TD Cowen adjusted its price target for Sezzle Inc. (NASDAQ: SEZL) on January 8, reducing it to $82 from $83. The firm kept a Hold rating on the shares. This revision aligns with its updated outlook for the specialty finance sector, taking into account current macroeconomic conditions and long-term growth patterns. The new valuation reflects developments in various markets, including credit cards, auto and student lending, non-prime credit, Buy-Now-Pay-Later services, and lease-to-own offerings.
In the third quarter of 2025, Sezzle announced quarterly revenue of $116.8 million, a 67% increase compared to the same period last year. Earnings per share reached $0.71, exceeding analyst expectations by $0.06. The company's gross merchandise volume grew by 58.7%, surpassing $1 billion in a single quarter for the first time. Management decided to reduce focus on its on-demand product, shifting emphasis toward its subscription model. The on-demand feature, designed to convert users into long-term subscribers, showed lower performance at the point of sale.
Sezzle has raised its full-year 2025 guidance, now projecting GAAP earnings per share of $3.52 and adjusted earnings per share of $3.38. The company also provided preliminary guidance for 2026, forecasting adjusted earnings per share of $4.35. This target represents an anticipated 29% growth over 2025, supported by ongoing subscription expansion, improved cost efficiency, and increasing consumer adoption of BNPL services instead of traditional credit cards.
Sezzle Inc. operates as a technology-enabled payments company primarily in the United States and Canada.