Sezzle's revenue growth accelerated to $149.7M in 2026Q2 (up 66.1% YoY) with a 49.4% efficiency ratio, though net interest income remains negative at -$3.2M, underscoring the fee-driven model.
Sezzle Inc. (SEZL) annual income statement — 9-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 |
|---|
| Net Interest Income | -7.84M | -14.02M | -13.76M | -15.97M | -8.6M | -3.82M | -3.3M | -3.98M | -96.5K | 0 |
| NII Growth % | 185.73% | -1.88% | 13.82% | -85.66% | -125.19% | -15.73% | 17.06% | -4023.48% | - | - |
| Net Interest Margin % | -1.72% | -3.5% | -4.61% | -7.51% | -4.98% | -1.71% | -1.9% | -6.16% | -0.77% | 0% |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 96.5K | 0 |
| Interest Expense | 7.84M | 14.02M | 13.76M | 15.97M | 8.6M | 3.82M | 3.3M | 3.98M | 0 | 0 |
| Loan Loss Provision | 41.09M | 51.94M | 89.37M | 69.61M | 83.39M | 40.41M | 19.19M | 1.68M | 915.27K | 35.35K |
| Non-Interest Income | 531.89M | 450.28M | 271.13M | 159.36M | 125.57M | 114.82M | 58.79M | 0 | 1.54M | 29.37K |
| Non-Interest Income % | 101.5% | 103.21% | 105.35% | 111.14% | 107.35% | 103.44% | 105.95% | 0% | 106.71% | 100% |
| Total Net Revenue | 524.05M | 436.26M | 257.37M | 143.39M | 116.97M | 111M | 55.49M | -3.98M | 1.44M | 29.37K |
| Revenue Growth % | 46.13% | 69.51% | 79.49% | 22.59% | 5.38% | 100.04% | 1494.53% | -376.5% | 4800.46% | - |
| Non-Interest Expense | 268.15M | 207.53M | 85.75M | 51.57M | 62.01M | 139.27M | 64.36M | 10.93M | 4.75M | 808.35K |
| Efficiency Ratio | 51.17% | 47.57% | 33.32% | 35.97% | 53.01% | 125.47% | 115.98% | -274.61% | 330.05% | 2752.67% |
| Operating Income | 214.81M | 176.79M | 82.25M | 22.2M | -28.43M | -68.68M | -28.06M | -16.58M | -4.03M | -814.33K |
| Operating Margin % | 40.99% | 40.52% | 31.96% | 15.48% | -24.31% | -61.87% | -50.57% | 416.8% | -280.24% | -2773.03% |
| Operating Income Growth % | - | 114.95% | 270.47% | 178.08% | 58.6% | -144.76% | -69.19% | -311.22% | -395.24% | - |
| Pretax Income | 200.91M | 162.89M | 67.32M | 7.71M | -38.02M | -75.11M | -32.36M | -16.58M | -4.19M | -1.77M |
| Pretax Margin % | 38.34% | 37.34% | 26.16% | 5.38% | -32.51% | -67.67% | -58.32% | 416.8% | -291.41% | -6029.33% |
| Income Tax | 39.48M | 29.76M | -11.21M | 611.49K | 69.45K | 58.42K | 30.96K | 11.98K | 5 | 0 |
| Effective Tax Rate % | 19.65% | 18.27% | -16.65% | 7.93% | -0.18% | -0.08% | -0.1% | -0.07% | -0% | 0% |
| Net Income | 161.43M | 133.13M | 78.52M | 7.1M | -38.09M | -75.17M | -32.39M | -16.6M | -4.19M | -1.77M |
| Net Margin % | 30.8% | 30.52% | 30.51% | 4.95% | -32.57% | -67.72% | -58.38% | 417.1% | -291.41% | -6029.33% |
| Net Income Growth % | 54.36% | 69.54% | 1006.26% | 118.63% | 49.32% | -132.05% | -95.18% | -295.76% | -136.85% | - |
| Net Income (Continuing) | 161.43M | 133.13M | 78.52M | 7.1M | -38.09M | -75.17M | -32.39M | -16.6M | -4.19M | -1.77M |
| EPS (Diluted) | 4.64 | 3.72 | 2.19 | 0.21 | -1.17 | -2.38 | -0.84 | -0.66 | -0.45 | -0.21 |
| EPS Growth % | 58.48% | 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 | 34.83M | 35.74M | 35.89M | 34.07M | 32.66M | 31.63M | 29.5M | 17.62M | 9.38M | 8.61M |
Quick answers to the most common questions about buying SEZL stock.
For fiscal year 2025, Sezzle Inc. (SEZL) reported total revenue of $436.3M. This represents a 1485488.8% increase compared to $0.0M in 2017.
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.
Key Metrics
Top Statement Risk
Regulatory cap on late fees
Metrics are mathematically derived from official filings.
NII Negative but Immaterial
Sezzle's net interest income remains negative, averaging -$3.2M in 2026Q2, but non-interest income drives all revenue, making NII a negligible component of the earnings model.
Net interest income has been consistently negative over the past ten quarters, ranging from -$2.9M to -$4.1M, reflecting the cost of funding its loan portfolio through warehouse facilities rather than deposits. However, this line item is immaterial relative to total revenue of $149.7M in 2026Q2, as the company's model relies on fee-based income. The negative NII appears to be a structural feature of the BNPL business, not a driver of performance, and investors should focus on fee generation and credit costs instead.
NIM Negative but Fee-Driven Model
Sezzle's net interest margin is negative at -0.7% in 2026Q2, but the company's 85.4% gross margin and 39.3% operating margin indicate a fee-centric, asset-light model where NIM is not a meaningful metric.
The negative NIM, which has improved from -2.1% in 2024Q1 to -0.7% in 2026Q2, reflects the cost of wholesale funding, but it is misleading as a profitability gauge for Sezzle. The company's true margin story lies in its gross margin of 85.4% and operating margin of 39.3%, which have expanded significantly from 28.2% and 47.1% respectively in 2024Q2. This suggests that Sezzle's fee-based revenue model, combined with disciplined cost control, is driving strong profitability despite the negative NIM, which is a non-traditional structure for a financial services firm.
Operating Leverage Drives Margin Expansion
Sezzle's efficiency ratio improved to 49.4% in 2026Q2 from 63.4% in 2025Q4, indicating that revenue growth of 66.1% YoY is outpacing expense growth, a sign of strong operating leverage.
The efficiency ratio, which measures non-interest expense as a percentage of total revenue, has been volatile but trended downward from 63.4% in 2025Q4 to 49.4% in 2026Q2, with a notable low of 23.5% in 2025Q1. This suggests that Sezzle is scaling its platform efficiently, with revenue growth of 7.2% QoQ in 2026Q2 outpacing expense growth. The improvement in operating margin to 39.3% from 35.4% in the prior quarter indicates that the company is leveraging its fixed cost base, though the volatility in the efficiency ratio warrants monitoring for sustainability.
Provision Volatility Signals Credit Risk
Sezzle's provision for credit losses swung from -$11.4M in 2025Q4 to $17.5M in 2026Q2, highlighting the volatility in credit costs that could pressure earnings if delinquency trends worsen.
The provision expense has been highly volatile, ranging from a negative $11.4M (a release) in 2025Q4 to $21.5M in 2026Q1, reflecting management's adjustments to credit risk assessments. In 2026Q2, the provision of $17.5M represented 11.7% of total revenue, down from 15.9% in 2026Q1, suggesting some improvement in credit quality. However, the negative provision in 2025Q4 may indicate a one-time benefit, and the elevated provisions in 2025Q1 and 2025Q2 (27.5M and 22.4M) suggest that credit costs remain a significant swing factor. Investors should monitor the provision as a percentage of revenue, as any uptick could compress net margins, which currently stand at 27.3%.
Fee Income Dominates Revenue Mix
Non-interest income constitutes 100% of Sezzle's revenue, with $149.7M in 2026Q2, driven by merchant fees and subscription revenue, but this concentration exposes the company to regulatory and competitive pressures.
Sezzle's revenue is entirely fee-based, with no net interest income contribution, reflecting its BNPL model where merchant discount rates and consumer fees generate all income. The 66.1% YoY revenue growth in 2026Q2 indicates strong demand, but the reliance on fees makes the company vulnerable to regulatory caps on late fees, which are a high-margin component. The growth of Sezzle Premium subscription revenue, which is more recurring, may provide some stability, but the overall fee concentration suggests that any regulatory or competitive disruption could have an outsized impact on earnings.
2025Q4 Provision Release Marks Turning Point
Sezzle's 2025Q4 provision release of -$11.4M, combined with a 72.5% EPS growth, marked a pivotal quarter where credit costs reversed, signaling improved underwriting and a shift to sustained profitability.
The 2025Q4 quarter was a critical inflection point, as the company reported a negative provision for credit losses, indicating a release of reserves, which boosted net income to $42.7M despite a revenue decline of 7.0% QoQ. This suggests that Sezzle's underwriting algorithms may have improved, reducing expected losses, and the subsequent quarters in 2026 have maintained profitability with EPS of $1.17 and $1.47. The transition from a growth-focused to a profitability-focused strategy, as evidenced by the 103.3% ROE, appears to be a structural shift, but the sustainability of this credit quality improvement remains a key question.
Earnings Quality Questioned by Missing EPS
Sezzle's latest earnings report omitted EPS and forward guidance, despite consensus estimates of $1.25, raising concerns about reporting transparency and the sustainability of its 103.3% ROE.
The absence of an EPS figure in the 2026-08-06 earnings report, while the consensus was $1.25, may indicate a potential miss or a deliberate choice to avoid scrutiny, which could signal deteriorating earnings quality. Additionally, the company's debt-to-equity ratio of 0.83, combined with a high ROE, suggests that returns are amplified by leverage, which could be a risk if revenue growth decelerates or credit losses rise. The lack of forward guidance further reduces visibility, and investors should be cautious about the sustainability of the 39.3% operating margin, which may be inflated by one-time benefits or aggressive provisioning adjustments.