Sezzle raises full-year guidance as net income climbs 42%
The buy-now, pay-later provider reported first-quarter total revenue of $135.5 million, a 29.2% increase year-over-year.
Sezzle (SEZL), the buy-now, pay-later provider, reported first-quarter total revenue of $135.5 million, representing a 29.2% increase year-over-year.
The company saw a significant expansion in its user base and transaction volume, driven by a shift toward subscription-based models and higher consumer engagement. Gross merchandise volume increased 37.3% year-over-year to $1.1 billion.
Net income rose 41.9% year-over-year to $51.3 million. The net income margin expanded 3.4 percentage points to 37.9%. Adjusted EBITDA grew 38.3% year-over-year to $71.1 million, with the adjusted EBITDA margin reaching 52.5%, an increase of 3.5 percentage points compared to the first quarter of 2025.
Growth was supported by a record average quarterly purchase frequency of 7.1x, up from 6.1x in the prior-year period. Active subscribers grew 48.4% year-over-year, while monthly on-demand and subscribers totaled 887,000 as of March 31, 2026, a 34.8% increase.
Profitability gains were aided by lower transaction-related costs, which fell to 3.2% of gross merchandise volume from 3.8% in the first quarter of 2025. This improvement was primarily due to the provision for credit losses contracting to 1.2% of gross merchandise volume from 1.6%. Operating expenses as a percentage of total revenue also fell 3.3 percentage points to 49.1%.
In May 2026, the company raised its full-year 2026 guidance. Sezzle now expects total revenue growth between 30% and 35%, up from a previous range of 25% to 30%. The company raised its adjusted net income forecast to $180.0 million from $170.0 million and increased its adjusted net income per diluted share projection to $5.10 from $4.70.
Sezzle expanded its product suite with the April 2026 launch of Sezzle Mobile and the introduction of Agentic Commerce, a virtual card in Canada. Additionally, the company secured a new $300 million receivables funding facility in May 2026, which doubled its previous $150 million facility and reduced the interest rate spread to SOFR + 3.86% from 6.75%.