material adverse effect on its financial condition or operations, beyond routine litigation incidental to its business - Sezzle is not involved in any material legal proceedings that would have a material adverse effect on its consolidated balance sheets, operations, or cash flows[147](index=147&type=chunk) [Item 1A. Risk Factors](index=35&type=section&id=Item%201A.%20Risk%20Factors) As a smaller reporting company, Sezzle is not required to provide this information and confirms no material changes to the risk factors previously disclosed in its 2024 Annual Report on Form 10-K - There have been no material changes to the risk factors described in the company's 2024 Annual Report on Form 10-K[148](index=148&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=35&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's repurchase of **56,778 shares** at an average price of **$43.04 per share** during the quarter, primarily for employee tax obligations, and notes the authorization of a new **$50 million** stock repurchase program commencing in April 2025 - During Q1 2025, the company repurchased **56,778 shares** at an average price of **$43.04 per share**, which were surrendered by employees to satisfy minimum statutory tax obligations for vested stock units[149](index=149&type=chunk)[151](index=151&type=chunk)[152](index=152&type=chunk) - On March 10, 2025, the Board of Directors authorized a new stock repurchase program for up to **$50 million** of outstanding shares, which commenced on April 7, 2025[152](index=152&type=chunk) [Item 3. Defaults Upon Senior Securities](index=36&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports no defaults upon senior securities during the period - None[153](index=153&type=chunk) [Item 4. Mine Safety Disclosures](index=36&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[154](index=154&type=chunk) [Item 5. Other Information](index=36&type=section&id=Item%205.%20Other%20Information) The company reports that no officers or directors adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the quarter ended March 31, 2025 - During the quarter ended March 31, 2025, no officers or directors adopted or terminated a Rule 10b5-1 trading arrangement[155](index=155&type=chunk) [Item 6. Exhibits](index=37&type=section&id=Item%206.%20Exhibits) This section provides a list of all exhibits filed with the Form 10-Q, including management compensation plan forms, CEO and CFO certifications, and Inline XBRL financial data files - The report includes a list of filed exhibits, such as CEO and CFO certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002[156](index=156&type=chunk)

Financial Results Announcement - Sezzle Inc. will release its Q1 2025 results on May 7, 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. has raised its 2025 Net Income guidance by nearly 50% to $120 million due to stronger consumer activity and better-than-expected repayment trends [2][16] - The company reported significant growth in key financial metrics for the first quarter of 2025, including a 64.1% year-over-year increase in Gross Merchandise Volume (GMV) to $808.7 million [5] - Total Revenue for 1Q25 reached a new high of $104.9 million, reflecting a 123.3% year-over-year growth, driven by higher engagement and a partnership with WebBank [5] Financial Performance - Operating Income surged 260.6% year-over-year to $49.9 million, with an Operating Margin of 47.6%, an increase of 18.2 points from the previous year [5] - Net Income more than quadrupled year-over-year to $36.2 million, representing 34.5% of Total Revenue, equating to Earnings per Diluted Share of $1.00 [5] - Adjusted EBITDA grew 243.7% year-over-year to $51.4 million, accounting for 49.0% of Total Revenue, marking a 17.1-point expansion from 1Q24 [5] Cost Management - Total Operating Expenses increased 66.0% year-over-year to $55.0 million, but as a share of Total Revenue, it improved by 18.2 points to 52.4% [5] - Transaction Related Costs as a percentage of GMV decreased from 4.3% to 3.8% year-over-year, attributed to better credit performance and effective payment processing strategies [5] - Non-Transaction Related Operating Expenses rose 65.9% year-over-year to $26.9 million, but improved as a share of Total Revenue, declining to 25.6% [5] Guidance Update - The updated FY2025 guidance includes raising Net Income and Adjusted Net Income to $120 million from $80.4 million, and Total Revenue Growth guidance to 60-65% from 25-30% [16] - The company anticipates an effective tax rate of 25% for FY2025 [16] Strategic Initiatives - Sezzle launched new features such as Pay-in-5, enhanced shopping tools, and Money IQ to deepen consumer engagement and streamline the shopping experience [16] - The company expanded its merchant network, adding Scheels and WHOP to its partnerships [16] Upcoming Events - Sezzle will host its first quarter earnings conference call on May 7, 2025, and will participate in several investor conferences throughout May and June [9][16]

Sezzle Inc. (SEZL) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock ...

Core Viewpoint - Sezzle Inc. is set to release its first-quarter 2025 results on May 7, with expectations of significant revenue and earnings growth compared to the previous year [1][2][3]. Revenue Expectations - The Zacks Consensus Estimate projects revenues at $64.8 million, reflecting a 37.9% increase from the same quarter last year, driven by a larger subscriber base and a partnership with WebBank [2]. - The introduction of Sezzle On-Demand allows non-subscribers to access the Sezzle Platform, contributing to anticipated revenue growth [2]. Earnings Projections - The consensus estimate for earnings stands at 32 cents per share, indicating a 45.5% year-over-year increase, supported by strong revenue gains and disciplined cost management [3]. - However, the current model does not predict an earnings beat for Sezzle, with an Earnings ESP of -15.41% and a Zacks Rank of 3 [4][5].

Company Information - Sezzle Inc. is a purpose-driven digital payment platform that aims to financially empower the next generation through point-of-sale financing options and digital payment services [5] - The company connects millions of customers with a global network of merchants, focusing on transparency, inclusivity, and ease of use [5] Upcoming Events - Sezzle has scheduled its 2025 Annual Meeting of Stockholders for June 10, 2025, at 5:00 pm ET, which will be conducted exclusively online via live webcast [1] - The company will release its first quarter 2025 results after the market close on May 7, 2025, followed by a conference call and webcast at 5:00 pm ET on the same day [2] - Sezzle will participate in several upcoming investor conferences, including the Needham Technology, Media, & Consumer 1×1 Conference on May 12, 2025, and the J.P. Morgan Global Technology, Media and Communications Conference on May 13, 2025 [7]

Group 1 - Sezzle Inc. will release its first quarter 2025 results after market close on May 7, 2025, followed by a conference call and webcast at 5:00pm ET [1] - A replay of the conference call will be available on the investor relations website after the event [1] - Investors can register for the conference call or webcast through a provided link, receiving dial-in credentials and a link to the live webcast upon registration [2] Group 2 - The earnings presentation for the first quarter 2025 will be available shortly after market close on May 7 via the Company's Investor Relations website [3] - Investors are encouraged to submit questions in advance of the call by emailing the investor relations team [3] Group 3 - Sezzle Management will participate in investor conferences in May, including the 20th Annual Needham Technology, Media, & Consumer 1×1 Conference on May 12, 2025, and the B. Riley Securities 25th Annual Investor Conference on May 21-22, 2025 [4][7] - The latest Investor Presentation will be available on the Investor Relations page ahead of the conferences [4] Group 4 - Sezzle is a fintech company focused on empowering consumers through its digital payment platform, enhancing purchasing power with point-of-sale financing options and digital payment services [6] - The company emphasizes transparency, inclusivity, and ease of use, aiming to help consumers manage spending responsibly and achieve financial independence [6]

分组1 - Sezzle Inc. announced a six-for-one stock split to enhance ownership accessibility for investors and employees, with stockholders receiving 5 additional shares for each share held as of March 21, 2025 [1] - The stock split will be distributed after trading closes on March 28, 2025, and trading on a split-adjusted basis is expected to begin on March 31, 2025 [1] - The Board has authorized a stock repurchase program of up to $50 million, which has no fixed expiration, allowing flexibility based on market conditions [2][3] 分组2 - Repurchases will be conducted in open market transactions in compliance with SEC Rule 10b-18 and federal securities laws, with no obligation to acquire a specific amount of stock [3] - Sezzle is a fintech company focused on empowering consumers through interest-free installment plans, enhancing purchasing power and promoting financial responsibility [5]

Financial Performance - The company reported a significant increase in Gross Merchandise Volume (GMV), achieving a year-over-year growth of 25%[12] - The total revenue for the fiscal year reached $500 million, representing a 15% increase compared to the previous year[12] - The company anticipates a revenue growth of 20% for the next fiscal year, projecting total revenue to reach $600 million[12] - New product launches are expected to contribute an additional $50 million in revenue over the next year[12] User Growth - The user base expanded to 2 million active users, a growth of 30% year-over-year[12] Investment and Development - The company is investing $10 million in technology development to enhance its platform capabilities[12] - The company plans to pursue strategic acquisitions to bolster its service offerings, with a budget of $30 million allocated for this purpose[12] Market Expansion - Market expansion efforts are underway in Canada and Europe, targeting a 10% increase in market share[12] Regulatory and Compliance Risks - The company is facing increased regulatory scrutiny in the "buy-now, pay-later" sector, which may impact future operations[12] - The company is subject to various laws and regulations applicable to the Buy Now, Pay Later (BNPL) industry in the United States and Canada, which could increase compliance costs[24] Operational Challenges - The company operates in a highly competitive industry and is subject to increased regulatory scrutiny, impacting its growth and market share[19] - The company's ability to maintain and increase its merchant network and Gross Merchandise Volume (GMV) is critical for its success[19] - The loans facilitated through the Sezzle Platform involve a high degree of financial risk, which could adversely affect financial performance[19] - Consumer bad debts and merchant insolvency could negatively impact the company's financial success[19] - The company has a limited operating history and has experienced operating losses until recently, raising concerns about sustainability[19] - The company may require additional capital to support its growth and operational needs[19] Data Security Risks - The company faces risks related to data security breaches and cyberattacks, which could disrupt operations and harm its reputation[19] Dividend Policy - The company has not paid dividends on its common stock, and future payments will depend on various factors determined by the board of directors[24]