Sezzle Inc

sezzle.com

What Do They Do?

Provides a digital payments platform for consumers and merchants, with online and in-store checkout tools and a virtual card.

How Do They Make Money?

Transaction income is the largest source: merchants pay a fee based on purchase value plus a fixed per-transaction fee, netted from Sezzle's upfront merchant payment. Consumers also generate fees; Premium and Anywhere subscribers pay recurring fees, while partner income includes interchange and marketing.

revenue

Segment	Share	How money arrives
Transaction income Usage-based	52% FY2022: 82%	Usage-based
Subscription revenue Recurring	22% FY2022: 4.2%	Recurring
Income from other sources	26% FY2022: 14%

Who Are Their Customers?

Small-to-medium and enterprise merchants integrate Sezzle on their websites; consumers select it at checkout or access it through Sezzle's app, dashboard, or virtual card.

Do Revenues Turn Into Profits?

Yes. It kept 30 cents of every revenue dollar as net income in FY2025 and turned 46 cents into free cash flow.

Operating income, FY2025

39% of revenue

▲ +115% vs FY2024 ($82.2M, 30%)

Net income, FY2025

30% of revenue

▲ +70% vs FY2024 ($78.5M, 29%)

Free cash flow, FY2025

46% of revenue

▲ +60% vs FY2024 ($130.6M, 48%)

How Are They Changing?

Since the FY2025 annual report

Latest quarter: Q2 FY2026, the three months to Jun 30, 2026

Revenue: ▲ +63%; vs $52M in Q2 FY2025
Net income: ▲ +48%; vs $27.6M in Q2 FY2025

Aug 18, 2026 Expanded its bank partnership to cover cash advances and payments WebBank will originate and fund loans for both products, retaining them on its balance sheet within stated limits.
Aug 6, 2026 Raised FY2026 financial guidance Raised revenue growth guidance to 35% and adjusted net income guidance to $185.0 million.
Mar 20, 2026 Changed its independent auditor Dismissed Baker Tilly and engaged PwC as auditor for fiscal year 2026.

Growing. Revenue grew 3.9x in 4 years, from $114.8M in FY2021 to $450.3M in FY2025, about 41% a year.

Subscription reach The older report describes Premium for use at non-integrated premium merchants; the latest also describes Anywhere, a subscription for using the virtual card across merchants online and in stores.

More repayment choices The older report centers on the standard installment plan and says a shorter option is in development; the latest describes more repayment-plan choices, including shorter and longer schedules.

Shopping and stored-value features The older report offers reward points redeemable as Sezzle Spend; the latest adds a rewards tab with sponsored offers and a stored-value account for purchases and payments.

Revenue over time

Transaction income Subscription revenue Income from other sources

$500M$250M$0

FY2021 FY2022 FY2023 FY2024 FY2025

Who Do They Compete With?

Competes with Affirm, Afterpay, Klarna, PayPal, and Zip

Comments