• Earlier in March 2026, Sezzle Inc. dismissed its independent auditor Baker Tilly, appointing PricewaterhouseCoopers for 2026 and disclosing a material weakness in internal controls over the classification of cash flows related to notes receivable for fiscal years 2024 and 2025.
• This combination of an auditor change and control weakness disclosure raises fresh questions about the reliability of Sezzle’s recent cash flow reporting.
• Next, we’ll examine how Sezzle’s auditor change and internal control weakness disclosure may affect the company’s existing investment narrative.

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Sezzle Investment Narrative Recap

To own Sezzle, you have to believe its buy now, pay later model can keep scaling profitably while credit losses, marketing spend, and litigation remain under control. The auditor switch to PwC and disclosure of a cash flow classification weakness introduce fresh questions around financial reporting, but the issue is narrow and does not obviously alter the core near term catalyst around user growth and product mix, or the key risk around credit quality and North American concentration.

The most relevant recent update here is Sezzle’s 2025 earnings release, which showed revenue of US$450.28 million and net income of US$133.13 million, followed by 2026 revenue growth guidance of 25 percent to 30 percent. Those figures underpin the current catalyst narrative around scale and margin expansion. The new control weakness and auditor change sit beside this story, and investors now have to weigh strong reported profitability against a spotlight on how cash flows have been classified.

Yet behind Sezzle’s strong revenue guidance and profit story, there is a separate reporting and control risk that investors should be aware of...

Sezzle's narrative projects $885.4 million revenue and $232.2 million earnings by 2028.

Uncover how Sezzle's forecasts yield a $99.60 fair value, a 38% upside to its current price.

Exploring Other Perspectives

Before this news, the most optimistic analysts were banking on revenue reaching about US$957.3 million and earnings of roughly US$250.9 million by 2028, which is far more upbeat than consensus and sits uncomfortably beside fresh concerns about internal controls and regulatory pressure on higher risk users.

Explore 19 other fair value estimates on Sezzle - why the stock might be worth less than half the current price!

Form Your Own Verdict

Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

• A great starting point for your Sezzle research is our analysis highlighting 4 key rewards and 4 important warning signs that could impact your investment decision.
• Our free Sezzle research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Sezzle's overall financial health at a glance.

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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.