Sezzle (US:SEZL)2025-08-07 21:36Financial Performance - Total revenue for Q2 2025 reached $98,702,000, a 76.2% increase from $55,969,000 in Q2 2024[17] - Operating income for the first half of 2025 was $85,981,000, compared to $30,533,000 in the same period of 2024, reflecting a 181.5% increase[17] - Net income for Q2 2025 was $27,604,000, slightly down from $29,702,000 in Q2 2024, while net income for the first half of 2025 was $63,768,000, up from $37,709,000 in 2024[17] - Total revenue for the six months ended June 30, 2025, was $203.6 million, up from $102.9 million in 2024, reflecting a growth of 97.5%[37] - Total revenue for the three months ended June 30, 2025, was $98.7 million, a significant increase from $56.0 million in the same period of 2024, representing a growth of 76.0%[43] - Transaction income for the three months ended June 30, 2025, was $23.8 million, compared to $18.8 million in 2024, an increase of 26.6%[39] - Transaction income for the six months ended June 30, 2025, reached $109.8 million, up from $55.7 million in 2024, indicating a growth of 96.9%[43] - Income from other sources increased to $24.5 million for the three months ended June 30, 2025, compared to $7.0 million in 2024, reflecting a growth of 249.0%[43] - Subscription revenue increased by 13.8% to $22.6 million for the three months ended June 30, 2025, compared to $19.8 million in 2024[105] Assets and Liabilities - Total current assets increased to $311,533,000 as of June 30, 2025, compared to $257,619,000 at the end of 2024, marking a 21% growth[15] - Total assets grew to $350,552,000 as of June 30, 2025, up from $298,372,000 at the end of 2024, representing a 17.5% increase[15] - Total liabilities increased to $220,154,000 as of June 30, 2025, compared to $210,537,000 at the end of 2024, a rise of 4.8%[15] - Stockholders' equity rose to $130,398,000 as of June 30, 2025, up from $87,835,000 at the end of 2024, indicating a 48.4% increase[15] - The company’s total assets as of June 30, 2025, were $304,909,000, with liabilities totaling $130,501,000, resulting in a debt-to-asset ratio of approximately 42.8%[27] Cash Flow and Financing - Cash, cash equivalents, and restricted cash at the end of the period were $119,969,000, compared to $63,992,000 at the end of the same period in 2024, an increase of 87.2%[23] - The company reported a net cash provided from operating activities of $22,522,000 for the six months ended June 30, 2025, down from $34,218,000 in 2024, a decrease of 34.2%[23] - The company raised $95,000,000 from a line of credit during the six months ended June 30, 2025, compared to $46,727,000 in 2024, an increase of 102.4%[23] - The company had an unused borrowing capacity of $4.0 million as of June 30, 2025, down from $39.0 million as of December 31, 2024[62] - Net cash used for financing activities was $0.8 million for the six months ended June 30, 2025, significantly lower than $40.0 million in 2024, indicating a reduction of 98%[136] Credit Losses and Provisions - The company reported a provision for credit losses of $20,646,000 in Q2 2025, compared to $10,094,000 in Q2 2024, reflecting a 104.4% increase[17] - The company incurred a provision for credit losses of $33,447,000 for the six months ended June 30, 2025, compared to $15,234,000 in 2024, an increase of 119.9%[23] - The allowance for credit losses at the end of June 2025 was $23.6 million, up from $11.8 million at the end of June 2024, indicating a year-over-year increase of 100.3%[54] - The company actively manages credit risk through proprietary systems and third-party collection strategies to minimize loss rates[80] - The company expects that increases in GMV and revenue will likely result in higher absolute amounts of credit losses moving forward[120] Stock and Shareholder Actions - The company performed a 6-for-1 stock split effective March 28, 2025, impacting share and per share amounts retroactively[15] - The company repurchased a total of 793,416 shares during the three months ended June 30, 2025, at an average price of $35.58 per share[160] - The stock repurchase program authorized by the Board of Directors allows for the repurchase of up to $50 million of outstanding shares, set to expire on April 7, 2026[161] Legal and Compliance - The company filed a lawsuit against Shopify Inc. for federal and state antitrust violations, seeking damages that could be tripled under applicable laws[154] - The company has not been involved in any material legal proceedings other than routine litigation incidental to the business[153] - The financial statements fairly present the financial condition and results of operations of Sezzle Inc. as of the quarter ended June 30, 2025[176] - The Chief Financial Officer confirmed that the report does not contain any untrue statements or omissions of material facts[172] - The report was filed with the Securities and Exchange Commission on August 7, 2025[175] Operational Highlights - Gross Merchandise Volume (GMV) for Q2 2025 reached $926,981,000, a 74.2% increase from $532,236,000 in Q2 2024[84] - Active Consumers increased to 2,860,000 as of June 30, 2025, up 4.9% from 2,725,000 as of December 31, 2024[86] - Monthly On-Demand Users and Subscribers (MODS) rose to 748,000, reflecting a 5.8% increase from 707,000 in the previous period[86] - The company launched several new products in 2024 and 2025, including Payment Streaks and Sezzle On-Demand, aimed at enhancing consumer engagement and retention[78] - Seasonal trends show that Q4 typically generates the highest revenue and GMV, aligning with holiday shopping patterns, but also leads to increased charge-offs[83]