Why Sezzle (SEZL) Shares Are Getting Obliterated Today

Core Insights - Sezzle's shares fell 8% despite a strong third-quarter earnings report, driven by concerns over rising credit loss provisions, an executive change, and increased competition [1][2] Financial Performance - The company reported a 67% year-over-year revenue increase and achieved its first-ever $1 billion quarter in Gross Merchandise Volume (GMV) [2] - The provision for credit losses rose to 3.1% of GMV, up from 2.3% in the same period last year, raising concerns about loan quality [2] Executive Changes - Chief Financial Officer Karen Hartje is transitioning out of her role over the next twelve months, adding to the uncertainty surrounding the company [2] Competitive Landscape - Increased competition is evident as US Bank partnered with Mastercard to launch a new credit card that directly competes with buy-now-pay-later models [2] Market Reaction - Sezzle's shares have shown extreme volatility, with 80 moves greater than 5% over the past year, indicating that the market views the recent news as significant but not fundamentally altering its perception of the business [4] Stock Performance - Sezzle's stock is up 36.6% year-to-date but is still trading 65.9% below its 52-week high of $182.16 from July 2025 [6]