Sezzle Reports 79% Increase in Third-Quarter Net Income Amid Declining Credit Costs
Sezzle (SEZL) reported a significant surge in third-quarter performance, with net income rising 79% to $47.8 million, or $1.38 per diluted share. This growth was driven by revenue increasing 42.6% year-over-year to $166.5 million, outpacing the growth of transaction volumes and operational costs. A key driver for the profitability spike was the reduction in credit loss provisions, which fell to 2.7% of volume from 3.1% in the prior year. The company's subscription model continues to scale effectively, with active subscribers growing by 68.1% to reach 955,000. Transaction frequency also reached a record high of 7.8 per quarter. Following the earnings release, Sezzle shares rose approximately 10% in after-hours trading as management raised its full-year outlook for the fourth time and provided an initial adjusted earnings per share target of $7.20 for 2027.
Tickers: $SEZL
Topics: credit losses earnings report financial performance net income growth revenue growth