Third Quarter 2026
Filed Nov 4, 2026Sezzle Reports Third Quarter 2026 Results
Total Revenue grew 42.6% YoY to $166.5 million, while Operating Income grew 80.7% YoY to $64.3 million and Net Income rose 79.3% YoY to $47.8 million. The Company raised FY2026 Total Revenue growth guidance to approximately 42.5% and Adjusted Net Income guidance to $190.0 million.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total Transaction Volume (TTV)other | $1.4B | – | 34.9% |
| Average quarterly transaction frequencyother | 7.8x | – | – |
| Active Subscribersother | 955,000 | – | 68.1% |
| Total RevenueGAAP | $166.5M | – | 42.6% |
| Total Revenue as a percentage of TTVother | 11.9% | – | 60 basis points |
| Operating ExpensesGAAP | $102.3M | – | 25.9% |
| Operating Expenses as % of Total RevenueGAAP | 61.4% | – | (8.2 ppt) |
| Operating Expenses as % of TTVGAAP | 7.3% | – | (0.5 ppt) |
| Operating IncomeGAAP | $64.3M | – | 80.7% |
| Operating Income as % of Total RevenueGAAP | 38.6% | – | 8.2 ppt |
| Operating Income as % of TTVGAAP | 4.6% | – | 1.2 ppt |
| Net IncomeGAAP | $47.8M | – | 79.3% |
| Net Income MarginGAAP | 28.7% | – | 5.9 ppt |
| Net Income per Diluted ShareGAAP | $1.38 | – | 84.0% |
| Net Income per Basic ShareGAAP | $1.42 | – | – |
| Adjusted Net Incomenon-GAAP | $47.7M | – | 89.9% |
| Adjusted Net Income Marginnon-GAAP | 28.6% | – | 7.1 ppt |
| Adjusted Net Income per Diluted Sharenon-GAAP | $1.37 | – | 95.7% |
| Adjusted EBITDAnon-GAAP | $70.2M | – | 77.1% |
| Adjusted EBITDA Marginnon-GAAP | 42.1% | – | 8.2 ppt |
| Transaction Related Costsnon-GAAP | $58.8M | – | 9.8% |
| Transaction Related Costs as % of Total Revenuenon-GAAP | 35.3% | – | (10.5 ppt) |
| Transaction Related Costs as % of TTVnon-GAAP | 4.2% | – | (1.0 ppt) |
| Provision for Credit Losses as % of TTVother | 2.7% | – | – |
| Transaction Expense as % of TTVother | 1.3% | – | – |
| Net Interest Expense as % of TTVother | 0.2% | – | – |
| Total Revenue Less Transaction Related Costsnon-GAAP | $107.7M | – | 70.3% |
| Total Revenue Less Transaction Related Costs as % of Total Revenuenon-GAAP | 64.7% | – | 10.5 ppt |
| Total Revenue Less Transaction Related Costs as % of TTVnon-GAAP | 7.7% | – | 1.6 ppt |
| Non-Transaction Related Operating Expensesnon-GAAP | $46.2M | – | 46.2% |
| Non-Transaction Related Operating Expenses as % of Total Revenuenon-GAAP | 27.8% | – | 0.7 ppt |
| Marketing, advertising, and tradeshowsGAAP | $15.89M | – | – |
| Corporate Strategic Project Costsother | $2.4M | – | – |
| Nine-month Total RevenueGAAP | $451.7M | – | – |
| Nine-month Operating IncomeGAAP | $188.2M | – | – |
| Nine-month Net IncomeGAAP | $139.9M | – | – |
| Nine-month Net Income per Diluted ShareGAAP | $4.02 | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
FY2026 outlook
- Revenueapproximately 42.5% Total Revenue growth
- NoteAdjusted Net Income of $190.0 million
- NoteAdjusted Net Income per Diluted Share of $5.45–$5.50
- NoteProvision for Credit Losses target of approximately 2.5% of TTV
- NotePreliminary FY2027 Adjusted Net Income Per Diluted Share of $7.20
- NotePreliminary FY2027 Adjusted Net Income Per Diluted Share growth of 30.9%–32.1% over FY2026 guidance
Capital returns
- Repurchase of common stock of $39,360 (in thousands) for the nine months ended September 30, 2026.
- Treasury stock, at cost: 1,455 shares as of September 30, 2026.
What drove it
- TTV growth was supported by continued growth in the Subscriber base and incremental volume from SezzleCash and Sezzle Send.
- SezzleCash completed its first full quarter following its June launch. More than 15% of SezzleCash-eligible new Anywhere Subscribers made their first transaction through SezzleCash, and over 60% of those Subscribers subsequently shopped with Sezzle at checkout.
- Transaction Expense benefited in part from a $3.7 million payment network incentive.
- Marketing expenses moderated sequentially to $15.9 million from $19.4 million in 2Q26.
- Higher Third-party Technology and Data costs reflected continued investment in technology infrastructure to support platform growth and resilience.
- WebBank originates and holds eligible SezzleCash and Sezzle Send loans off the Company's balance sheet, while Sezzle continues to service the loans.
Concerns
- Non-Transaction Related Operating Expenses rose 46.2% YoY to $46.2 million, faster than Total Revenue growth of 42.6%.
- Marketing, advertising, and tradeshows were $15,893 (in thousands) in 3Q26, compared with $8,775 (in thousands) in 3Q25.
- Corporate Strategic Project Costs were $2.4 million in the quarter, reflecting professional services for the antitrust suit and national bank charter application.
- The Company states that prior Adjusted Net Income and Adjusted Net Income per Diluted Share guidance was not recast to reflect income tax effects and is not directly comparable with current guidance.
- The Company filed applications in October 2026 to establish Sezzle Bank, N.A. and for federal deposit insurance; the filing notes that approval may not be obtained timely, if at all.
What to watch
- FY2026 Total Revenue growth guidance of approximately 42.5%.
- FY2026 Adjusted Net Income guidance of $190.0 million and Adjusted Net Income per Diluted Share guidance of $5.45–$5.50.
- Provision for Credit Losses target of approximately 2.5% of TTV.
- Subscriber acquisition and cross-selling from SezzleCash, following its first full quarter after the June launch.
- Sezzle Send rollout to all users in October and the subsequent soft launch of Sezzle Anywhere in Canada.
- Progress on the applications to establish Sezzle Bank, N.A. and obtain federal deposit insurance.
Balance sheet and cash flow
- Cash, cash equivalents, and restricted cash were $107.9 million as of September 30, 2026, including $37.7 million of restricted cash.
- Cash and cash equivalents were $70,142 (in thousands) as of September 30, 2026.
- Restricted cash, current was $4,348 (in thousands) and restricted cash, non-current was $33,374 (in thousands) as of September 30, 2026.
- The Company had $104.0 million outstanding on its $300.0 million credit facility as of quarter end.
- Line of credit, net of unamortized debt issuance costs, was $102,178 (in thousands) as of September 30, 2026.
- Notes receivable, net was $315,918 (in thousands) as of September 30, 2026.
- Total Assets were $481,628 (in thousands) and Total Liabilities were $203,949 (in thousands) as of September 30, 2026.
- Net Cash Provided from Operating Activities was $227,930 (in thousands) for the nine months ended September 30, 2026, compared with $139,274 (in thousands) for the nine months ended September 30, 2025.
- Net Cash Used for Investing Activities was $145,591 (in thousands) for the nine months ended September 30, 2026, compared with $85,759 (in thousands) for the nine months ended September 30, 2025.
- Net Cash Used for Financing Activities was $76,720 (in thousands) for the nine months ended September 30, 2026, compared with $17,978 (in thousands) for the nine months ended September 30, 2025.
- Cash, cash equivalents, and restricted cash, end of period was $107,864 (in thousands) for the nine months ended September 30, 2026.
Analysis
Sezzle reported a strong third quarter ended September 30, 2026, with Total Revenue up 42.6% YoY to a record $166.5 million and TTV up 34.9% YoY to $1.4 billion. Revenue growth outpaced TTV growth by 7.7 percentage points, while Total Revenue as a percentage of TTV expanded to 11.9% from 11.3% in 3Q25. Active Subscribers grew 68.1% YoY to 955,000, and average quarterly transaction frequency increased to 7.8x from 6.5x in the prior comparable period.
Profitability expanded materially. Operating Expenses increased 25.9% YoY to $102.3 million, below Total Revenue growth, bringing Operating Expenses as a percentage of Total Revenue to 61.4% from 69.6%. Operating Income rose 80.7% YoY to $64.3 million and Operating Margin improved to 38.6% from 30.4%. Net Income increased 79.3% YoY to $47.8 million, while Net Income per Diluted Share increased 84.0% to $1.38.
Transaction economics improved across reported measures. Transaction Related Costs rose 9.8% YoY to $58.8 million but declined to 4.2% of TTV from 5.2%. Provision for Credit Losses eased to 2.7% of TTV from 3.1%, Transaction Expense declined to 1.3% of TTV from 1.7%, and Net Interest Expense declined to 0.2% of TTV from 0.4%. Total Revenue Less Transaction Related Costs increased 70.3% YoY to $107.7 million, equivalent to 64.7% of Total Revenue and 7.7% of TTV.
Non-GAAP earnings also accelerated, with Adjusted EBITDA increasing 77.1% YoY to $70.2 million and its margin expanding to 42.1%. Adjusted Net Income increased 89.9% YoY to $47.7 million, and Adjusted Net Income per Diluted Share rose 95.7% to $1.37. The release identifies a $3.7 million payment network incentive as a partial benefit to Transaction Expense, while Non-Transaction Related Operating Expenses rose 46.2% to $46.2 million, including higher technology and data costs and Marketing expenses of $15.9 million.
The Company raised FY2026 guidance for Total Revenue growth to approximately 42.5%, Adjusted Net Income to $190.0 million, and Adjusted Net Income per Diluted Share to $5.45–$5.50. It also introduced preliminary FY2027 Adjusted Net Income Per Diluted Share guidance of $7.20. Liquidity included $107.9 million of cash, cash equivalents, and restricted cash and $104.0 million outstanding on the $300.0 million credit facility at quarter end. Sezzle also entered a WebBank retention arrangement under which WebBank originates and holds eligible SezzleCash and Sezzle Send loans off Sezzle's balance sheet.
Management, verbatim
We enter the holiday season with Subscribers approaching one million and transaction frequency reaching a Company high.
Charlie Youakim, Sezzle Executive Chairman and CEO
SezzleCash is showing encouraging results, bringing new Subscribers onto the platform, many of whom subsequently shop with Anywhere at checkout.
Charlie Youakim, Sezzle Executive Chairman and CEO
We are raising FY2026 guidance for the fourth time, with Total Revenue growth now expected to reach approximately 42.5%, Adjusted Net Income of $190 million, and Adjusted Net Income per Diluted Share of $5.45–$5.50.
Charlie Youakim, Sezzle Executive Chairman and CEO
Not in the filing
stated, not guessed- Gross margin was not reported.
- Segment revenue was not reported.
- Free cash flow was not reported.
- Dividend amount and dividend declaration were not reported.
- A separate previous outlook section was not provided; therefore, no comparison of actual results with prior guidance is included.
- Quarterly operating cash flow was not reported; cash flow was reported only for the nine months ended September 30, 2026.
- GAAP tax rate was not reported.
- FY2026 guidance for gross margin, operating expenses, and tax rate was not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.