Key Highlights

  • Revenue rose 42.6% to a record USD 166.5 million, ahead of a 34.9% gain in transaction Volume to a quarterly high of USD 1.4 billion.
  • GAAP Net Income of USD 47.8 million equaled USD 1.38 per diluted share, versus USD 0.75 a year earlier, while adjusted EPS was USD 1.37 against USD 0.70.
  • FY2026 guidance was raised for the fourth time, now targeting adjusted net income of about USD 190.0 million and adjusted EPS of USD 5.45 to USD 5.50.
  • Active subscribers climbed 68.1% to 955,000, and a preliminary FY2027 adjusted EPS figure of USD 7.20 was introduced alongside the results.

Operating Leverage Behind the 38.6% Margin

Sezzle (NASDAQ:SEZL) reported third quarter 2026 results on November 4, 2026. Total Revenue reached a record USD 166.5 million, equal to 11.9% of transaction volume, up from 11.3% a year earlier. Operating expenses grew 25.9% to USD 102.3 million, a slower pace than revenue, so Operating Income rose 80.7% to USD 64.3 million from USD 35.6 million and the operating Margin widened to 38.6%. Adjusted EBITDA climbed 77.1% to USD 70.2 million, a 42.1% margin. Provisions for Credit losses eased to 2.7% of volume from 3.1%, and a USD 3.7 million payment network incentive lowered transaction expense to 1.3% of volume. Net interest expense fell to a company low of 0.2% of volume.

Guidance Raised Again With a First FY2027 Marker

Management now projects FY2026 revenue growth of about 42.5%, up from 35% in August, and adjusted net income of USD 190.0 million versus USD 185.0 million. The current guidance reflects income tax effects absent from earlier figures, so the prior outlook is not directly comparable. The first FY2027 marker is adjusted EPS of USD 7.20, which the company describes as 30.9% to 32.1% growth over FY2026 guidance. SezzleCash, launched in June, helped attract subscribers, and Sezzle Send reached all users in October. More than 15% of eligible new Anywhere subscribers made a first transaction through SezzleCash.

Bank Partner Funding, Charter Bid and Legal Costs

Sezzle (NASDAQ:SEZL) held USD 107.9 million of cash, equivalents and restricted cash on September 30, 2026, including USD 37.7 million restricted, against USD 104.0 million of borrowings on a USD 300.0 million credit facility. Under a retention arrangement, WebBank can originate and hold eligible SezzleCash and Sezzle Send loans off Sezzle's Balance Sheet while Sezzle services them. In October 2026 the company applied to the Office of the Comptroller of the Currency for a national bank charter. Antitrust litigation and charter costs totaled USD 2.4 million in the quarter, and Marketing spend of USD 15.9 million, down from USD 19.4 million in the second quarter, remained above USD 8.8 million a year earlier. Sezzle also soft-launched its Anywhere card in Canada after quarter end.

Where Things Stand

Margin widened because revenue outran operating costs, credit losses eased and transaction expense fell. Revenue growth also ran 7.7 points ahead of transaction volume growth, and the FY2027 figure of USD 7.20 is a first, preliminary marker. Sezzle (NASDAQ:SEZL) has lifted guidance four times this year, but the holiday quarter is the next test. Bank partner funding, the charter application and the antitrust suit add uncertainty. Management presents at Fintech investor events from November 10, 2026, and the next report will show whether the raised outlook held.