Sezzle Inc.

Q1 GMV was $1.1 billion, nearly matching Q4's $1.2 billion holiday GMV. Total revenue grew 29.2% year over year, GMV grew 37.3% year over year, and gross margin reached 74% of total revenue. GAAP net income was $51.3 million, adjusted net income was $50 million, and adjusted EBITDA was $71.1 million, with adjusted EBITDA margin of 52.5%. Revenue yield was 12.2% versus 11.2% sequentially, though down 80 basis points year over year. The company raised full-year 2026 guidance to revenue growth of 30% to 35%, adjusted net income of $180 million, and adjusted EPS of $5.10.

Charles Youakim framed 2026 as a year to move Sezzle beyond checkout into a broader everyday financial services platform, including deposit accounts, card products, lending, and Sezzle Mobile. He repeatedly emphasized stronger engagement, subscriber growth, and the idea that the consumer flywheel is strengthening as users transact more often across more use cases. His tone was confident and expansionary, but he kept returning to disciplined growth and value for the consumer rather than growth at any cost.

Lee Brading highlighted seasonality, saying Q1 is typically the peak margin quarter because of Q4 payment spillover and better credit performance after tax refunds. He pointed to better unit economics, with transaction expense helped by more ACH adoption, provision for credit losses lower YoY, and net interest expense at 0.3% of GMV; he also said the company expects improvement as it refinances its credit facility next April. Liquidity remained strong with $147.4 million in cash, including $26.9 million restricted, plus $69 million available on the credit line, and the company repurchased $24.8 million of stock in the quarter. He reaffirmed targets of 55% to 65% revenue less transaction-related cost margin and 2.5% to 3% provision for credit losses as a percentage of GMV.

Analysts pressed on whether Q1 credit losses were unusually favorable and how Pay-in-5 and new products might affect losses; management said Q1 includes estimate true-ups, reiterated comfort with the 2.5% to 3% provision range, and noted Pay-in-5 may carry somewhat higher losses but should roughly balance with fees. Questions on the Pagaya partnership were answered by saying Sezzle is not taking the credit risk and is mainly earning a take rate while using the product to win larger merchants and expand long-term lending options. Analysts also asked about merchant mix, marketing spend, and macro weakness; management said the business is becoming more direct-to-consumer and open-loop, marketing spend should continue to rise as long as returns hold, and they are not seeing meaningful macro stress in the customer base.