-- 2Q26 GMV of $1.3 billion, up 37.9% YoY
-- Total Revenue of $149.7 million, up 51.7% YoY, a new quarterly high
-- Active Subscribers up 76.4% YoY to 854,000, the largest YoY subscriber
gain in Company history
-- Net Income and Adjusted Net Income1 of $40.8 million and $39.3 million,
up 47.7% and 58.4% YoY, respectively; Net Income per Diluted Share and
Adjusted Net Income per Diluted Share of $1.17 and $1.13, up 50.0% and
61.4% YoY, respectively
-- Updated FY2026 guidance: Total Revenue Growth to the high end of the
prior range at 35%, Adjusted Net Income(1) to $185.0 million from $180.0
million, and Adjusted Net Income per Diluted Share to $5.25 from $5.10
MINNEAPOLIS, Aug. 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 June 30, 2026.
"With SezzleCash now live and Sezzle Send launching in August, we are another step closer to realizing our vision of an all-in-one financial platform for our consumers," stated Charlie Youakim, Sezzle Executive Chairman and CEO. "Every new product and feature gives consumers more ways to use Sezzle across their financial lives. Our new $300 million credit facility with Mesirow gives us the funding capacity to support future growth while also meaningfully lowering our cost of capital as we scale. This momentum supports our third raise to FY2026 guidance, taking Adjusted Net Income to $185 million and Adjusted Net Income per Diluted Share to $5.25."
Second Quarter 2026 Highlights
-- Gross Merchandise Volume (GMV) grew 37.9% YoY to $1.3 billion. Strong
Subscriber growth fueled by marketing investment and enhanced shopping
features lifted average purchase frequency to a Company high of 7.2x from
6.1x in 2Q25.
-- Total Revenue climbed 51.7% YoY to $149.7 million, outpacing GMV growth
and lifting Total Revenue as a percentage of GMV to 11.7% from 10.6% in
2Q25.
-- Active Subscribers2 surged 76.4% YoY to 854,000 (rounded to the nearest
thousand). Marketing investment, together with expanded subscriber
benefits, drove the largest YoY Subscriber gain in the Company's history.
Monthly On-Demand & Subscribers2 (MODS) totaled 982,000 (rounded to the
nearest thousand) as of June 30, 2026, up 31.3% YoY.
-- Total Operating Expenses rose 51.3% YoY to $94.7 million, reflecting
GMV-driven growth in Transaction Related Costs and increased marketing
investment. Operating Expenses held steady YoY at 63.3% of Total Revenue,
while rising 0.6 percentage points as a share of GMV to 7.4%.
-- Transaction Related Costs3 totaled $54.6 million, up 42.2% YoY, and
increased 0.2 percentage points YoY to 4.3% of GMV, reflecting a higher
Provision for Credit Losses. The Provision for Credit Losses was 2.4% of
GMV, consistent with the Company's seasonal pattern of the provision
building through the year toward its FY2026 target range of 2.5%--3.0%.
Transaction Expense held stable as a share of GMV, while Net Interest
Expense declined 12 basis points YoY on a lower cost of funds following
the May close of the $300 million credit facility.
-- Operating Income increased 52.3% YoY to $55.0 million. Operating Income
held relatively flat YoY at 36.7% of Total Revenue. As a share of GMV,
Operating Income reached 4.3% of GMV, up from 3.9% in 2Q25.
-- Total Revenue Less Transaction Related Costs3 improved 57.7% YoY to $95.1
million, equal to 63.5% of Total Revenue, up 2.4 percentage points YoY.
The metric represented 7.4% of GMV, versus 6.5% in 2Q25.
-- Non-Transaction Related Operating Expenses4 increased 56.4% YoY to $43.4
million, as marketing expense scaled to $19.4 million from $8.8 million
in 2Q25 in support of record subscriber acquisition and engagement. As a
percentage of Total Revenue, Non-Transaction Related Operating Expenses
rose 0.9 percentage points YoY to 29.0%.
-- Corporate Strategic Project Costs totaled $0.4 million in the
quarter, reflecting professional services for the antitrust suit
and bank charter application.
-- Net Income of $40.8 million jumped 47.7% YoY, translating to Earnings per
Diluted Share of $1.17 versus $0.78 in 2Q25. Net Income Margin declined
0.8 percentage points YoY to 27.2%.
-- Adjusted Net Income4 reached $39.3 million, up 58.4% YoY and equal
to 26.2% of Total Revenue. Adjusted Net Income per Diluted Share
was $1.13, compared with $0.70 in 2Q25.
-- Adjusted EBITDA4 reached $58.0 million, up 51.3% YoY. Adjusted EBITDA
Margin remained largely unchanged YoY at 38.8% of Total Revenue.
Balance Sheet and Liquidity
-- As of June 30, 2026, Sezzle had $112.0 million of cash, cash equivalents,
and restricted cash, $32.3 million of which was restricted.
-- The Company had $123.5 million outstanding on its $300.0 million credit
facility as of quarter end.
-- On May 11, 2026, Sezzle announced a new three-year, $300.0 million
receivables funding facility led by Mesirow Alternative Credit,
replacing the Company's prior $225.0 million facility. The new
facility improves funding terms by reducing the interest spread by
nearly 290 basis points to SOFR plus 3.86%, increasing the advance
rate to up to 92.5%, and lowering the minimum utilization
requirement to $50.0 million from $60.0 million.
-- During 2Q26, the Company repurchased $3.1 million of common stock,
bringing first-half 2026 repurchases to $28.0 million under its $100.0
million share repurchase program.
Guidance(5)
The Company is raising its FY2026 guidance as follows:
Updated 2026
2026 Guidance 2026 Guidance 2026 Guidance Guidance (Aug
(Nov 2025) (Feb 2026) (May 2026) 2026)
------------- ------------- ------------- ---------------
Total Revenue
Growth Not provided 25%--30% 30%--35% 35%
Adjusted Net
Income(5) Not provided $170.0M $180.0M $185.0M
Adjusted Net
Income Per
Diluted Share $4.35 $4.70 $5.10 $5.25
Initiatives Update
-- Sezzle continues to expand its product suite beyond BNPL with the June
launch of SezzleCash6 and the upcoming August launch of Sezzle Send6,
extending the platform further into consumers' everyday financial lives.
-- SezzleCash is a cash advance product that addresses consumers'
short-term liquidity needs. Available exclusively to eligible
Sezzle Anywhere subscribers, advances require no down payment and
are repaid through Pay-in-4 or Pay-in-5. After a phased rollout
through June, early results indicate SezzleCash is contributing to
Sezzle Anywhere conversion, with the product also intended to
support retention as cohorts mature.
-- Sezzle Send is a peer-to-peer (P2P) money transfer product
available to all Sezzle consumers, enabling transfers to any
recipient by phone number. Senders can fund a transfer in full or
over five installments using Pay-in-5. Recipients claim funds by
creating a Sezzle account, extending Sezzle's reach with each
transfer sent outside the existing user base.
-- New Enterprise merchants joined Sezzle in 2Q26: Poshmark, Gymshark,
Debenhams, Brookshire's Food & Pharmacy, and RockAuto.com.
-- On May 11, 2026, the U.S. District Court for the District of Minnesota
granted in part and denied in part Shopify's motion to dismiss Sezzle's
June 2025 antitrust lawsuit, allowing Sezzle's monopolization, attempted
monopolization, and restraint of trade claims to move forward while
dismissing its tying claim without prejudice. The case is proceeding to
discovery.
Awards and Accolades
-- In July 2026, Sezzle was again recognized by three organizations that
honored the Company in 2025. CNBC and Statista named the Company to the
World's Top Fintech Companies in the Payments category, Newsweek and
Statista included Sezzle on America's Best Online Platforms, and U.S.
News & World Report recognized the Company as a Best Company to Work For
across its Overall, Information Technology, and Midwest categories.
Upcoming Investor Events
-- Sezzle Management will participate in the upcoming investor events:
-- August 13, 2026: 8th Annual Needham Virtual FinTech & Digital
Transformation Conference
-- September 15, 2026 (morning): Oppenheimer FinTech Leaders
Conference
-- September 15, 2026 (afternoon): FT Partners FinTech Conference
-- September 17, 2026: BTIG Consumer Finance Conference
Quarterly Conference Call and Presentation
The Company will host its second quarter earnings conference call on August 6, 2026, at 5:00pm ET.
To register for the call, please navigate to: https://dpregister.com/sreg/10210687/104810a8d77
All participants can access the webcast using the following link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=GWa5dtPX
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 August 13, 2026. To access the replay dial 1-855-669-9658 (US toll free) or 1-412-317-0088 (International toll). Replay access code: 5692101.
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.
2Q26 GAAP Operating Results
For the three months ended
($ in thousands) June 30, 2026 June 30, 2025 YoY Difference
---------------------- ----------------- ----------------- ----------------
Total Revenue $ 149,683 $ 98,702 51.7%
Operating Expenses $ 94,722 $ 62,616 51.3%
Operating Expenses as
% of Total Revenue 63.3% 63.4% (0.1 ppt)
Operating Expenses as
% of GMV 7.4% 6.8% 0.6 ppt
Operating Income $ 54,961 $ 36,086 52.3%
Operating Income as %
of Total Revenue 36.7% 36.6% 0.1 ppt
Operating Income as %
of GMV 4.3% 3.9% 0.4 ppt
Net Income $ 40,765 $ 27,604 47.7%
Net Income as % of
Total Revenue 27.2% 28.0% (0.8 ppt)
Net Income per Diluted
Share $ 1.17 $ 0.78 50.0%
2Q26 Non-GAAP Operating Results(7)
For the three months ended
($ in thousands) June 30, 2026 June 30, 2025 YoY Difference
---------------------- ----------------- ----------------- ----------------
Non-Transaction
Related Operating
Expenses $ 43,376 $ 27,727 56.4%
Non-Transaction
Related Operating
Expenses as % of
Total Revenue 29.0% 28.1% 0.9 ppt
Transaction Related
Costs $ 54,596 $ 38,390 42.2%
Transaction Related
Costs as % of Total
Revenue 36.5% 38.9% (2.4 ppt)
Transaction Related
Costs as % of GMV 4.3% 4.1% 0.2 ppt
Total Revenue Less
Transaction Related
Costs $ 95,087 $ 60,312 57.7%
Total Revenue Less
Transaction Related
Costs as % of Total
Revenue 63.5% 61.1% 2.4 ppt
Total Revenue Less
Transaction Related
Costs as % of GMV 7.4% 6.5% 0.9 ppt
Adjusted EBITDA $ 58,019 $ 38,350 51.3%
Adjusted EBITDA Margin 38.8% 38.9% (0.1 ppt)
Adjusted Net Income $ 39,279 $ 24,804 58.4%
Adjusted Net Income
Margin 26.2% 25.1% 1.1 ppt
Adjusted Net Income
per Diluted Share $ 1.13 $ 0.70 61.4%
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) June 30, 2026 June 30, 2025
------------------------------------- ------------------ -----------------
Operating expenses $ 94,722 $ 62,616
Transaction expense (20,738) (14,243)
Provision for credit losses (30,608) (20,646)
------------------------------------- --- ------------ ----------
Non-transaction related operating
expenses $ 43,376 $ 27,727
===================================== === ============ ==========
Reconciliation of Operating Expenses to Transaction Related Costs
For the three months ended
($ in thousands) June 30, 2026 June 30, 2025
------------------------------------- ------------------ -----------------
Operating expenses $ 94,722 $ 62,616
Personnel (14,725) (11,681)
Third-party technology and data (4,907) (3,428)
Marketing, advertising, and
tradeshows (19,396) (8,772)
General and administrative (4,348) (3,846)
Net interest expense 3,250 3,501
------------------------------------- --- ------------ ----------
Transaction related costs $ 54,596 $ 38,390
===================================== === ============ ==========
Reconciliation of Operating Income to Total Revenue Less Transaction Related Costs
For the three months ended
($ in thousands) June 30, 2026 June 30, 2025
------------------------------------ ------------------- -----------------
Operating income $ 54,961 $ 36,086
Personnel 14,725 11,681
Third-party technology and data 4,907 3,428
Marketing, advertising, and
tradeshows 19,396 8,772
General and administrative 4,348 3,846
Net interest expense (3,250) (3,501)
------------------------------------ --- ------------- ----------
Total revenue less transaction
related costs $ 95,087 $ 60,312
==================================== === ============= ==========
Reconciliation of Net Income to Adjusted EBITDA
For the three months ended
--------------------------------------
($ in thousands) June 30, 2026 June 30, 2025
------------------------------------ ------------------- -----------------
Net income $ 40,765 $ 27,604
Depreciation and amortization 502 324
Income tax expense 10,947 5,068
Equity and incentive-based
compensation 2,113 1,498
Other (income) expense, net (1) (87)
Corporate strategic projects(1) 443 442
Net interest expense 3,250 3,501
------------------------------------ --- ------------- ----------
Adjusted EBITDA $ 58,019 $ 38,350
==================================== === ============= ==========
(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) June 30, 2026 June 30, 2025
------------------------------------ ------------------- -----------------
Net income $ 40,765 $ 27,604
Discrete tax benefit(1) (1,928) (3,155)
Corporate strategic projects(1) 443 442
Other (income) expense, net (1) (87)
------------------------------------ --- ------------- ----------
Adjusted net income 39,279 24,804
Diluted weighted-average shares
outstanding 34,724 35,507
------------------------------------ --- ------------- ----------
Adjusted net income per diluted
share $ 1.13 $ 0.70
==================================== === ============= ==========
(1) Adjusted prior periods to include corporate strategic project costs.
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.