Financial Data and Key Metrics Changes - Total revenue increased by 67% year-over-year to $116.8 million in Q3 2025 [17] - GAAP net income grew by 72.7% year-over-year to $26.7 million, with an adjusted net income increase of 52.6% to $25.4 million [22] - Adjusted EBITDA rose nearly 74.6% year-over-year to $39.6 million, representing a 33.9% adjusted EBITDA margin [23] - GMV (Gross Merchandise Volume) increased by 58.7% year-over-year, marking the first $1 billion quarter for the company [17] Business Line Data and Key Metrics Changes - The number of monthly on-demand users reached 264,000 by the end of Q2 2025, but the subscriber count decreased from 529,000 to 484,000 during the same period [9] - By the end of Q3 2025, subscribers rose to 568,000 as the company pivoted back to focus on subscription products [11] Market Data and Key Metrics Changes - The take rate, defined as total revenue as a percentage of GMV, rose by 60 basis points year-over-year to 11.2% [18] - The provision for credit losses as a percentage of GMV increased by 70 basis points year-over-year to 3.1% [19] Company Strategy and Development Direction - The company is focusing on enhancing its subscription model while using on-demand as a supplementary tool for specific consumer segments [11][10] - There is a strong emphasis on responsible lending practices, positioning the BNPL product as a budgeting tool rather than a means to overspend [4][33] - The company is exploring new product features, including AI-driven tools to enhance customer service and engagement [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of the BNPL industry, citing its early-stage development and consumer preference over traditional credit cards [3][31] - The company reaffirmed its guidance for top-line growth and adjusted net income, with modest adjustments to GAAP net income due to a discrete tax benefit [24] Other Important Information - The company incurred $1.3 million in costs related to corporate strategic projects, including an antitrust suit and capital markets exploration [12][13] - Total cash grew by $14.7 million in the quarter to $134.7 million, demonstrating the strength of the balance sheet [23] Q&A Session Summary Question: Impact of de-emphasizing on-demand on growth - Management noted that the decision to de-emphasize on-demand was made mid-quarter based on conversion data, indicating that on-demand is better suited for enterprise merchants rather than direct-to-consumer [25][26] Question: Take rate trends and credit losses - The take rate is targeted at maintaining a 60% gross margin, and the 3.1% credit loss rate aligns with expectations, with guidance indicating a range of 2.5%-2.75% for the year [27][29] Question: Market strategy for BNPL in the U.S. - Management believes the BNPL market has significant growth potential, viewing it as a safer alternative to credit cards and emphasizing responsible spending [31][33] Question: Drivers of 2026 EPS guidance - The company anticipates continued growth in subscriptions and is focused on maintaining cost discipline while monitoring economic conditions [37][39] Question: Changes in marketing strategy for subscriptions - The marketing approach has shifted to prioritize subscription offerings directly to consumers, contrasting with previous strategies that emphasized on-demand products [40][42]

Financial Performance - Sezzle achieved a Gross Merchandise Volume (GMV) growth of 74.2% year-over-year (YoY) in 2Q25[10] - Total revenue grew by 76.4% YoY, reaching $98.7 million in 2Q25[10, 34] - The company reported a net income of $27.6 million with a net income margin of 28.0% in 2Q25[10] - Adjusted EBITDA for 2Q25 was $37.9 million, representing a margin of 38.4%[10] - Total revenue less transaction-related costs accounted for 61.1% of total revenue[10] User Engagement - Monthly On-Demand & Subscribers (MODS) reached 748,000, a 62.0% YoY increase[10] - Average quarterly purchase frequency increased from 4.8x in 2Q24 to 6.1x in 2Q25[10] - Revenue Generating Users increased by 52% YoY[21] - Monthly Sessions increased by 112% YoY[21] Future Outlook - The company projects an adjusted net income of $120.0 million for FY2025, an 85.8% YoY increase[11] - Adjusted EBITDA is projected to be between $170.0 million and $175.0 million, representing a 92-98% YoY increase[11]

Core Insights - Sezzle Inc. reported significant growth in key financial metrics for Q2 2025, with Gross Merchandise Volume (GMV) reaching $927.0 million, a 74.2% increase year-over-year [2] - The company emphasized a strategic approach to growth, focusing on intentional scaling and effective marketing initiatives that have led to increased consumer engagement [2] Financial Performance - GMV increased by 74.2% YoY to $927.0 million, with consumers averaging 6.1 purchases per quarter compared to 4.8 in the previous year [2] - Total Revenue rose 76.4% YoY to $98.7 million, with Total Revenue as a percentage of GMV at 10.6% [2] - Monthly On-Demand & Subscribers (MODS) reached 748,000, up from 658,000 in the previous quarter [2] - Total Operating Expenses increased by 59.5% YoY to $62.6 million, but as a percentage of Total Revenue, they decreased by 6.8 points to 63.4% [2] - Operating Income grew 116.1% YoY to $36.1 million, with Operating Margin expanding to 36.6% of Total Revenue [2] - Net Income for Q2 2025 was $27.6 million, representing 28.0% of Total Revenue, with Earnings per Diluted Share falling 4.9% to $0.78 [2] Cost Management - Transaction Related Costs as a percentage of GMV declined from 4.5% to 4.1% YoY, attributed to improved payment processing efficiency and increased consumer adoption of ACH payments [2] - Non-Transaction Related Operating Expenses increased 50.4% YoY to $27.7 million, but as a percentage of Total Revenue, they decreased by 4.8 points to 28.1% [2] Adjusted Metrics - Adjusted Net Income rose 91.8% YoY to $24.4 million, or 24.7% of Total Revenue, with Adjusted Net Income per Diluted Share increasing 97.1% YoY to $0.69 [2] - Adjusted EBITDA increased 106.0% YoY to $37.9 million, accounting for 38.4% of Total Revenue [2] Shareholder Returns - The company repurchased 678,529 shares for $23.5 million under its $50 million stock repurchase plan [2] Balance Sheet and Guidance - As of June 30, 2025, Sezzle had $120.0 million in cash and cash equivalents, with $31.0 million restricted [8] - The company provided FY2025 guidance, expecting Total Revenue Growth of 60-65% and Adjusted Net Income of $120.0 million [8]

Core Insights - Both Nu Holdings (NU) and Sezzle (SEZL) are positioned in the rapidly growing fintech sector, with NU serving over 118 million customers across Mexico, Brazil, and Colombia, while SEZL focuses on providing payment solutions for the underbanked population [1][7]. Group 1: Nu Holdings (NU) - NU's cloud-centric, mobile-first infrastructure allows it to serve customers at a lower cost compared to traditional banks, contributing to a 19% year-over-year growth in customers during Q1 2025 [3]. - The company reported a 40% year-over-year growth in revenues and a 74% increase in net income for Q1 2025, with EBITDA margin rising by 440 basis points and net margin increasing by 400 basis points [4]. - NU has successfully expanded its customer base in Mexico and Colombia, with over 6 million and 1.5 million customers respectively, leveraging its scalable model to gain a first-mover advantage in these markets [5]. - Despite its strengths, NU faces competitive pressure from established players like SoFi, which could impact its market share [6]. Group 2: Sezzle (SEZL) - SEZL targets the underbanked population, with the digital payment market expected to grow at an 11.8% CAGR from 2023 to 2028, providing significant growth opportunities [7]. - The company has seen a 123.3% year-over-year increase in revenues and a 260.6% rise in operating income during Q1 2025, driven by an increase in customer purchase frequency from 4.5X to 6.5X [8]. - SEZL's product innovation, such as the On-Demand feature, enhances customer experience and flexibility, solidifying its position in the fintech space [9]. - However, the BNPL sector faces regulatory scrutiny, which could increase compliance costs and impact SEZL's customer acquisition and margins [11]. Group 3: Financial Estimates and Valuation - The Zacks Consensus Estimate for NU's 2025 sales is $14.9 billion, indicating a 29.4% year-over-year growth, with earnings estimated at 54 cents per share, reflecting a 20% increase [12]. - For SEZL, the 2025 sales estimate is $441.8 million, implying a 62.9% year-over-year growth, with earnings projected at $3.26, a 77.2% rise from the previous year [13]. - NU is trading at a forward P/E ratio of 20.7X, slightly above its 12-month median, while SEZL trades at 36.97X, indicating that NU is a cheaper stock compared to SEZL [15]. Group 4: Investment Outlook - NU is considered a better investment option due to its strong financials, effective credit risk management, and lower valuation compared to SEZL, despite both companies being fundamentally strong [17][18].

Core Insights - Qifu Technology (QFIN) and Sezzle (SEZL) are significant players in the credit tech sector, with QFIN focusing on AI-powered credit solutions in China and SEZL providing buy-now-pay-later services in the U.S. [2][8] Qifu Technology (QFIN) - QFIN operates a capital-light model that reduces credit risk and enhances growth, utilizing the Intelligence Credit Engine (ICE) to connect borrowers with financial partners [4][6] - The company reported a 15.8% year-over-year growth in total facilitation and origination loan volume, with operating income increasing by 44.8% year-over-year [5] - QFIN's AI-Plus credit strategy, launched in early 2025, aims to improve credit processes and has already led to increased loan volumes and stable delinquency rates at 0.6% [6] - The Chinese digital lending platform market is projected to grow at a CAGR of 27.3% from 2024 to 2030, indicating a favorable market environment for QFIN [7] Sezzle (SEZL) - SEZL targets the underbanked population in the U.S. fintech market, capitalizing on the growing digital payment sector expected to grow at a CAGR of 11.8% from 2023 to 2028 [8] - The company experienced a remarkable 123.3% increase in revenues year-over-year in Q1 2025, driven by a 64.1% rise in gross merchandise volume [9] - SEZL's customer purchase frequency increased to 6.5 times annually, reflecting higher transaction volumes and revenue growth [11] Financial Estimates - The Zacks Consensus Estimate for QFIN's 2025 sales is $2.6 billion, suggesting a 7.6% year-over-year growth, with earnings expected to rise by 25.3% [12] - For SEZL, the 2025 sales estimate is $441.8 million, indicating a 62.9% year-over-year growth, with earnings projected to grow by 77.2% [15] Valuation Comparison - QFIN is trading at a forward P/E ratio of 5.97X, while SEZL is at 43.86X, indicating that QFIN is relatively cheaper compared to SEZL [17] - Despite SEZL's strong growth and high Zacks Rank, QFIN presents a more attractive risk-reward profile for value-conscious investors [19][20]

Financial Performance - Sezzle's GMV增长了64.1%[10] - Total Revenue同比增长123.3%[10] - 净利润为3620万美元，净利润率为34.5%[10] - 公司将全年净利润预期从8040万美元上调至1.2亿美元，每股收益从2.21美元上调至3.25美元[10] - Total Revenue Less Transaction Related Costs占总收入的70.4%[10] User Engagement - Monthly On-Demand & Subscribers (MODS)达到65.8万，同比增长77.4%[10] - 平均季度购买频率为6.1次，高于去年同期的4.5次[10] Product Expansion - 公司推出了Pay-in-5 (beta), Sezzle Balance, Money IQ等新产品[10] - 改进了购物体验，包括Wishlist, Price Comparison & Auto-Couponing (beta)等功能[10] Balance Sheet - 现金和现金等价物总额为1.20869亿美元[61]

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]