Why Sezzle Stock Was Sizzling Today

Core Insights - Sezzle's stock surged 51% following strong first-quarter results and an upward revision of guidance [1] - The company reported a 64.1% increase in gross merchandise volume (GMV) to $808.7 million, with customer purchase frequency rising from 4.5 to 6.1 times [3] - Revenue soared 123.3% to $104.9 million, significantly exceeding estimates of $64.8 million [3] - Operating income increased by 260.6% to $49.9 million, resulting in an operating margin of 47.6% [4] - GAAP earnings per share rose from $0.22 to $1.00, surpassing the consensus estimate of $0.32 [4] Company Performance - Sezzle had 658,000 users in the quarter, indicating strong user engagement [4] - CEO Charlie Youakim attributed the success to investments in innovation and consumer experience, leading to increased engagement and performance [5] - The company raised its 2025 net income guidance by nearly 50% to $120 million due to stronger consumer activity and repayment trends [5] Future Outlook - Management increased total revenue growth guidance for the year to 60%-65%, up from a previous estimate of 25%-30% [6] - Expected earnings per share were raised to $3.25 from $2.21 [6] - Sezzle is positioned as a competitive player in the BNPL market, offering unique features such as user control over credit bureau reporting [5] - The stock is considered reasonably valued with a price-to-earnings ratio of 25, suggesting potential for further growth [7]