Free cash flow generation remains volatile, swinging from a $36.7 million deficit in 2025Q2 to a $154.2 million surplus in 2025Q4, largely driven by fluctuating working capital requirements.
| Cash from Operations | 240.05M | 209.91M | 40.9M | -25.69M | 8.51M | -72.13M | -24.81M | -19.92M | -6.23M | -900.2K |
| Operating CF Margin % | - | 46.62% | 15.09% | -16.12% | 6.78% | -62.82% | -42.2% | - | -381.93% | -3065.46% |
| Operating CF Growth % | 15587.44% | 413.22% | 259.2% | -401.82% | 111.8% | -190.75% | -24.55% | -219.57% | -592.44% | - |
| Net Income | 148.27M | 133.13M | 78.52M | 7.1M | -38.09M | -75.17M | -32.39M | -13.06M | -4.19M | -1.77M |
| Depreciation & Amortization | 1.52M | 1.36M | 965.4K | 855.8K | 847.13K | 1.44M | 845.43K | 245.5K | 96.84K | 6.42K |
| Stock-Based Compensation | 5.25M | 6.52M | 5.19M | 6.93M | 10.31M | 14.16M | 7.01M | 0 | 74.53K | 66 |
| Deferred Taxes | -4.11M | 3.29M | -16.91M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 127.43M | 122.62M | 67.66M | 27.79M | 40.56M | 96.77M | 69.79M | 9.26M | 4.92M | 1.13M |
| Working Capital Changes | -38.31M | -57.01M | -94.53M | -68.37M | -5.11M | -109.33M | -70.06M | -16.36M | -3.24M | -267.44K |
| Change in Receivables | -37.57M | -36.02M | -101.96M | -61.75M | 3.88M | -11.03M | -3.81M | -27.97M | -5.79M | -5.51K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -8.08M | -13.04M | -4.34M | -9.12M | -12.93M | 0 | 0 | 11.01M | 2.17M | 0 |
| Cash from Investing | -203.75M | -181.57M | -1.46M | -1.37M | -1.01M | -1.42M | -732.91K | -532.22K | -368.9K | -98.42K |
| Capital Expenditures | -1.72M | -655K | -69.76K | -81.61K | -52.24K | -686.03K | -410.9K | -532.22K | -368.9K | -8.86K |
| CapEx % of Revenue | 0.36% | 0.15% | 0.03% | 0.05% | 0.04% | 0.6% | 0.7% | - | 22.6% | 30.18% |
| Acquisitions | 0 | - | - | - | - | - | - | - | - | - |
| Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 20K | 0 |
| Other Investing | -202.04M | -180.91M | -1.39M | -1.28M | -955.84K | -734K | -322.01K | 0 | -267.38K | -89.55K |
| Cash from Financing | -10.79M | -25.41M | -10.37M | 28.22M | -15.69M | 63.24M | 77.57M | 49.99M | 12.84M | 495K |
| Debt Issued (Net) | 0 | - | - | - | - | - | - | - | - | - |
| Equity Issued (Net) | -84.71M | -60.88M | -23.62M | -1.68M | -381.43K | -2.65M | -613.45K | 27.55M | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -87.96M | -64.66M | -23.62M | -1.68M | -381.43K | -2.65M | -613.45K | 0 | 0 | 0 |
| Other Financing | 98K | 22.47M | 3.25M | -101.6K | -1.51M | 28.31M | 58.41M | 0 | 8.39M | 495K |
| Net Change in Cash | 34.46M | 4.29M | 27.61M | 1.18M | -9.37M | -10.21M | 52.48M | 29.54M | 6.21M | -503.62K |
| Free Cash Flow | 238.46M | 208.36M | 39.44M | -27.06M | 7.5M | -72.82M | -25.22M | -20.05M | -6.6M | -909.07K |
| FCF Margin % | 49.59% | 46.27% | 14.55% | -16.98% | 5.98% | -63.42% | -42.9% | - | -404.53% | -3095.64% |
| FCF Growth % | 297% | 428.35% | 245.76% | -460.57% | 110.3% | -188.73% | -25.81% | -203.62% | -626.27% | - |
| FCF per Share | 6.83 | 5.83 | 1.10 | -0.79 | 0.23 | -2.30 | -0.85 | -1.14 | -0.70 | -0.11 |
| FCF Conversion (FCF/Net Income) | 1.61x | 1.58x | 0.52x | -3.62x | -0.22x | 0.96x | 0.77x | 1.20x | 1.49x | 0.51x |
| Interest Paid | 8.03M | 15.32M | 14.05M | 16.36M | 7.79M | 4.82M | 3.77M | 0 | 0 | 0 |
| Taxes Paid | 25.23M | 28.07M | 4.77M | 452.43K | 65.39K | 0 | 0 | 0 | 0 | 0 |
Regulatory late fee caps
According to recent financial disclosures, Sezzle's operating cash flow to net income ratio has exhibited significant volatility, ranging from a low of -5.11 in 2023Q4 to a peak of 4.82 in 2024Q1, highlighting the inherent difficulty in predicting cash realization from reported GAAP net income figures.
The wide variance between net income and operating cash flow suggests that Sezzle's earnings are heavily influenced by non-cash accruals and timing differences in credit loss provisioning. Investors should monitor whether the recent stabilization in this ratio reflects a permanent improvement in cash collection efficiency or merely a temporary alignment of accounting estimates.
As reported in quarterly filings, Sezzle's free cash flow trajectory has been highly inconsistent, swinging from a deficit of $36.7 million in 2025Q2 to a surplus of $154.2 million in 2025Q4, which underscores the sensitivity of the company's cash generation to underlying retail and credit cycles.
The erratic nature of free cash flow appears to be driven by the interplay between rapid revenue growth and the capital-intensive requirements of funding a BNPL loan book. This volatility warrants further investigation into whether the company can maintain positive free cash flow margins during periods of economic contraction.
Based on the provided cash flow statements, working capital changes have been a primary driver of cash flow fluctuations, with a notable $74.2 million inflow in 2025Q4 contrasting sharply with an $88.2 million outflow in 2025Q2, indicating significant swings in the timing of receivables and payables.
These substantial working capital swings suggest that Sezzle's cash position is highly susceptible to the velocity of its loan book turnover. The reliance on these fluctuations to fund operations implies that any disruption in consumer repayment patterns could rapidly constrain the company's available liquidity.
As indicated by recent SEC filings, Sezzle has prioritized capital deployment toward share repurchases, with $25.7 million utilized in 2026Q1 alone, a move that appears to signal management's confidence in the company's valuation despite the inherent volatility of its underlying cash flow generation profile.
While the aggressive buyback strategy may be intended to support the share price, it raises questions regarding the opportunity cost of capital that could otherwise be deployed to strengthen the balance sheet or fund further product innovation. Investors should monitor whether this capital return policy remains sustainable if cash flow generation experiences a cyclical downturn.
Quick answers to the most common questions about buying SEZL stock.
Sezzle Inc. (SEZL) generated $209.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Sezzle Inc. (SEZL) generated $208.4M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Sezzle Inc. (SEZL) spent $0.7M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Sezzle Inc. (SEZL) spent $64.7M on share repurchases. This shows the company's commitment to returning capital to its equity investors.