Core Viewpoint - Sezzle has experienced significant growth but has recently faced a sharp decline in stock price, presenting a potential buying opportunity amidst broader market concerns about the fintech sector and credit risks [1][2][3]. Company Performance - Sezzle's stock fell 43% since September 9, underperforming compared to other fintech stocks [3]. - Despite the stock's decline, Sezzle reported strong third-quarter results, with gross merchandise volume increasing by 58.7% to $1 billion and revenue rising by 67% to $116.8 million [8]. - Adjusted EBITDA rose 75% to $39.6 million, and adjusted earnings per share increased from $0.47 to $0.71 [9]. Market Position and Strategy - Sezzle operates in the buy now, pay later (BNPL) space, offering a "pay in four" feature and generating revenue primarily from merchants through a 6% processing fee plus $0.30 per transaction [9]. - The company positions itself as more user-friendly and less predatory than competitors, implementing measures to limit credit risk by cutting off users who miss payments [10]. Financial Metrics - Sezzle's current market capitalization is approximately $2 billion, with a forward P/E ratio of 16 based on an updated adjusted EPS of $3.38 for the year, indicating a potentially attractive valuation for a high-growth company [12]. - The provision for credit losses doubled to $32.2 million in the third quarter, reflecting rising credit risk in the current macroeconomic environment [13]. Future Outlook - If Sezzle can navigate the current market volatility, there is potential for significant stock appreciation, with a 10x gain considered possible if the company maintains its growth trajectory [14].