Sezzle Raises Full-Year Outlook for a Fourth Time

The Tip Desk · November 11, 2026 · 3 min read

Third-quarter revenue hit a record $166.5 million, up 42.6%, and the company now expects about 42.5% full-year growth.

Sezzle Inc. (SEZL), the buy-now-pay-later platform, reported record third-quarter revenue of $166.5 million, up 42.6% from a year earlier, and raised its 2026 outlook for a fourth time.

The company now expects approximately 42.5% total revenue growth for the full year, up from a prior target of about 35%, and $190.0 million of adjusted net income, or $5.45–$5.50 a share. It also introduced preliminary 2027 guidance of $7.20 in adjusted net income per diluted share. Current 2026 and preliminary 2027 figures reflect an income-tax adjustment.

Total transaction volume reached $1.4 billion, up 34.9% year over year. Revenue as a percentage of TTV expanded 60 basis points to 11.9%. Beginning in the third quarter, TTV replaced GMV as the volume measure, with prior periods recast. Active subscribers rose 68.1% to 955,000. Average quarterly transaction frequency hit a company high of 7.8 times.

Operating income grew 80.7% to $64.3 million, nearly twice the pace of revenue. Operating margin widened 8.2 percentage points to 38.6%. Net income increased 79.3% to $47.8 million, or $1.38 a share. Adjusted net income rose 89.9% to $47.7 million, or $1.37 a share. Adjusted EBITDA climbed 77.1% to $70.2 million.

Total operating expenses increased 25.9% to $102.3 million, well below revenue growth, and fell 8.2 percentage points to 61.4% of revenue. Transaction-related costs were $58.8 million. As a share of TTV they declined 1.0 percentage point to 4.2%, with the provision for credit losses easing to 2.7% from 3.1%. Transaction expense fell to 1.3% of TTV from 1.7%, benefiting in part from a $3.7 million payment-network incentive. Net interest expense declined to a company low of 0.2% of TTV. The company’s 2026 credit-loss target is now approximately 2.5% of TTV.

Total revenue less transaction-related costs set a quarterly high of $107.7 million, up 70.3%. Non-transaction-related operating expenses rose 46.2% to $46.2 million. Marketing moderated sequentially to $15.9 million from $19.4 million in the second quarter. Corporate strategic project costs were $2.4 million, reflecting professional services for an antitrust suit and a national bank charter application.

SezzleCash completed its first full quarter after a June launch. More than 15% of SezzleCash-eligible new Anywhere subscribers made their first transaction through SezzleCash, and over 60% of those subsequently shopped with Sezzle at checkout. Sezzle Send launched in beta in the third quarter and rolled out to all users in October. September enhancements to Sezzle Up expanded eligibility; average weekly enrollments approximately doubled in the 30 days after the changes.

As of September 30, Sezzle had $107.9 million of cash, cash equivalents, and restricted cash, $37.7 million of which was restricted, and $104.0 million outstanding on a $300.0 million credit facility. To support SezzleCash and Sezzle Send, it entered a retention arrangement with WebBank, under which WebBank originates and holds eligible loans off Sezzle’s balance sheet while Sezzle continues to service them.

Subsequent to quarter-end, Sezzle soft-launched Sezzle Anywhere in Canada, including a BNPL virtual card usable wherever Visa is accepted. In October it filed with the Office of the Comptroller of the Currency to establish Sezzle Bank, N.A., and with the FDIC for federal deposit insurance.