Title

Earning Preview: Sezzle Inc this quarter’s revenue is expected to increase by 67.16%, and institutional views are predominantly bullish

Abstract

Sezzle Inc will release quarterly results after market close (Post Market) on February 25, 2026, with investors watching revenue, margins, and EPS trends alongside management’s operational updates.

Market Forecast

Market expectations point to Sezzle Inc delivering revenue of 127.58 million this quarter, with year-over-year growth of 67.16%, and adjusted EPS of 0.96, implying year-over-year growth of 84.81%; EBIT is projected at 44.29 million, up 89.65% year over year. Based on the prior report, gross profit margin stood at 72.81% and net profit margin was 22.84%, providing a recent margin baseline as investors evaluate earnings quality and forecast sustainability.

The main business remains transaction-based income supported by active merchant and consumer engagement, with a continued emphasis on unit economics and monetization depth. The most promising segment is subscription and value-added services, which generated 24.34 million last quarter; while segment-level year-over-year growth was not disclosed, overall revenue increased 66.95% year over year in the prior quarter, highlighting broad-based momentum.

Last Quarter Review

Sezzle Inc reported last quarter revenue of 116.80 million, gross profit margin of 72.81%, GAAP net profit attributable to the parent company of 26.67 million, net profit margin of 22.84%, and adjusted EPS of 0.71 with a year-over-year increase of 62.59%.

A key financial highlight was the top-line surprise, with revenue exceeding the prior estimate by 11.65% and EPS topping expectations as operating leverage improved; EBIT increased 70.63% year over year, underlining earnings expansion. The main business mix featured transaction income at 59.54 million, other services at 32.91 million, and subscription income at 24.34 million; total revenue rose 66.95% year over year, reflecting strong monetization trends across product lines.

Current Quarter Outlook

Core Revenue Engine: Transaction-Based Income

Transaction-based income remains the core revenue engine, and the market’s forecast for revenue growth of 67.16% year over year sets a high bar for execution. The latest quarter’s gross profit margin of 72.81% provides a constructive reference point for assessing pricing discipline and the balance between growth and profitability. In this framework, investors will scrutinize repeat shopper activity, merchant program penetration, and the stability of take-rate dynamics embedded in transaction yield. Operationally, the consistency of merchant integrations and checkout conversion are likely to be focal points for the durability of revenue in the current period. If the company prioritizes growth through promotional intensity, near-term gross margin could trend closer to the recent baseline; conversely, if product monetization intensifies alongside transaction volumes, incremental margin expansion could support the forecasted EPS of 0.96. The relative contribution of transaction income to total revenue (59.54 million last quarter) underscores both the scale and sensitivity of this line to volume cycles; success in maintaining positive mix and unit economics will bridge the forecasted top-line expansion to earnings delivery.

Emerging Monetization: Subscription and Value-Added Services

Subscription and value-added services generated 24.34 million last quarter and represent a growing monetization pillar that can diversify earnings beyond pure transaction flows. This segment often exhibits higher gross margin potential and smoother revenue cadence, making it strategically important for sustaining EPS improvements through differing market conditions. The revenue estimate trajectory for the current quarter and the strong EBIT growth forecast of 89.65% year over year imply that the company is expected to deepen monetization per user via paid features, bundled plans, and value-add services. Investors will focus on attach rates and plan upgrades as indicators of subscription vitality, alongside retention metrics that confirm the stability of recurring revenue. The interplay between subscription growth and margin performance is central: subscription revenue tends to have favorable incremental margins, and scaling this line supports the translation of top-line growth into earnings quality. As the company navigates this quarter, signals of adoption breadth across cohorts, pricing optimization, and service utilization will be watched closely to validate whether the elevated EPS expectations can be met without sacrificing unit economics.

Stock Price Drivers This Quarter

The principal stock price drivers this quarter will likely center on earnings quality and the balance between growth and profitability. First, EPS delivery versus the 0.96 projection will be a primary catalyst, as it encapsulates both revenue execution and margin discipline; investors will gauge whether EBIT growth nearing 89.65% year over year is supported by sustainable operating efficiencies rather than temporary cost actions. Second, gross margin stability relative to the recent 72.81% level serves as a litmus test for pricing integrity and monetization depth across product lines; small shifts here can compound through to net margin given the company’s operating leverage. Third, the consistency of cash cost inputs and credit performance is important in consumer finance workflows; even though detailed credit metrics are not presented here, the market will infer resilience from steady net profit margin trends (22.84% last quarter) and the ability to maintain payment discipline without impairing transaction growth. Management transitions—such as the recent CFO appointment—often raise focus on capital allocation, expense management, and reporting cadence; clear guidance and transparency around the revenue estimate of 127.58 million and its drivers could reduce volatility tied to expectations. A cohesive narrative that ties transaction revenue growth to subscription expansion, while sustaining margin quality, would be a constructive factor for price reaction around the print.

Analyst Opinions

Analyst views gathered in the period from January 1, 2026 to February 18, 2026 skew decisively positive, yielding a ratio of 100% bullish to 0% bearish among the collected items. Needham initiated coverage on February 12, 2026 with a Buy rating and an $85 price target, reflecting confidence in the company’s ability to scale revenue while supporting EPS expansion. On February 17, 2026, B. Riley maintained a Buy rating while adjusting its price target to $76 from $111, signaling continued constructive stance despite recalibration of valuation assumptions. Moreover, across this timeframe, an aggregation of analyst assessments indicated an average rating of Buy, with a mean price target cited at $92.60, reinforcing a predominantly supportive institutional backdrop ahead of the report.

The clustering of Buy recommendations suggests that institutions view the forecasted revenue of 127.58 million and the EPS estimate of 0.96 as attainable within a framework of disciplined execution. Needham’s initiation highlights market confidence that monetization breadth—spanning both transaction revenue and subscriptions—can underpin earnings improvement consistent with the 84.81% year-over-year EPS growth forecast. B. Riley’s target reduction, while notable, still anchors on a Buy recommendation, implying the adjustment is primarily valuation-driven rather than a shift in fundamental stance; this reflects a view that earnings trajectory remains intact even as the firm moderates price objectives for market context. The presence of a new CFO, announced on January 29, 2026, has not altered the prevailing ratings during our review window, suggesting analysts expect continuity in financial discipline, reporting, and strategic prioritization.

From an analytical perspective, the bullish majority is aligned with the quantitative signal in the forecasts: revenue growth of 67.16% year over year and EBIT growth of 89.65% year over year collectively point to robust scaling and operating leverage. The projected EPS of 0.96 stands materially above the prior period’s 0.71, and analyst optimism appears predicated on the company’s ability to carry forward margin improvements seen in the last quarter. With last quarter’s gross margin at 72.81% and net margin at 22.84%, the company showed earnings quality that supports confidence in near-term delivery; analysts are effectively endorsing the thesis that these margins can be sustained or gently improved through subscription mix and ongoing monetization. While price targets vary—reflecting differences in valuation frameworks and discount rates—the directional consistency of Buy ratings indicates institutions prioritize near-term fundamentals over transient market noise. The consensus stance can be summarized as constructive: revenue expansion is expected to translate into EPS growth, and EBIT gains are seen as durable, contingent on stable execution in the main business lines and careful control of costs.

In aggregate, the majority opinion emphasizes earnings traction rather than speculative drivers. Analysts anticipate that the interplay between transaction income (59.54 million last quarter) and subscription revenue (24.34 million last quarter) will continue to fortify the income statement, enabling the company to meet or exceed guidance-like expectations. This view implicitly assumes operational discipline sufficient to preserve the last quarter’s margin framework and translate top-line momentum into EPS delivery. With the reporting date on February 25, 2026 after market close, investors will be calibrating expectations against these institutional perspectives, particularly around the fidelity of revenue and EPS to the 127.58 million and 0.96 benchmarks and the visibility provided on recurring monetization paths.