TLDR
- Sezzle beat Q2 revenue estimates by 9.8%, reporting $149.7 million vs the expected $136.4 million
- Adjusted EPS came in at $1.13, beating the $1.02 consensus by 11.3%
- Management raised full-year 2026 EPS guidance to $5.25 at the midpoint
- Keefe, Bruyette & Woods cut its price target from $190 to $155 and downgraded to “Market Perform”
- The stock dropped roughly 22%, opening at $132.36 after closing at $178.53, and later trading near $121.05
Sezzle (SEZL) posted a strong second quarter, but Wall Street wasn’t impressed enough. The stock fell sharply on August 7, opening at $132.36 after closing the previous day at $178.53, and later trading near $121.05.
The drop came despite the company beating on both revenue and earnings. Revenue hit $149.7 million, up 51.7% year on year and 9.8% above analyst expectations. Adjusted EPS of $1.13 topped the $1.02 consensus by 11.3%.
The problem wasn’t the numbers. It was the setup going in.
SEZZLE $SEZL Q2’26 EARNINGS HIGHLIGHTS
🔹 Revenue: $149.7M (Est. $135M) 🟢; +51.7% YoY
🔹 Adj. EPS: $1.13 (Est. $1.03) 🟢; +61.4% YoY
🔹 GMV: $1.3B; +37.9% YoY
🔹 Active Subscribers: 854,000; +76.4% YoYRaises FY26 Guide:
🔹 Total Revenue Growth: 35%
🔹 Adjusted Net Income:…— Wall St Engine (@wallstengine) August 6, 2026
SEZL had rallied roughly 106% in the three months before earnings. That kind of run creates a high bar, and even a solid beat wasn’t enough to keep the momentum going.
Keefe, Bruyette & Woods added fuel to the selloff. The firm cut its price target from $190 to $155 and moved its rating to “Market Perform,” citing valuation concerns after the extended rally.
Needham took the opposite view. The firm raised its target from $166 to $172 and kept a “Buy” rating, pointing to continued upside from current levels.
The consensus rating across analysts sits at “Moderate Buy” with an average price target of $146.50. That’s above where the stock was trading on Friday, but not by a wide margin.
Guidance Raised
Management lifted its full-year 2026 outlook after the quarter. Sezzle now guides for EPS of $5.25, ahead of the roughly $5.11 analyst consensus. Revenue guidance came in at approximately $607.9 million, above the $596 million consensus.
The company’s return on equity stood at 87.46% and net margin at 30.83% for the quarter. Pre-tax profit reached $51.71 million, representing a 34.5% margin.
TD Cowen also raised its target, moving from $108 to $165 while keeping a “Hold” rating. That note was issued in early July, before the earnings report.
Insider Activity
Insider selling has been active in recent months. Over the last 90 days, insiders sold 86,928 shares worth approximately $13.5 million in total.
Director Paul Paradis sold 26,400 shares at an average price of $161.35 in June, totaling around $4.26 million. SVP Justin Krause sold 3,178 shares at $117.72 in May. Both transactions were executed under pre-arranged Rule 10b5-1 trading plans.
Corporate insiders still own 49.49% of the company. Institutional ownership remains low at 2.02%.
The stock’s 50-day moving average sits at $157.17, well above where it was trading Friday. The 200-day moving average is $104.21. The company carries a market cap of around $4 billion and a PE ratio of 28.51.
Analyst ratings currently stand at one Strong Buy, three Buys, and five Holds.
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