Sezzle Inc (SEZL) Stock Forecast & Price Target

Sezzle Inc. has demonstrated robust financial performance with total revenue growth of 70.1% year-over-year in FY24, driven largely by a significant increase in subscription revenue, which rose to 30% of total revenue, up from 19% the previous year. The company's active subscriber base reached 784,000 in 3Q25, contributing to a 58.7% increase in gross merchandise volume (GMV) to a new quarterly high of $1 billion, indicating strong consumer engagement and purchase frequency improvements. Looking forward, Sezzle expects continued revenue growth of 25-30% year-over-year in FY26, along with anticipated adjusted net income of $170 million, both of which surpass analyst consensus estimates, providing a solid foundation for positive outlook on the stock.

Sezzle Inc. is facing a negative outlook primarily due to a projected decline in revenue as a percentage of revenue, attributed to increased provision expenses necessary for supporting business growth. The company's position in a highly competitive industry, where it struggles to attract and retain customers and merchant partners, poses significant risks to its growth trajectory. Additionally, prevailing macroeconomic conditions, including rising interest rates and market uncertainties, could adversely affect customer interactions with merchants, thereby further impacting Sezzle's gross merchandise volume (GMV) growth and overall profitability.