Revenue growth and operational efficiency have propelled gross margins to 86.3% in 2026Q1, up from 58.1% in 2024Q2, as the company successfully leverages its platform to scale earnings.
| Sales/Revenue | 480.91M | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 426.79M | 384.32M | 168M | 73.78M | 33.58M | 70.59M | 36.3M | -5.66M | 716.79K | -5.98K |
| Gross Margin % | 88.75% | 85.35% | 61.96% | 46.3% | 26.74% | 61.48% | 61.74% | - | 43.92% | -20.37% |
| Gross Profit Growth % | - | 128.76% | 127.72% | 119.72% | -52.44% | 94.47% | 741.61% | -889.27% | 12084.52% | - |
| Operating Expenses | 230.86M | 207.53M | 85.75M | 51.57M | 62.01M | 139.27M | 64.36M | 10.93M | 4.75M | 808.35K |
| OpEx % of Revenue | - | 46.09% | 31.63% | 32.36% | 49.38% | 121.3% | 109.47% | - | 291.02% | 2752.67% |
| Selling, General & Admin | 55.71M | 48.97M | 21.14M | 20.57M | 35.38M | 137.81M | 44.64M | 13.22M | 4.36M | 808.35K |
| SG&A % of Revenue | - | 10.87% | 7.8% | 12.91% | 28.18% | 120.02% | 75.94% | - | 266.88% | 2752.67% |
| Research & Development | 0 | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - |
| Operating Income | 195.93M | 176.79M | 82.25M | 22.2M | -28.43M | -68.68M | -28.06M | -16.58M | -4.03M | -814.33K |
| Operating Margin % | 40.74% | 39.26% | 30.33% | 13.93% | -22.64% | -59.81% | -47.73% | - | -247.1% | -2773.03% |
| Operating Income Growth % | - | 114.95% | 270.47% | 178.08% | 58.6% | -144.76% | -69.19% | -311.22% | -395.24% | - |
| EBITDA | 197.01M | 178.15M | 83.21M | 23.06M | -27.59M | -67.93M | -28.06M | -10.93M | -3.94M | -807.91K |
| EBITDA Margin % | 40.97% | 39.56% | 30.69% | 14.47% | -21.97% | -59.16% | -47.73% | - | -241.17% | -2751.16% |
| EBITDA Growth % | 65.12% | 114.09% | 260.9% | 183.57% | 59.39% | -142.09% | -156.79% | -177.61% | -387.19% | - |
| D&A (Non-Cash Add-back) | 1.08M | 1.36M | 965.4K | 855.8K | 847.13K | 749.11K | 0 | 0 | 96.84K | 6.42K |
| EBIT | 192.09M | 176.79M | 81.08M | 23.68M | -29.42M | -68.68M | -28.06M | -10.93M | -4.1M | -814.33K |
| Net Interest Income | -8.09M | -14.02M | -13.76M | -15.97M | -8.6M | -3.82M | -3.3M | -3.98M | -96.5K | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 96.5K | 0 |
| Interest Expense | 8.09M | 14.02M | 13.76M | 15.97M | 8.6M | 3.82M | 3.3M | 3.98M | 0 | 0 |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - |
| Pretax Income | 181.87M | 162.89M | 67.32M | 7.71M | -38.02M | -75.11M | -32.36M | -16.58M | -4.19M | -1.77M |
| Pretax Margin % | 37.82% | 36.18% | 24.83% | 4.84% | -30.28% | -65.42% | -55.05% | - | -256.95% | -6029.33% |
| Income Tax | 33.6M | 29.76M | -11.21M | 611.49K | 69.45K | 58.42K | 30.96K | 11.98K | 5 | 0 |
| Effective Tax Rate % | 18.48% | 18.27% | -16.65% | 7.93% | -0.18% | -0.08% | -0.1% | -0.07% | -0% | 0% |
| Net Income | 148.27M | 133.13M | 78.52M | 7.1M | -38.09M | -75.17M | -32.39M | -16.6M | -4.19M | -1.77M |
| Net Margin % | 30.83% | 29.57% | 28.96% | 4.45% | -30.34% | -65.47% | -55.1% | - | -256.95% | -6029.33% |
| Net Income Growth % | 38.99% | 69.54% | 1006.26% | 118.63% | 49.32% | -132.05% | -95.18% | -295.76% | -136.85% | - |
| Net Income (Continuing) | 148.27M | 133.13M | 78.52M | 7.1M | -38.09M | -75.17M | -32.39M | -16.6M | -4.19M | -1.77M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 4.24 | 3.72 | 2.19 | 0.21 | -1.17 | -2.38 | -0.84 | -0.66 | -0.45 | -0.21 |
| EPS Growth % | 41.36% | 69.86% | 942.86% | 117.95% | 50.84% | -183.33% | -27.27% | -46.67% | -114.29% | - |
| EPS (Basic) | - | 3.93 | 2.33 | 0.21 | -1.17 | -2.38 | -0.84 | -0.66 | -0.45 | -0.21 |
| Diluted Shares Outstanding | 34.93M | 35.74M | 35.89M | 34.07M | 32.66M | 31.63M | 29.5M | 17.62M | 9.38M | 8.61M |
| Basic Shares Outstanding | 33.76M | 33.91M | 35.88M | 34.08M | 32.65M | 31.63M | 29.5M | 17.62M | 9.38M | 8.61M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - |
Regulatory late fee caps
As indicated by the latest quarterly data, Sezzle has achieved a significant revenue expansion, with top-line figures climbing from $47.0 million in 2024Q1 to $135.5 million by 2026Q1, reflecting a successful pivot toward high-margin subscription models that effectively decouple growth from pure retail transaction seasonality.
The consistent upward trajectory in revenue suggests that the company's 'Sezzle Up' credit-building feature is successfully driving user retention and recurring income. Investors should monitor whether this growth rate remains sustainable as the company penetrates deeper into the underbanked demographic, which may face higher sensitivity to macroeconomic shifts.
According to reported financial statements, Sezzle has demonstrated impressive margin discipline, with gross margins reaching 86.3% in 2026Q1, a notable improvement from the 58.1% observed in 2024Q2, suggesting that the company is successfully optimizing its cost of lending and payment processing infrastructure over time.
The expansion in gross margins appears to be a direct result of the company's shift toward higher-margin subscription revenue and improved underwriting precision. This structural improvement provides a buffer against potential increases in credit loss provisions, though the sustainability of these margins remains contingent on maintaining low default rates.
Based on the provided income statement data, Sezzle has effectively scaled its operating income from $13.8 million in 2024Q1 to $69.0 million in 2026Q1, indicating that the company is successfully leveraging its platform to grow earnings significantly faster than its underlying operating expenses.
The ability to maintain relatively flat SG&A expenses while revenue triples suggests a highly efficient operating model that benefits from significant economies of scale. This operating leverage is a key differentiator compared to peers, implying that the company has moved past the heavy investment phase of its growth cycle.
As reported in recent filings, Sezzle has transitioned to consistent GAAP profitability, with net income reaching $51.3 million in 2026Q1, supported by a minimal stock-based compensation expense of zero, which enhances the quality of reported earnings compared to competitors that rely heavily on equity-based incentives.
The absence of significant stock-based compensation suggests that management is focused on shareholder value and avoiding dilution, which is a positive signal for long-term investors. However, the reliance on management estimates for credit loss provisions warrants continued scrutiny to ensure that reported net income is not being artificially smoothed.
While current performance is strong, analysis of the company's cost structure suggests that any regulatory intervention regarding late fee caps could disproportionately impact profitability, as these high-margin consumer fees have been a significant contributor to the company's recent bottom-line expansion and overall margin profile.
Short-term volatility may arise if the CFPB or other regulators move to restrict the fee structures that currently underpin Sezzle's profitability. Investors should remain cautious, as the company's reliance on the underbanked segment makes it uniquely vulnerable to legislative changes that could compress net margins overnight.
Quick answers to the most common questions about buying SEZL stock.
Sezzle Inc. (SEZL) is profitable, generating $133.1M in net income for the fiscal year ending 2025 with a net profit margin of 29.6%.
Sezzle Inc. (SEZL) reported an operating income of $176.8M, resulting in an operating profit margin of 39.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Sezzle Inc. (SEZL) generated $384.3M in gross profit for the year, representing a gross profit margin of 85.4%. This demonstrates the company's core pricing power and production efficiency.