Sezzle Inc (SEZL) Stock Forecast & Price Target

Sezzle Inc. demonstrated significant growth in FY24, with total revenue increasing by 70.1% year-over-year, driven largely by a rise in subscription revenue, which now contributes 30% of total revenue compared to 19% the previous year. The company's expanding consumer base, with on-demand and subscriber counts reaching 784,000 in 3Q25—up from 529,000 in 3Q24—has been a key factor in its Gross Merchandise Volume (GMV) growth, which surged to $1 billion for the quarter, representing a 58.7% year-over-year increase. Looking ahead, Sezzle anticipates revenue growth of 25-30% for FY26, with an adjusted net income projection that surpasses consensus expectations, indicating strong future performance potential.

Sezzle Inc. faces a negative outlook primarily due to a projected decline in revenue as a percentage of revenue, decreasing from 58% in FY26 to 57.1% in FY27, attributed to growing provision expenses, which may hinder financial sustainability. Additionally, the company's performance is under threat from an intensely competitive landscape, making it difficult to attract and retain both consumers and merchant partners, thereby impacting growth potential. Furthermore, adverse macroeconomic conditions, such as rising interest rates and market uncertainties, may negatively affect customer transactions and overall gross merchandise volume (GMV), putting further pressure on profitability and growth strategies.