Shares surged as Sezzle delivered a third-quarter earnings beat that blew past already-optimistic forecasts, prompting the buy-now-pay-later lender to raise its full-year outlook for the fourth consecutive quarter and, for the first time, issue a 2027 profit forecast. The results land at a moment when investors are testing whether Sezzle's rapid growth justifies a stock that has tripled from its 52-week low.
• Revenue Topped Estimates by $12 Million, Signaling Demand Is Still Accelerating
Total revenue grew 42.6% year over year to a record $166.5 million , handily clearing the consensus estimate of roughly $154 million . That growth rate actually accelerated from the 35% management had guided for as recently as August. Total transaction volume hit $1.4 billion, up 34.9% , but revenue outpaced it — meaning Sezzle is wringing more dollars from every transaction, a sign of improving pricing power.
• Subscriber Growth Is the Engine — and It's Still Firing
Active subscribers jumped 68.1% year over year to 955,000 , and average quarterly transaction frequency rose to a company-high 7.8 times, up from 6.5 a year ago . More subscribers spending more often is the simplest recipe for durable revenue growth. New cash-advance and peer-to-peer payment features showed early traction, with over 15% of eligible new subscribers making their first transaction through the cash-advance product .
• Raised 2026 Guidance and a First Look at 2027 Give Bulls New Ammunition
Sezzle raised its full-year 2026 guidance to roughly 42.5% revenue growth, $190 million in adjusted net income, and $5.45–$5.50 in adjusted earnings per share . Critically, the company introduced preliminary 2027 adjusted EPS guidance of $7.20, representing roughly 31% growth over the new 2026 target — a forward-looking anchor that could support the stock's valuation.
• Valuation Remains the Central Risk At $150.04, Sezzle trades at roughly 27x trailing earnings within a 52-week range of $49.50 to $195.71 . Analyst opinion is split: one Strong Buy, four Buys, and four Holds . Credit losses improved to 2.7% of transaction volume from 3.1% a year ago , easing one bear concern, but any consumer-spending slowdown could reverse that trend quickly. The stock's next test: whether management can keep delivering beats as comparisons get tougher.