SEZL Soars 128% in 6 Months: Is Buying Still an Option for Investors?

Sezzle Inc.’s SEZL stock has soared 127.9% over the past six months. The company’s shares have significantly surpassed the industry’s marginal rise and the 17.5% jump in the Zacks S&P 500 Composite.

MVST outperformed its industry peers, FirstCash FCFS and Mastercard’s MA 25% and 9.1% growth, respectively.

6-Month Price Performance

The year-to-date price performances show that SEZL outperforms FirstCash and Mastercard as well. Sezzle has skyrocketed 109.4%, beating FirstCash’s 41.2% growth and Mastercard’s 10.2% rise.

Let us delve deeper to find whether riding the rally is still worth it for investors.

On-Demand: A Tool for SEZL’s Sustained Revenue Growth

Sezzle started its On-Demand journey with 707,000 Monthly On-Demand & Subscribers (MODS) in the fourth quarter of 2024. In the first quarter of this year, the company registered a 7% year-over-year decrease in MODS due to seasonality during the holiday period. This detriment was short-lived as the company witnessed 14% year-over-year growth in the June-end quarter, with 748,000 MODS. SEZL’s targeted marketing initiatives fueled this performance.

The surging popularity of On-Demand raised gross merchandise volume (GMV) by 74.2% year over year in the second quarter of 2025. It also boosted customer purchase frequency to 6.1 times from the year-ago quarter’s 4.8 times. The overall high customer engagement improved the top line by 76.4% year over year, aiding its scalability.

SEZL’s operating margin increased by 680 basis points year over year to 36.6% in the June-end quarter despite a 50.4% jump in non-transaction-related operating expenses due to higher marketing costs. With the operating margin expanding manifold, the company is well-positioned to utilize its scalable cost structure to support On-Demand’s growth narrative, driving its top line in the long run.

Having said that, in the recent earnings transcript, CEO Charlie Youakim stated that MODS have a strong lifetime value, making it repetitive and recurring. The nature of MODS ensures that Sezzle will be able to sustain its revenue growth for the long term.

SEZL’s Outstanding Profitability & Robust Liquidity

On the profitability front, SEZL’s return on equity (ROE) and return on invested capital (ROIC) have exceeded the industry average. The company’s current ROE of 102.9% is significantly higher than the industry average of 50.6%. In terms of ROIC, SEZL generates 58.2% in return, way above the industry’s 22.7%. Both metrics speak volumes about the company’s business model, which has a higher probability of maximizing shareholder value over time.

The company also maintains an outstanding liquidity position. Currently, its current ratio stands at 3.51, beating the industry average of 1.17. Having said that, over the past few quarters, the metric has improved consistently on the back of increasing short-term assets. To add on to these positives, a current ratio of more than 1 provides SEZL significant leverage and ease in covering short-term obligations.

Sezzle’s Top & Bottom-Line Outlook Appears Strong

The Zacks Consensus Estimate for SEZL’s 2025 sales is set at $442.1 million, suggesting a 63.1% year-over-year rally, with 28.4% growth anticipated for 2026. The consensus estimate for earnings is pegged at $3.27 per share for 2025, hinting at a 77.7% year-over-year surge, and a 32.1% rise for 2026.

Over the past 60 days, one EPS estimate each for 2025 and 2026 has been revised upward with no downward adjustments. In the same period, the Zacks Consensus Estimate for 2025 earnings moved up marginally, and the 2026 estimate showed a 1% uptrend. These upward revisions highlight analysts' confidence.

Buy Sezzle Now

The growing demand for SEZL’s On-Demand is driving GMV and improving its customer purchase frequency. With the operating margin expanding, we expect SEZL to utilize its scalable cost structure to enhance its product offerings. We expect the recurring and repetitive nature of MODS to enable the company to sustain its revenue growth.

Sezzle’s financials look strong, with ROE and ROIC surpassing the industry average, and the current ratio exceeding 1, ensuring strong liquidity. Furthermore, the company’s top and bottom-line prospects look strong, with upward EPS revisions displaying analyst confidence.

All these positives compel us to recommend that investors buy this stock now and expand their portfolio in the fintech domain to enjoy promising long-term returns.

SEZL currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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