Sezzle Inc. (NASDAQ:SEZL) ("Sezzle" or "Company"), a purpose-driven digital payment platform, is pleased to update the market on key financial metrics for the quarter ended September 30, 2025.
“Our products continue to resonate with consumers, as we’re seeing clear momentum in both engagement and scale,” noted Charlie Youakim, Sezzle Executive Chairman and CEO. “It’s exciting to cross $1 billion in quarterly GMV for the first time, which reflects a growing loyal consumer base. We’re sharpening our focus on proven results and long-term innovation, and we're looking forward to supporting shoppers with our tools this holiday season.”
Third Quarter 2025 Highlights
- GMV: $1.0B, up 58.7% YoY; driven by subscription/On-Demand usage, marketing-led acquisition/engagement/retention, and underwriting changes. Consumer purchase frequency rose to 6.5x from 5.4x.
- Total Revenue: $116.8M, up 67.0% YoY (11.2% of GMV).
- MODS: +36,000 in-quarter to ~784,000; growth led by Premium/Anywhere subscribers.
- Operating Expenses: $81.2M, up 65.4% YoY; 69.6% of revenue (-0.6 ppt YoY) and 7.8% of GMV (+0.4 ppt).
- Transaction Related Costs [1]: $53.5M (5.1% of GMV vs. 4.8% prior), reflecting higher credit loss provision; FY25 loss rate guidance updated to 2.5%–2.75% of GMV.
- Operating Income: $35.6M, up 70.6% YoY; 30.4% of revenue (+0.6 ppt) and 3.4% of GMV (+0.2 ppt).
- Total Revenue Less Transaction Related Costs [1]: $63.3M, up 64.5% YoY; 6.0% of GMV (+0.2 ppt) and 54.2% of revenue (-0.8 ppt).
- Non-Transaction Related Operating Expenses [1]: $31.6M, up 50.9% YoY; 27.1% of revenue (-2.9 ppt). Includes $1.3M Corporate Strategic Project Costs (capital markets, antitrust suit, bank charter exploration).
- Net Income: $26.7M, up 72.7% YoY; 22.8% margin; EPS (diluted): $0.75 (from $0.44).
- Adjusted Net Income [1]: $25.4M, up 52.6% YoY; 21.8% margin; Adjusted EPS (diluted) [2]: $0.71 (from $0.47).
- Adjusted EBITDA [3]: $39.6M, up 74.6% YoY; 33.9% margin (+1.5 ppt).
[1] See appendix for a reconciliation of non-GAAP financial measures.
[2] Per diluted share figures reflect 6-for-1 common stock split effective March 28, 2025.
[3] See appendix for reconciliation.
Balance Sheet and Liquidity (as of Sept. 30, 2025)
- Cash & Cash Equivalents: $134.7M (including $30.5M restricted).
- Credit Facility: $118.0M principal outstanding on $150.0M facility at quarter end.
- Post-quarter amendment (Oct. 30, 2025): Borrowing capacity increased to $225.0M via $75.0M accordion.
Guidance
FY2025 (November update vs. August):
- Total Revenue: 60%–65% YoY
- Total Revenue Less Transaction Related Costs [3] / Revenue: 60%–65%
- Effective Tax Rate: ~25% (excl. discrete)
- Adjusted Net Income [3]: $120.0M
- Adjusted EPS (diluted): $3.38 — raised from $3.25
- Net Income: $125.0M (note: differs from Adjusted Net Income; see reconciliation)
- EPS (diluted): $3.52
- Adjusted EBITDA [3]: $175.0–$180.0M — raised from $170.0–$175.0M
- Preliminary FY2026: Adjusted EPS (diluted): $4.35 (assumes ~25% tax).
Note: Non-GAAP guidance reflects add-backs for corporate strategic initiatives; November 2025 assumes 35.5M diluted weighted-average shares.
Initiatives Update
- Expanded app features across the shopper journey.
- Earn Tab: Sezzle Arcade, Coupons & Discounts, Gas & Grocery/Dining Discount, Money IQ, Sezzle Quest; tens of thousands of offers; receipt-based rewards launching soon.
- Browser Extension (iOS): Surfaces offers/coupons automatically.
- Usage Growth: MAUs [4] +38% YoY, Revenue-Generating Users [5] +120% YoY (monthly), Monthly Sessions [6] +78% YoY.
Enterprise wins: D&B Supply; Dunham’s Sports.
[4] Monthly Active Users is defined as the number of unique users that transacted or engaged with the Sezzle app during the month.
[5] Revenue Generating Users are unique users that Sezzle monetized.
[6] Session for the month of September 2025. A Session occurs when a Sezzle Consumer opens the Sezzle app and ends after 30 minutes of inactivity.
Awards and Accolades
Named to TIME 100 America’s Growth Leaders (inaugural list).
Chief Financial Officer Transition
Nov. 1, 2025: Karen Hartje advised of intention to resign as CFO for personal reasons; will continue as CFO and principal financial officer under a Consulting Agreement reporting to CEO Charlie Youakim to ensure a smooth transition.
Upcoming Investor Events
- Nov 17, 2025: Oppenheimer Non-Deal Roadshow (NYC)
- Nov 18, 2025: Wells Fargo 9th Annual TMT Summit
- Dec 16, 2025: Northland Growth Conference
- Dec 17, 2025: Needham Non-Deal Roadshow (Boston)
Quarterly Conference Call and Presentation
- Nov 5, 2025 | 5:00pm ET.
- Registration: dpregister.com/sreg/10204064/10031acd240
- Webcast: event.choruscall.com/mediaframe/webcast.html?webcastid=wINtbIvE
- Dial-in (alt): 1-866-777-2509 (US/CA) or 1-412-317-5413 (Intl)
Replay through Nov 12, 2025: 1-855-669-9658 (US) or 1-412-317-0088 (Intl), access code 9729701.Investor deck to be posted on Sezzle IR before the call.
3Q25 GAAP Operating Results
- Total Revenue: $116,796k vs. $69,958k (+67.0%)Operating Expenses: $81,235k vs. $49,116k (+65.4%); 69.6% of revenue (vs. 70.2%); 7.8% of GMV (vs. 7.4%)Operating Income: $35,561k vs. $20,842k (+70.6%); 30.4% of revenue (vs. 29.8%); 3.4% of GMV (vs. 3.2%)
- Net Income: $26,671k vs. $15,446k (+72.7%); 22.8% of revenue (vs. 22.1%)
- EPS (diluted): $0.75 vs. $0.44 (+70.5%).
3Q25 Non-GAAP Operating Results
- Non-Transaction Related Opex: $31,623k vs. $20,953k (+50.9%); 27.1% of revenue (vs. 30.0%)
- Transaction Related Costs: $53,535k vs. $31,491k (+70.0%); 45.8% of revenue (vs. 45.0%); 5.1% of GMV (vs. 4.8%)
- Total Revenue Less Transaction Related Costs: $63,261k vs. $38,467k (+64.5%); 54.2% of revenue (vs. 55.0%); 6.0% of GMV (vs. 5.8%)
- Adjusted EBITDA: $39,623k vs. $22,694k (+74.6%); 33.9% margin (vs. 32.4%)
- Adjusted Net Income: $25,441k vs. $16,668k (+52.6%); 21.8% margin (vs. 23.8%); Adjusted EPS (diluted): $0.71 (vs. $0.47).
Appendix — Reconciliations
Operating Expenses — Non-Transaction Related Opex (3Q25 / 3Q24):
- Operating expenses: $81,235k / $49,116k
- Less: Transaction expense: $(17,435)k / $(12,761)k
- Less: Provision for credit losses: $(32,177)k / $(15,402)k
- Non-transaction related opex: $31,623k / $20,953k
Operating Expenses — Transaction Related Costs (3Q25 / 3Q24):
- Operating expenses: $81,235k / $49,116k
- Less: Personnel $(14,320)k / $(13,423)k; Third-party tech & data $(3,705)k / $(2,387)k; Marketing/advertising/tradeshows $(8,775)k / $(2,726)k; G&A $(4,823)k / $(2,417)k
- Add: Net interest expense $3,923k / $3,328k
- Transaction Related Costs: $53,535k / $31,491k
Operating Income — Total Revenue Less Transaction Related Costs (3Q25 / 3Q24):
- Operating income: $35,561k / $20,842k
- Add: Personnel $14,320k / $13,423k; Third-party tech & data $3,705k / $2,387k; Marketing/advertising/tradeshows $8,775k / $2,726k; G&A $4,823k / $2,417k
- Less: Net interest expense $(3,923)k / $(3,328)k
- Total revenue less transaction related costs: $63,261k / $38,467k
Net Income — Adjusted EBITDA (3Q25 / 3Q24):
- Net income: $26,671k / $15,446k
- Depreciation & amortization: $369k / $233k
- Income tax expense: $4,961k / $2,163k
- Equity & incentive-based compensation: $2,409k / $1,456k
- Other (income) expense, net: $6k / $(95)k
- Corporate strategic projects: $1,284k / $163k
- Net interest expense: $3,923k / $3,328k
- Adjusted EBITDA: $39,623k / $22,694k
Net Income — Adjusted Net Income & Adjusted EPS (3Q25 / 3Q24):
- Net income: $26,671k / $15,446k
- Discrete tax (benefit) expense [7]: $(2,520)k / $1,154k
- Corporate strategic projects: $1,284k / $163k
- Other (income) expense, net: $6k / $(95)k
- Adjusted net income: $25,441k / $16,668k
- Diluted weighted-avg shares [8]: 35,675 / 35,435
- Adjusted EPS (diluted): $0.71 / $0.47
[7] Prior periods adjusted for equity-based comp tax windfall/shortfall.
[8] 6-for-1 split effective Mar 28, 2025.
Investor Relations Contact
Lee Brading, CFA
+1 651-240-6001
InvestorRelations@sezzle.com
Media Contact
Erin Foran
+1 651-403-2184
erin.foran@sezzle.com
About Sezzle
Sezzle is a forward-thinking fintech company committed to financially empowering the next generation. Through its purpose-driven payment platform, Sezzle enhances consumers' purchasing power by offering access to point-of-sale financing options and digital payment services—connecting millions of customers with its global network of merchants. Centered on transparency, inclusivity, and ease of use, Sezzle empowers consumers to manage spending responsibly, take charge of their finances, and achieve lasting financial independence.
For more information, visit sezzle.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends affecting the financial condition of our business. Forward-looking statements include our expectations, whether stated or implied, regarding our financing plans and other future events.
Forward-looking statements generally can be identified by the use of words such as "anticipate," "expect," "plan," "could," "may," "will," "believe," "estimate," "forecast," "goal," "project," other words or expressions of similar meaning (or the negative versions of such words or expressions). These forward-looking statements address various matters including statements regarding the timing or nature of future operating or financial performance or other events. Each forward-looking statement contained in this press release is subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statement. Applicable risks and uncertainties include, among others: impact of the “buy-now, pay-later” (“BNPL”) industry becoming subject to increased regulatory scrutiny; impact of operating in a highly competitive industry; impact of macro-economic conditions on consumer spending; our ability to increase our merchant network, our base of consumers and gross merchandise value (GMV); our ability to effectively manage growth, sustain our growth rate and maintain our market share; our ability to maintain adequate access to capital in order to meet the capital requirements of our business; impact of exposure to consumer bad debts and insolvency of merchants; impact of the integration, support and prominent presentation of our platform by our merchants; impact of any data security breaches, cyberattacks, employee or other internal misconduct, malware, phishing or ransomware, physical security breaches, natural disasters, or similar disruptions; impact of key vendors or merchants failing to comply with legal or regulatory requirements or to provide various services that are important to our operations; impact of the loss of key partners and merchant relationships; impact of exchange rate fluctuations in the international markets in which we operate; our ability to protect our intellectual property rights and third party allegations of the misappropriation of intellectual property rights; our ability to retain employees and recruit additional employees; impact of the costs of complying with various laws and regulations applicable to the BNPL industry in the United States and Canada; and our ability to achieve our public benefit purpose and our election to forego B Corporation recertification and other factors identified in the “Risk Factors” section of our Annual Report on Form 10-K for the year ended December 31, 2024 (the “Annual Report”) and the Company’s subsequent filings filed with the SEC. You are encouraged to read the Company's Annual Report and other filings with the SEC, available at www.sec.gov, for a discussion of these and other risks and uncertainties. The Company cautions investors not to place considerable reliance on the forward-looking statements contained in this press release. You are The forward-looking statements in this press release speak only as of the date of this document, and the Company undertakes no obligation to update or revise any of these statements. The Company's business is subject to substantial risks and uncertainties, including those referenced above. Investors, potential investors, and others should give careful consideration to these risks and uncertainties.
Non-GAAP Financial Measures
To supplement our operating results prepared in accordance with generally accepted accounting principles in the United States (“GAAP”), we present the following non-GAAP financial measures: Total revenue less transaction related costs; transaction related costs; non-transaction related operating expenses; adjusted net income; adjusted net income margin; adjusted net income per diluted share; adjusted earnings before interest, taxes, depreciation, and amortization (“Adjusted EBITDA”); and Adjusted EBITDA margin. Definitions of these non-GAAP financial measures and summaries of the reasons why management believes that the presentation of these non-GAAP financial measures provide useful information to the Company and investors are as follows:
- Total revenue less transaction related costs is defined as GAAP total revenue less transaction related costs. Transaction related costs is the sum of GAAP transaction expense, provision for credit losses, and net interest expense less certain non-recurring charges as detailed in the reconciliation table of GAAP operating income to non-GAAP total revenue less transaction related costs above. We believe that total revenue less transaction related costs is a useful financial measure to both management and investors for evaluating the economic value of orders processed on the Sezzle Platform.
- Non-transaction related operating expenses is defined as the sum of GAAP personnel; third-party technology and data; marketing, advertising, and tradeshows; and general and administrative operating expenses. We believe that non-transaction related operating expenses is a useful financial measure to both management and investors for evaluating our management of operating expenses not directly attributable to orders processed on the Sezzle Platform.
- Adjusted EBITDA is defined as GAAP net income, adjusted for certain charges including depreciation, amortization, equity and incentive–based compensation, corporate strategic project costs, and merger-related costs, as well as net interest expense as detailed in the reconciliation table of GAAP net income to adjusted EBITDA. We believe that this financial measure is a useful measure for period-to-period comparison of our business by removing the effect of certain non-cash and non-recurring charges, as well as funding costs, that may not directly correlate to the underlying performance of our business.
- Adjusted EBITDA margin is defined as Adjusted EBITDA divided by GAAP total revenue. We believe that this financial measure is a useful measure for period-to-period comparison of our business’ unit economics by removing the effect of certain non-cash and non-recurring charges, as well as funding costs, that may not directly correlate to the underlying performance of our business.
- Adjusted net income is defined as GAAP net income, adjusted for certain charges including discrete tax items, fair value adjustments on warrants, losses on the extinguishment of our lines of credit, corporate strategic project costs, and other income and expense, as detailed in the reconciliation table of GAAP net income to adjusted net income. We believe that this financial measure is useful for period-to-period comparison of our business by removing the effect of certain charges that, in management's view, does not correlate to the underlying performance of our business during a given period.
- Adjusted net income margin is defined as Adjusted net income divided by GAAP total revenue. We believe that this financial measure is a useful measure for period-to-period comparison of our business by removing the effect of certain charges that, in management's view, does not correlate to the underlying performance of our business during a given period.
- Adjusted net income per diluted share is defined as non-GAAP adjusted net income divided by GAAP weighted-average diluted shares outstanding. We believe that this financial measure is a useful measure for period-to-period comparison of shareholder return by removing the effect of certain charges that, in management's view, does not correlate to the underlying performance of our business during a given period.
Additionally, we have included these non-GAAP measures because they are key measures used by our management to evaluate our operating performance, guide future operating plans, and make strategic decisions, including those relating to operating expenses and the allocation of resources. Therefore, we believe these measures provide useful information to investors and other users of this press release to understand and evaluate our operating results in the same manner as our management and board of directors. However, non-GAAP financial measures have limitations, should be considered supplemental in nature, and are not meant as a substitute for the related financial information prepared in accordance with U.S. GAAP. These limitations include the following:
- Total revenue less transaction-related costs is not intended to be measures of operating profit or cash flow profitability as they exclude key operating expenses such as personnel, general and administrative, and third-party technology and data, which have been, and will continue to be for the foreseeable future, significant recurring GAAP expenses.
- Transaction related costs exclude significant expenses such as personnel, general and administrative, and third-party technology and data, which have been, and will continue to be for the foreseeable future, significant recurring GAAP expenses.
- Non-transaction related operating expenses exclude significant expenses, including transaction expense and provision for credit losses, which have been, and will continue to be for the foreseeable future, significant recurring GAAP expenses.
- Adjusted EBITDA and adjusted EBITDA margin exclude certain charges such as depreciation, amortization, and equity and incentive–based compensation, which have been, and will continue to be for the foreseeable future, recurring GAAP expenses. Further, these non-GAAP financial measures exclude certain significant cash inflows and outflows, which have a significant impact on our working capital and cash.
- Adjusted EBITDA and adjusted EBITDA margin excludes net interest expense, which has a significant impact on our GAAP net income, working capital, and cash.
- Adjusted net income, adjusted net income margin, and adjusted net income per diluted share excludes certain charges such as losses on the extinguishment of our lines of credit, fair value adjustments on our warrants, other income and expense, and discrete tax items which have been, and may be in the future, recurring GAAP expenses. Further, these non-GAAP financial measures exclude certain significant cash inflows and outflows, which have a significant impact on our working capital and cash.
- Long-lived assets being depreciated or amortized may need to be replaced in the future, and these non-GAAP financial measures do not reflect the capital expenditures needed for such replacements, or for any new capital expenditures or commitments.
- These non-GAAP financial measures do not reflect income taxes that may represent a reduction in cash available to us.
- Non-GAAP measures do not reflect changes in, or cash requirements for, our working capital needs.
- Other companies, including companies in our industry, may calculate the non-GAAP financial measures differently or not at all, which reduces their usefulness as comparative measures.
Because of these limitations, you should not consider these non-GAAP financial measures in isolation or as substitutes for analysis of our financial results as reported under GAAP, and these non-GAAP financial measures should be considered alongside other financial performance measures, including net income and other financial results presented in accordance with GAAP. We encourage you to review the related GAAP financial measures and the reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures and not rely on any single financial measure to evaluate our business.
