Sezzle Inc. Reports 76.4% Revenue Growth to $98.7 Million in Latest Quarter

Sezzle Inc. reported significant financial growth in its latest quarterly filing, with total revenue reaching $98.7 million for the three months ended June 30, 2025, a 76.4% increase from $56.0 million in the same period last year. For the first half of 2025, revenue totaled $203.6 million, nearly doubling from $102.9 million in the prior year. The company achieved an operating income of $36.1 million for the second quarter, compared to $16.7 million in the previous year, while net income for the quarter was $27.6 million, slightly down from $29.7 million in 2024. The decline in net income was attributed to increased provisions for credit losses, which rose to $20.6 million from $10.1 million year-over-year.

The company experienced notable changes in its operational metrics, with active consumers increasing to 2.86 million, a 4.9% rise from 2.73 million at the end of 2024. Monthly On-Demand Users and Subscribers also grew by 5.8% to 748,000. Sezzle's strategic initiatives, including the launch of new products and enhanced marketing efforts, contributed to this growth. The company reported a Gross Merchandise Volume (GMV) increase, driven by higher usage of its subscription services and On-Demand offerings, which are designed to attract and retain consumers.

Sezzle's balance sheet showed improvements, with total assets increasing to $350.6 million as of June 30, 2025, up from $298.4 million at the end of 2024. Cash and cash equivalents rose to $88.9 million, compared to $73.2 million previously. The company also reported a reduction in current liabilities, which fell to $88.9 million from $105.7 million, indicating improved liquidity. However, the allowance for credit losses increased to $23.6 million, reflecting the company's cautious approach to managing credit risk amid rising consumer delinquencies.

In terms of strategic developments, Sezzle has opted not to pursue recertification as a B Corporation, a decision that may impact its reputation and stakeholder perceptions. The company is currently involved in a legal dispute with Shopify, alleging antitrust violations related to competitive practices in the "buy now, pay later" sector. This lawsuit is in its early stages, and the outcome remains uncertain.

Looking ahead, Sezzle anticipates continued growth driven by its expanding product offerings and consumer engagement strategies. However, the company acknowledges potential risks, including regulatory scrutiny in the BNPL industry and macroeconomic factors that could affect consumer spending. Sezzle's management remains focused on maintaining its market position while navigating these challenges, with expectations for further revenue growth in the upcoming quarters.