-- GMV increased 37.3% YoY to $1.1 billion, supported by record average
quarterly purchase frequency of 7.1x
-- Total Revenue grew 29.2% YoY to $135.5 million, representing 12.2% of GMV
-- Net Income and Adjusted Net Income1 increased 41.9% and 41.5% YoY to
$51.3 million and $50.0 million, respectively; Net Income per Diluted
Share2 and Adjusted Net Income per Diluted Share2 were $1.47 and $1.43,
respectively
-- Adjusted EBITDA1 was $71.1 million, with Adjusted EBITDA Margin reaching
52.5%
-- The Company increased FY2026 guidance across all metrics: Total Revenue
Growth to 30-35% from 25-30%, Adjusted Net Income1 to $180.0 million from
$170.0 million, and Adjusted Net Income Per Diluted Share2 to $5.10 from
$4.70
MINNEAPOLIS, May 06, 2026 (GLOBE NEWSWIRE) -- Sezzle Inc. $(SEZL)$ (Sezzle or Company) // Purpose-driven digital payment platform, Sezzle, is pleased to update the market on key financial metrics for the quarter ended March 31, 2026.
"This quarter's results demonstrate the impact of the consumer engagement strategy we advanced throughout 2025," stated Charlie Youakim, Sezzle Executive Chairman and CEO. "Average quarterly purchase frequency reached a new Company high of 7.1x and Active Subscribers grew 48.4% year over year, reflecting the growing value consumers see in Sezzle. The engagement flywheel we built is working, and our strong first quarter performance gives us the confidence to raise FY2026 Adjusted Net Income guidance to $180 million and Adjusted Net Income per Diluted Share guidance to $5.10."
First Quarter 2026 Highlights
-- Gross Merchandise Volume (GMV) increased 37.3% YoY to $1.1 billion,
supported by higher overall consumer purchase frequency and continued
platform engagement. Average purchase frequency reached a quarterly
record of 7.1x, up from 6.1x in 1Q25.
-- Total Revenue reached a quarterly high of $135.5 million, up 29.2% YoY
and equal to 12.2% of GMV.
-- Monthly On-Demand & Subscribers (MODS) totaled 887,000 (rounded to the
nearest thousand) as of March 31, 2026, up 34.8% YoY. Active Subscribers
increased 48.4% YoY, while Monthly On-Demand users declined sequentially,
reflecting a subscription-first acquisition strategy and the seasonal
moderation that typically follows the fourth-quarter holiday shopping
period.
-- Total Operating Expenses rose 20.9% YoY to $66.5 million, primarily
reflecting higher marketing spend. As a share of Total Revenue and GMV,
Operating Expenses fell 3.3 and 0.8 percentage points to new Company lows
of 49.1% and 6.0%, respectively.
-- Transaction Related Costs3 improved to a Company-low 3.2% of GMV, down
from 3.8% in 1Q25. Provision for Credit Losses contributed most to the
improvement, contracting to 1.2% of GMV from 1.6% in 1Q25 on sustained
favorable consumer repayment performance.
-- Operating Income increased 38.4% YoY to $69.0 million. Operating Margin
expanded 3.3 percentage points YoY to 50.9% of Total Revenue and held at
6.2% of GMV.
-- Total Revenue Less Transaction Related Costs3 increased 35.8% YoY to
$100.3 million and reached 74.0% of Total Revenue, up 3.6 percentage
points YoY. As a percentage of GMV, the metric was 9.0%, compared with
9.1% in 1Q25.
-- Non-Transaction Related Operating Expenses3 increased 27.5% YoY to $34.3
million, with marketing expense accounting for $11.2 million versus $5.3
million in 1Q25 in support of subscriber acquisition, retention, and
engagement initiatives. As a percentage of Total Revenue, the metric
declined 0.3 percentage points YoY to 25.3%.
-- Corporate Strategic Project Costs for the quarter totaled $0.3
million, covering professional services tied to the ongoing
antitrust litigation and bank charter application.
-- Net Income jumped 41.9% YoY to $51.3 million, a new Company quarterly
high. Net Income Margin expanded 3.4 percentage points to 37.9%, with
Earnings per Diluted Share4 of $1.47 versus $1.00 in 1Q25.
-- Adjusted Net Income5 increased 41.5% YoY to $50.0 million in 1Q26,
or 36.9% of Total Revenue, translating to $1.43 per Diluted Share6
compared to $0.98 in 1Q25.
-- Adjusted EBITDA5 grew 38.3% YoY to $71.1 million. Adjusted EBITDA Margin
reached 52.5% of Total Revenue, 3.5 percentage points above 1Q25.
Balance Sheet and Liquidity
-- As of March 31, 2026, Sezzle had $147.4 million of cash, cash equivalents,
and restricted cash, $26.9 million of which was restricted.
-- The Company had $145.5 million outstanding on its $225.0 million credit
facility as of quarter end.
-- During 1Q26, the Company repurchased $24.8 million of common stock under
its $100.0 million share repurchase program.
Guidance
The Company is raising its FY2026 guidance as follows:
2026 Guidance 2026 Guidance 2026 Updated
(November 2025) (February 2026) Guidance
----------------- ---------------- ---------------- -----------------
Total Revenue
Growth Not provided 25%--30% 30%--35%
Adjusted Net
Income(5) Not provided $170.0M $180.0M
Adjusted Net
Income Per
Diluted
Share(5) $4.35 $4.70 $5.10
Initiatives Update
-- Sezzle continued to advance its strategy of moving beyond checkout to
become a broader part of consumers' everyday spending. During 1Q26, the
Company rolled out Pay-in-5 to consumers, while the Earn Tab continued to
gain traction as a daily engagement hub, generating 4.8 million visits
since its June 2025 launch.
-- Subsequent to quarter end, Sezzle launched Agentic Commerce, a closed-end
BNPL virtual card solution in Canada, and Sezzle Mobile. Additionally,
Sezzle expanded its long-term lending functionality across its product
suite. These launches broaden Sezzle's payments, shopping, and
financial-services capabilities, creating more reasons for consumers to
engage with Sezzle in their everyday lives.
Upcoming Investor Events
-- Sezzle Management will participate in the upcoming investor events:
-- May 14, 2026: 21st Annual Needham Technology, Media, & Consumer
Conference
-- May 18, 2026: J.P. Morgan 2026 Global Technology, Media, and
Communications Conference
-- May 20, 2026: B. Riley Securities 2026 Annual Investor Conference
-- June 17, 2026: Needham Non-Deal Roadshow
-- June 23, 2026: Northland Growth Conference 2026
Quarterly Conference Call and Presentation
The Company will host its first quarter earnings conference call on May 6, 2026, at 5:00pm ET.
To register for the call, please navigate to: https://dpregister.com/sreg/10208550/103e1a867dc
All participants can access the webcast using the following link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=eVoVHHdR
Upon registration, participants will receive the dial-in number. Those without internet access or unable to pre-register may dial in by calling: 1-866-777-2509 (US/CA toll free) or 1-412-317-5413 (international toll). A replay will be available until May 13, 2026. To access the replay dial 1-855-669-9658 (US toll free) or 1-412-317-0088 (International toll). Replay access code: 4160608.
In conjunction with the earnings call, the Company will release its presentation on the Sezzle Investor Relations website before the call. Please navigate to the Sezzle Investor Relations website for the presentation that management will review on the call.
1Q26 GAAP Operating Results
For the three months ended
($ in thousands) Mar. 31, 2026 Mar. 31, 2025 YoY Difference
---------------------- ----------------- ----------------- ----------------
Total Revenue $ 135,539 $ 104,912 29.2%
Operating Expenses $ 66,503 $ 55,017 20.9%
Operating Expenses as
% of Total Revenue 49.1% 52.4% (3.3 ppt)
Operating Expenses as
% of GMV 6.0% 6.8% (0.8 ppt)
Operating Income $ 69,036 $ 49,895 38.4%
Operating Income as %
of Total Revenue 50.9% 47.6% 3.3 ppt
Operating Income as %
of GMV 6.2% 6.2% 0.0 ppt
Net Income $ 51,303 $ 36,164 41.9%
Net Income as % of
Total Revenue 37.9% 34.5% 3.4 ppt
Net Income per Diluted
Share $ 1.47 $ 1.00 47.0%
1Q26 Non-GAAP Operating Results(7)
For the three months ended
($ in thousands) Mar. 31, 2026 Mar. 31, 2025 YoY Difference
---------------------- ----------------- ----------------- ----------------
Non-Transaction
Related Operating
Expenses $ 34,308 $ 26,899 27.5%
Non-Transaction
Related Operating
Expenses as % of
Total Revenue 25.3% 25.6% (0.3 ppt)
Transaction Related
Costs $ 35,210 $ 31,032 13.5%
Transaction Related
Costs as % of Total
Revenue 26.0% 29.6% (3.6 ppt)
Transaction Related
Costs as % of GMV 3.2% 3.8% (0.6 ppt)
Total Revenue Less
Transaction Related
Costs $ 100,329 $ 73,880 35.8%
Total Revenue Less
Transaction Related
Costs as % of Total
Revenue 74.0% 70.4% 3.6 ppt
Total Revenue Less
Transaction Related
Costs as % of GMV 9.0% 9.1% (0.1 ppt)
Adjusted EBITDA $ 71,133 $ 51,446 38.3%
Adjusted EBITDA Margin 52.5% 49.0% 3.5 ppt
Adjusted Net Income $ 49,993 $ 35,340 41.5%
Adjusted Net Income
Margin 36.9% 33.7% 3.2 ppt
Adjusted Net Income
per Diluted Share $ 1.43 $ 0.98 45.9%
Appendix - Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of Operating Expenses to Non-transaction Related Operating Expenses
For the three months ended
($ in thousands) March 31, 2026 March 31, 2025
----------------------------------- ------------------- ------------------
Operating expenses $ 66,503 $ 55,017
Transaction expense (18,520) (15,317)
Provision for credit losses (13,675) (12,801)
----------------------------------- --- ------------- -----------
Non-transaction related operating
expenses $ 34,308 $ 26,899
=================================== === ============= ===========
Reconciliation of Operating Expenses to Transaction Related Costs
For the three months ended
($ in thousands) March 31, 2026 March 31, 2025
----------------------------------- ------------------- ------------------
Operating expenses $ 66,503 $ 55,017
Personnel (14,667) (15,048)
Third-party technology and data (4,415) (3,374)
Marketing, advertising, and
tradeshows (11,246) (5,346)
General and administrative (3,980) (3,131)
Net interest expense 3,015 2,914
----------------------------------- --- ------------- -----------
Transaction related costs $ 35,210 $ 31,032
=================================== === ============= ===========
Reconciliation of Operating Income to Total Revenue Less Transaction Related Costs
For the three months ended
($ in thousands) March 31, 2026 March 31, 2025
----------------------------------- ------------------- ------------------
Operating income $ 69,036 $ 49,895
Personnel 14,667 15,048
Third-party technology and data 4,415 3,374
Marketing, advertising, and
tradeshows 11,246 5,346
General and administrative 3,980 3,131
Net interest expense (3,015) (2,914)
----------------------------------- --- ------------- -----------
Total revenue less transaction
related costs $ 100,329 $ 73,880
=================================== === ============= ===========
Reconciliation of Net Income to Adjusted EBITDA
For the three months ended
---------------------------------------
($ in thousands) March 31, 2026 March 31, 2025
------------------------------------- ------------------- ------------------
Net income $ 51,303 $ 36,164
Depreciation and amortization 436 274
Income tax expense 14,686 10,842
Equity and incentive-based
compensation 1,321 1,273
Other (income) expense, net 32 (25)
Corporate strategic projects(1) 340 4
Net interest expense 3,015 2,914
------------------------------------- --- -------------- -----------
Adjusted EBITDA $ 71,133 $ 51,446
===================================== === ============== ===========
(1) Adjusted prior periods to include corporate strategic project costs.
Reconciliation of Net Income to Adjusted Net Income and Adjusted Net Income per Diluted Share
For the three months ended
($ in thousands, except for per
share numbers) March 31, 2026 March 31, 2025
----------------------------------- ------------------- ------------------
Net income $ 51,303 $ 36,164
Discrete tax benefit(1) (1,682) (803)
Corporate strategic projects(1) 340 4
Other (income) expense, net 32 (25)
----------------------------------- --- ------------- -----------
Adjusted net income 49,993 35,340
Diluted weighted-average shares
outstanding 34,932 36,171
----------------------------------- --- ------------- -----------
Adjusted net income per diluted
share(2) $ 1.43 $ 0.98
=================================== === ============= ===========
(1) Adjusted prior periods to include the windfall/shortfall to income tax expense for equity-based compensation and corporate strategic project costs.
(2) Effective March 28, 2025, we performed a 6-for-1 stock split of the Company's common stock, effected through a stock dividend. Share and per-share amounts have been retroactively adjusted.
Investors should be aware that generally accepted accounting principles prescribe when a company may reserve for particular risks, including litigation exposures. Accordingly, results for a given reporting period could be significantly affected if and when we establish reserves for one or more contingencies. Also, our regular reserve reviews may result in adjustments of varying magnitude as additional information regarding claims activity becomes known. Reported results, therefore, may be volatile in certain accounting periods.
Contact Information
Jack Fagan Erin Foran Investor Relations Media Inquiries +1 651 240 6001 +1 651 403 2184 InvestorRelations@sezzle.com erin.foran@sezzle.com
About Sezzle Inc.
Sezzle is a forward-thinking fintech company committed to financially empowering the next generation. Through its purpose-driven payment platform, Sezzle enhances consumers' purchasing power by offering access to point-of-sale financing options and digital payment services--connecting millions of customers with its global network of merchants. Centered on transparency, inclusivity, and ease of use, Sezzle empowers consumers to manage spending responsibly, take charge of their finances, and achieve lasting financial independence.
For more information visit sezzle.com.
Consolidated Balance Sheets
As of
March 31, 2026 December 31, 2025
(in thousands, except per share
amounts) (unaudited) (audited)
----------------------------------- ---------------- ---------------------
Assets
Current Assets
Cash and cash equivalents,
including amounts held by
variable interest entity
("VIE") of $39,979 and
$25,921, respectively $ 120,448 $ 64,054
Restricted cash, current,
including amounts held by
VIE of $4,701 and $8,245,
respectively 4,745 8,413
Notes receivable 282,761 283,400
Allowance for credit losses (19,794) (28,505)
----------------------------------- ----------- --------------
Notes receivable, net,
including amounts held by
VIE of $247,006 and
$237,062, respectively 262,967 254,895
Other current assets 23,030 24,502
----------------------------------- ----------- --------------
Total current assets 411,190 351,864
----------------------------------- ----------- --------------
Non-Current Assets
Internally developed
intangible assets, net 3,743 3,331
Operating right-of-use assets 628 665
Restricted cash, non-current 22,193 30,134
Deferred tax asset 15,721 13,615
Other assets 830 620
----------------------------------- ----------- --------------
Total Assets $ 454,305 $ 400,229
=================================== =========== ==============
Liabilities and Stockholders'
Equity
Current Liabilities
Merchant accounts payable $ 57,568 $ 56,374
Other payables, including
amounts held by VIE of $7
and $1,476, respectively 21,969 6,908
Deferred revenue 5,669 5,431
Other current liabilities,
including amounts held by
VIE of $1,075 and $0,
respectively 27,396 21,053
----------------------------------- ----------- --------------
Total current liabilities 112,602 89,766
----------------------------------- ----------- --------------
Non-Current Liabilities
Operating lease liabilities 609 661
Line of credit, net of
unamortized debt issuance
costs of $1,128 and $1,268,
respectively, held by VIE 144,372 139,991
Total Liabilities 257,583 230,418
----------------------------------- ----------- --------------
Stockholders' Equity
Common stock and additional
paid-in capital, $0.00001
par value; 750,000 shares
authorized; 34,940 and
35,130 shares issued,
respectively; 33,594 and
33,798 shares outstanding,
respectively 194,210 194,890
Treasury stock, at cost:
1,346 and 1,332 shares,
respectively (25,000) (24,072)
Accumulated other
comprehensive loss (761) (683)
Accumulated earnings
(deficit) 28,273 (324)
----------------------------------- ----------- --------------
Total Stockholders' Equity 196,722 169,811
----------------------------------- ----------- --------------
Total Liabilities and Stockholders'
Equity $ 454,305 $ 400,229
=================================== =========== ==============
Consolidated Statements of Operations and Comprehensive Income (unaudited)
For the three months ended March 31,
----------------------------------------------
(in thousands, except per
share amounts) 2026 2025
Total revenue $ 135,539 $ 104,912
Operating Expenses
Personnel 14,667 15,048
Transaction expense 18,520 15,317
Third-party technology
and data 4,415 3,374
Marketing, advertising,
and tradeshows 11,246 5,346
General and
administrative 3,980 3,131
Provision for credit
losses 13,675 12,801
------------------------------ -------------- --------------
Total operating expenses 66,503 55,017
------------------------------ -------------- --------------
Operating Income 69,036 49,895
------------------------------ -------------- --------------
Other Income (Expense)
Net interest expense (3,015) (2,914)
Other income (expense),
net (32) 25
Income before taxes 65,989 47,006
------------------------------ -------------- --------------
Income tax expense 14,686 10,842
Net Income 51,303 36,164
------------------------------ -------------- --------------
Other Comprehensive (Loss)
Income
Foreign currency
translation adjustment (78) 93
Total Comprehensive Income $ 51,225 $ 36,257
============================== ============== ==============
Net income per share*:
Basic $ 1.52 $ 1.07
Diluted 1.47 1.00
Weighted-average shares
outstanding*:
Basic 33,764 33,852
Diluted 34,932 36,171
-- Effective March 28, 2025, we performed a 6-for-1 stock split of
the Company's common stock, effected through a stock dividend.
Share and per-share amounts have been retroactively adjusted.
Consolidated Statements of Cash Flows (unaudited)
For the three months ended March 31,
----------------------------------------------
(As restated)
(in thousands) 2026 2025
Operating Activities:
Net income $ 51,303 $ 36,164
Adjustments to reconcile
net income to net cash
provided from operating
activities:
Depreciation and
amortization 436 274
Provision for credit
losses 13,675 12,801
Provision for other
credit losses 6,855 3,956
Discount on notes
receivable (345) (1,224)
Equity based
compensation and
restricted stock
vested 1,321 1,273
Amortization of debt
issuance costs 241 109
Impairment losses on
long-lived assets -- 66
Gain on sale of fixed
assets 2 --
Deferred income taxes (2,106) 5,289
Changes in operating
assets and liabilities:
Other assets (5,374) (4,385)
Merchant accounts
payable 1,322 (3,631)
Other payables 15,074 2,779
Other liabilities 6,329 (898)
Deferred revenue 240 (109)
Operating leases 5 15
------------------------------ -------------- --------------
Net Cash Provided from
Operating Activities 88,978 52,479
------------------------------ -------------- --------------
Investing Activities:
Purchases and originations
of notes receivable, net
of proceeds from
repayments (21,404) 6,358
Purchase of property and
equipment (351) (27)
Internally developed
intangible asset
additions (738) (281)
------------------------------ -------------- --------------
Net Cash (Used for) Provided
from Investing Activities (22,493) 6,050
------------------------------ -------------- --------------
Financing Activities:
Proceeds from line of
credit 100,000 15,000
Payments to line of credit (95,760) (49,200)
Payments of debt issuance
costs (100) (10)
Proceeds from stock option
exercises 111 540
Repurchase of common stock (25,746) (2,444)
Net Cash Used for Financing
Activities (21,495) (36,114)
------------------------------ -------------- --------------
Effect of exchange rate
changes on cash (205) 144
Net increase in cash, cash
equivalents, and restricted
cash 44,990 22,415
Cash, cash equivalents, and
restricted cash, beginning of
period 102,601 98,310
------------------------------ -------------- --------------
Cash, cash equivalents, and
restricted cash, end of
period $ 147,386 $ 120,869
============================== ============== ==============
Consolidated Statements of Cash Flows (unaudited) (continued)
For the three months ended March 31,
------------------------------------------
(As restated)
(in thousands) 2026 2025
Noncash investing and financing
activities:
Conversion of accrued
profit-sharing incentive plan
liabilities to stockholders'
equity $ -- $ 2,301
Supplementary disclosures:
Interest paid $ 3,795 $ 3,217
Income taxes paid 87 94
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We have based these forward-looking statements largely on our management's current expectations and projections about future events and financial trends affecting the financial condition of our business.
Forward-looking statements generally can be identified by the use of words such as "anticipate," "expect," "plan," "could," "may," "will," "believe," "estimate," "forecast," "goal," "project," other words or expressions of similar meaning (or the negative versions of such words or expressions). These forward-looking statements address various matters including the timing and nature of anticipated new products, our business strategy, future operations, financial performance or other future events. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Applicable risks and uncertainties include, among others: impact of the "buy-now, pay-later" ("BNPL") industry becoming subject to increased regulatory scrutiny; impact of operating in a highly competitive industry; impact of macro-economic conditions on consumer spending; our ability to increase our merchant network, our base of consumers, and gross merchandise value (GMV); our ability to effectively manage growth, sustain our growth rate and maintain our market share; our ability to maintain adequate access to capital in order to meet the capital requirements of our business; impact of exposure to consumer bad debts and insolvency of merchants; our ability to comply with the applicable requirements of Visa and other payment processors; impact of the integration, support and prominent presentation of our platform by our merchants; impact of any data security breaches, cyberattacks, employee or other internal misconduct, malware, phishing or ransomware, physical security breaches, natural disasters, or similar disruptions; impact of key vendors or merchants failing to comply with legal or regulatory requirements or to provide various services that are important to our operations; our ability to protect our intellectual property rights and third party allegations of the misappropriation of intellectual property rights; impact of the costs of complying with various laws and regulations applicable to the BNPL industry in the United States and Canada; the impact of litigation, regulatory investigations and actions, and compliance issues on our business; significant and sudden declines or volatility in the trading price of our common stock and market capitalization; and other factors identified in the "Risk Factors" section of our most recent Annual Report on Form 10-K (the "Annual Report") and the Company's subsequent filings filed with the SEC. Investors should not place undue reliance on forward-looking statements contained in this press release, including any accompanying attachments or oral forward-looking statements that we or persons acting on our behalf may issue, which, except as otherwise noted, speak only as of the date of this press release. Except as required by law, we undertake no obligation to update or revise any forward-looking statements contained in this press release, any accompanying materials, or oral forward-looking statements made in connection with this press release.
Non-GAAP Financial Measures
To supplement our operating results prepared in accordance with generally accepted accounting principles in the United States ("GAAP"), we present the following non-GAAP financial measures: Total revenue less transaction related costs; transaction related costs; non-transaction related operating expenses; adjusted net income; adjusted net income margin; adjusted net income per diluted share; adjusted earnings before interest, taxes, depreciation, and amortization ("Adjusted EBITDA"); and Adjusted EBITDA margin. Definitions of these non-GAAP financial measures and summaries of the reasons why management believes that the presentation of these non-GAAP financial measures provide useful information to the Company and investors are as follows:
-- Total revenue less transaction related costs is defined as GAAP
total revenue less transaction related costs. Transaction related
costs is the sum of GAAP transaction expense, provision for credit
losses, and net interest expense less certain non-recurring
charges as detailed in the reconciliation table of GAAP operating
income to non-GAAP total revenue less transaction related costs
above. We believe that total revenue less transaction related
costs is a useful financial measure to both management and
investors for evaluating the economic value of orders processed on
the Sezzle Platform.
-- Non-transaction related operating expenses is defined as the sum
of GAAP personnel; third-party technology and data; marketing,
advertising, and tradeshows; and general and administrative
operating expenses. We believe that non-transaction related
operating expenses is a useful financial measure to both
management and investors for evaluating our management of
operating expenses not directly attributable to orders processed
on the Sezzle Platform.
-- Adjusted EBITDA is defined as GAAP net income, adjusted for
certain charges including depreciation, amortization, equity and
incentive--based compensation, and corporate strategic project
costs, as well as net interest expense as detailed in the
reconciliation table of GAAP net income to adjusted EBITDA. We
believe that this financial measure is a useful measure for
period-to-period comparison of our business by removing the effect
of certain non-cash and non-recurring charges, as well as funding
costs, that may not directly correlate to the underlying
performance of our business.
-- Adjusted EBITDA margin is defined as Adjusted EBITDA divided by
GAAP total revenue. We believe that this financial measure is a
useful measure for period-to-period comparison of our business'
unit economics by removing the effect of certain non-cash and
non-recurring charges, as well as funding costs, that may not
directly correlate to the underlying performance of our business.
-- Adjusted net income is defined as GAAP net income, adjusted for
certain charges including discrete tax items, fair value
adjustments on warrants, losses on the extinguishment of our lines
of credit, corporate strategic project costs, and other income and
expense, as detailed in the reconciliation table of GAAP net
income to adjusted net income. We believe that this financial
measure is useful for period-to-period comparison of our business
by removing the effect of certain charges that, in management's
view, does not correlate to the underlying performance of our
business during a given period.
-- Adjusted net income margin is defined as Adjusted net income
divided by GAAP total revenue. We believe that this financial
measure is a useful measure for period-to-period comparison of our
business by removing the effect of certain charges that, in
management's view, does not correlate to the underlying
performance of our business during a given period.
-- Adjusted net income per diluted share is defined as non-GAAP
adjusted net income divided by GAAP weighted-average diluted
shares outstanding. We believe that this financial measure is a
useful measure for period-to-period comparison of shareholder
return by removing the effect of certain charges that, in
management's view, does not correlate to the underlying
performance of our business during a given period.
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