Sezzle, the buy-now-pay-later firm, beat Wall Street expectations in its third quarter. Revenue rose 42.6% year on year to $166.5 million, against analyst estimates of $155.7 million. Adjusted earnings per share were $1.37, 6.3% above the consensus of $1.29. Pre-tax profit was $61.42 million, a 36.9% margin. Sezzle raised its full-year guidance for the fourth time. It now expects revenue growth of about 42.5% and adjusted net income of $190 million. It also set preliminary 2027 guidance of $7.20 adjusted net income per diluted share. Shares jumped 9% to $149.21 after the report, giving the company a market value of $4.12 billion. "We enter the holiday season with Subscribers approaching one million," said chief executive officer Charlie Youakim.

Sezzle grew third-quarter net income 79% to $47.8 million, or $1.38 per diluted share. Shares rose about 10% in after-hours trading. Revenue climbed 42.6% to $166.5 million, while transaction volume rose 34.9% to $1.4 billion. Active subscribers increased 68.1% to 955,000, and they shopped a record 7.8 times per quarter on average. Costs grew far more slowly. Credit losses, processing fees, and interest rose a combined 9.8%, and the provision for credit losses fell to 2.7% of volume from 3.1%. Part of the processing savings came from a payment network incentive that may not recur. Management raised its full-year outlook for the fourth time and set a first 2027 target of $7.20 in adjusted earnings per share.

Sezzle profit jumps 79% as credit costs ease: rapid earnings reaction. The buy now, pay later lender is squeezing more profit out of each transaction. Here's what's driving it and the one number to track through the holidays. Key points. * Sezzle's third-quarter profit grew more than twice as fast as the money moving through its platform. * Credit losses fell as a share of volume while subscribers kept shopping more often. * Management raised its full-year outlook again and gave a first look at 2027. * 10 stocks The Motley Fool, LLC like better than Sezzle" Sezzle (SEZL +11.65%) grew third-quarter net income 79% to $47.8 million, or $1.38 per diluted share. Shares rose about 10% in after-hours trading. The bigger story is cost: Sezzle now earns far more on each dollar it handles, because revenue is growing faster than volume while the costs tied to each loan barely grow. Key numbers. * Total transaction volume: $1.4 billion, up 34.9% year over year. * Revenue: $166.5 million, up 42.6%. * Active subscribers: 955,000, up 68.1%. * Provision for credit losses: 2.7% of volume, down from 3.1%. What it means. Subscribers drive the model. They pay a monthly fee on top of the merchant fees Sezzle collects on each purchase, and they shop with it more often. Average transaction frequency hit a company high of 7.8 per quarter. SEZL - Sezzle. $136.69 +$14.26 (+11.65%) NASDAQ · As of 4:00 PM ET 11/04/26 SEZL · 1Y +106.32% Key data points. Market cap $4.14B Day's range $124.50 - $139.74 52wk range $49.50 - $195.71 Volume 1.1M Avg volume 595.8K Gross margin 74.65% The cost side did the heavy lifting. Credit losses, processing fees, and interest rose just 9.8% combined, far slower than volume. Repeat subscribers with a payment record are easier to judge, which helps keep losses down. But part of the processing savings came from a payment network incentive, and that may not recur. Management raised its full-year outlook for the fourth time and set a first 2027 target of $7.20 in adjusted earnings per share. The release notes that older guidance wasn't recast for a change in tax treatment, so the raises aren't directly comparable. What to watch next. Watch whether credit losses hold near the new target of about 2.5% of volume through the holiday quarter. SezzleCash cash advances are a newer, less proven product, and their growth will test that number. Is Sezzle a smart long-term play? Before you buy stock in Sezzle, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Sezzle wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of its recommendation, you'd have $342,020!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of its recommendation, you'd have $1,270,017!* Now, it's worth noting Stock Advisor's total average return is 885% - a market-crushing outperformance compared to 208% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. *Stock Advisor returns as of November 4, 2026.