Sezzle dumps despite Q2 beat, raising full-year guidance

Sezzle (SEZL), the Buy Now Pay Later (BNPL) platform, sold off heavily afterhours on Thursday despite the broadly successful second-quarter results.

The company reported adjusted earnings per share (EPS) of $1.13 — 10 cents better than Wall Street's estimate and about 61% above the year-ago quarter.

Revenue of $149.7 million beat the $135 million estimate and surged about 52% YoY.

Q2 highlights

For gross merchandise value (GMV) — the value off all goods purchased using Sezzle's checkout platform — Sezzle reported $1.3 billion, up 38% from a year earlier. Falling below the revenue growth rate, this might be the stat that most worries the market, but it still beat the consensus by $100 million. But active users surged 76% YoY to 854,000, hinting that GMV stands to soar in coming quarters.

The sell-off is unusual, with the stock trading down 23% afterhours at the time of writing, particularly since Sezzle raised its full-year guidance. For 2026, Sezzle management expects 35% YoY growth. The projection for adjusted net income rose by $5 million to $185 million. In parallel, management raised their guidance for adjusted net income per diluted share by 15 cents to $5.25.

Sezzle stock charts

Post-earnings, Sezzle shares fell through both the 100-candle and 200-candle Simple Moving Averages (SMAs) on the 4-hour chart. This takes shareholders back to the mid-June price level and means the market is searching for a new support structure.

Interestingly, the plunge closed the minor gap that opened up on June 15, with Thursday's dump pushing into the highs from June 12 near $136. Markets love to close gaps, and Sezzle is no different.

But bulls looking for an entry are probably better off waiting until SEZL reaches the higher volume area from late May and early June surrounding $120. That region is reinforced by the 100-day SMA trending upward just below there.