Sezzle Secures $300M Receivables Funding Facility
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 12 2026
0mins
Source: seekingalpha
- Expanded Financing: Sezzle has secured a new $300 million receivables funding facility with Mesirow Alternative Credit, doubling its previous $150 million facility, which underscores the company's strong appeal in the capital markets.
- Significant Rate Reduction: The new facility carries an interest rate of SOFR plus 3.86%, down nearly 290 basis points from the prior 6.75% spread, which will significantly lower Sezzle's cost of capital and enhance its profitability.
- Increased Financing Flexibility: The advance rate has increased from 90% to 92.5%, and the facility includes a $75 million accordion, providing Sezzle with greater financial flexibility to support its ongoing growth.
- Strong Growth Momentum: In Q1 2026, Sezzle reported a non-GAAP EPS of $1.43, beating expectations by $0.19, with revenue of $135.5 million exceeding forecasts by $6.34 million, indicating positive momentum in subscriber growth and customer engagement.
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Analyst Views on SEZL
Wall Street analysts forecast SEZL stock price to fall
3 Analyst Rating
2 Buy
1 Hold
0 Sell
Moderate Buy
Current: 119.000
Low
83.00
Averages
101.00
High
110.00
Current: 119.000
Low
83.00
Averages
101.00
High
110.00
About SEZL
Sezzle Inc. is a fintech company. The Company’s payment platform increases the purchasing power of consumers by offering access to point-of-sale financing options and digital payment services connecting millions of customers with its global network of merchants. Its payment options allow consumers to take control over their spending. Its digital payments platform provides consumers a flexible alternative to traditional credit. Its Sezzle Platform offers a payments solution for consumers that instantly extends credit at the point-of-sale, allowing consumers to purchase and receive the ordered merchandise at the time of sale while paying in installments over time. The Sezzle Platform flagship product, pay-in-four, allows consumers to pay a fourth of the purchase price up front, and then another fourth of the purchase price every two weeks thereafter over a total of six weeks. Its Sezzle Virtual Card provides rapid-installation and point-of-sale option for brick-and-mortar retailers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Sezzle Inc Shares Surpass Analyst Target Price
- Stock Performance: Sezzle Inc's shares recently surpassed the average analyst 12-month target price of $114.67, trading at $116.05, indicating increased market confidence that may attract more investor interest.
- Analyst Reactions: When a stock hits an analyst's target price, they typically either downgrade or adjust their target; currently, six analysts have target prices ranging from $108.00 to $122.00, reflecting varied market perspectives.
- Market Signal: The breach of the target price provides investors with a strong signal to reassess the company, prompting them to consider whether the current valuation is justified or if it’s time to take profits to mitigate risk.
- Analyst Ratings: According to Zacks data, analysts rate Sezzle Inc on a scale from 1 to 5, where 1 is Strong Buy and 5 is Strong Sell, helping investors better understand market sentiment and future expectations.
See More
Investment Comparison: Klarna vs. Sezzle
- Klarna's Market Performance: In fiscal year 2025, Klarna achieved revenue of approximately $3.5 billion, a 31.6% increase year-over-year, despite reporting a net loss of $294 million and a net margin of -8.4%, highlighting challenges and opportunities in its global expansion.
- Sezzle's Profitability: Sezzle generated approximately $450.3 million in revenue for fiscal year 2025, marking a 66.1% year-over-year increase, with net income reaching $133.1 million and a net margin of 29.6%, indicating strong growth and profitability in the North American market.
- Financial Health Comparison: Klarna's current ratio stands at about 1 with a debt-to-equity ratio of 0.5, while Sezzle boasts a current ratio of 3.9 and a debt-to-equity ratio of 0.8, demonstrating Sezzle's superior short-term liquidity and financial stability.
- Market Competition Risks: Klarna faces intense competition from established banks and fintech companies like PayPal, while Sezzle is under scrutiny from the CFPB; however, its smaller scale may currently serve as an advantage in the evolving market landscape.
See More
Latest Quant Ratings Snapshot for Small-Cap Financial Stocks
- Top-Rated Companies: Following the latest quarterly earnings releases, StoneX Group (SNEX) leads small-cap financial stocks with a quant rating of 4.94, indicating strong performance across valuation, growth, and profitability metrics, which reflects market confidence in its future growth prospects.
- Strong Buy Ratings: Sezzle (SEZL) and Oscar Health (OSCR) received quant ratings of 4.90 and 4.86 respectively, showcasing their solid performance in earnings estimates and market momentum, likely attracting increased investor interest.
- Low-Rated Companies: Ryan Specialty Holdings (RYAN) has a quant rating of 1.25, categorized as a Strong Sell, highlighting significant deficiencies in profitability and growth potential, which may raise investor concerns about its future performance.
- Share Repurchase Plans: Ryan Specialty announced a $300 million increase to its share repurchase program, while Webull plans a $100 million buyback, actions that may boost stock prices in the short term but also reflect a cautious approach to market conditions.
See More
Sezzle Inc. Recommended as a Growth Stock
- Earnings Growth Potential: Sezzle Inc. boasts a historical EPS growth rate of 380%, with projected EPS growth of 41.7% this year, significantly surpassing the industry average of 13.9%, indicating strong future profitability that attracts investor interest.
- Cash Flow Growth Advantage: The company currently enjoys a year-over-year cash flow growth rate of 92.6%, well above the industry average of -2.2%, enabling it to expand operations without relying on costly external funding, thereby enhancing its competitive position in the market.
- Earnings Estimate Revisions: Sezzle Inc. has seen an 8.2% upward revision in current-year earnings estimates over the past month, a positive trend that correlates strongly with short-term stock price increases, reflecting market confidence in its future performance.
- Market Positioning and Revenue: Targeting millennial and Gen Z audiences, Sezzle Inc. generated nearly $1 billion in revenue last quarter, and the recent market pullback presents an ideal entry point for investors, with expectations for significant returns on investment.
See More
Sezzle Inc. Under Investigation for Securities Law Violations
- Board Member Resignation: On April 9, 2026, Sezzle disclosed that Karen Webster, a member of its Audit and Risk Committee, resigned from the Board due to differing perspectives with management regarding the company's direction, which may destabilize the governance structure.
- Legal Firm Involvement: Lowey Dannenberg P.C. is investigating whether Sezzle provided investors with accurate and complete information, and if violations are found, the company could face legal repercussions that may impact its market reputation.
- Investor Loss Alert: Attorney Andrea Farah indicated that investors who suffered losses exceeding $50,000 in Sezzle securities should contact the law firm to learn about eligibility for participation, highlighting investor concerns over corporate governance.
- Company Background: Lowey Dannenberg is a national firm representing investors who have suffered losses due to corporate fraud and malfeasance, with significant litigation experience that could have a major impact on Sezzle's future.
See More
Sezzle's Stock Soars Post Q1 Earnings Report
- Strong Earnings Performance: Sezzle's stock surged following the release of its Q1 2026 earnings report, indicating robust performance in the competitive buy now, pay later market, which has captured investor interest.
- Positive Market Reaction: Unlike its BNPL peers, Sezzle's stock has shown exceptional performance, reflecting market confidence in its financial health and future growth potential, which has further propelled its stock price upward.
- Investor Focus: Analysts highlight that Sezzle's success stems not only from its innovative business model but also from ongoing improvements in customer service and user experience, which collectively enhance customer loyalty and market share.
- Optimistic Future Outlook: As the company continues to optimize its products and services, investors maintain an optimistic view of Sezzle's growth prospects, anticipating that its leadership position in the BNPL industry will be further solidified.
See More
Sezzle Inc Shares Surpass Analyst Target Price
- Stock Performance: Sezzle Inc's shares recently surpassed the average analyst 12-month target price of $114.67, trading at $116.05, indicating increased market confidence that may attract more investor interest.
- Analyst Reactions: When a stock hits an analyst's target price, they typically either downgrade or adjust their target; currently, six analysts have target prices ranging from $108.00 to $122.00, reflecting varied market perspectives.
- Market Signal: The breach of the target price provides investors with a strong signal to reassess the company, prompting them to consider whether the current valuation is justified or if it’s time to take profits to mitigate risk.
- Analyst Ratings: According to Zacks data, analysts rate Sezzle Inc on a scale from 1 to 5, where 1 is Strong Buy and 5 is Strong Sell, helping investors better understand market sentiment and future expectations.
See More
Investment Comparison: Klarna vs. Sezzle
- Klarna's Market Performance: In fiscal year 2025, Klarna achieved revenue of approximately $3.5 billion, a 31.6% increase year-over-year, despite reporting a net loss of $294 million and a net margin of -8.4%, highlighting challenges and opportunities in its global expansion.
- Sezzle's Profitability: Sezzle generated approximately $450.3 million in revenue for fiscal year 2025, marking a 66.1% year-over-year increase, with net income reaching $133.1 million and a net margin of 29.6%, indicating strong growth and profitability in the North American market.
- Financial Health Comparison: Klarna's current ratio stands at about 1 with a debt-to-equity ratio of 0.5, while Sezzle boasts a current ratio of 3.9 and a debt-to-equity ratio of 0.8, demonstrating Sezzle's superior short-term liquidity and financial stability.
- Market Competition Risks: Klarna faces intense competition from established banks and fintech companies like PayPal, while Sezzle is under scrutiny from the CFPB; however, its smaller scale may currently serve as an advantage in the evolving market landscape.
See More
Latest Quant Ratings Snapshot for Small-Cap Financial Stocks
- Top-Rated Companies: Following the latest quarterly earnings releases, StoneX Group (SNEX) leads small-cap financial stocks with a quant rating of 4.94, indicating strong performance across valuation, growth, and profitability metrics, which reflects market confidence in its future growth prospects.
- Strong Buy Ratings: Sezzle (SEZL) and Oscar Health (OSCR) received quant ratings of 4.90 and 4.86 respectively, showcasing their solid performance in earnings estimates and market momentum, likely attracting increased investor interest.
- Low-Rated Companies: Ryan Specialty Holdings (RYAN) has a quant rating of 1.25, categorized as a Strong Sell, highlighting significant deficiencies in profitability and growth potential, which may raise investor concerns about its future performance.
- Share Repurchase Plans: Ryan Specialty announced a $300 million increase to its share repurchase program, while Webull plans a $100 million buyback, actions that may boost stock prices in the short term but also reflect a cautious approach to market conditions.
See More
Sezzle Inc. Recommended as a Growth Stock
- Earnings Growth Potential: Sezzle Inc. boasts a historical EPS growth rate of 380%, with projected EPS growth of 41.7% this year, significantly surpassing the industry average of 13.9%, indicating strong future profitability that attracts investor interest.
- Cash Flow Growth Advantage: The company currently enjoys a year-over-year cash flow growth rate of 92.6%, well above the industry average of -2.2%, enabling it to expand operations without relying on costly external funding, thereby enhancing its competitive position in the market.
- Earnings Estimate Revisions: Sezzle Inc. has seen an 8.2% upward revision in current-year earnings estimates over the past month, a positive trend that correlates strongly with short-term stock price increases, reflecting market confidence in its future performance.
- Market Positioning and Revenue: Targeting millennial and Gen Z audiences, Sezzle Inc. generated nearly $1 billion in revenue last quarter, and the recent market pullback presents an ideal entry point for investors, with expectations for significant returns on investment.
See More
Sezzle Inc. Under Investigation for Securities Law Violations
- Board Member Resignation: On April 9, 2026, Sezzle disclosed that Karen Webster, a member of its Audit and Risk Committee, resigned from the Board due to differing perspectives with management regarding the company's direction, which may destabilize the governance structure.
- Legal Firm Involvement: Lowey Dannenberg P.C. is investigating whether Sezzle provided investors with accurate and complete information, and if violations are found, the company could face legal repercussions that may impact its market reputation.
- Investor Loss Alert: Attorney Andrea Farah indicated that investors who suffered losses exceeding $50,000 in Sezzle securities should contact the law firm to learn about eligibility for participation, highlighting investor concerns over corporate governance.
- Company Background: Lowey Dannenberg is a national firm representing investors who have suffered losses due to corporate fraud and malfeasance, with significant litigation experience that could have a major impact on Sezzle's future.
See More
Sezzle's Stock Soars Post Q1 Earnings Report
- Strong Earnings Performance: Sezzle's stock surged following the release of its Q1 2026 earnings report, indicating robust performance in the competitive buy now, pay later market, which has captured investor interest.
- Positive Market Reaction: Unlike its BNPL peers, Sezzle's stock has shown exceptional performance, reflecting market confidence in its financial health and future growth potential, which has further propelled its stock price upward.
- Investor Focus: Analysts highlight that Sezzle's success stems not only from its innovative business model but also from ongoing improvements in customer service and user experience, which collectively enhance customer loyalty and market share.
- Optimistic Future Outlook: As the company continues to optimize its products and services, investors maintain an optimistic view of Sezzle's growth prospects, anticipating that its leadership position in the BNPL industry will be further solidified.
See More
