Sezzle Q3 Revenue Rises 43%; 2026 Growth Outlook Set at 42.5%

Sezzle Inc. (NASDAQ: SEZL) reported a 42.6% year-over-year increase in third-quarter 2026 revenue and a 79.3% rise in GAAP net income, as transaction volume, subscriber numbers and customer engagement all expanded. The buy-now, pay-later provider also set its updated full-year revenue-growth outlook at about 42.5% and expects adjusted net income of $190 million.

Revenue reached $166.5 million for the quarter ended September 30, up from $116.8 million a year earlier. GAAP net income increased to $47.8 million from $26.7 million, lifting the net income margin to 28.7% from 22.8%.

Adjusted net income, a non-GAAP measure, rose 89.9% to $47.7 million. Adjusted EBITDA increased to $70.2 million from $39.6 million, while the adjusted EBITDA margin widened by 8.2 percentage points to 42.1%.

Total transaction volume, or TTV, grew 34.9% to $1.40 billion. Sezzle began using TTV in the third quarter in place of gross merchandise volume, expanding the metric to include purchases, SezzleCash advances and Sezzle Send payments. Prior periods were recast for the new definition and adjustments to purchase-volume measurement. Revenue represented 11.9% of TTV, compared with 11.3% a year earlier.

Subscriber and transaction growth

Active subscribers increased 68.1% to 955,000, bringing Sezzle close to the one-million mark. Active consumers rose 6.7% to 3.17 million, while total transactions increased 30.1% to 12.4 million.

Average quarterly transaction frequency climbed to 7.8 from 6.5, and average quarterly revenue per monetized user rose 28.1% to $41. Repeat usage accounted for 97.4% of cumulative transactions, up from 96.6% in the prior-year quarter.

Sezzle said subscribers completed an average of nine more quarterly transactions than non-subscribers. In-store purchases represented 39% of Sezzle Anywhere orders during the quarter, while the top 10% of Anywhere subscribers completed at least 31 transactions over 90 days.

The company continued to broaden its products beyond traditional checkout financing. More than 15% of eligible new Anywhere subscribers made their first third-quarter transaction through SezzleCash, and over 60% of those users later used Sezzle at checkout through October 21. More than 90% of all third-quarter SezzleCash users also used the checkout product during the quarter.

Sezzle Send entered beta testing during the quarter and received a broader rollout in October. Other recent or planned products include Subscription Saver, Sezzle Mobile, expanded long-term lending and a Canadian virtual card. Canada Anywhere is scheduled for the fourth quarter.

Transaction economics and expenses

Transaction-related costs totaled $58.8 million, or 35.3% of revenue, compared with $53.5 million and 45.8% of revenue a year earlier. As a share of TTV, those costs declined to 4.2% from 5.2%.

The provision for credit losses increased to $37.7 million from $32.2 million, but declined to 2.7% of TTV from 3.1%. Sezzle expects the full-year provision to equal about 2.5% of TTV. Transaction expense was $18.3 million, including a $3.7 million benefit from payment-network incentives, while net interest expense declined to $2.8 million.

Revenue less transaction-related costs, a non-GAAP measure, rose to $107.7 million from $63.3 million. The measure increased to 64.7% of revenue from 54.2%, indicating that a larger share of revenue remained after transaction expense, credit losses and net interest expense.

Non-transaction-related operating expenses increased to $46.2 million from $31.6 million and represented 27.8% of revenue, compared with 27.1% a year earlier. The latest quarter included $2.4 million of corporate strategic-project costs tied to the company’s banking-charter application and antitrust litigation. Sezzle filed the charter application in October.

Outlook and financial position

For 2026, Sezzle expects revenue growth of approximately 42.5%, adjusted net income of $190 million and adjusted net income per diluted share of $5.45 to $5.50. The company also issued preliminary 2027 guidance for adjusted net income per diluted share of $7.20.

Sezzle cautioned that its current 2026 and preliminary 2027 non-GAAP guidance reflects the income-tax effects of adjustments for corporate strategic projects and other income and expense. Earlier guidance was not recast for those effects and is therefore not directly comparable.

Cash provided by operations totaled $227.9 million for the first nine months of 2026, while investing and financing activities used $145.6 million and $76.7 million, respectively. At September 30, the company held $107.9 million of cash and restricted cash, had $315.9 million of net notes receivable and had drawn $104 million on its credit line. Available credit totaled $169.3 million.

The presentation identified regulatory scrutiny of the BNPL industry, consumer-credit conditions, bad-debt exposure, competition, access to capital and reliance on banking and data partners as continuing risks. Sezzle also said its national bank charter application may not receive timely approval, or any approval, and that the effect of a charter on its business remains uncertain.