Investor attention builds ahead of Sezzle Q1 earnings

Investor focus on Sezzle (SEZL) has increased ahead of its Q1 earnings release this Wednesday after the bell, following a previous quarter in which the company exceeded revenue expectations and reported strong year on year revenue growth.

At a share price of $86.02, Sezzle’s short term momentum has been strong, with a 7 day share price return of 12.39% and a 90 day share price return of 44.52%. The 1 year total shareholder return of 63.07% points to sustained interest ahead of earnings.

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With the stock up sharply over the past year and trading about 8% below the average analyst price target, the key question is whether Sezzle still offers value or if the market is already pricing in future growth.

Most Popular Narrative: 1.3% Undervalued

Sezzle’s narrative fair value of $87.18 sits slightly above the last close at $86.02, so attention is on whether this small gap reflects real upside.

Sezzle has delivered rapid revenue growth (>60% to 70% YoY) across 2024 to 2025 and record profitability, a rare achievement among BNPL peers. Gross Merchandise Volume (GMV) crossed $1 B quarterly, while net income margins remain healthy (approximately 22% to 30%).

Behind that fair value is a story built on strong reported revenue expansion, high margins and expectations that these earnings trends can be sustained over time.

Result: Fair Value of $87.18 (ABOUT RIGHT)

However, this narrative could be challenged if credit losses rise meaningfully or if tougher BNPL regulation pressures Sezzle’s margins and earnings quality.

Another View: Cash Flows Point To A Richer Price

While the narrative fair value sits close to the current $86.02 share price, the Simply Wall St DCF model paints a different picture. In that view, Sezzle at $86.02 is trading well above an estimated future cash flow value of $31.86. This implies limited margin for error if growth or margins wobble.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Sezzle for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 48 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

Mixed signals or clear opportunity, either way it makes sense to review the numbers, weigh both the upside and the downside, and then rely on the 2 key rewards and 4 important warning signs

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.