Sezzle (SEZL) has put solid numbers on the table for Q1 2026, reporting revenue of US$135.5 million and basic EPS of US$1.52. Trailing twelve month EPS came in at US$4.38 and total revenue at US$480.9 million, underpinning the latest print. Over recent quarters the company has seen revenue move from US$98.2 million in Q4 2024 to US$104.9 million in Q1 2025 and then to US$135.5 million in Q1 2026. Over the same period, quarterly basic EPS shifted from US$0.75 to US$1.07 and then to US$1.52. This sets up a picture of earnings that sits on top of trailing twelve month earnings growth of 69.5% and a net margin profile that remains close to 30%, so investors are likely to focus on how durable those margins look in the context of the growth story.

See our full analysis for Sezzle.

With the headline figures on the table, the next step is to see how these results line up with the widely held narratives about Sezzle’s growth, risk profile and earnings quality, and where the numbers start to challenge those stories.

69.5% earnings growth and 29.6% margin in focus

• Over the trailing 12 months, Sezzle reported Basic EPS of US$4.38 and net income of US$148.3 million on US$480.9 million of revenue, which lines up with a 69.5% earnings growth rate and a net profit margin of 29.6% compared with 29% the prior year.
• What stands out for the bullish view is how this margin profile and growth rate line up with expectations that earnings and revenue could grow around the low to mid 20% range per year. However,
  • the bullish narrative also leans on engagement metrics and product uptake, so investors may want to compare that optimism with the fact that recent net income across the last four reported quarters ranged from US$25.4 million to US$51.3 million, not a straight line higher.
  • consensus narrative ideas about gradually improving margins sit beside the data point that net margin is only slightly above last year, which may prompt questions about how much more operating leverage is left if growth ever slows from the reported 69.5% earnings pace.

Bulls argue that the combination of 69.5% trailing earnings growth, a 29.6% margin and forecasts around 23% annual growth could justify paying up for Sezzle if those trends persist, and they dig deeper into that story in the 🐂 Sezzle Bull Case

One off US$89.4 million loss and leverage worries

• The analysis flags a single one off loss of US$89.4 million within the last 12 months alongside comments about a high level of debt and more volatile recent share price moves, which sits in contrast to the otherwise strong trailing earnings profile.
• Bears point to this combination of a large one off loss and leverage as a key part of the cautious case, because
  • the presence of US$148.3 million in trailing net income next to such a large one off charge suggests reported profitability can swing when unusual items or credit costs move, something that lines up with concerns about higher credit risk and provisions in the cautious narrative.
  • recent comments about share price volatility and insider selling over the past quarter also fit with a bearish focus on how sensitive the stock could be if any future charge or credit loss affects the clean net income figures that currently support the 69.5% growth story.

Skeptics highlight that a US$89.4 million one off loss, leverage and recent insider selling all sit behind the cautious storyline on Sezzle, and that angle is unpacked further in the 🐻 Sezzle Bear Case

P/E of 21.8x versus 42.56 DCF fair value

• Sezzle is reported to trade on a P/E of 21.8x, compared with 18.5x for the wider US Diversified Financial industry and 29.6x for its peer group, while a DCF fair value of US$42.56 is well below the current share price of US$99.82 and the allowed analyst price target reference of US$95.83.
• Consensus narrative views about solid long term revenue growth and stable margins meet some friction here, because
  • even with revenue growth reported at about 23% per year and a 29.6% net margin, the P/E premium to the broader industry sits beside a DCF fair value that is less than half of the current share price, which can make valuation-sensitive investors question how much of that growth is already reflected.
  • at the same time, the P/E discount relative to the 29.6x peer average may appeal to investors who put more weight on the 69.5% trailing earnings growth and forecast growth rates, so the data set naturally feeds both the growth focused and valuation cautious camps.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Sezzle on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With both risks and rewards on the table, the story around Sezzle is clearly mixed. It makes sense to review the data quickly and decide where you stand using the 2 key rewards and 4 important warning signs

See What Else Is Out There

For all the strong recent earnings, Sezzle still faces questions around a US$89.4 million one off loss, leverage, valuation tension and share price volatility.

If those concerns make you want steadier footing, compare this profile with companies filtered through the 74 resilient stocks with low risk scores which highlight stocks screened for more resilient risk characteristics right now.

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.