Aug 31, 2026 2:47 PM
Propelled by new product launches and a $300 million credit facility, the digital payment platform raised its annual profit guidance following significant growth in consumer engagement.
- 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 Income¹ 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 (NASDAQ: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.Corporate Strategic Project Costs totaled $0.4 million in the quarter, reflecting professional services for the antitrust suit and bank charter application.
- 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 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 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.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.
- 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.
Guidance5
The Company is raising its FY2026 guidance as follows:
| 2026 Guidance(Nov 2025) | 2026 Guidance(Feb 2026) | 2026 Guidance(May 2026) | Updated 2026 Guidance(Aug 2026) | |
| Total Revenue Growth | Not provided | 25%–30% | 30%–35% | 35% |
| Adjusted Net Income5 | 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.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.
- 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.
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