Sezzle Stock Skyrockets 1000% in a Year: Should You Buy It Now?

Core Insights - Sezzle Inc.'s stock has surged 1000% over the past year, significantly outperforming the industry growth of 29% and the S&P 500's 13.2% increase [1][8] WebBank Partnership: Sezzle's Way Forward - The partnership with WebBank, launched in September 2024, has streamlined Sezzle's transaction processing and eliminated the need for multiple banking relationships [5][6] - This partnership is expected to provide unified fees, improved regulatory frameworks, and opportunities for product innovations [6][8] - In Q1 2025, Sezzle's revenue increased by 123.3% year-over-year, largely attributed to the benefits of the WebBank partnership [7][8] - Sezzle's revenue growth outpaced major competitors in the Buy-Now-Pay-Later (BNPL) market, such as Affirm and PayPal [11] Outstanding Profitability & Liquidity Position - Sezzle reported a return on equity (ROE) of 114.4% in Q1 2025, significantly higher than the industry average of 48.5% [12][14] - The company's return on invested capital stands at 63.5%, well above the industry average of 22.2% [14] - Sezzle's current ratio improved to 2.62, surpassing the industry average of 1.15, indicating strong liquidity [16] Optimistic Top & Bottom-Line Prospects - The Zacks Consensus Estimate projects Sezzle's 2025 sales at $438.4 million, reflecting a 61.7% year-over-year increase, with further growth anticipated in 2026 [18][19] - Earnings per share (EPS) estimates for 2025 are set at $3.24, indicating a 76.1% year-over-year surge, with additional growth expected in 2026 [18][19] Conclusion - The WebBank partnership has positioned Sezzle favorably within the BNPL market, showcasing strong revenue growth and profitability metrics that exceed industry standards [20][21]